Home Sales Up but Values Down

Albuquerque like the rest of the US saw home prices falling after some small gains in home values in the Summer and Spring of 2011. In ABQ, almost 30% of home sales are short sales or foreclosed home where the bank takes 20-25% of the market value for a home. For a Seller, these distressed properties depress the value of nearby homes. For Buyers, there continue to be terrific values out there especially with low interest rates. The average median price in ABQ area was $167,000 in October down 7% from last year. Recovery is a long way off. To see an excellent article on the national trend click on the link below.

JULY HOME SALES LIKELY UP

While I haven't seen any statistics, it sure feels like there is alot of activity in the resale home market this month. July will be one of my biggest months for sales and for new listings. The first time homebuyers seem to have disappeared from the market and the buyers are looking in the $250,000 plus range. I even closed a million dollar listing this month albeit just below that mark after negotiations et al. Buyers are still going for the steal, but Sellers are definitely pushing back when they feel like their value is good. As prices begin to nudge up the appraisals are issues because the appraisers have to use recent comparable sales, so if those are low it is difficult to get a higher sale price. One wonders if they aren't going to keep values at the low end while they figure out how to reflect "willing buyer and willing sellers" at higher prices. No one wins when they keep prices unfairly low.