While previous reports had stated the was cool, yet strong,recent findings say otherwise.
According to Mike Inselmann, president of Metrostudy, Albuquerque is expected to hit the bottom of its housing cycle in the next six months.
Cutbacks in new production, aggressive incentives to sellers, the exit of the majority of investors and the fundamental demographic support for housing demand are positive indicators for a housing turnaround by mid-2007, Inselmann said.
John Covert, director of Metrostudy s Albuquerque division, noted in particular the 17.4 percent decline in the sales of existing homes, along with a spike in inventory, which doubled at the end of September when there was a 4.1-month supply on the market and little demand for in the city.
However, job growth remains strong. There were 13,400 new jobs added to the Albuquerque economy for the fiscal year ending September 30. New housing starts are declining, recording a 24 percent drop in the third quarter from a year ago.
Albuquerque s affordability also has declined in the past two years when 46 percent of all new homes being sold were below $150,000. Today, just 9 percent of new homes and condos are priced under amount. No wonder so many individuals are holding off on applications as they await prices to come down.
Still, Covert remains relatively upbeat.
Despite the recent slowdown in housing, the market remains fundamentally healthy and as long as Albuquerque continues to create jobs at a robust level and in-migration remains strong, should be able to shed excess inventory in the coming months and increase starts activity later in 2007, he said.
News RSS