Spring is typically the most active time of year for home buying and selling. However, the ongoing pandemic will have an as-yet-unknown effect. Nationwide, 48% of Realtors said buyer interest has decreased due to the COVID-19 outbreak, according to a March survey by the National Association of Realtors.1
The Greater Albuquerque Association of Realtors says real estate brokerages in the area are adapting their businesses during the pandemic and preparing their clients for what could be an uncertain few weeks or months ahead in the housing market.2
In a recent California Association of Realtors (CAR) poll,3 more than three-fourths of Realtors in the state expect a negative impact on home sales due to the pandemic. However, there could be a silver lining: CAR has noted that the effects of recent, historically lower mortgage rates could help offset the results of a slower economy and increased economic uncertainty such that California could see a modest improvement in home sales and prices this year.4
ALBUQUERQUE: A SELLER’S MARKET
The Albuquerque area has seen historically low housing inventory and decreasing interest rates so far this year. “This is the strongest seller’s market I have seen in the sixteen years that I have been in real estate in this area,” says Britt Harville of Harville Realty, a HomeAdvantage®* agent. He expects prices to continue to rise in 2020 and notes that as of mid-March, the area’s inventory for single-family detached homes is approximately 1,955. To put that number into perspective, Britt notes were about 2,200 to 2,300 homes on the market as of year-end 2019.
“In the last year, I have participated in more bidding wars than ever before,” says Britt. “Because inventory is low, buyers are facing an uphill battle when it comes to negotiating price and repairs. Sellers are aware that we are in an appreciating market and can either avoid repairs altogether or complete them and sell their property for a greater value. Comparable sales can be misleading at certain price points,” he continues.
Opportunities for first-time homebuyers are growing in Albuquerque. “Rentals continue to be expensive and with rates as low as they are, owning a home is often a less expensive option,” Britt notes. Companies such as Netflix have opened in the area and brought with them a lot of new, younger residents who, Britt says, are “happy to see how affordable our market continues to be relative to the markets they have left behind.”
CALIFORNIA’S TRI-VALLEY: RISING HOME PRICES AND SALES
Across California, declining rates have bolstered home sales while lower inventory was driving up prices prior to the COVID-19 outbreak. This was certainly true in the Tri-Valley area. In Livermore, for example, the median home sale price hit $870,000 in February – a $75,000 (9%) increase over February 2019. Pleasanton’s median price was $1.201 million, an increase of $76,000 (7%) over a year ago.5
THINKING OF MOVING?
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1 https://www.nar.realtor/newsroom/nar-survey-finds-nearly-half-of-realtors-say-home-buyer-interest-has-decreased-due-to-the 2 https://www.gaar.com/blog/article/coronavirus-forces-culture-change-in-real-estate 3 https://www.car.org/en/aboutus/mediacenter/newsreleases/2020releases/covidpoll2 4 https://www.car.org/knowledge/pubs/newsletters/Newsline/Coronavirus 5 https://bayeast.org/community-info-statistics/
