More Sales, Less Money, Bottom?
September 30, 2011
By: Will Beecher
The Greater Albuquerque Area Sales in Quarter 3 increased by +15%. However prices still declined more than -9%.
The good news is that we are seeing more sales; the bad news is sellers are getting less money for their property. Even in the East Mountains, which in more of micro-market, closed sales increased by 10%, but prices fell almost -10%.
However, this is interesting data because could this a sign of a bottom? If people are buying more property but prices declined again even from 2009 levels. The conclusion is we have finally reached price levels where buyers are willing to buy more property.
This is why 2012 is going to be a crucial year to gauge the market direction. We need to see stabilization in prices with an increase in closed sales.