Contact Bruce Shah via phone at: 505-898-7937, email: jbshah@nmol.com, website: http://www.newmexicohomesearch.com/ or at the REMAX Alliance office: 9577 Osuna Rd. NE Suite B, Albuquerque, NM 87111
June Looks Just Like May...
Just when the credit markets seemed to be settling down, last week brought some new, and very nasty shocks. Stock prices for both government-chartered mortgage companies, Freddie Mac and Fannie Mae, went into free-fall. And, since they either own or guarantee about $6 trillion in mortgage debt, that got everyone's attention. And, if that were not enough, as the week drew to a close Federal regulators seized IndyMac Bancorp, marking the biggest bank failure in more than 20 years. For those of you who remember the S&L crisis of the mid-80's, perhaps this is starting to look eerily familiar.
The major differences, unfortunately, are all on the negative side: financial institutions are much more interconnected all over the world AND the amount of money involved is far, far larger.
All of that, however, is not reflected in the June sales figures. By this time next month, we should have a better feel for how much damage this week's events have caused. For now... another month just like the last month
| Pending Sales | 2008 | 2007 | Change |
|---|---|---|---|
| February | 768 | 1,034 | (25.73%) |
| March | 836 | 1,155 | (27.62%) |
| April | 862 | 1,148 | (24.91%) |
| May | 869 | 1,157 | (24.89%) |
| June | 857 | 1,108 | (22.65%) |
| Closed Sales | 2008 | 2007 | Change |
|---|---|---|---|
| February | 532 | 741 | (28.21%) |
| March | 624 | 964 | (35.27%) |
| April | 641 | 910 | (29.56%) |
| May | 674 | 1,020 | (33.92%) |
| June | 738 | 1,011 | (27.00%) |
The average sale price continues to yoyo within a narrow range. June sees us back in negative territory but not by a large amount. (Note the average price is actually up from May, but I do think that year-to-year comparisons are the most accurate.) My comment from last month continues to hold: while this is not by any means a healthy market it is not remotely a market in free-fall either.
| Average Sales Price | 2008 | 2007 | Change |
|---|---|---|---|
| February | $226,342 | $234,176 | (3.35%) |
| March | $236.394 | $239.311 | (1.22%) |
| April | $227,281 | $243,023 | (6.48%) |
| May | $247,295 | $246,062 | 0.50% |
| June | $248,375 | $254,298 | (2.33%) |
And, the listing inventory remains the bone in the throat of every seller: Fewer buyers to look at your home -- and far more homes for them to explore.
| Active Listings | 2008 | 2007 | Change |
|---|---|---|---|
| February | 5,591 | 4,141 | 35.02% |
| March | 5,836 | 4,054 | 29.57% |
| April | 5,943 | 4,990 | 19.10% |
| May | 6,241 | 5,292 | 17.93% |
| June | 6,428 | 5,672 | 13.33% |
And, now that we are well inside the traditional 'selling' season, perhaps it's time to look at how this translates for sellers: not just more effort, but more uncertainty as the time it takes to sell continues to stretch out. And, of course, if someone is unable to sell, they are also unable to buy. And around and around we go...
| Avg. Days on Market | 2008 | 2007 | Change |
|---|---|---|---|
| April | 66 | 41 | 60.98% |
| May | 65 | 37 | 75.68% |
| June | 68 | 37 | 75.68% |
And, remember these figures are for the most active selling months. No serious seller is going to look at this information and not be flexible. It remains a superb time to be a well-qualified buyer: low interest rates, lots of choice and willing sellers. As I said last month -- what's not to like? :-)