Albuquerque home values drop

Posted at: 12/12/2012 5:59 PM
Updated at: 12/12/2012 6:37 PM
By: Stuart Dyson, KOB Eyewitness News 4

While home sales are picking up in the Albuquerque metro area, the price - the actual value - of most houses is falling.

This is the bright fluffy cloud with a lining made of lead. Sales are up, but values are down, and our city is near the bottom of yet another list.

From November of last year to November of this year, the value of the average Albuquerque house dropped 1.36 percent, good for 82nd place on the Federal Housing Finance Agency's list of 102 cities.

That's right. We're in the bottom twenty, even though for almost a year and a half Albuquerque has seen an increase in home sales. Why? Those same lower prices.

"We're seeing interest rates that are at an all time low," said Janice McCrary, director of the Greater Albuquerque Association of Realtors. "We're seeing prices that I think people believe have finally dropped to the bottom. I don't think they're going to get very much lower, so they're finally acting and moving."

"We don't have job growth," said Association President Marc Guggino. "We don't have job creation. We don't have any of that, so how long will this last is the ticket. If interest rates rise in the first of the year, or even next year at any time, we could see a little shift in this deal."

That would be home sales slowing down again.

Compare what's happening here with what's going on in Phoenix, where home prices have increased by a stunning 9.5 percent in the last year.

Other cities sharing Albuquerque's misery include Orlando, Florida and Memphis, Tennessee. Way down at the very bottom of the list is number 102 - Poughkeepsie, New York, where house prices have dropped by nearly 6 percent.