Home prices fall, Albuquerque remains a buyer's market

Posted at: 05/30/2013 6:31 PM
Updated at: 05/30/2013 7:18 PM
By: Stuart Dyson, KOB Eyewitness News 4

Realtor Mike Haley’s metallic footnote to the 'For Sale' out front of the home he's trying to sell sign says it all – Price Reduced.
Home prices took a big leap in most cities around the country this spring – but not in Albuquerque, where the average price dropped during the last twelve months.
This is still a buyers’ market, with home sale prices dropping by an average of 6.3 percent from April 2012 to this April, but most real estate people will tell you it probably won’t last.
Haley shows us a 4,180 square foot mansion in Tanoan. Price tag: $599,000.
Before the recession it would have been closer to $1 million. The biggest price reductions in Albuquerque are on places like this in the upper layers of the house-o-sphere.
“I think that in three or four months you and I could be standing here having a conversation about how high the prices have come in the last three or four months,” Haley said. “We’re getting multiple offers on homes now. The market is really heating up, so that means the prices will start going up, too.
Haley says potential buyers need to think about interest rates, too. For the first time in four years, they’re starting to head upwards. They’ve been down in the middle of the 3 percent range, but now they’re up  a little over 4 percent. Haley said he expects them to climb into the 5 or 6 percent territory in the next year-and-a-half to two years. Haley and others in real estate say now is the time to get pre-qualified and start shopping.
“Don’t snooze or you’ll lose,” Haley said.