2023 Spring Real Estate Report
What’s New in the Communities SLFCU Serves?
Heading into spring, the U.S. housing market remains steady, following the trends of low inventory and high interest rates we saw in 2022. The ongoing shortage of homes for sale and a decrease in new home construction continue to affect housing inventory, making it unlikely that prices will drop anytime soon.1 And while it’s still a seller’s market, homeowners who locked in rates at 3% or lower in 2021 are choosing not to sell, further constricting the number of houses available for sale.2
ALBUQUERQUE IS IN LINE WITH NATIONAL TRENDS
In February 2023, home prices were up 10.5% in New Mexico compared to 2022, selling for a median price of $350,700. The number of homes sold was down 41.7% year over year – with 438 homes selling in February 2023 compared to 749 sold in February 2022.3
In looking at homebuying trends in the competitive Albuquerque area, Lisa Brown, Associate Broker with NM 24k Real Estate Group, says she continues to see more buyers taking on the responsibility of adjunct home purchase costs, such as inspections, appraisals, and loan-related fees – suggesting it’s still a seller’s market. “We are seeing fewer negotiations with inspections and repairs, and if buyers want an edge when placing an offer on a home with multiple offers, they take on the responsibilities of doing repairs or negotiating a credit towards closing costs, etc.,” she explains.
FARMINGTON INVENTORY IS STABILIZING
Median home prices rose to $261,000 at the end of 2022 in the Farmington area – an increase of 20.3% from the previous year. In 2022, Farmington saw 137 single-unit building permits for new housing construction – 28.1% more than the 8-year average of 107 such building permits. According to the National Association of REALTORS®, if this production remains above the trend for an extended period of time, prices could moderate as inventory builds up. The rise in construction in Farmington suggests that the local inventory has stabilized.4
TRI-VALLEY REAL ESTATE MARKET IS COMPETITIVE
Average home prices in Livermore, CA decreased 16.4% from the previous year and are now at an average sale price of $985,000.5 After a market slowdown in the latter half of 2022, buyer demand “rebounded dramatically,” resulting in an increase in open house traffic, number of offers on homes, and overbidding, according to Compass.com. Median home sales prices saw year-over-year declines across all Bay Area counties,6 and more significant data on what the market will be like for the remainder of 2023 will be determined by the outcome of the Tri-Valley real estate market’s busiest period: March through May.
SLFCU CAN MAKE HOMEOWNERSHIP HAPPEN
“It's still difficult for first-time and experienced homebuyers to compete,” says Lisa. “The average price of a home has risen dramatically, and with mortgage rates increasing, it’s affecting the cap on what buyers can realistically afford.” That being said, Lisa believes homebuying is still an attainable goal. “Rates are still good, and I strongly encourage any buyers out there to move forward – they can always refinance when rates go down.”
Ready to get started on your homebuying journey? With downpayments as low as 3% for first-time homebuyers, no private mortgage insurance requirement, and jumbo loan options for homes above $726,200, SLFCU can help get you on your journey of becoming a homeowner. Click here to learn more about our home loan options.
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