Seller’s market

Homebuyers in central New Mexico will face higher prices and fewer choices this year

Houses sold for more money in central New Mexico in 2016 compared with the year before, but less inventory in some indemand ZIP codes and rising prices may be a concern for homebuyers going into 2017.

There were 12,067 closed sales for the year, or about 8 percent more than in 2015, according to the Greater Albuquerque Association of Realtors. That combined number included 11,021 existing single-family homes and 1,046 condos and townhomes that changed hands.

The data cover the city of Albuquerque and Bernalillo, Valencia, Sandoval, Torrance and parts of Socorro and Santa Fe counties.

The average single-family home sold for $222,115, a 4.1 percent increase from 2015. The median home price increased 4.5 percent to $187,500.

Meanwhile, a single-family home typically spent 54 days on the market before selling in 2016, 12 fewer days than the year before.

The association said median home sales prices for the region stood at $190,000 last month, an 8.6 percent increase over December 2015. Median means half of the homes sold for a higher price and half for a lower price.

But inventory is historically low, with 20 percent fewer homes listed for sale in December, according to the association.

For most of the year, low interest rates made competition fierce for a smaller roster of homes on the market, prompting multiple competing bids and higher prices in places such as the Northeast Heights and areas near the University of New Mexico, said Don Martindell, association president.

Buyers were drawn to wellpriced properties, the unique character of a home, a well-kept street or an in-demand neighborhood school, Martindell said.

Most of 2016 offered the same monthly housing market highlights. The number of homes for sale was down in year-over-year comparisons, along with days on market and months of supply.

The low inventory crunch will continue into 2017, as will an increase in prices across most price ranges and property types, Martindell said.

Eager buyers will vie for fewer available homes, making affordability a challenge for the unprepared, such as those with bad credit, too much debt or not enough money to swing a down payment.

For more details, go to GAAR. com and click on Market Statistics under “News & Events.”