Albuquerque, N.M., area home prices continued to rise in August, driven in part by a spike in demand for luxury homes.
The Greater Albuquerque Association of Realtors' home price report for August showed that the median sales price for a detached single-family house surpassed $259,000 for the month, up 14.2% compared to last August. The mean sales price hit $299,444, a 15.8% increase over the same period.
While a limited supply of entry-level homes continued to drive prices up, real estate agents also saw a spike in sales of luxury homes in August.
Tego Venturi, operations director for Keller Williams Realty in Albuquerque, said the number of closed sales over $500,000 increased 86% compared to August 2019.
"That part of the market has really jumped up," Venturi said.
Venturi said the jump was driven by a mix of factors. He said some homeowners are looking for more space and access to home offices after being stuck in their houses during the pandemic. Venturi said there are also new buyers moving to Albuquerque from more expensive markets.
While Venturi acknowledged it's difficult to tell where new buyers are moving from, he said the Albuquerque market has attracted interest from Southern California, Dallas-Fort Worth and New Jersey.
"They love our affordability, how much home you can get for your money," Venturi said.
While Venturi said traditional luxury hotspots like the Northeast Heights and Corrales saw plenty of activity, he added that the interest wasn't concentrated in a particular part of town.
While the spike in luxury home sales got the industry's attention, there was plenty of demand for homes at all price points. The report showed that the number of pending sales jumped by 32% since last August, and the average home spent just 25 days on the market.
While fall is typically a slower time for Albuquerque real estate, there might not be much of a slowdown in 2020. GAAR president Sherry Fowler said families with school-age children normally want to be settled by the start of the school year. This year, however, realtors have reported that the demand has lingered into September.
"We're not seeing it slow down in the least," Fowler said.
