ABQ Metro Area Enjoys Season of Gains

Posted on Aug 9, 2012

Sales of existing detached homes increased 8.1 percent from 1,915 in the second quarter of 2011 to 2,071 in the same three-month period this year, according to the Greater Albuquerque Association of Realtors.  This year’s home sales in April through June were the highest in two years.

Based on historical trends in the metro, homes sales – both detached and the much smaller market for attached homes like condos and townhouses – are on track to hit the 8,000 mark threshold for the first time since 8,174 homes were sold in 2008.

“There will always be a lot of opinions on what is causing the market to move forward,” said Marc Guggino, association president.  “There’s not a lot in the economy that explains it.”

But mortgage rates have been at historical lows, below 4 percent, since the beginning of the year, he said.  Most homebuyers with good credit and a secure job can qualify for a home loan through the Federal Housing Authority, better known as the FHA, that allows for a modest 3 percent down payment.

“People don’t want to wait to buy a home because they know this environment will change,” Guggino said.  “We can’t stay at these low interest rates indefinitely.”

Appeared on page B1 of the Albuquerque Journal August 6, 2012- “ABQ Metro Area Enjoys Season of Gains” by Richard Metcalf