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Northeast Albuquerque is Hot! Absorption Rates indicate a great real estate market here!

By
Real Estate Agent with Century 21 Camco Realty

Here we go with another of my colorful charts, this time focused on the Northeast Heights area of Albuquerque, New Mexico. Realtors all over the country would probably give their eyeteeth about now to be able to show statistics like this for their local real estate market. That's because most of NE Albuquerque is still comfortably in the true "sellers' market" range, according to absorption rate figures!

Absorption rate calculatorWe'll take a look at the exact figures shortly, but first, those of you readers who are new to this blog and not Realtors yourselves may be asking "What is absorption rate, and why should I care?" Briefly, absorption rate is a way of calculating how many properties are on the market trying to be sold compared with how long it is taking such properties to sell. We calculate absorption rate by dividing the number of properties currently for sale in a given market by the number of such properties that actually closed in the preceding month. This tells us how long it ought to take, if the market continues in the same pattern, to get all the houses sold that are now on the market, assuming no new listings come up in the mean time.

 

Here's your cheat sheet for the meaning of the colors in the chart:

Absorption Rate color coding

Obviously, the fewer the months in the absorption rate, the quicker the properties are selling, and the more of a sellers market it is. Generally, the "cooler" the color on the chart, the "cooler" the market is for sellers. The warmer the color, the "hotter" it is for buyers!

Albuquerque NE Heights absorption ratesWith that in mind, take a look at the current absorption rates for Albuquerque's NE Heights look at Albuquerque

Notice that virtually ALL of Northeast Albuquerque is lying comfortably in the blue and green "sellers' market" bands, with absorption rates between the 2.9 months experienced by lucky Sandia Heights sellers and 5.9 months, as in North Albuquerque Acres. UNM South, which is actually south of Central, and thus not really part of the Northeast Heights at all, but which competes for the same pool of buyers as neighboring UNM and Near NE Heights areas, is just barely into the yellow band of a "balanced" market.

Interestingly, the only one of these areas that is anywhere near a "buyers' market" absorption rate, is the Foothills North area, which contains the trendy but highly expensive High Desert area. This area is currently experiencing an absorption rate of 13 months, which lands it squarely in "buyers' market" territory.

So those of you who are buyers interested in High Desert and surrounding areas, it might be a good time to really negotiate hard for a good deal. For sellers in general, the Northeast Heights is a great place to be marketing a home. And, in fact, Albuquerque is currently ranked as the fastest appreciating real estate market in the nation!

So all you investors out there, shouldn't you be looking at Albuquerque, NM? Hmm?

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