In May, the Albuquerque Real Estate market saw an increase in home sales. Home sales were 4.4% higher from the previous month. The average sales price of single family, detached homes is at it's highest since October 2008. The days on the market for single family homes dropped for the third consecutive month. Nationally, NAR (National Association of Realtors) reported four consecutive months of rising pending sales.
However, I attended a Bank of America meeting and they were talking about a large backlog of foreclosures is about to hit the market. There was a moratorium on foreclosures that ended in March. The homes that were affected by that moratorium are just now starting foreclosure. According to Bank of America's spokesman, they had 45,000 units in foreclosure but expected it to rise to 65,000.
Another issue may be interest rates. They have been headed up for a while now. The last I checked they were at 5.8% a full 1% higher than a couple of months ago. As inflation raises it's ugly head interest rates could get worse. First time homebuyers are the largest group of buyers right now due to the government's incentive of $8,000 credit but first time homebuyers are most affected by interest rates.
In conclusion, while some signs are showing some improvement there are still a lot of issues that could cause problems on the horizon.