Today’s Rio Rancho Journal reported in the article “Home Sales Continue To Rebound,” good news for the real estate market in both Albuquerque and Rio Rancho. The September 2009 numbers for both cities were better than those for 2008…Click the below link for the article: Home Sales Continue To Rebound on Page 1 of October 17, 2009 issue of Rio Rancho Journal Section
I am not sure that this article appropriately explains the current trend though. I think that comparing percentage change between our two cities is a bad idea. Should Albuquerque reflect a higher percentage change next month, would that mean that it’s now doing better than Rio Rancho? Not at all. Here is something we know, there were 477 sales in Albuquerque, while 108 sales were made in Rio Rancho. So in actuality, more people purchased homes in Albuquerque.
What might better explain the current trend? The $8000 tax credit. When consumers are able to enter the market because of the tax credit, it is very likely that some would choose to purchase in Rio Rancho since the prices there are lower. all other factors remaining constant. In this case, the consumer would be able to afford more home for his/her same income.
I would love to hear your opinion!
C. Lloyd McKenzie, MBA, e-Pro, CDPE
Allstar Realty, LLC
7001 Prospect Place NE, Suite 200
Albuquerque, NM 87110
505-888-9650 office fax