Buyers Market in Alto ? - Current inventory of homes, lots
August 15th, 2008 categories: Alto New Mexico Property, Ruidoso Market Trends
Looking at the current listings for Alto Lakes Golf & Country Club, there is still ample inventory of available site built homes, and lots for sale. There are currently 82 homes, (with Full Golf Membership ) for sale in Alto Lakes Golf and Country Club, with prices ranging from a low of $219,999 to a high of $1,695,000 and the median price is $407,250. The median home size is 2256 sq. ft. The median sq. ft price is $180.50.
Alto Social Membership homes - show 23 current listings, ranging from $225,000 to 785,000 and a median of $359,000. Median home size is 2119 sq. ft. Median sq. ft price is $169.40.
Town homes and Condos in Alto - currently there are 9 properties listed, from a low price of $219,000 to a high price of $589,500 and a median price of $399,900. All but one of these properties have a Full Golf Membership.
Subdivision lots - Full Golf Memberships in Alto Village are currently at 66 listings available, from a low price of $34,500 to a high of $250,000. the median price lot in Alto is $57,000. Median number of days on market is 260. Social Membership lots number 42, and range for a low price of $15,500 to a high of $550,000, and a median price of $30,700. Median number of days on market is 144.
July sales 2008 vs. 2007: In July 2008, six homes were sold in Alto Lakes, with prices ranging from $200,000 to $460,000 and a median sales price of $441,250, and a median sq. ft price of $167.00, and median number of days on market was 192.
In comparison to the same period last summer, 10 homes were sold with a median price of $364,750. and a median sq. ft. price of $169.00, and median number of days on market was 75.
Buyers Market ? The drop in total dollar value of homes sold, and in number of units sold is down about 35 % for the month of July compared to the same month in 2007. With days on market running considerably longer, reflecting the overall real estate slow down, there may be opportunities for buyers. Year to date - total dollar sales in Alto is down about 40% vs. 2007 figures. However, homes that are priced right are continuing to sell in a shorter time frame.
One other technical indicator of a buyers market is the absorption rate. The total number of available homes divided by the total number of homes sold in the previous month. Looking at all site built homes, including town homes, with 113 properties currently listed, and 7 transactions closed the previous month yields an absorption rate of 16. This means in theory there is a 16 month supply of homes available. “Normal” market conditions exist when the available supply is 1-6 months, a “sellers” market exist when the inventory is from 1 to 4 months, and a “buyers” market exist when the rate exceeds 7 months supply.
When looking at the specific price range of homes priced between $400k to $500k, closer to the median price of all Alto listed homes, the absorption rate drops to a “sellers” market value of 3.8 months. Again, buyers may not see as much negotiation in this price range, as it seems to be the most active, and reasonable segment of the market.
New construction cost: New homes listed in Alto currently number 22 properties, listed at a median sq. ft price of $190.00 / ft. Higher priced new construction homes ( median price $785,000 ) will are listed at about about $210.00 per ft.
With older homes priced at $167.00 per sq. ft., there may not be too much additional drop in price for bargain hunters. Alto Lakes continues to be one of the areas strongest residential markets for investment and appreciation. There are many benefits to ownership in this area including Golf & CC membership, strong covenants, views, and location.
National trends in real estate suggest a “buyers market”. A recent report from the National Association of Realtors, and reported by Bloomberg, says that in the second quarter of this year, existing single family home sales fell to a 10 year low, and the median price of a home declined 7.6 %. The market in Ruidoso and Alto is obviously off the highs of a few years ago, however, it has not been hit nearly as hard as some markets such as California and other areas where foreclosures and short sales are widespread. In comparison to other Rocky Mountain resort areas such as Durango and Telluride, we still have some very attractive home prices.
In summary, the larger supply of available homes for sale, longer days on market, higher cost of new construction, along with national real estate trends would suggest that sellers should be more motivated. Feel free to contact me to discuss any specific properties or market trends.
If you would like more specific information on Alto Lakes Golf & Country Club homes or lots, please contact me at mary@ruidoso-homes.com, or call me at 575-937-5229.
To Subscribe to future Ruidoso Blog articles via email- click here
