Real Estate Investing Blog
Welcome!  | Home
Your Premier Source for Turnkey Cash-Flow Investment Property
"Live Where You Want. Invest Where it Makes Sense!" ™
July 2nd, 2019 by Marco Santarelli
How is The Albuquerque Real Estate Market 2019?
Real estate can be a worthy investment opportunity. With research, a plan and the right price, just about anyone can be a real estate investor. If you are looking at investing in the Albuquerque real estate market as a potential investment opportunity, you must read till the end. Albuquerque is the biggest city in New Mexico, home to around half a million people. Yet it is overshadowed by the state capital Santa Fe. It lacks the mystique of Roswell or Clovis.
Yet the Albuquerque housing market has a number of points in its favor which we shall discuss with you in detail. With Albuquerque’s rising rental costs and low housing prices, it’s undoubtedly a great market for investors looking to purchase an investment property. According to Albuquerque real estate investors, Ventana Ranch, Cabezon, Enchanted Hills, Hills Village, Tanoan, Alturaand, Northern Meadows are great subdivisions to buy investment properties. These locations in Albuquerque have all the factors that make for a good income property.
There are a number of reasons to consider investing in the Albuquerque real estate. Is Albuquerque going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a look at the latest Albuquerque housing market trends and find out the prospects of investing in Albuquerque real estate in 2019.
Albuquerque Real Estate Market Forecasts 2019 & 2020
The median home value in Albuquerque is $202,200 on Zillow. Albuquerque home values have gone up 5.4% over the past year and Zillow’s Albuquerque real estate market prediction is that the prices will rise 2.7% in 2020. The median list price per square foot in Albuquerque is $152, which is higher than the Albuquerque Metro average of $143. The median price of homes currently listed in Albuquerque is $235,000. The median rent price in Albuquerque is $1,338, which is higher than the Albuquerque Metro median of $1,300.
Here is the Albuquerque real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 2.7% till May 2020.
According to LittleBigHomes.com, the Albuquerque real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Albuquerque real estate market trend prediction is 79%. Accordingly, they estimate that the probability for rising home prices in Albuquerque, NM is 79% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Albuquerque Housing Market Forecast 2019 – 2021
The Albuquerque housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Albuquerque housing market trend prediction is 82%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Albuquerque, NM is 82% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Albuquerque, New Mexico Real Estate Forecast.
Albuquerque Real Estate Market Trends
Albuquerque real estate market trends in show a -1% week-over-week drop in average listing price and a 0% rise in median rent per month. Trulia has 3,430 resale and new homes for sale in Albuquerque, NM, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
Data by Redfin shows that the Albuquerque housing market is somewhat competitive. Homes in Albuquerque receive 1 offers on average and sell in around 76 days. The average sale price of a home in Albuquerque was $335K last month, up 91.4% since last year. The average sale price per square foot in Albuquerque is $127, up 35.1% since last year. Homes typically receive 1 offer. Homes for sale in the Albuquerque housing market sell for about 2% below list price and go pending in around 76 days. Hot homes for sale in Albuquerque, NM can sell for around list price and go pending in around 29 days.
There are 3,854 homes for sale in Albuquerque, ranging from $1.3K to $9.3M on Realtor.com. 323 of which were newly listed within the last week. Additionally, there are 508 Albuquerque rental properties, with a range of $189 to $4.5K per month. In May 2019 the housing market in Albuquerque, NM was a balanced market, which means there was a healthy balance of buyers and sellers in the market.
The median list price of homes for sale in Albuquerque, NM was $239.9K in May 2019, trending up 6.6% year-over-year. The median listing price per square foot was $128. On Realtor.com, homes for sale in Albuquerque, NM sold for approximately the asking price on average in May 2019. On average, homes in Albuquerque housing market sell after 54 days on the market. The trend for median days on market in Albuquerque, NM is flat since last month, and flat since last year.
The median list price in Albuquerque, NM is $269,500 on Movoto.com. The median list price in Albuquerque was less than 1% change from June to July. Albuquerque’s home resale inventories is 1,627, which decreased 1 percent since June 2019. The median list price per square foot in Albuquerque is $137. June 2019 was $137. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in July.
Albuquerque, NM Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the real estate company called Neigborhoodscout.com, the median house price in Albuquerque, NM is $206,207, which indicates that home prices in Albuquerque are well above the national average for all cities and towns. Single family detached homes are the single most common housing type in Albuquerque, accounting for 62.52% of the city’s housing units.
The rental market for single family homes in the right locations is very strong. According to real estate investors many single family properties in Albuquerque will have a positive cash flow and the potential for long term appreciation.
Other types of housing that are prevalent in Albuquerque include large apartment complexes or high rise apartments ( 20.01%), duplexes, homes converted to apartments or other small apartment buildings ( 7.74%), and a few row houses and other attached homes ( 5.82%).
The most prevalent building size and type in Albuquerque are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 59.14% owning and 40.86% renting.
Currently, there are 2,274 single family homes for sale in Albuquerque, NM on Zillow. Additionally, there are 231 single family homes for rent in Albuquerque, NM. Under potential listings, there are about 81 Foreclosed and 757 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Albuquerque, NM Foreclosures And Bank Owned Homes 2019
According to Zillow, the percent of delinquent mortgages in Albuquerque is 1.5%, which is higher than the national value of 1.1%. There are currently 1,361 properties in Albuquerque, NM that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,338.
In May 2019, the number of properties that received a foreclosure filing in Albuquerque, NM was 4% lower than the previous month and 18% lower than the same time last year.
Home sales for April 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Albuquerque was $0. The median sales price of a foreclosure home in Albuquerque was $0, or 0% higher than non-distressed home sales.
Albuquerque Home Prices And Real Estate Appreciation 2019
The average annual home appreciation rate in Albuquerque during the period has been just -0.11%, which is lower than 80% of US communities.
Over the last year, Albuquerque real estate appreciation rates have trailed the rest of the nation. In the last twelve months, Albuquerque’s real estate appreciation rate has been 2.66%, which is lower than appreciation rates in most of the real estate markets.
In the latest quarter of 2019, Albuquerque real estate appreciation rates were at 0.46%, which equates to an annual appreciation rate of 1.86%.
The above statistics on real estate appreciation in Albuquerque, NM were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to New Mexico, their data shows that Albuquerque’s latest annual real estate appreciation rate is lower than 80% of the other cities and towns in New Mexico.
Please note that Albuquerque home prices have declined in 2019 due to foreclosures and short sales. and these homes will need some repairs and are great for Albuquerque real estate investors because they are priced below current market value.
Best Places To Buy Real Estate In Albuquerque, New Mexico
If you are looking to buy real estate in Albuquerque, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Albuquerque real estate and you should be able flip it for a lump sum profit.
When looking to invest in Albuquerque, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Albuquerque investment property should be low. The neighborhoods in Albuquerque must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
Currently, there are 236 neighborhoods in Albuquerque. There are 337 schools in Albuquerque, NM. There are 123 elementary schools, 74 middle schools, 66 high schools and 74 private & charter schools. .
Some of the best neighborhoods in Albuquerque, New Mexico are Paradise Hills Civic, Westgate Heights and Taylor Ranch. North Albuquerque Acres has a median listing price of $748,000, making it the most expensive neighborhood. La Mesa is the most affordable neighborhood, with a median listing price of $136.2K.
Here are the 10 best neighborhoods in Albuquerque to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Should You Invest In Albuquerque Real Estate In 2019?
Is it worth buying a house in Albuquerque, NM? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Albuquerque is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Albuquerque housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Albuquerque but we have collected ten evidence based positive things for those who are keen to invest in the Albuquerque real estate in 2019.
Investing in Albuquerque real estate will fetch you good returns in the long term as the home prices in Albuquerque have been trending up 6.6% year-over-year. Let’s take a look at the number of positive things going on in the Albuquerque real estate market which can help investors who are keen to buy an investment property in this city.
1. Albuquerque is a Big City
If you’re considering buying an Albuquerque real estate investment property, the sheer size of the metro area is a point in its favor. While roughly half a million people live in Albuquerque itself, the Albuquerque housing market is much larger than this.
Take the suburbs into account, and the Albuquerque real estate market is home to almost a million people. This makes it the largest real estate market in the state of New Mexico. It also accounts for nearly half of the state’s total population.
2. Albuquerque Real Estate is Affordable
Albuquerque has a median home value of around 240,000 dollars. This is slightly above the national average, but it is incredibly affordable compared to Las Vegas or any market in California that doesn’t have 10 percent unemployment.
The most expensive homes in the area hit 1.5 million dollars, but that’s for a spacious luxury property. In LA or San Francisco, that’s enough for a cramped condo. One of the most expensive neighborhoods in the Albuquerque real estate market, North Albuquerque Acres, has a median list price of 750,000 dollars.
These properties are a good Albuquerque real estate investment for those who want to rent to the scientists working at Sandia National Laboratories. That’s the cost of a mid-sized single family home in many major cities. The most affordable neighborhood, La Mesa, has starter homes at around 100,000 dollars.
3. The Albuquerque is a Balanced Market
The Albuquerque housing market is considered balanced. The number of buyers and sellers is roughly even. It isn’t so hot that property values are skyrocketing. Demand isn’t so soft that property values are declining. Homes take 60 to 80 days to sell. This is the sign of a healthy real estate market that will remain stable unless the job market collapses.
4. It Is Experiencing Slow, Steady Growth
One factor that will keep home values in the Albuquerque housing market slowly appreciating are the geographic constraints on expansion. Isleta Pueblo and several others border the city and are off-limits to general residential construction.
Nor can the city expand to the east because of Cibola National Forest. This is why the Albuquerque real estate market saw 5 percent growth in 2018 and is expected to see nearly 3 percent appreciation in 2019.
5. It Is More Livable than Average
Albuquerque is more walkable than the average New Mexico city. It received a walk score of 43. It has a public transit score of 30. Where it shines is its bike friendliness. It has a bike score of 60, well above the national average of 50.This is aside from the many bike trails in the Sandia Hills.
The abundant outdoor recreational opportunities and service providers make it a great place to live, though it isn’t so popular that it is overloaded with tourists.
6. The Diversified and Divided Job Market Keeps Things Stable
The Albuquerque real estate market is heavily dependent on state and federal level jobs. For example, Sandia Laboratories create a large number of high paying government research jobs in the area. Kirtland Air Force Base is also close by.
However, the Albuquerque housing market isn’t seeing double digit appreciation because that inflationary effect is countered by the lower average wages in the area.
Yet the largest employers are in relatively stable sectors like healthcare and education. Hospitals and the University of New Mexico are two of the biggest non-governmental employers.
7. The Local Economy Creates a Large Population of Renters
A little over seventy percent of residents own their homes. However, the local economy will prevent the majority of those renters from buying homes. The lower than average income in the Albuquerque housing market combined with the higher than average home price means a large minority of the population is priced out of the housing market.
They can only rent. Another contributing factor is the outsized student market, thanks to the several schools in the area. These young adults may choose to find jobs upon graduation and remain in the Albuquerque housing market, but they won’t be buying homes while attending schools.
This means you can buy Albuquerque real estate investment properties intended to cater to this nearly recession-proof rental market. For example, people move here to work because wages are higher than the state average (roughly 25K) and employment rates higher.
They move here because it is better than where they came from, but they can’t commit to a house payment until they’re doing better personally.
8. The Large Military Presence Pumps Renters into the Area
One reason to consider buying Albuquerque real estate investment properties is the large population of renters created by Kirtland Air Force Base. Military personnel are likely to be renters, since they shouldn’t buy property when they’re nearly certain to move in a few years.
This large population of renters explains why rental rates in the Albuquerque housing market are relatively high, roughly 1300 a month. It also explains why rental rates in the suburbs of the Albuquerque real estate market are a little higher than those in “downtown”.
9. Local Rules Balance the Rights of Landlords and Tenants
States are often ranked as either tenant friendly or landlord-friendly. New Mexico is more landlord friendly than Arizona, though it isn’t as landlord friendly as Texas or Colorado. Landlords can require reasonable deposits, though this is limited to one month’s rent if the lease is less than one year.
The state doesn’t have rules regarding non-refundable fees or pet deposits. However, deposits can only be used for damage to the unit or unpaid bills. Record keeping rules are relaxed.
All of this protects the value of an Albuquerque real estate investment property, since you can charge someone for the damage they or their pets do and evict them for nonpayment of rent. For example, you can begin the eviction process after they’re three days late with the rent.
10. The Relatively Low Tax Rate
You’ll pay higher than average real estate taxes on an Albuquerque real estate investment property, though the tax rate is offset by the relatively low cost of real estate. If you live in the property, then the effective property tax rate is much lower than the national average.
The state has a lower than average income tax burden. Owners of an Albuquerque real estate investment portfolio are almost certainly unaffected by the state’s gross receipts tax. The state doesn’t have a sales tax.
Albuquerque Real Estate Investment
Maybe you have done a bit of real estate investing in Albuquerque, NM but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Albuquerque real estate investment opportunity would be a key to your success. in If you invest wisely in Albuquerque real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. The less expensive the Albuquerque investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Albuquerque, New Mexico. Albuquerque is an often overlooked real estate market in the West because it doesn’t make headlines. However, the strong fundamentals and positive long-term outlook make it a great place to consider investing.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Albuquerque, NM is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Albuquerque real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a local real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
The other best place to invest in real estate is Omaha, NE. Omaha isn’t booming, but it isn’t busting, either. It is a slow, steady and solid real estate market that has quite a few things going for it. It is attractive to residents, allowing it to retain its youth, while it attracts people from across the country in search of work.
That isn’t going to make the headlines, but it is exactly the sort of long-term value play that we’d associate with the Oracle of Omaha. Omaha real estate market has a track record of generating one of the best long term returns in the U.S. through the last ten years.
Another sizzling market to invest in real estate is Fort Collins, CO. The Fort Collins area is growing both as an outer suburb of Denver and for its own reasons, making it the fourth largest city in the state. The city offers an ideal mix of jobs, affordable living, and decent quality of life that will keep it strong for years to come.
The Fort Collins real estate market has seen steady appreciation because the population itself is growing slowly but steadily. The population has been growing at roughly two percent a year. This causes the Fort Collins real estate market to appreciate at a slightly faster rate, but the Fort Collins housing market isn’t so hot that locals are priced out.
However, the relatively young population creates an opportunity for those who own Fort Collins real estate investment properties. You can rent the property to the steady stream of students, or you can rent it or sell it to the young adults who choose to stay in the area and work for one of the major employers.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
The job market
It is big
Economy and renters
Housing Market Data, Trends & Statistics
Add Your Comment:
(Click to download)
(Click to download)
Follow and Connect
|Call Us Toll Free: (800) 611-3060|