Albuquerque, New Mexico offers an affordable housing market and a unique blend of cultural influences. With a strong job market and growing economy, the city has seen an increase in demand for homes in recent years.
In the Albuquerque housing market, the current conditions suggest a balanced playing field between buyers and sellers. While sellers enjoy the advantage of receiving multiple offers and fetching prices close to their listing, buyers also have opportunities to secure homes at reasonable rates, with certain properties even selling above the list price.
This equilibrium signifies a healthy real estate environment where both parties can engage in transactions that meet their respective needs and preferences. As such, whether you're buying or selling in Albuquerque, the market offers opportunities for success and satisfaction.
Looking ahead, the future market outlook for Albuquerque appears promising. The recent surge in median sale prices and the quick turnover of properties indicate a buoyant market. While predicting the real estate market's trajectory is inherently challenging, the current trends suggest a positive momentum that might continue in the coming months.
Albuquerque Housing Market Trends in 2024
Factors Influencing the Market
- Desirability of Albuquerque: Albuquerque is highly sought after due to its strong economy and high quality of life.
- Limited Housing Supply: The housing supply is restricted, contributing to the increase in property prices.
How is the Albuquerque Housing Market Doing Currently?
The Albuquerque, NM housing market presents a scenario of moderate competitiveness. Over the past year, homes in Albuquerque have seen an average of 2 offers, reflecting a healthy level of activity. Additionally, properties are spending approximately 30 days on the market before being snatched up by eager buyers. This brisk pace indicates a market that's both active and appealing to prospective homeowners.
Recent data by Redfin reveals a median sale price of $335,000 for homes in Albuquerque, marking a notable uptick of 6.3% from the previous year. Correspondingly, the median sale price per square foot stands at $198, exhibiting a commendable 3.1% increase over the same period. While these figures signify growth, it's worth noting that Albuquerque's median sale price remains 19% lower than the national average, presenting an attractive proposition for potential buyers seeking affordability without compromising on quality.
How Competitive is the Market?
Albuquerque's real estate landscape is characterized by a moderate level of competitiveness. Properties, on average, receive multiple offers, signaling a healthy demand from buyers. Moreover, the average home sells for about 1% below the list price, a trend indicating a balanced negotiation dynamic between sellers and buyers.
However, some homes, often referred to as “hot homes,” stand out in this market. These properties can command offers approximately 1% above the list price and typically go under contract within a mere 10 days, underscoring the existence of pockets of heightened competition within the city.
Are There Enough Homes for Sale to Meet Buyer Demand?
Albuquerque's housing market faces the perennial challenge of supply meeting demand. While the city boasts a steady influx of interested buyers, the availability of homes for sale sometimes falls short of meeting this demand. However, despite this imbalance, the future market outlook remains optimistic.
Looking ahead, Albuquerque is poised for continued growth and stability. The city's allure as a desirable destination, coupled with its relatively affordable housing options, positions it favorably for both current and prospective homeowners. Additionally, ongoing economic developments and infrastructural enhancements contribute to a positive forecast for the housing market.
In the first quarter of 2024, 43% of homebuyers in Albuquerque explored options to relocate out of the city, while 57% expressed intentions to remain within the metropolitan area. Notably, only a fraction (0.35%) of homebuyers nationwide sought to move into Albuquerque from other metropolitan areas.
Among those relocating to Albuquerque, individuals from Los Angeles showed the highest interest, followed closely by homebuyers from San Francisco and Seattle. This influx from major metropolitan areas underscores Albuquerque's appeal as a destination offering affordability, quality of life, and diverse opportunities.
Albuquerque Housing Market Forecast for 2024 and 2025
According to Zillow, the average home value in Albuquerque currently stands at $329,055, marking a robust increase of 7.2% over the past year. Homes in this market are highly sought after, typically going pending in approximately 10 days.
Delving deeper into the housing metrics, as of March 31, 2024, there were 1,084 homes available for sale, with 509 new listings entering the market during the same period. The median sale price as of February 29, 2024, was $317,232, while the median list price as of March 31, 2024, was $373,667.
Notably, the median sale to list ratio as of February 29, 2024, stood at 0.997. Furthermore, 22.5% of sales during the same period were transacted above the list price, while 51.1% were sold under the list price.
Albuquerque MSA Housing Market Forecast
The Albuquerque Metropolitan Statistical Area (MSA), encompassing various counties within New Mexico, serves as a crucial focal point for real estate activities in the region. This MSA, which includes Bernalillo, Sandoval, Torrance, and Valencia counties, boasts a housing market of considerable size and significance.
The MSA forecast indicates promising growth, with projected appreciation rates of 0.5% by April 30, 2024, 1.3% by June 30, 2024, and 3.7% by March 31, 2025. This forecast underscores the resilience and potential of the Albuquerque MSA in the face of evolving market dynamics.
Is Albuquerque a Buyer's or Seller's Housing Market?
In the current Albuquerque housing market, the balance between buyers and sellers is delicately poised. While the market demonstrates elements favorable to both parties, certain factors lean towards a seller's market. The limited inventory, evidenced by the relatively low number of homes available for sale compared to buyer demand, gives sellers an advantageous position. Additionally, the median sale price exceeding the median list price suggests a competitive environment where sellers may have the upper hand in negotiations. However, buyers can still find opportunities, especially with historically low mortgage rates and favorable financing options.
Are Home Prices Dropping in Albuquerque?
As of the latest data available, there are no indications of home prices dropping in the Albuquerque housing market. On the contrary, the median sale price has shown a steady increase over the past year, reflecting sustained demand and limited inventory. While market conditions may vary, the overall trend suggests a resilient market where home prices are maintaining their upward trajectory.
Will the Albuquerque Housing Market Crash?
The likelihood of a housing market crash in Albuquerque is currently low based on available data and market indicators. While all markets are subject to fluctuations, several factors mitigate the risk of a sudden downturn. The steady appreciation of home values, coupled with relatively stable economic conditions, provides a foundation of strength for the market. Additionally, proactive measures by stakeholders and regulatory bodies aim to prevent destabilizing events. However, ongoing monitoring and prudent decision-making remain essential to safeguard against potential risks.
Is Now a Good Time to Buy a House in Albuquerque?
For prospective homebuyers contemplating entering the Albuquerque housing market, the question of whether now is a good time to buy a house warrants careful consideration. While market dynamics may favor sellers to some extent, there are compelling reasons for buyers to act.
Low mortgage rates as compared to last year, coupled with a diverse inventory of properties, present opportunities for those seeking to make a purchase. Additionally, the projected growth and stability of the market suggest that investing in a home in Albuquerque could yield favorable returns over the long term.
Albuquerque Real Estate Investment Overview
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 a 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 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 we have collected ten positive things for those who are keen to invest in the Albuquerque real estate. Investing in Albuquerque real estate will fetch you good returns in the long term as the home prices in Albuquerque have been trending up 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.
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.
One factor that will keep home values in the Albuquerque housing market slowly appreciating is 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.
Albuquerque Real Estate is Affordable
Albuquerque's housing market is currently experiencing positive growth, with a 3.2% increase in home values over the past year. The average home value stands at $321,820, making it relatively affordable compared to some other metropolitan areas. However, it's essential for investors to consider factors like market trends, rental demand, and economic stability before making investment decisions.
While the market shows promise for property appreciation and potential rental income, it is worth noting that competitive market conditions might lead to bidding wars and higher purchase prices. Affordability for investment depends on individual circumstances, financial goals, and risk tolerance. Careful research, assistance from local real estate professionals, and a long-term investment strategy can help investors determine if Albuquerque real estate aligns with their investment objectives.
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.
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 insane 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.
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 the 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 school. 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.
One reason to consider buying Albuquerque real estate investment properties is the large population of renters created by Kirtland Air Force Base. Military personnel is 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”.
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.
References
Housing Market Data, Trends & Statistics
https://www.zillow.com/albuquerque-nm/home-values
https://www.redfin.com/city/513/NM/Albuquerque/housing-market
https://www.movoto.com/albuquerque-nm/market-trends
https://www.neighborhoodscout.com/nm/albuquerque/real-estate
https://www.realtor.com/realestateandhomes-search/Albuquerque_NM/overview
Landlord friendly
https://www.landlordology.com/new-mexico-landlord-tenant-laws
https://www.nolo.com/legal-encyclopedia/tenant-defenses-evictions-new-mexico.html
https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters
Economy and renters
https://realestate.usnews.com/places/new-mexico/albuquerque
https://www.usnews.com/news/best-states/new-mexico
