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 this post, we will explore the current trends, prices, and forecasts for the Albuquerque housing market.
Albuquerque Housing Market Update
The Albuquerque housing market is a very competitive and fast-paced market. According to Redfin, the median sale price of a home in Albuquerque was $338K last month, which is up 5.6% since last year. The median sale price per square foot in Albuquerque is $194, up 3.2% since last year. These numbers suggest a steady increase in home prices, which could make it more difficult for first-time buyers to enter the market.
Homes in Albuquerque are selling quickly, with an average of 2 offers per home and selling in around 22 days. Many homes are receiving multiple offers, with some buyers even waiving contingencies to make their offers more competitive. Hot homes can even sell for about 2% above the list price and go pending in around 7 days.
In recent months, 38% of Albuquerque homebuyers searched to move out of Albuquerque, while 62% looked to stay within the metropolitan area. This suggests that while some people are leaving the city, the majority are still choosing to stay within the area. Among the homebuyers searching to move out of Albuquerque, Tucson was the most popular destination, followed by Boise and Portland. This indicates that many people who are leaving Albuquerque are still choosing to stay within the western region of the United States.
All these stats indicate that the Albuquerque housing market is a competitive and fast-paced market, with rising home prices and homes selling quickly. However, despite some people leaving the city, the majority of homebuyers are still choosing to stay within the metropolitan area. With continued demand for homes in Albuquerque, the market is likely to remain competitive for the foreseeable future.
Is Albuquerque a Seller's Real Estate Market?
Albuquerque, New Mexico is a beautiful place to live. With a population of over 560,000, it is the most populous city in the state. If you're considering moving to Albuquerque, it's important to have a good understanding of the local housing market. Let's take a look at the current state of the Albuquerque housing market and what you can expect if you're looking to buy or sell a home. These housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com.
Median Listing Home Price
In April 2023, the median listing home price in Albuquerque, NM was $350K, which is a 7.9% increase from the previous year. This is a significant increase, and it indicates that the housing market in Albuquerque is strong and thriving. The median listing home price per square foot was $196. This means that if you're looking to buy a home in Albuquerque, you can expect to pay around $196 per square foot.
Sale-to-List Price Ratio
The sale-to-list price ratio is an important metric to consider when looking at the housing market in any city. In Albuquerque, NM, homes sold for approximately the asking price on average in April 2023. This means that the housing market in Albuquerque is competitive, and buyers should be prepared to pay close to the asking price for a home.
Seller's Market
Albuquerque, NM is currently a seller's market. This means that there are more people looking to buy homes in Albuquerque than there are homes available. If you're looking to sell your home in Albuquerque, this is great news. You can expect to receive multiple offers and potentially sell your home for more than the asking price.
Median Days on Market
On average, homes in Albuquerque, NM sell after 54 days on the market. The trend for median days on market in Albuquerque, NM has gone down since last month, and slightly up since last year. This means that homes in Albuquerque are selling more quickly than they were a year ago, which is another indicator of a strong housing market.
The housing market in Albuquerque, NM is strong and thriving. If you're looking to buy or sell a home in Albuquerque, you can expect to encounter a competitive market with high demand. However, with a little patience and persistence, you can find the perfect home or sell your home for a great price. Whether you're a long-time resident of Albuquerque or you're considering moving to this beautiful city, the current state of the housing market is definitely something to keep in mind.
Albuquerque Real Estate Market Forecast 2023-2024
The Albuquerque real estate market has been experiencing a steady rise in home values over the past year, with the average home value now at $310,836, up by 5.2%. This trend is expected to continue in the coming years, according to Zillow's forecast. The median sale to list ratio in February 2023 was 0.999, indicating that homes are selling for almost their full list price.
Additionally, 25.3% of sales were above the list price, while 49.0% were below. The median days to pending was only seven days as of March 31, 2023. Looking ahead, the Albuquerque MSA level forecast for 2024 is expected to be 0.5 in April 2023, 0.8 in June 2023, and 3.1 in March 2024. With a steadily growing real estate market, Albuquerque is a great place for those looking to buy or sell property.
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 is known for its affordable housing market compared to many other major cities in the United States. With a median home value of $310,836, the city offers an attractive option for those looking to purchase a home without breaking the bank.
Despite the recent uptick in home values by 5.2% over the past year, Albuquerque still remains an affordable option for homebuyers. The median sale to list ratio for February 2023 was 0.999, indicating that homes in Albuquerque are generally selling for close to their asking price.
Moreover, the percentage of sales under list price was 49% in February 2023, indicating that there are opportunities for buyers to find a good deal on a home in the city. In addition, the median days to pending for homes in Albuquerque was 7 as of March 31, 2023, indicating that homes are selling quickly.
Overall, the Albuquerque real estate market offers a unique opportunity for homebuyers to purchase a home that is both affordable and offers a great quality of life. With its mild climate, beautiful scenery, and affordable housing market, Albuquerque is an attractive option for those looking to purchase a home in the Southwest.
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.
Conclusion
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. 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 in U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
Purchasing an investment property requires a lot of study, planning, and budgeting. Not all deals are solid investments. We always recommend doing your research and taking the help of a local real estate investment counselor.
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's real estate market has a track record of generating one of the best long-term returns in the U.S. over 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 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!
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, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
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
