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. Albuquerque's housing market is currently positioned as somewhat favorable for both buyers and sellers.
The average homes selling slightly below the list price can be seen as a benefit for buyers, while sellers can capitalize on the quick selling time, especially for properties in high demand. The balance between these factors creates a market where both parties can find opportunities.
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 housing market is a dynamic landscape, characterized by a moderate level of competitiveness. According to Redfin, on average, homes in Albuquerque receive 2 offers and boast a relatively quick selling time of around 35 days. In the past month, the median sale price of homes in Albuquerque stood at $323K, marking a 3.8% increase compared to the previous year. This surge is also reflected in the median sale price per square foot, which has seen a remarkable 8.1% rise since the previous year, reaching $200.
Interestingly, Albuquerque's median sale price is 19% lower than the national average, making it an intriguing market for potential homebuyers and investors. The competitive nature of the market is evident, with some homes receiving multiple offers and going pending in a swift 35 days. Additionally, hot homes with high demand can sell for around the list price and go pending in a mere 13 days.
How Competitive is the Albuquerque Housing Market?
The Albuquerque housing market is deemed somewhat competitive, creating an environment where buyers and sellers need to be strategic in their approach. With homes selling in a relatively short timeframe and multiple offers being a possibility, it emphasizes the need for both parties to be proactive and well-informed.
The average homes in Albuquerque sell for about 1% below the list price, providing a slight advantage to buyers. This competitive edge, combined with the quick turnaround time, makes Albuquerque an engaging market for those seeking opportunities in real estate.
Are There Enough Homes for Sale in Albuquerque to Meet Buyer Demand?
The Albuquerque housing market presents a balance between supply and demand. The city experiences a moderate level of competitiveness, indicating a healthy influx of both buyers and sellers. The fact that some homes receive multiple offers suggests that the demand is robust, but it is met with a sufficient supply to keep the market dynamic and responsive.
The Albuquerque housing market stands as an intriguing landscape with its competitive dynamics and promising outlook. Whether you are a buyer looking for opportunities or a seller aiming to capitalize on a swift transaction, Albuquerque presents a spectrum of possibilities. The migration trends further highlight the city's appeal on a national scale, making it a destination for those seeking a new place to call home.
Albuquerque Housing Market Forecast for 2024 and 2025
According to Zillow, the Albuquerque housing market is displaying robust growth, with the average home value reaching $318,239, marking a significant 6.7% increase over the past year. Homes in Albuquerque are swiftly going to pending status in approximately 16 days.
Housing Metrics Explained
For Sale Inventory (January 31, 2024)
1,079 homes are currently listed for sale in Albuquerque as of January 31, 2024.
New Listings (January 31, 2024)
393 new listings have emerged in the Albuquerque housing market as of January 31, 2024, indicating a dynamic influx of available properties.
Median Sale to List Ratio (December 31, 2023)
The median sale to list ratio as of December 31, 2023, stands at a solid 1.000, underlining a balanced market where homes are generally selling close to their listed prices.
Median Sale Price (December 31, 2023)
The median sale price for homes in Albuquerque reached $323,333 as of December 31, 2023, reflecting the value appreciation in the local real estate market.
Median List Price (January 31, 2024)
As of January 31, 2024, the median list price for homes in Albuquerque is $368,333, providing insights into the current market expectations for property values.
Percent of Sales Over and Under List Price (December 31, 2023)
The housing market in Albuquerque witnessed a 26.6% of sales over list price and 45.1% under list price as of December 31, 2023, showcasing the diversity in negotiation outcomes.
Albuquerque MSA Housing Market Forecast
In the ever-changing landscape of real estate, the Albuquerque Metropolitan Statistical Area (MSA) is projected to experience substantial growth. According to the forecast, the MSA is anticipated to see a 0.4% increase by February 29, 2024, followed by a more pronounced 1.7% uptick by April 30, 2024. Looking further ahead, the forecast for January 31, 2025, indicates a remarkable 6.8% growth, highlighting the region's resilience and attractiveness in the housing market.
The Metropolitan Statistical Area (MSA) encompasses Albuquerque, NM, and surrounding counties, playing a pivotal role in defining the housing market's scope and dynamics. Comprising various counties in New Mexico, the Albuquerque MSA is a substantial economic and residential hub, contributing significantly to the state's overall real estate landscape. The size and influence of its housing market make it a crucial focal point for both local and regional real estate developments.
Are Home Prices Dropping in Albuquerque?
No, home prices in Albuquerque are not dropping. In fact, the median sale price as of December 31, 2023, stands at a solid $323,333, reflecting a 6.7% increase over the past year. The median list price, a key indicator of market expectations, is $368,333 as of January 31, 2024, further supporting the trend of stable or appreciating property values in the region.
Will the Housing Market Crash in Albuquerque?
Based on the current data and forecast, there is no indication of a housing market crash in Albuquerque. The market is exhibiting growth, with the forecast projecting an increase of 0.4% by February 29, 2024, and a more significant 6.8% by January 31, 2025. These positive forecasts suggest a resilient and stable housing market, mitigating concerns of a potential crash in the near future.
Is Now a Good Time to Buy a House in Albuquerque?
For potential homebuyers, the present conditions in the Albuquerque housing market suggest a nuanced approach. While it is a seller's market, indicating potential challenges for buyers, the forecasted growth and stable prices make it a favorable environment for investment. It could be considered a good time to buy a house, especially for those looking for long-term value appreciation. However, individual circumstances and preferences should always be taken into account before making such a significant decision.
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