Thomas has some advice for buyers. So. Home prices didnt have the same type of run-up as many of todays hottest markets, but demand persisted. At the same time, the website also said that a short-term investment in the city is not so good. Rates are now higher than they have been in years, and they will continue to increase throughout 2022. Inflation, which has increasingly affected Americans, has played a part in increasing home prices, along with the low inventory and historically low interest rates for mortgages. So, make sure to read this passage until the end. With local home prices increasing at such a fast pace, some neighborhoods have taken the momentum and run with it. Register for our FREE Real Estate Webinar and get started learning how to start a successful investment business today! Nationwide, home prices increased by 9.2% year-over-year in December, according to a monthly report from the national data and analytics firm CoreLogic. The website also states that the current real estate market trend in the city is the seller market. Right. What do they call it? Some of them are famous cities like New York or Los Angeles. The latest real estate investing content delivered straight to your inbox. It should be giving credits to the home builders to get those houses built, to offset the increases. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". https://www.bls.gov/eag/eag.nm_albuquerque_msa.htm As such, there is a plausible argument for greater mortgage rate increases than we currently project if the eventual unwinding of assets puts upward pressure on Treasury yields and MBS spreads, especially given that a few FOMC members were also concerned about a relatively flat yield curve. According to Freddie Mac, also as of this writing, the 30-year mortgage rate averaged 3.22 percent for the week ending on January 6, 11 basis points higher than at the end of December, and we expect additional rises in the near-term given the recent movement in Treasuries. Economic & Strategic Research (ESR) Group Inflation, and steps that federal policymakers have taken to curb it, remains a major factor in the local real estate market. Changes in the assumptions or the information underlying these views could produce materially different results. Jessica Garcia is a realtor in Albuquerque and says, It is slowing down so homes are listed on average now 10 days, 14 days instead of 2 or 3 days.. Much like the rest of the country, the Albuquerque real estate market saw an influx in real estate investing activities after the Great Recession. Meanwhile, if we look at it in the past, from 2000 to 2010, the population of the metropolitan area increased by 21%. It is too soon to tell just how many foreclosures will be filed in Albuquerque, but the expiration of government assistance all but assures impending increases. The Greater Albuquerque Association of Realtors, UNM Hospital wants to know publics feedback, Bile acids and gut microbes could potentially treat, Should we bring back the dodo? Indeed, there are some expensive houses in certain locations but some others are even very cheap. Roxanne Thomas recently closed on her new home in Albuquerque and says it was the happiest day of her life. In the mid of 2022, the details of the Albuquerque Real Estate Market are as follows. But that hasnt been the case in Albuquerques real estate market. That really is a satisfying part of what we do for sure. The pandemic has impacted current trends and will continue to influence forecasts moving forward. Inventory has decreased to 48. At that level, listings are down 40.8% year over year. The number of new listings dropped year over year as well, from 968 in 2020 to 849 last month. It is the biggest city in the state of New Mexico as well as it is a home to around a half million people. Email addresses are used solely for verification and to speed the verification process for repeat questioners. While rates are increasing, todays rates are still historically low. Right now we have extra homes on the market., As of June 29, there are almost 600 homes listed on the market in Albuquerque. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. A recent report from Redfin estimates that 18.2 percent of single-family sales in Q3 2020 were by investors, up from 11.2 percent a year prior. Well, what theyre doing is they want to help people that maybe have not been able to take advantage of the low mortgage rates, do a refi. Freddie Mac forecast: What experts are saying about on the market reach unprecedented low Alternatively, if financial markets begin to worry about the risk of economic growth slowing too greatly and leading to an eventual recession, mortgage rates could remain near current lows or even decline further. Changes in the house prices were compared including theAlbuquerque houses for salein the metropolitan area. The metropolitan area includes some big locations such as Rio Rancho, Bernalillo, Bosque Farms, Corrales, Belen, Placitas, and Los Lunas. The cookies is used to store the user consent for the cookies in the category "Necessary". Our forecast process is such that the interest rate projection was completed at the end of December, prior to the most recent increases in the 10-year Treasury rate (1.72 percent as of this writing, up from 1.52 percent on December 31). Griffin has seen buyers from California, who she says are pricing New Mexicans out., They absolutely do affect our market, Kiegel said. Amen to that. What are the pros? The housing market is a hot topic right now, and after experiencing rapid growth over the pandemic years it looks to now be slowing down. Yeah. The housing market is off to a busy start in 2022, with new records being observed in pace of home-price growth and median listing price last month. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". It increases by 15.7% from year to year. There was a significant increase in the average house price in Albuquerque, it was 55.3%. The average rental price is $889 per month with the buying price of $204,100. Albuquerque real estate agent Tego Venturi said many of the conditions for strong growth were in place before the COVID-19 pandemic reached New Mexico in March. More supply is coming eventually: The total number of homes under construction, including both single-family and multifamily units, is the highest since 1973. The donut shop has announced it has closed its South Valley and Northeast Heights locations. Less house for more money: ABQs housing market With large companies like Amazon and Netflix increasing their footprint in the city, Venturi said a home shortage will continue forcing prices upward, making it more and more difficult for first-time homebuyers to afford starter homes in a city thats long been marketed for its affordability. The New Mexico real estate market, as a whole, had the twenty-first highest foreclosure rate in the country as recently as February. Rental properties will be the most viable investment strategy: Increases in home prices have made it harder to flip real estate in Albuquerque. The housing market is going to stay healthy and slowly mortgage rates will move up. Thats what happens when I read these stories a couple of days ago and then try to recite them back to memory. In fact, rehabbing and real estate flipping remained the preferred exit strategy for local real estate investors for a decade. Yes, yes. This week the median list price for Santa Fe, NM 87508 is $762,500 with the market action index hovering around 42. Elsewhere in the state, Vigil said he was interested to see how recent federal restrictions on the oil and gas industry would impact real estate in Lea and Eddy counties, where a particularly tight housing market forced oil workers into RVs and temporary man camps while the oil and gas industry boomed. That, you know, its decay economy, the richer getting richer, the poor are getting poor. How long will the ski season last in New Mexico? Lower interest rates allow investors to offset high prices and increase monthly cash flow. These cookies will be stored in your browser only with your consent. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Its just a bill. As we have discussed previously, we believe much of the surge in demand over the past year was due to many homebuyers moving up their plans to purchase a home. At that time, real estate in Albuquerque boasted a median home value of $170,000. Emergence of 'New Normal' Housing Market Begins | Fannie Mae If it MUST be the NIT, UNM basketball has After bill was vetoed last year, lawmakers try again Senate Bill 2 would bring the pay of state Supreme Court justices in line with federal magistrates, representing about an 18% increase, and lower Zinc Wine Bar & Bistro to reopen after three years, Maxwell Museum exhibit focuses on Native American basketry from its collection, Harwood exhibit looks at the overlooked history of the Black cowboy. I havent looked at it. But she says there were some challenges during the process. Kirtland Air Force Baseand Sandia National Laboratories, in particular, have helped Albuquerque improve its job market in recent history. Supply and demand will contribute to increases across the board, but interest rates should temper price hikes relative to the previous year. Some websites and experts have predicted the future of the Albuquerque real estate market at least for the next 5 years. But some points make the city better than others. The average prices of houses in those areas are fluctuating from year to year but the trend shows they are gradually increasing. Albuquerque Population 2022 While nothing is ever guaranteed to happen, theres a great chance home prices in Albuquerque will increase each month for the rest of the year. New builds are on the horizon, but they will take a while to be brought to market. Interest Rate Trends: The Federal Reserve has been forced to increase interest rates to fight inflation, and mortgage rates have suffered. The big question in our view is "how durable is this demand?" Overall, Albuquerques hot housing market didnt show any signs of cooling down in April. Median List Price: $400,117 (+14.0% year over year), Median Home Value (1-Year Forecast):15.6%, Inventory Of Homes For Sale: 523 (-40.8% year over year), New Listings: 1,136 (-13.2% year over year), Closed Sales: 1,020 (-12.7% year over year), Days On Market Until Sale: 17 (-19.0% year over year), Median Rent Price: $1,274 (+16.4% year over year), Unemployment Rate: 4.4% (latest estimate by the Bureau Of Labor Statistics), Median Household Income: $53,936 (latest estimate by the U.S. Census Bureau). We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Mortgage rates now stand at about 5% and may continue to climb. So thank you. But its interesting out there.. All Albuquerque New Mexico Area Homes for Sale Priced $150,000 or Less. Our expectation of 7.6 percent growth in 2022 is still considerably higher than the average pace of 5.4 from 2012 to 2019. As the post-COVID housing market reveals itself, we anticipate the following themes to emerge over the year, as well as answers to some large unknowns: Affordability will increasingly limit home sales: This isn't to say that we expect a soft year for home sales in absolute terms. Privacy Policy | Terms of Service | Sitemap | Cookie Policy 2022 Venturi Realty Group. https://www.freddiemac.com/pmms What we need are more homes in the model. Inventory will likely still be a challenge, with only 0.3% You also have the option to opt-out of these cookies. This cookie is set by GDPR Cookie Consent plugin. Is the city a good place for property investments in 2022 and the future? Metros such as Boise City and Austin, which have seen rapid price appreciation through Q3 of 2021 of 43.8 percent and 37.2 percent, respectively, since Q1 2020 are examples where there may be declines. I know. Our ongoing monitoring of MBS issuance data continues to show an upward trajectory in the average back-end debt-to-income (DTI) ratios of borrowers, particularly for first-time homebuyers, indicating growing affordability pressures on borrowers. The cookie is used to store the user consent for the cookies in the category "Performance". TheAlbuquerque median home pricealso improves compared with it 5 years ago. I mean, we, we have to get all those 20 somethings into their first house. Yeah. Franco said she worked with buyers from California, the Midwest and even Hawaii in 2020. These cookies ensure basic functionalities and security features of the website, anonymously. While just 8% expect that to happen by sometime in 2026 or sometime in the next five years. It is very beneficial if you are a landlord in the city. Yeah. The number of pending sales increased 41.1% year-over-year, and the Im Im really, really glad to see it. And I said to clarify, thats how much you have to at least reduce your monthly payment by to qualify. housing market The data show that the median home listing price in Albuquerque is $324,000 in April 2022. Meanwhile, you can get a profit of around $104,060 in 2027 by investing $100,000 in properties today. Albuquerque Area MLS Map and MLS Areas List. In fact, having lagged behind many national indicators may have actually worked in Albuquerques favor over the last few years. Still, the new market landscape created by the pandemic and years of appreciation has shifted fundamental indicators in favor of rental property owners. Subscribe now to access decluttered news, chosen by you. At a national level, this means we expect to see continued home sales growth in 2022 of 6.6% which will mean 16-year highs for sales nationwide and in many metro Even though inflation is expected to eventually ease, a higher-than-pre-COVID range is forecast for the foreseeable future. So again, they, they are expecting a healthy growing residential real estate market. Indeed, some other cities in New Mexico overshadow Albuquerque; Santa Fe, Clovis, and Roswell. The website also states that the current real estate market trend in the city is the seller market. According to forecasts by the Federal Reserve and Goldman Sachs GS GS, GDP growth is estimated to be between 4.0 percent and 6.5 percent in 2021 with continued This will likely delay somewhat further supply chain improvements and put additional upward pressure on inflation. Many homebuilders continue to report purposely limiting sales orders due to their current inability to keep up with demand, while recent surveys continue to report heightened buyer foot traffic. Email addresses are used solely for verification and to speed the verification process for repeat questioners. It means that the city is one of the most affordable real estate markets in the US. When there are pros, there must be cons as nothing is perfect in this world. Help is on the horizon, but prices will keep rising until it gets here. But comparing it to cities like Los Angeles or even Miami, it is still lower. Out-of-state home buyers drive up New Mexico real estate market The Housing Market Just Began A New 10-Year Upward Move As a result, more people are being forced to rent. Fourth, Albuquerque may not be Miami where the sun shines brightly and warmly all day long. The company flew its test plane for 15 minutes at low elevation above the Grant County International Airport in Moses Lake, Washington, where it ABQ sees second-best month for recreational cannabis sales. Many people just live here temporarily for reasons like study or jobs. At that time, 141 of the states 937,920 homes entered the foreclosure process. 1119 Alameda Blvd NW Albuquerque, NM 87114. Housing Market One of them is WalletInvestor.com which suggests investors invest in properties in Albuquerque for a longer-term. Speaking of, of Freddie Mac there was a news release that came out this week that I thought was actually really good. I just dont have it up here now. The historical relationship from the end of the Great Financial Crisis up until the COVID outbreak was that a 100-basis point change in the 30-year mortgage rate over the course of a year was associated on average with about an 8 percent shift in existing home sales, with a one-to-two quarter time lag. Right. For a snapshot of macroeconomic and housing data between the monthly forecasts, please read ESRs Economic and Housing Weekly Notes. As interest rates increase the number of buyers that can afford to purchase a home right now decreases. Interest in single-family rental properties has grown this past year as rental vacancy rates are at historical lows and rent growth has been strong.