Albuquerque, New Mexico, offers affordable housing and a unique mix of influences from the past. With a booming employment market and an expanding economy, Albuquerque has experienced a rise in the demand for houses over the last few years. In this article, we will examine the current trends, pricing, and predictions of Albuquerque’s housing market. Albuquerque real estate market.
Current Albuquerque Housing Market Report
Factors Influencing the Market
- Demand for Albuquerque: Albuquerque is highly sought-after because of its robust economy and its high standard of living.
- Limits in Housing Demand The supply of housing is limited, which contributes to the rise in prices for property.
As per Redfin, Albuquerque’s housing market is highly competitive, with houses being offered on average two offers and being sold in about 29 days. The median selling price of homes in Albuquerque was $320K in the last month, which is a 1.6 percent increase over the year before. The median price for sale per square foot was $198, which represents a noteworthy 7.9 percentage increase from the prior year.
Certain homes are offered multiple times. On average, homes are sold at a rate of 1% less than the asking price and remain waiting for around 29 days.
Comparison with nearby Cities: When compared with other cities in the area, Albuquerque’s market for housing is on the same level. The median homes in nearby areas are sold for around 1-2% less than the list price and are deemed to be pending for different days.
Studying trends in migration and relocation is vital to understanding the workings that drive Albuquerque’s housing market. Albuquerque home market. According to Redfin information, 0.37% of homebuyers across the country sought to relocate to Albuquerque from cities outside of Albuquerque. The biggest influx of people originates out of Los Angeles, followed by Dallas and San Francisco. On the other hand, Minneapolis, El Paso, and Cape Coral are the top destinations for those who are leaving Albuquerque.
The number of people moving from Albuquerque: The data illustrates the net inflow of people from different cities and states into Albuquerque, with Los Angeles leading the pack, followed by Dallas and San Francisco.
People leaving Albuquerque: Conversely, the net outflow shows the top destinations for people who are leaving Albuquerque, including Minneapolis, El Paso, and Cape Coral taking the lead.
If you’re looking to purchase the house you’ve always wanted in Albuquerque, it is essential to be ready for a highly competitive market and to submit quick and attractive offers. Prices for homes remain very high and are likely to increase further in the near future.
If you are flexible with your move-in time and budget, you might have better options. You could, for instance, search for homes in less sought-after communities or even smaller ones. Also, waiting until autumn or winter months, which is when the market is less competitive, could be advantageous.
Albuquerque Housing Market Forecast for 2024
The real estate market in Albuquerque is constantly changing, and knowing the intricacies is vital for anyone looking to sell, invest in, or purchase properties in this gorgeous city. Based on the projected increase of 5.6 percent through December 31st, 2024, there are no signs of a market collapse in Albuquerque.
According to Zillow Zillow’s data, the median property value in Albuquerque is $316,766, which is a 6.2 percent increase over the previous year. Also, homes in this region typically are pending for around fourteen days. The figures, based on information from the end of December 2023, give a sweeping picture of the real estate market throughout the entire region.
Key Housing Metrics and Trends
- For Sale Inventory (December 31st, 2023): 1,123
- New Listings (December 31st, 2023): 426
- Median Sale to List Ratio (November 30th, 2023): 1.000
- Median Sale Price (November 30th, 2023): $331,667
- Median List Price (December 31st, 2023): $366,667
- Percent of Sales Over List Price (November 30th, 2023): 30.3%
- Percent of Sales Under List Price (November 30th, 2023): 42.1%
These statistics provide a more nuanced knowledge of the Albuquerque real estate market, showing the equilibrium between demand and supply and the price dynamics that are in play.
MSA Housing Market Forecast
In the future, the Metropolitan Statistical Area (MSA) forecast for Albuquerque in 2023 and 2024 suggests an optimistic growth. At the time of December 31st, 2023, the forecast anticipates a growth of 0.2 percent through January 31st, 2024, and a larger 5.6 percent growth on December 31st, 2024. These forecasts indicate a positive trend in Albuquerque’s housing market. Albuquerque housing market over the next year.
It is the Metropolitan Statistical Area (MSA) of Albuquerque, which includes several counties in New Mexico. In this regard, the term “MSA” refers to a geographical area that has a high level of economic and social integration. Albuquerque’s MSA encompasses many counties, which contributes to the size and diversity of the housing market.
Is Albuquerque a Buyer’s or Seller’s Housing Market?
Based on the latest data, which shows an average sale-to-list ratio in the range of 1.000, the Albuquerque housing market is balanced and offers opportunities for buyers as well as sellers. The median price for sales in the range of $331,667 on November 30th, 2023, indicates stability and a lack of major price declines.
In light of the market’s stability and growth projections that are positive, the current situation suggests that this could be an ideal time to think about purchasing a house in Albuquerque.
Albuquerque Real Estate Investment Overview
Is it worth purchasing the house you want located in Albuquerque, NM? Real estate investing is often touted as a good method to make money. A lot of real property investors have wondered whether buying a home located in Albuquerque is a wise investment. You must dig more deeply into local trends if you are interested in knowing what the market will be like in the next year. We’ve previously discussed our Albuquerque home market outlook to get the reasons why you should put money into this sector.
While this article by itself isn’t a complete source for making an investment decision in Albuquerque, we have compiled the top ten things to consider for those looking to invest in Albuquerque real property. Deciding to invest in Albuquerque real estate will earn good returns over the long run, as homes in Albuquerque are increasing each year. Let’s examine the many positive developments happening within Albuquerque. Albuquerque property market, which could help investors who are interested in purchasing an investment property in the city.
Albuquerque is a Big City
If you’re considering purchasing an Albuquerque real property investment, the scale of the metropolitan area is a major point to its advantage. A little over half a million residents reside in Albuquerque as a whole, but the Albuquerque real estate market is bigger than that. If you take into consideration the suburbs as well, the Albuquerque real estate market houses nearly a million residents. This is the biggest real estate market in the State of New Mexico. It is also home to nearly 50% of the state’s population.
One of the factors that will keep the value of homes within Albuquerque from being held down by the increasing Albuquerque housing market is the geographic restrictions in the expansion of the city. Isleta Pueblo, along with other areas, has a border with the city and isn’t accessible to residential construction in general. It is also not possible to expand the city towards the east due to the Cibola National Forest. This is the reason why the Albuquerque housing market experienced an increase of 5 percent in 2018 and is predicted to experience an increase of nearly 3 percent in 2019.
Albuquerque Real Estate is Affordable
Albuquerque’s housing market is growing, and the city has seen a 3.2 percent rise in home prices in the last year. The median home value is at $321,820. This makes it quite affordable in comparison to other cities. Nevertheless, investors must consider aspects such as market trends, rental demand, and the stability of the economy before making investments.
Although the market has promise for appreciation of property and rental income, it’s important to note that competition in market conditions could result in bidding wars as well as higher costs of purchase. Investment affordability is dependent on the individual’s financial situation, goals, and risk tolerance. A careful study, supported by local real estate experts, and a long-term investing strategy can help investors decide whether Albuquerque real estate matches their investment goals.
It’s More Livable Than The Average
Albuquerque is more accessible than the average New Mexico city. It scored an average score of 43 for walking. It also has a public transportation score of thirty. The thing that makes it stand out is its bicycle-friendlyness. It boasts a score of 60, which is over the average national score of 50. This is in addition to the numerous bike trails that are located within the Sandia Hills. The abundance of outdoor recreation opportunities and services makes it an ideal location to live in, even though it’s not so popular that it’s overcrowded with visitors.
The Diversified and Divided Job Market Keeps Things Stable
The Albuquerque real property market is heavily dependent on federal and state jobs. For instance, Sandia Laboratories creates a significant number of research positions for the government within the region.
Kirtland Air Force Base is located nearby. However, there is a reason that the Albuquerque housing market isn’t experiencing huge growth: The lower wages in the region offset that inflationary impact. The largest employers are located in stable industries like education and healthcare. Hospitals, as well as The University of New Mexico, are two of the largest non-governmental employers.
The Local Economy Creates a Large Population of Renters
About seventy percent of the residents have their own houses. However, the local economy won’t allow the majority of renting tenants to buy houses—the less-than-average income of Albuquerque. Albuquerque’s housing market, coupled with the higher-than-average price of homes, means that most people are priced from the market for housing. They have to rent. Another reason is the soaring student population due to the numerous schools that are located in the area.
Young adults might decide to pursue jobs after graduating and then remain within Albuquerque. Albuquerque property market, however, they’re not likely to buy houses while they are in the school. You can, therefore, purchase Albuquerque real estate investment properties to serve the entire rental sector that’s recession-proof. For instance, many people move to work in Albuquerque because their wages are more than the state average (roughly 25k), and the rate of employment is higher. They choose to move here due to the fact that it’s more favorable than where they come from. However, they aren’t able to take on a mortgage until they’ve made improvements in their lives personally.
One reason to think about purchasing Albuquerque real property investment properties is due to the high number of renters that were created at Kirtland Air Force Base. Military personnel are more likely to become renters as they should not buy homes in the event that they move within a couple of years. This huge number of renters is the reason why rent prices in the Albuquerque real estate market are comparatively high, at around 1300 per month. This also explains why the rental rates in areas surrounding the Albuquerque real market are more expensive than those that are in “downtown.”
Local Rules Balance the Rights of Landlords and Tenants
States are generally regarded as either landlord-friendly or tenant-friendly. New Mexico is more landlord-friendly than Arizona, but it’s not as accommodating to landlords as Colorado and Texas. Landlords are able to require reasonable deposits. However, the amount is only one month’s rent when the lease is not more than one year. The state does not have any rules on non-refundable fees or pet deposits. Deposits can, however, only be used to cover damage to the building or for not paid bills.
Records-keeping regulations are loosened. This protects the worth of an Albuquerque real property investment because you are able to assess a charge for the harm they cause and evict them for the non-payment of rent. For instance, you can start the eviction process when the tenant is three days behind on the rent.