Much like the rest of the country, the Albuquerque real estate market saw an influx in real estate investing activities after the Great Recession. Venturi cited data showing that new arrivals were coming from crowded East and West Coast markets, along with more expensive inland real estate markets like Denver. WebInteresting. This cookie is set by GDPR Cookie Consent plugin. If interest rates continue to move up meaningfully and economic activity decelerates, investor demand for housing could quickly reverse, leading to slower house price appreciation, and perhaps a slower sales pace. Youre getting less house for more money, Griffin said. Albuquerque Area MLS Map and MLS Areas List. Home prices didnt have the same type of run-up as many of todays hottest markets, but demand persisted. 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. The population is approximately 558,000 and theAlbuquerque metro populationis 903,000. De-extinction is a, Roundhouse Roundup: Paramilitary rules, youth parole, Rio Bravo Park cleanup will take longer than expected, More from KRQE NEWS 13 - Breaking News, Albuquerque News, New Mexico News, Weather, and Videos, Gun safety bill passes Senate, faces one more hurdle, Restaurants still struggling to recover from COVID, Roswell PD: Woman steals, drives wrong-way to get, State basketball tournament: Girls first round recap, BCSO: Kids were living in dirty home containing drugs, Whats happening around New Mexico Mar. While rates are increasing, todays rates are still historically low. I dont like the word crisis,' Venturi said. Lets connect so you can make your best move in the new year. Click here to stay informed with the Santa Fe market! How durable is investor demand? That said, Albuquerque remains an affordable housing market, relative to the national average. While home price growth during an economic downturn might seem counterintuitive, Albuquerque wasnt the only city that saw significant home price growth in 2020. Home price growth will remain strong but decelerate: We expect the effects of worsening affordability to lead to a drag on home price growth. https://www.zillow.com/albuquerque-nm/home-values/ Right. The trend continues in 2022, making Albuquerque promising for property investment. In addition, the median home listing Here are some of the new Albuquerque real estate market trends benefiting todays rental property investors: Interest rates on traditional loans are historically low, Years of cash flow can easily justify todays higher acquisition costs, Inventory shortages will increase rental demand. It means that more people are interested in buying houses than the supplies. Yes. Our quarterly house price forecast was modestly upgraded but still represents a view of significant deceleration in prices. Lets talk about the number that I hear the most that people seem to really want to know about when people are saying, I cant buy a house prices are too high. Moving forward, Albuquerque real estate market appreciation is expected to reach upwards of 15.6%. Undeniably, in the USA, there are many places considered the best for real estate and property investments. The average household income in Albuquerque is $72,265 with a poverty level of 15.95%. I mean, young man, it was, it was really fun. So Im glad to see that that FHA and Fannie and Freddie are doing that. While not quite up to speed with home value appreciation, its only a matter of time until rent increases surpass their home value counterparts. As the largest city in New Mexico, theres little doubt the Albuquerque real estate market didnt make any contributions of its own. Unless we get a mass exodus of people out of Albuquerque, we just dont have enough housing, Venturi said. She explains, It was just a scary experience, especially at my age. Our housing forecast has also been minimally changed; we expect total home sales to fall 1.2 percent in 2022 (from -1.4 percent last month), followed by a decline of 3.6 percent in 2023 (previously -3.8 percent). Its its not, then its not very many communities. Here they are. These cookies ensure basic functionalities and security features of the website, anonymously. This initially was driven disproportionately by higher-income renters leaving denser urban areas to become first-time homeowners, but then broadened over time. Duein large partto the previously mentioned supply and demand constraints caused by the pandemic, prices proceeded to increase nearly forty percent to get to where they are today. 13% expect the market to favor home buyers in 2025. Its a supply and demand issue, said Sarah Griffin, an Albuquerque-based real estate agent with Keller Williams Realty. Franco said she expects interest rates to remain low, homes to remain scarce, and Albuquerque to remain popular with new arrivals looking for sunshine and green chile. In addition, the median home listing price per feet square is $185. That said, the Albuquerque real estate market is focused on the light at the end of the tunnel, which is growing brighter by the day. Each month in 2022, home values have tested new highs, and they might continue to do so well into 2023. For a snapshot of macroeconomic and housing data between the monthly forecasts, please read ESRs Economic and Housing Weekly Notes. Garcia says she believes the housing market will balance out in the near future. Buyers cited a variety of different reasons for moving to New Mexico from new jobs to better air quality but Franco said one reason emerged as the most common. And I know all the builders out there that listen are saying amen to that too, because you know, people are going well, how come theres no new construction under $300,000 in Albuquerque? Real estate is cyclical, and rehabbing has enjoyed a run as the countrys most popular exit strategy for a decade. New Mexico Real Estate Market May 2022: Forecasts + Trends 1-833-225-3837 Find Agents Real Estate Blog New Mexico Real Estate Market New Mexico Real By 2020, Bishop said the market was about 10,000 units behind where it should be, and the problem was exacerbated by increased lumber and transportation costs associated with the pandemic. By December, just 950 homes were on the market, compared to 1,901 a year earlier. Well, he wasnt calling me that, but I wasnt really in charge at the closing, but just such a great kid getting his first house. As of April, the average rate on a 30-year fixed-rate loan was 4.72%, according to Freddie Mac. So you actually read the story. Even common people with a lot of capital money can just buy land and keep it that way. We estimate that purchase volumes under such case could be about 2 percent, or $33 billion lower in 2022, all else equal, and that refinance volumes could be about 10 to 15 percent lower in 2022. Its April, 2021, where theyre forecasting next years home price appreciation. Kirtland Air Force Baseand Sandia National Laboratories, in particular, have helped Albuquerque improve its job market in recent history. I mean, hes 24. Yeah. Meanwhile, houses included in the hot list gain prices 7% higher than offers with the delay of 5 days. But, but for the most part, its, its East and Midwest markets, not the South and the Southwest where we are, everybody in the South and the Southwest is, is booming one way or another. A lot of people arent participating in the, in the recovery after COVID. There was a significant increase in the average house price in Albuquerque, it was 55.3%. Well, of course, while youve got me, I know youre my number one researcher, and Im every morning over coffee. How is theAlbuquerque real estate market? The share of panelists who believe their long-term outlook might be too optimistic jumped up to 67% from 56% last quarter. Improving employment numbers, pent-up demand, and a lack of available inventory will all contribute to higher home values over the course of 2022. So yeah, its a, its a good program. Venturi said Albuquerque already had a very limited inventory of homes on the market before the pandemic, and a massive number of millennials were approaching the age and income level where they might begin looking to buy a house for the first time. This website uses cookies to improve your experience while you navigate through the website. I was gonna say, well see what happens. Redfin reported that for the first time in six months, homebuyer competition dropped slightly in March of 2022. Across the U.S., home inventory stood at about 950,000 a decrease of 9.5% year-over-year and the median sales price stood at about $375,300, which is an increase of 15% from March 2021. Well, you cannot say that it is too cheap and the average price is indeed still higher than in places like Milwaukee. Third, many people prefer renting a house or an apartment unit in Albuquerque instead of buying. At the time (around the first quarter of 2012), home values had been suppressed for far too long, and foreclosures ran rampant, which created a surplus of distressed homes with extremely attractive profit margins. Economic & Strategic Research (ESR) Group Yes, it is. Thank you. Now. Necessary cookies are absolutely essential for the website to function properly. Albuquerque Real Estate Market Investing: Should You Invest? 24 years old first house. In particular, todays economic indicators look to favor long-term real estate investing strategies. As a result, the Albuquerque real estate investing community has turned to rental properties. Changes in the assumptions or the information underlying these views could produce materially different results. But some points make the city better than others. After many offer rejections, she finally has a place to call her own after closing on a home in Albuquerque. https://www.zillow.com/home-values/ More supply is coming eventually: The total number of homes under construction, including both single-family and multifamily units, is the highest since 1973. We still expect strong appreciation for this year as inventories currently remain very tight and measures of buyer traffic remain robust. Based on the index from Kiplingers method, Albuquerque has an affordability index of 6 out of 10. He was so cute and so, so excited. Think of places like New Jersey, New York, certain parts of California that just got really overheated on prices. 2022 Housing Market Forecast [INFOGRAPHIC] | Albuquerque And keeping with the trend of dwindling supply, about 523 single-family detached homes were available on the market in March. Disruptions are expected to continue, especially considering the recent COVID wave, but we anticipate an increase in home deliveries and new home sales later this year. Unless we get that, you know, the so-called black Swan. Lower borrowing costs have brought down acquisition costs for those looking to add to their passive income portfolio. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Our expectation of 7.6 percent growth in 2022 is still considerably higher than the average pace of 5.4 from 2012 to 2019. Manage the news you want to see, read exclusive content and explore other subscriber benefits. Albuquerque Real Estate Market: House Prices & Trends While Albuquerque has been a tight housing market for years, it got significantly tighter in 2020. Thats why you can find a bunch of pros if you are investing money in properties there. Such a scenario would obviously impact our home sales, prices, and mortgage originations forecasts. Mortgage rates dropped to record-low levels amid fear of an economic contraction, which Venturi and other real estate agents credit for keeping the market strong. The cookie is used to store the user consent for the cookies in the category "Analytics". Given that the prior business cycle was the only example of balance sheet runoff ever occurring, it is unclear what the precise interest rate and macroeconomic effects of doing so would be. Some good examples are the Ventana Farm, Cabezon, Enchanted Hills, Hills Village, Northern Meadows, Tanoan, and Alturaand. The buying prices for properties are low while the renting prices are higher. It happens. Asian stocks follow Wall St up on interest rate BEIJING (AP) -- Asian stock markets followed Wall Street higher Friday after a Federal Reserve official raised hopes the U.S. central bank might not City of Albuquerque goes to court to shut down City says the property puts the community at risk, but owner says it's unfair to blame businesses for Albuquerque crime and homelessness, Zinc Wine Bar & Bistro to reopen after three years, Final New Mexico COVID emergency order to expire March 31, Maxwell Museum exhibit focuses on Native American basketry from its collection, Harwood exhibit looks at the overlooked history of the Black cowboy. The donut shop has announced it has closed its South Valley and Northeast Heights locations. The report shows that the peak of the real estate cycle happened in May 2006 in Albuquerque. Purchase volumes are expected to grow to $2.1 trillion in 2023, $27 billion higher than the previous forecast. Albuquerque's housing market remains tight according to And here our high price market is booming. Still, the new market landscape created by the pandemic and years of appreciation has shifted fundamental indicators in favor of rental property owners. I mean, there, there is in a few places very limited. The average listing price of houses to sell in the city is $325,000. But interest rates for mortgages have risen, sparking a view from some that the market will balance out in the coming months. Rates are now higher than they have been in years, and they will continue to increase throughout 2022. 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 dont think any of us could have predicted this last year in any way, shape or form, said GAAR president Belinda Franco. Home prices are expected to continue rising at a fast pace. Thus, it makes Albuquerque the 59th biggest metropolitan area in the country. Well, as the market recovers from COVID. Taking advantage of low interest rates and in many cases work-from-home arrangements, many households pulled forward their moving plans. Historically, it is not uncommon for significant regional variation in house price growth to occur when structural shifts in the economy develop, such as oil boom and busts or the post-Cold War aerospace and defense industry shocks. Yeah. But that rise in interest rates can also lead to hundreds more dollars on mortgage payments, said Kiegel. Yeah. Yeah. I dont expect to see anything very quick on that. In March 2020, Nob Hill mainstay Zinc Wine Bar & Bistro closed due to the, The donut shop has announced it has closed its South Valley and Northeast Heights locations., Declaration began March 11, 2020, and NM is one of five states that still have. Okay. Less house for more money: ABQs housing market Low income homeowners that have mortgages refinance because whats happened. And they come into New Mexico, they can buy the same size property for about three or $400,000, Maddox said. Based on data published by Redfin, the housing market in Albuquerque in 2022 is not too competitive. https://www.freddiemac.com/pmms Unprecedented market and policy responses stemming from the pandemic will gradually be replaced by more typical pre-COVID economic and housing patterns. They may not pay the rent on time. Additionally, while we expect improvement to supply chain difficulties, there are risks around the speed at which this occurs, the duration of continued high inflation, and policy maker and financial market reactions to these economic conditions. I know. However, this represents a large deceleration from 2021s expected record house price growth of 17.3 percent. Garcia shares, There were very few homes on the market so every home that would come up you know youd have 50 to 100 people fighting for that same home. Back in September, Zillow released a bullish 2022 forecast which predicted U.S. home prices would climb another 11.7% over the coming 12 months. The next end of the cycle was in March 2012. 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 data show that the median home listing price in Albuquerque is $324,000 in April 2022. 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. Thats not a pending that one exists. The data are collected to analyze if the trend is just the same. I think that prices will start to stabilize somewhat and sales prices may start to even out a little bit, slow down from the pace theyve been going at, Garcia said. I just, theres no writing on the wall that says that home prices arent going to keep going up. Yes, yes. Im 62, jumping into the purchase of a new home and the economy the way it is, the interest rates the way that they are., Now that were seeing a slowdown in the market theres more supply but less demand. Oh, I hadnt heard that. Privacy Policy | Terms of Service | Sitemap | Cookie Policy 2022 Venturi Realty Group. And they always look and like, kind of give a forecast whats going on and what theyre saying for, you know, right now were somewhere around 3.1, 3.2% interest rates that, you know, it fluctuates obviously, but theyre saying through 2021, its going to stay pretty close to here in the low mid to low, to mid, to low threes. And it looks like the trend maintains that way in 2022. Rehabbing and flipping still offer attractive profit margins, but rental properties look more conducive to a successful business model in todays environment. The pandemic shuttered the economy, as shelter-in-place orders issued by the government ceased a large portion of business activity for the better part of two years. Any reliance on this information is at your own risk. Pittsburgh Real Estate Market: House Prices & Trends, Dallas Real Estate Market: House Prices & Trends, Baltimore Real Estate Market: House Prices, Trends & Stats. The Albuquerque market, not unlike the rest of the country, experienced a setback in the wake of COVID-19. First, generally, the prices of properties in Albuquerque tend to be more affordable than in other big cities in the USA. Albuquerque is a great city for investors, of course, although you cannot say that it is the best one. The industry professionals said new arrivals have been coming from all over the country, for a variety of reasons. But now that hot housing market is cooling off thanks to higher interest rates. Out-of-state home buyers drive up New Mexico real estate market Rental Trends: The same supply trends increasing prices have also forced many buyers out of the market. While just 8% expect that to happen by sometime in 2026 or sometime in the next five years.