And weve heard a lot of this over the over COVID right. In part, migration patterns evident pre-COVID were accelerated. Yes, it is. Most notably, heres what to expect from the Albuquerque real estate market in the immediate future: Buying a house in Albuquerque will get more expensive: Of all the Albuquerque real estate market forecasts, none may be as easy to assume as this one. By clicking Accept, you consent to the use of ALL the cookies. Rental properties will be the most viable investment strategy: Increases in home prices have made it harder to flip real estate in Albuquerque. How is theAlbuquerque real estate market? 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. Thats not to say rehabbing isnt still a viable exit strategy in Albuquerque, but rather that todays market landscape appears to favor an alternative investment strategy: procuring and building a portfolio of rental properties. Save my name, email, and website in this browser for the next time I comment. While most primary cities lost residents to work-from-home trends, Albuquerques affordability appears to have attracted buyers in search of more affordable living arrangements. Thus, the economy appears to be entering the mature stage of the business cycle, during which growth decelerates toward the long-run trend. Additionally, data on the number of lots being acquired and developed by homebuilders points to an increase in the total amount of homes likely to be made available for sale later this year. Data sources for charts: Federal Housing Finance Agency, U-Haul, Core Logic, MRS Securitization Disclosure Data, Federal Reserve, Fannie Mae ESR Analysis. So still not even getting to that, that 4% even next year. Meanwhile, if we look at it in the past, from 2000 to 2010, the population of the metropolitan area increased by 21%. For housing, the past year's demand surge was driven by a combination of factors, including low mortgage rates, down payments supported by stimulus checks and other savings, and a pandemic-driven reshuffling of preferences and move timing on the part of many households, all of which are expected to wane. With local home prices increasing at such a fast pace, some neighborhoods have taken the momentum and run with it. I wouldnt say that its like that across the board. Yeah. As such, we could expect home sales to be about 1 to 2 percent lower than our published forecast over this next year if the recent rate increase holds. Griffin has seen buyers from California, who she says are pricing New Mexicans out., They absolutely do affect our market, Kiegel said. So Freddie Mac, Im not, Im not I dont have as big a team of researchers behind me. Earlier this year, interest rates and they vary from lender to lender on average were in the 3% and 4% range, according to Luke Ham, branch manager for VanDyk Mortgage in Albuquerque. And they come into New Mexico, they can buy the same size property for about three or $400,000, Maddox said. Its a very few, its basically like a handful. 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. In fact, having lagged behind many national indicators may have actually worked in Albuquerques favor over the last few years. 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. It says, basically you have to save at least $50 a month in your mortgage payment, by refinancing to qualify along with a few other things, you said $50 a month. The result is used to determine the current trend of the property market as well as decide whether the year is a better time to sell or to buy. The data show that the median home listing price in Albuquerque is $324,000 in April 2022. Most of what fueled everything for the last two years was just the (low) interest rates, Ham told the Journal. Today, the average commitment rate on a 30-year fixed-rate loan is about 4.72%. Right now we have extra homes on the market., As of June 29, there are almost 600 homes listed on the market in Albuquerque. They forecast any possibilities ofAlbuquerque houses for saleand rent. Based on the index from Kiplingers method, Albuquerque has an affordability index of 6 out of 10. The Business With inflation measures continuing to come in strong (the CPI for December 2021 hit 7 percent on an annual basis, the highest since 1982), the Fed has increasingly suggested a move towards a swifter pace of policy tightening. Albuquerque metro area housing market shows signs of correction Data from the Greater Albuquerque Association of Realtors shows decreases in closed sales and in February 24, 2023 11:00AM Roxanne Thomas recently closed on her new home in Albuquerque and says it was the happiest day of her life. The minutes from the December FOMC meeting stated that participants judged that "changes in the target range for the federal funds rate should be the Committees primary means for adjusting the stance of monetary policy" as "there is less uncertainty about the effects of changes in the federal funds rate on the economy than about the effects of changes in the Federal Reserves balance sheet." Some of the behavioral and structural changes from the past two years may prove to be long-lasting. Tracy: It does not store any personal data. The report notes that was the biggest annual increase since 2014. For December WebAlbuquerque's 15 to 34 year of 28.6% old demographic are projected to show the stable age group. The unemployment rate is now below 4 percent, and the Federal Reserve is poised to begin policy tightening (we now expect the first rate hike to occur in March). Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. It means that the city is one of the most affordable real estate markets in the US. Right? Maam that means youre really old, right? , One person dead, another hospitalized in SE ABQ shooting, NM businesses are feeling impact of Pion shortage, Victims identified in ABQ neighborhood murder suicide, One dead after head-on crash in northwest Albuquerque, Whats happening around New Mexico Feb. 24 Mar. It should be giving credits to the home builders to get those houses built, to offset the increases. In the early months of the pandemic, the Federal Reserve took a number of actions designed to spur economic activity, including lowering the key interest rate. Much like the rest of the country, the Albuquerque real estate market saw an influx in real estate investing activities after the Great Recession. Lets connect so you can make your best move in the new year. Is the city a good place for property investments in 2022 and the future? The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. I appreciate hearing about it. The most expensive one is High Desert with an average price of $612,000. Third, many people prefer renting a house or an apartment unit in Albuquerque instead of buying. The cookie is used to store the user consent for the cookies in the category "Other. Unlike the 8,000 back in like 2008, 2000, was it 2008 or 2008? Generally, real estate is one of the most promising investments worth trying. Yeah. It increases by 15.7% from year to year. At the same time, the homes to sell are more limited than the demands. It should be noted, however, that home prices in Albuquerque have increased year-over-year since bottoming out in 2012. Improving employment numbers, pent-up demand, and a lack of available inventory will all contribute to higher home values over the course of 2022. 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. We still expect strong appreciation for this year as inventories currently remain very tight and measures of buyer traffic remain robust. https://www.apartmentlist.com/research/ Albuquerque is a great city for investors, of course, although you cannot say that it is the best one. Ive seen that on all the air quote experts are saying the same thing, right? Thats why you can find a bunch of pros if you are investing money in properties there. Monday, February 8th, 2021 at 12:02AM. But some others are indeed less popular like Albuquerque. Email addresses are used solely for verification and to speed the verification process for repeat questioners. Albuquerque real estate has experienced hyperbolic highs and lows for a decade. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. One of them is by recording historical changes in every location annually. One recent trend has been a shift in home sales from a heightened level of first-time homebuyers to a higher share of investor and cash purchases. I havent looked at it. 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. Our next forecast will of course incorporate formally any recent interest rate changes. The average price forAlbuquerque homes for saleis $327,000, increasing from the average price in 2021 at 21.1%. Right. Monetary Policy Tightening as Inflation Remains High This initially was driven disproportionately by higher-income renters leaving denser urban areas to become first-time homeowners, but then broadened over time. And I said to clarify, thats how much you have to at least reduce your monthly payment by to qualify. As a result, competition will remain fierce over the short term, but should dissipate as rates get too high. But professional investors, of course, will do more than just keep the land without doing anything. It also grows at 0.16% annually and the population has developed by 3.00% in the last 10 years. 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. *The information contained herein was pulled from third party sites. As a result, more people are being forced to rent. So Freddie Mac does a quarterly forecast where they look into Freddie Mac, you know, as one of the the, the big government sponsored mortgage funds basically. This cookie is set by GDPR Cookie Consent plugin. https://www.freddiemac.com/pmms As more people continue to compete over the little available inventory, home prices will only keep rising. If for nothing else, local home values bottomed out around the first quarter of 2012, when The Great Recession was starting to show signs of ending. Published: Tuesday, January 11th, 2022 at 7:48AM A house was for sale off Coal Avenue in Albuquerque in September. 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. 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 S&P 500 rose 1.6% to Universal Hydrogens test plane takes flight. While the unemployment rate in the United States is about 3.6%, Albuquerques unemployment rate is approximately 4.4%. 2020 wasnt just a surprisingly strong year for Albuquerques real estate market. As the largest city in New Mexico, theres little doubt the Albuquerque real estate market didnt make any contributions of its own. As well. The housing market is going to stay healthy and slowly mortgage rates will move up. If rates rise due to stronger consumer and investor confidence pertaining to the growth of the economy, then the same growing demand driving interest rates higher will also support home purchases, partially mitigating any negative effects on sales from higher rates. Meanwhile, houses included in the hot list gain prices 7% higher than offers with the delay of 5 days. Necessary cookies are absolutely essential for the website to function properly. Real estate is cyclical, and rehabbing has enjoyed a run as the countrys most popular exit strategy for a decade. This is less than last month's market action index of 44. Albuquerque Real Estate Market Investing: Should You Invest? Seven years later, that price has jumped nearly double. Although the condition is still good enough for investors, 2022 is not better than 2011 as the average of median days has decreased. Interested in learning more about today's most lucrative real estate strategies? 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. like, I think it was an 80% increase in the number of homes sold over a million dollars in the last year. This year, theyre saying 7.1 in 2022, theyre saying 6.7 Economic & Strategic Research (ESR) Group 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. And sometimes its hard to be patient when youre eager to get into a place when you dont have your own home or you dont have a home.. Moving forward, Albuquerque real estate market appreciation is expected to reach upwards of 15.6%. The share of panelists who believe their long-term outlook might be too optimistic jumped up to 67% from 56% last quarter. New Mexico and ABQ News, Sports, Business and more, By Matthew Narvaiz / Journal Staff Writer 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).