And not just Freddie Mac. Kirtland Air Force Baseand Sandia National Laboratories, in particular, have helped Albuquerque improve its job market in recent history. And everyone that bought a house today is going to be wishing they hadnt, I, I dont want to go into the detail, but Ive seen some great charts on, you know, what markets in the country are down in. 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 Despite last years appreciation, the median home value in Albuquerque is still $40,899 less than the median home value in the United States. In 2022, foreclosures were down 34% compared to 2019, according to the Year-End 2022 U.S. Foreclosure Market Report published by ATTOM Data. Interested in learning more about today's most lucrative real estate strategies? It is noted that there are around 207 locations in Albuquerque that are ideal for property investment. We dont foresee potential regional home price declines to be of serious concern for the macroeconomy, but nonetheless we believe meaningful regional house price risk exists for some metros. Yeah. Were going to be ahead of that this year. 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. Rather, we expect the narrative around housing this year to shift from one of extremely limited inventories leading to hypercompetitive bidding wars to one in which increasingly more would-be homebuyers are priced out of the market. This cookie is set by GDPR Cookie Consent plugin. 3 Mar. Click here to stay informed with the Santa Fe market! After that, the real estate price in the city increased by 11.5%. Cancel anytime. But she says there were some challenges during the process. Colorado State slices up Lobos; UNM is a 6 To say that defense was optional would imply is was a choice. By clicking Accept, you consent to the use of ALL the cookies. Simply put, too many important market indicators are pointing towards becoming a buy-and-hold investor to ignore, not the least of which include: With a metropolitan population somewhere in the neighborhood of 942,000, Albuquerque has seen its population grow a modest 1.4% year over year. In the meantime, competition is expected to remain high. And were definitely seeing that in our market and many others that we watch. 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. For Albuquerque in New Mexico, the history of the real estate market trend showed that the HPI in April 2017, it is 150.2 and in April 2022, it is 234.8. Supply and demand constraints have directed the Albuquerque housing market for about 24 months and created the following trends: Supply Trends: The Albuquerque real estate market had about 523 single-family detached homes for sale at the end of the first quarter. Even though inflation is expected to eventually ease, a higher-than-pre-COVID range is forecast for the foreseeable future. Bishop said he expects the inventory of new homes to remain chronically low for another 12 to 18 months. Dating back more than two decades, in fact, the following neighborhoods in Albuquerque have appreciated the most: The Lofts At 610 Central SW / Silver Platinum. All rights reserved. Undeniably, in the USA, there are many places considered the best for real estate and property investments. That number is quite high that year but it is too small if you just invest it to sell in 2023. When there are pros, there must be cons as nothing is perfect in this world. So theyre saying home prices in 2021 across the States are expected to average 6.6% up. Based on a slightly higher interest rate expectation, which outweighs the more optimistic home price growth forecast, we have revised downward our forecast for 2022 refi volumes by $25 billion to $1.3 trillion. Thats nationally. As of April, the average rate on a 30-year fixed-rate loan was 4.72%, according to Freddie Mac. 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. The median price for a single-family detached home stood at $175,000 in March 2015. The median home price in metro Albuquerque reached $247,500 for the year, the highest on record, according to GAAR. How durable is investor demand? Based on more recent data, we estimate the mortgage rate could be approximately 20 basis points higher over the forecast horizon. As households reassess new working, living, and schooling arrangements, there may be a continued level of re-sorting between urban and suburban areas, as well as broader regional migration shifts leading to a heightened level of home sales. Especially if they come from bigger cities. After that point, he said hes hopeful demand will slow down and allow builders to catch up. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Can I get back to this story now? Right. Yeah. This measure is likely soon to meet or eclipse the recent high recorded in 2018, which precipitated a notable slowing in home sales following a rise in mortgage rates. Whether youre brand new to investing, have closed a few deals, or are a seasoned investor our new online real estate class reveals the best real estate strategies to get started with real estate investing in today's market. It is the biggest city in the state of New Mexico as well as it is a home to around a half million people. Recent inflation data has likewise been in line with our prior forecast, so related adjustments have also been modest. At that time, real estate in Albuquerque boasted a median home value of $170,000. Well see if it happens. We dont need more buyers in the market right now. In March 2020, Nob Hill mainstay Zinc Wine Bar & Bistro closed due to the COVID-19 pandemic. There are less houses than there are buyers.. Compared with some other big cities in the US, Albuquerque is relatively isolated. 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. Well, of course, while youve got me, I know youre my number one researcher, and Im every morning over coffee. Are COVID-related shifts in housing over? Right. Real estate agents credited an influx of residents from other states, low interest rates and a shockingly low inventory of homes for the jump in prices. When you say there are some that are down. In March 2020, Nob Hill mainstay Zinc Wine Bar & Bistro closed due to the, Currently, the Maxwell Museum is displaying 'Conversing with the Land: Native North American Baskets of, The Harwood Museum of Art's exhibition 'Outriders: Legacy of the Black Cowboy' explores this history. 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. Any reliance on this information is at your own risk. WebReal Estate, Homes for Sale, MLS Listings, Agents | Redfin The resulting activity should catalyze the local housing sector, and just about everyone participating should benefit. This week the median list price for Santa Fe, NM 87508 is $762,500 with the market action index hovering around 42. This cookie is set by GDPR Cookie Consent plugin. And here our high price market is booming. While not quite up to speed with home value appreciation, its only a matter of time until rent increases surpass their home value counterparts. Yeah. According to the Greater Albuquerque Association of Realtors report on annual market statistics, the average sale price of a single-family home in the metro area in 2020 increased by 10.7% compared to 2019 the largest single-year jump in the metro area since 2006. Necessary cookies are absolutely essential for the website to function properly. the number of home sales theyre predicting to be above last year, last year was a record year, 6.5 million nationally. On both ends, that has translated to a nearly 20% increase. Heres what. like, I think it was an 80% increase in the number of homes sold over a million dollars in the last year. https://www.macrotrends.net/cities/22908/albuquerque/population Register for our FREE Real Estate Webinar and get started learning how to start a successful investment business today! Total sales in February stood at $27.7 million, says Cannabis Control Division data shows. Furthermore, we expect the recent rapid house price appreciation and rising mortgage rates will lead to growing affordability constraints, dragging on home sales, but also likely limiting further price appreciation to a more sustainable pace. It really seems like theyre moving to be closer to family, she said. They know that should be buying a house. And theyre saying four and a half percent appreciation, 20, 22 nationally. In December, 30-year fixed-rate mortgages were available for less than 3%, according to Bankrate.com. Still, Venturi acknowledged that the pandemic exacerbated some of these trends. Well, theres a couple of news releases. So. It should be giving credits to the home builders to get those houses built, to offset the increases. You just cant fight against demographics, he said. New Mexico and ABQ News, Sports, Business and more, By Matthew Narvaiz / Journal Staff Writer 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.. Rental properties will be the most viable investment strategy: Increases in home prices have made it harder to flip real estate in Albuquerque. We still expect strong appreciation for this year as inventories currently remain very tight and measures of buyer traffic remain robust. These cookies track visitors across websites and collect information to provide customized ads. The housing market is going to stay healthy and slowly mortgage rates will move up. 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. TheAlbuquerque median home pricealso improves compared with it 5 years ago. As a result, real estate in Albuquerque remains relatively affordable. Only modest changes have been made to our macroeconomic forecast since Decembers outlook. This website uses cookies to improve your experience while you navigate through the website. With, as a homeowner, there you go. Home prices are expected to continue rising at a fast pace. It is very beneficial if you are a landlord in the city. Your email is safe with us, we dont spam. It means that the city is one of the most affordable real estate markets in the US. I think it was higher than that, but that was a few shows ago now. Yes, yes. Data sources for charts: Federal Housing Finance Agency, U-Haul, Core Logic, MRS Securitization Disclosure Data, Federal Reserve, Fannie Mae ESR Analysis. I think it was six 20 or something like that, Tracy. Rates are now higher than they have been in years, and they will continue to increase throughout 2022. So what theyre doing is theyre doing a program thatll help boost those people. Help is on the horizon, but prices will keep rising until it gets here. And theyre going to be credit for appraisal if you qualify stuff like that as well. It even takes around 4 hours to reach it by driving from the nearest city. Kimberly Kiegel, a real estate agent based in Albuquerque with eXp Realty, said new home builds arent always affordable for home buyers considering contractors are pricing new homes higher to match the rising costs of supplies to make it worth it for them. If theres a general theme its just a shortage of supply, Bishop said. And I know listeners to the Kiva probably pay attention to politics a lot. Lets just be honest here. The average price of land per feet square is $190, increasing from the average price in 2021 at 20.3%. So still not even getting to that, that 4% even next year. As well. Although the ESR group bases its opinions, analyses, estimates, forecasts and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current or suitable for any particular purpose. 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. Demand in the Albuquerque real estate market appears to be undergoing a shift from single-family homes towards condominiums. Aside from houses, some other properties sold in the same period are 180 condominiums, a townhouse, and 48 units of multi-family houses. Youre getting less house for more money, Griffin said. Be patient, I know situations are different. 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. The severity of the variant appears to be lesser than prior waves, and most high frequency economic indicators suggest a smaller change in consumer behavior compared to the 2020-2021 winter wave of COVID. Our 2023 forecast is essentially unchanged from last month at $1.1 trillion, as the impact from stronger home prices and higher interest rates are projected to offset each other. Their additional three locations remain open. I would expect that 2022 will start with all-time low number of homes on the market, Venturi said. Investors are lucky to have several viable exit strategies at their disposal. 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. While it is too early to be certain that the COVID era is nearing its end, we expect the story of 2022 to be one of transition for both the economy and the housing market. Albuquerque is a city located in the area of Bernalillo County in New Mexico. Thus, the economy appears to be entering the mature stage of the business cycle, during which growth decelerates toward the long-run trend. 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. It happens. How long will the ski season last in New Mexico? As the largest city in New Mexico, theres little doubt the Albuquerque real estate market didnt make any contributions of its own. The same profit margins investors once found readily available are growing harder to find. Yes, and it is getting more annoying if some of the unemployed people are tenants in your houses. 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. Yeah. But anyway, its, its good to see that theyre doing that because not only does that help that person, it actually helps stimulate the economy. This cookie is set by GDPR Cookie Consent plugin. Today, the average commitment rate on a 30-year fixed-rate loan is about 4.72%. Some people are participating in recovery. https://www.apartmentlist.com/research/ The share of panelists who believe their long-term outlook might be too optimistic jumped up to 67% from 56% last quarter. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. With the average home listing price of more than $300,000, the profit of investing in a house for 5 years is around 4.06%. According to The Greater Albuquerque Association of Realtors, between May 2021 and May 2022, the median listing home price in the metro increased by more than Yeah. There was a significant increase in the average house price in Albuquerque, it was 55.3%. And you know, you think about this, a builder is paying a hundred thousand dollars before they do anything on that piece of land. , 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. Third, many people prefer renting a house or an apartment unit in Albuquerque instead of buying. According to a report from the Greater Albuquerque Association of Realtors last month, the median home price in the Albuquerque area stood at $325,000. By clicking Accept, you consent to the use of ALL the cookies. 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. Newcomers in the city are mostly only local and there are only a few immigrants who live here. A wave of early retirements in the wake of COVID, reflected in the now-lower labor force participation rate among older cohorts of workers, likely accelerated many moving plans as well, especially in the Sunbelt and other popular retirement locations. Some of the behavioral and structural changes from the past two years may prove to be long-lasting. Just for the land and the permits and the yup. That really is a satisfying part of what we do for sure. Mackenzie Bishop, co-owner of Abrazo Homes and president of the Home Builders Association of Central New Mexico, said Albuquerque has chronically underbuilt housing for about a decade coming out of the recession. Most forecasts are calling for local home values to increase an average of 15.6% because of more buyers competing over fewer homes. 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 cookie is used to store the user consent for the cookies in the category "Analytics". 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.. How this information affects Fannie Mae will depend on many factors. Learn How To Start Investing In Real Estate, Register to attend a FREE online real estate class, building a proper rental property portfolio, https://www.zillow.com/albuquerque-nm/home-values/, https://www.bls.gov/eag/eag.nm_albuquerque_msa.htm, https://www.census.gov/quickfacts/albuquerquecitynewmexico, https://www.neighborhoodscout.com/nm/albuquerque/real-estate, http://www.gaar.com/images/uploads/statistics.pdf, https://www.macrotrends.net/cities/22908/albuquerque/population, https://www.attomdata.com/news/market-trends/foreclosures/attom-february/, https://www.sofi.com/learn/content/foreclosure-rates-for-50-states/. Taking advantage of low interest rates and in many cases work-from-home arrangements, many households pulled forward their moving plans. Supply and demand will contribute to increases across the board, but interest rates should temper price hikes relative to the previous year. Our next forecast will of course incorporate formally any recent interest rate changes. 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. On top of that, the median sales price for condos has increased more than single-family homes22.6% and 19.8%, respectively. Meanwhile, houses included in the hot list gain prices 7% higher than offers with the delay of 5 days. These cookies ensure basic functionalities and security features of the website, anonymously. 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. The median home price in metro Albuquerque reached $247,500 for the year, the highest on record, according to GAAR. Click to register for our FREE online real estate class! Some websites and experts have predicted the future of the Albuquerque real estate market at least for the next 5 years. We also use third-party cookies that help us analyze and understand how you use this website. Our quarterly house price forecast was modestly upgraded but still represents a view of significant deceleration in prices. Inflation, and steps that federal policymakers have taken to curb it, remains a major factor in the local real estate market. Over the course of the pandemic, real estate in Albuquerque has appreciated an average of 36.7%. It is worth noting that the city has made great improvements since unemployment peaked during the pandemic. 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. Home prices didnt have the same type of run-up as many of todays hottest markets, but demand persisted. But opting out of some of these cookies may affect your browsing experience. Realtor.com is forecasting 2022 home sales to jump 6.6% year-over-year and hit their highest level in 16 years. It increases by 15.7% from year to year. So you actually read the story. Rehabbing and flipping still offer attractive profit margins, but rental properties look more conducive to a successful business model in todays environment. Albuquerque Real Estate Market 2022 Overview, Albuquerque Real Estate Market Trends 2022. As a result, the Albuquerque real estate investing community has turned to rental properties. Lower interest rates allow investors to offset high prices and increase monthly cash flow. 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. 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 still have to pinch myself to believe that it actually has happened, said Thomas. 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? 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. We now project 7.6 percent and 3.3 percent house priced growth for 2022 and 2023, respectively, as measured by the FHFA Purchase-Only Index. The metropolitan area includes some big locations such as Rio Rancho, Bernalillo, Bosque Farms, Corrales, Belen, Placitas, and Los Lunas. The New Other cities in the area are seeing the same conditions as here in Albuquerque, NM housing. WebInteresting. 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. How is theAlbuquerque real estate market? Based on the latest Census in 2020, the population of the city was 563,165. This year, theyre saying 7.1 in 2022, theyre saying 6.7 I mean, we, we have to get all those 20 somethings into their first house. For now, there appears to be ample prospective homebuyers engaging in bids to facilitate sales even as some drop out of the market completely, but the amount will likely lessen as the year unfolds. 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. This isnt an indication of economic turmoil or of weakness in the housing market; its simply the gradual return to normal levels of foreclosure activity after two years of artificially low numbers due to government and industry efforts to protect financially impacted homeowners from defaulting.. Albuquerque foreclosures will increase Foreclosures are increasing on a national level, and Albuquerque doesnt look like itll be an exception. With local home prices increasing at such a fast pace, some neighborhoods have taken the momentum and run with it. As more people continue to compete over the little available inventory, home prices will only keep rising. Maam. I dont think theres really one area thats the hot spot, Vigil said. First, generally, the prices of properties in Albuquerque tend to be more affordable than in other big cities in the USA. Although the condition is still good enough for investors, 2022 is not better than 2011 as the average of median days has decreased. For 2022, we expect a deceleration to 3.1 percent growth (down one-tenth), while our 2023 forecast remains unchanged at 2.2 percent. Interest Rate Trends: The Federal Reserve has been forced to increase interest rates to fight inflation, and mortgage rates have suffered. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. The average listing price of houses to sell in the city is $325,000. So again, they, they are expecting a healthy growing residential real estate market. We forecast the sale of existing homes in 2022 to slow by only 3.2 percent from 2021, which would still represent the second fastest annual pace since 2006. But you can still say that the weather there is nice and super comfortable. It does not store any personal data. Rental Trends: The same supply trends increasing prices have also forced many buyers out of the market. The change in house price in 5 years was 56.9% while the monthly change in the same period was 1.4%. Condominiums are selling nearly twice as fast as their single-family counterparts. However, if inflation pressures remain robust, the Fed may feel compelled to act more aggressively. At that level, listings are down 40.8% year over year. 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. Copyright 2023 Nexstar Media Inc. All rights reserved. Thats not a pending that one exists. Published: Tuesday, January 11th, 2022 at 7:48AM A house was for sale off Coal Avenue in Albuquerque in September. We now expect the first of three rate hikes this year to occur in March (previously we had expected a June start), though recent comments from Fed officials, such as St. Louis Fed President Bullard, suggest upside risk of four hikes. Currently, the Maxwell Museum is displaying 'Conversing with the Land: Native North American Baskets of the Maxwell Museum Collections,' through Jan. 10, 2024. Indeed, there are some expensive houses in certain locations but some others are even very cheap. Freddie Mac forecast: What experts are saying about Albuquerques Real Estate Market. At the same time, the website also said that a short-term investment in the city is not so good. Now. 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. Still, the new market landscape created by the pandemic and years of appreciation has shifted fundamental indicators in favor of rental property owners. Franco said she worked with buyers from California, the Midwest and even Hawaii in 2020. 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. Many will turn to rental properties, as rates will help investors simultaneously offset higher prices and increase cash flow. I do see 2021 as being a good year, Bishop said. The average household income in Albuquerque is $72,265 with a poverty level of 15.95%. Unprecedented market and policy responses stemming from the pandemic will gradually be replaced by more typical pre-COVID economic and housing patterns. There are total 247,716 housing units, The voting population of Albuquerque are 409,852, out of these 194,645 are male voters, 215,207 are female voters, 47.5% are male, 52.5% are female. The population is approximately 558,000 and theAlbuquerque metro populationis 903,000. However, the same indicators that lowered profit margins on flips made rental properties more attractive. Yeah. 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. This year, theyre saying 7.1 in 2022, theyre saying 6.7 million homes sold. This is less than last month's market action index of 44.