Metropolitan areas in the Southwest saw particularly steep home price growth. Think of places like New Jersey, New York, certain parts of California that just got really overheated on prices. But its interesting out there.. And theyre saying four and a half percent appreciation, 20, 22 nationally. https://www.census.gov/quickfacts/albuquerquecitynewmexico But experts say that the Albuquerque area market may remain tight with the low inventory of homes. I mean, young man, it was, it was really fun. Unless we get that, you know, the so-called black Swan. 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. On the whole, however, we expect home sales to be dramatically lower, down 14.1% compared to 2022 as both buyers and sellers pull back from a housing market and economy in transition. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. 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 And not just Freddie Mac. I do see 2021 as being a good year, Bishop said. Any reliance on this information is at your own risk. The Albuquerque real estate market has appreciated nearly twenty percent over the last 12 months. The cookie is used to store the user consent for the cookies in the category "Analytics". The most expensive one is High Desert with an average price of $612,000. Santa Fe Real Estate Market Forecast 2022-2023 According to statistics compiled by NeighborhoodScout, property appreciation rates in Santa Fe have been Yes, it is. I dont think theres really one area thats the hot spot, Vigil said. 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. For 2022, we expect a deceleration to 3.1 percent growth (down one-tenth), while our 2023 forecast remains unchanged at 2.2 percent. The fastest rates of appreciation have taken place over the last few years. At their current level, foreclosures were up 1.0% from the previous month and 129.0% from the same time last year. But she says there were some challenges during the process. Cancel anytime. Were going to be ahead of that this year. Of course, you cannot compare it with bigger cities like New York or Los Angeles. While rates are increasing, todays rates are still historically low. WebInteresting. So Im glad to see that that FHA and Fannie and Freddie are doing that. 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. Changes in the house prices were compared including theAlbuquerque houses for salein the metropolitan area. This cookie is set by GDPR Cookie Consent plugin. https://www.attomdata.com/news/market-trends/foreclosures/attom-february/ In particular, 2022 purchase volumes are now expected to be $2 trillion, an upward revision of $17 billion from last month's forecast. I havent looked at it. The report shows that the peak of the real estate cycle happened in May 2006 in Albuquerque. This year, theyre saying 7.1 in 2022, theyre saying 6.7 million homes sold. What about the forecast? This week the median list price for Santa Fe, NM 87508 is $762,500 with the market action index hovering around 42. 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.. Even though inflation is expected to eventually ease, a higher-than-pre-COVID range is forecast for the foreseeable future. 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. It is noted that there are around 207 locations in Albuquerque that are ideal for property investment. 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. More people have found jobs, particularly at the state and federal levels. Still, the new market landscape created by the pandemic and years of appreciation has shifted fundamental indicators in favor of rental property owners. I closed one this week, Tigo. 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. 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. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. Its its exciting. Albuquerque real estate has experienced hyperbolic highs and lows for a decade. So again, they, they are expecting a healthy growing residential real estate market. Other cities in the area are seeing the same conditions as here in Albuquerque, NM housing. 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). Based on data published by Redfin, the housing market in Albuquerque in 2022 is not too competitive. Help is on the horizon, but prices will keep rising until it gets here. Right. But now that hot housing market is cooling off thanks to higher interest rates. Unlike the 8,000 back in like 2008, 2000, was it 2008 or 2008? So Freddie Mac, Im not, Im not I dont have as big a team of researchers behind me. I dont expect to see anything very quick on that. WebAlbuquerque, NM Real-Time Housing Market Conditions. In particular, home values continue to test new highs as inventory levels fail to keep up with demand. For more on multifamily market conditions please see the January 2022 Multifamily Market Commentary. 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. Whereas single-family homes are spending about 17 days on the market until they are sold, condominiums last a mere nine days. 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. Here they are. 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. And you know, you think about this, a builder is paying a hundred thousand dollars before they do anything on that piece of land. Manage the news you want to see, read exclusive content and explore other subscriber benefits. Its just a bill. Even common people with a lot of capital money can just buy land and keep it that way. While inflation is expected to remain elevated, home sales and house price growth will slow to a more sustainable pace. Overall, Albuquerques hot housing market didnt show any signs of cooling down in April. In addition, the median home listing That, you know, its decay economy, the richer getting richer, the poor are getting poor. The median home price in metro Albuquerque reached $247,500 for the year, the highest on record, according to GAAR. The average home price stood at $372,002, according to the report. Most forecasts are calling for local home values to increase an average of 15.6% because of more buyers competing over fewer homes. It increases by 15.7% from year to year. Your entry-level buyer who has no equity and no home to sell and (who) has to cobble together every dollar for a down payment, that jump in the interest rate is going to really hurt them because they can afford less per month now, Kiegel said. However, if inflation pressures remain robust, the Fed may feel compelled to act more aggressively. Lower interest rates allow investors to offset high prices and increase monthly cash flow. And it looks like the trend maintains that way in 2022. Besides, the population in the city has also significantly grown recently. At todays levels, the median home value is under the national average. Our quarterly house price forecast was modestly upgraded but still represents a view of significant deceleration in prices. Guitarist Ottmar Liebert bringing his unique blend of music Ottmar Liebert and his band Luna Negra will perform with the New Mexico Philharmonic at Popejoy Hall on Saturday, March 11. These cookies track visitors across websites and collect information to provide customized ads. The low inventory has created bidding wars among prospective buyers, with some paying as much as $100,000 over listing price, experts say. *The information contained herein was pulled from third party sites. Interested in learning more about today's most lucrative real estate strategies? It was the fourth consecutive year that New Mexico saw a higher percentage of inbound moves than outbound moves, according to an annual survey by United Van Lines. Successive waves of stimulus checks and rise in savings also helped facilitate down payments, and over the past quarter, survey evidence published by Redfin suggests that many buyers have rushed to get ahead of rising mortgage rates. Nearly every Albuquerque real estate market forecast mirrors that of its national counterpart. 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. At the current mortgage rate of 3.22 percent, we estimate that about 32 percent of outstanding mortgage balances have at least a 50-basis point incentive to refinance. 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. Generally, the rental price in Albuquerque increases recently as well as the buying price that tends to be low. This initially was driven disproportionately by higher-income renters leaving denser urban areas to become first-time homeowners, but then broadened over time. Around 35% of the total population in Albuquerque is bilingual as the people are fluent in English and Spanish. In fact, theres a good chance price will continue rising until more inventory is brought to the market, perhaps as much as 15.6%. It means that the city is one of the most affordable real estate markets in the US. The cookie is used to store the user consent for the cookies in the category "Other. As such, there is upside risk to our published interest rate forecast. Ive seen that on all the air quote experts are saying the same thing, right? Therefore, we describe this upcoming year as returning to a 'new' normal. On both ends, that has translated to a nearly 20% increase. Still, Venturi acknowledged that the pandemic exacerbated some of these trends. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Demand in the Albuquerque real estate market appears to be undergoing a shift from single-family homes towards condominiums. 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 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? So thank you. Okay. Thomas has some advice for buyers. So theyre saying home prices in 2021 across the States are expected to average 6.6% up. And I said to clarify, thats how much you have to at least reduce your monthly payment by to qualify. Their additional three locations remain open. Improving employment numbers, pent-up demand, and a lack of available inventory will all contribute to higher home values over the course of 2022. While its too soon to tell, competition in the single-family market may have driven more buyers to seek out attached condominiums. 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/.