Albuquerque, New Mexico offers an affordable housing market and a unique blend of cultural influences. With a strong job market and growing economy, the city has seen an increase in demand for homes in recent years. In this post, we will explore the current trends, prices, and forecasts for the Albuquerque housing market.
Current Albuquerque Housing Market Report 2023
The Albuquerque housing market proves to be somewhat competitive, with homes receiving an average of 4 offers and selling within approximately 21 days. According to Redfin, the median sale price has seen a 3.2% increase from last year, reaching $320K. Additionally, the median sale price per square foot is $196, marking a 6.8% rise from the previous year.
Utilizing the Redfin Compete Score™, we find that Albuquerque’s competitiveness, calculated over the last 3 months, is reflected in the average homes selling for about 1% below list price and going pending in around 21 days. Hot homes, on the other hand, can sell for about 2% above the list price and go pending in approximately 8 days.
Factors Influencing the Market
- Desirability of Albuquerque: Albuquerque is highly sought after due to its strong economy and high quality of life.
- Limited Housing Supply: The housing supply is restricted, contributing to the increase in property prices.
- Low Interest Rates: Ongoing relatively low interest rates are making home purchases more feasible for buyers.
Is It a Good Time to Buy a House in Albuquerque?
If you’re considering purchasing a house in Albuquerque, it’s essential to be prepared for a competitive environment and the need to make swift, competitive offers. Home prices remain high and are projected to rise further in the near term.
If you have flexibility in your move-in date and budget, you may find better opportunities. For instance, you could explore homes in less sought-after neighborhoods or consider smaller homes. Additionally, waiting until the fall or winter, when the market is typically less competitive, might be beneficial.
Albuquerque Housing Market Forecast 2023-2024
The real estate landscape in Albuquerque is dynamic, and understanding its nuances is crucial for anyone looking to invest, sell, or buy property in this beautiful city. Exploring the housing market forecast provided by Zillow offers valuable insights into the trajectory of real estate in Albuquerque.
As of October 31, 2023, the average home value in Albuquerque stands at $321,090, indicating a noteworthy 5.2% increase over the past year. Homes in Albuquerque are swift to go pending, taking approximately 7 days from listing to pending status. Key metrics further shed light on the market dynamics, with 1167 homes for sale and 542 new listings reported as of October 31, 2023.
Market Metrics Snapshot (September 30, 2023)
- Median Sale to List Ratio: 1.000
- Median Sale Price: $343,333
- Median List Price: $367,500
- Percent of Sales Over List Price: 39.1%
- Percent of Sales Under List Price: 38.0%
These metrics provide a comprehensive overview of the Albuquerque housing market’s health and the dynamics between listing and sale prices.
Albuquerque MSA Housing Market Forecast for 2023 and 2024
The Metropolitan Statistical Area (MSA) forecast for Albuquerque, NM, according to Zillow, anticipates a steady growth pattern. As of October 31, 2023, the forecast projects a 0.3% increase by November 30, 2023, and a consistent 0.3% growth by January 31, 2024. Looking ahead to October 31, 2024, the forecast indicates a more substantial 1.5% growth. This forecast suggests a positive outlook for the Albuquerque MSA housing market, reflecting the region’s resilience and potential for growth.
The Albuquerque Metropolitan Statistical Area (MSA) encompasses Bernalillo, Sandoval, Torrance, and Valencia counties. This expansive region contributes significantly to the overall housing market, providing diverse opportunities for both buyers and sellers. The MSA’s size and economic influence make it a key player in the real estate landscape, and the forecasted growth aligns with the region’s strategic importance in the broader context of New Mexico’s housing market.
Albuquerque Real Estate Investment Overview
Is it worth buying a house in Albuquerque, NM? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Albuquerque is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead. We have already discussed the Albuquerque housing market forecast for answers on why to put resources into this market.
Although, this article alone is not a comprehensive source to make a final investment decision for Albuquerque we have collected ten positive things for those who are keen to invest in the Albuquerque real estate. Investing in Albuquerque real estate will fetch you good returns in the long term as the home prices in Albuquerque have been trending up year over year. Let’s take a look at the number of positive things going on in the Albuquerque real estate market which can help investors who are keen to buy an investment property in this city.
Albuquerque is a Big City
If you’re considering buying an Albuquerque real estate investment property, the sheer size of the metro area is a point in its favor. While roughly half a million people live in Albuquerque itself, the Albuquerque housing market is much larger than this. Take the suburbs into account, and the Albuquerque real estate market is home to almost a million people. This makes it the largest real estate market in the state of New Mexico. It also accounts for nearly half of the state’s total population.
One factor that will keep home values in the Albuquerque housing market slowly appreciating is the geographic constraints on expansion. Isleta Pueblo and several others border the city and are off-limits to general residential construction. Nor can the city expand to the east because of Cibola National Forest. This is why the Albuquerque real estate market saw 5 percent growth in 2018 and is expected to see nearly 3 percent appreciation in 2019.
Albuquerque Real Estate is Affordable
Albuquerque’s housing market is currently experiencing positive growth, with a 3.2% increase in home values over the past year. The average home value stands at $321,820, making it relatively affordable compared to some other metropolitan areas. However, it’s essential for investors to consider factors like market trends, rental demand, and economic stability before making investment decisions.
While the market shows promise for property appreciation and potential rental income, it is worth noting that competitive market conditions might lead to bidding wars and higher purchase prices. Affordability for investment depends on individual circumstances, financial goals, and risk tolerance. Careful research, assistance from local real estate professionals, and a long-term investment strategy can help investors determine if Albuquerque real estate aligns with their investment objectives.
It Is More Livable than Average
Albuquerque is more walkable than the average New Mexico city. It received a walk score of 43. It has a public transit score of 30. Where it shines is its bike friendliness. It has a bike score of 60, well above the national average of 50. This is aside from the many bike trails in the Sandia Hills. The abundant outdoor recreational opportunities and service providers make it a great place to live, though it isn’t so popular that it is overloaded with tourists.
The Diversified and Divided Job Market Keeps Things Stable
The Albuquerque real estate market is heavily dependent on state and federal-level jobs. For example, Sandia Laboratories create a large number of high-paying government research jobs in the area. Kirtland Air Force Base is also close by. However, the Albuquerque housing market isn’t seeing insane appreciation because that inflationary effect is countered by the lower average wages in the area. Yet the largest employers are in relatively stable sectors like healthcare and education. Hospitals and the University of New Mexico are two of the biggest non-governmental employers.
The Local Economy Creates a Large Population of Renters
A little over seventy percent of residents own their homes. However, the local economy will prevent the majority of those renters from buying homes. The lower than the average income in the Albuquerque housing market combined with the higher than average home price means a large minority of the population is priced out of the housing market. They can only rent. Another contributing factor is the outsized student market, thanks to the several schools in the area.
These young adults may choose to find jobs upon graduation and remain in the Albuquerque housing market, but they won’t be buying homes while attending school. This means you can buy Albuquerque real estate investment properties intended to cater to this nearly recession-proof rental market. For example, people move here to work because wages are higher than the state average (roughly 25K) and employment rates higher. They move here because it is better than where they came from, but they can’t commit to a house payment until they’re doing better personally.
One reason to consider buying Albuquerque real estate investment properties is the large population of renters created by Kirtland Air Force Base. Military personnel is likely to be renters since they shouldn’t buy property when they’re nearly certain to move in a few years. This large population of renters explains why rental rates in the Albuquerque housing market are relatively high, roughly 1300 a month. It also explains why rental rates in the suburbs of the Albuquerque real estate market are a little higher than those in “downtown”.
Local Rules Balance the Rights of Landlords and Tenants
States are often ranked as either tenant-friendly or landlord-friendly. New Mexico is more landlord-friendly than Arizona, though it isn’t as landlord-friendly as Texas or Colorado. Landlords can require reasonable deposits, though this is limited to one month’s rent if the lease is less than one year. The state doesn’t have rules regarding non-refundable fees or pet deposits. However, deposits can only be used for damage to the unit or unpaid bills.
Record-keeping rules are relaxed. All of this protects the value of an Albuquerque real estate investment property since you can charge someone for the damage they or their pets do and evict them for nonpayment of rent. For example, you can begin the eviction process after they’re three days late with the rent.
Conclusion
Maybe you have done a bit of real estate investing in Albuquerque, NM but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Albuquerque real estate investment opportunity would be a key to your success. Albuquerque is an often overlooked real estate market in the West because it doesn’t make headlines. However, the strong fundamentals and positive long-term outlook make it a great place to consider investing.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Albuquerque, NM is your ability to find great real estate investments in that area. According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
Purchasing an investment property requires a lot of study, planning, and budgeting. Not all deals are solid investments. We always recommend doing your research and taking the help of a local real estate investment counselor.
The other best place to invest in real estate is Omaha, NE. Omaha isn’t booming, but it isn’t busting, either. It is a slow, steady, and solid real estate market that has quite a few things going for it. It is attractive to residents, allowing it to retain its youth, while it attracts people from across the country in search of work. That isn’t going to make the headlines, but it is exactly the sort of long-term value play that we’d associate with the Oracle of Omaha. Omaha’s real estate market has a track record of generating one of the best long-term returns in the U.S. over the last ten years.
Another sizzling market to invest in real estate is Fort Collins, CO. The Fort Collins area is growing both as an outer suburb of Denver and for its reasons, making it the fourth-largest city in the state. The city offers an ideal mix of jobs, affordable living, and decent quality of life that will keep it strong for years to come. The Fort Collins real estate market has seen steady appreciation because the population itself is growing slowly but steadily. The population has been growing at roughly two percent a year. This causes the Fort Collins real estate market to appreciate at a slightly faster rate, but the Fort Collins housing market isn’t so hot that locals are priced out.
However, the relatively young population creates an opportunity for those who own Fort Collins real estate investment properties. You can rent the property to the steady stream of students, or you can rent it or sell it to the young adults who choose to stay in the area and work for one of the major employers.
Let us know which real estate markets you consider best for real estate investing!
Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References
Housing Market Data, Trends & Statistics
https://www.zillow.com/albuquerque-nm/home-values
https://www.redfin.com/city/513/NM/Albuquerque/housing-market
https://www.movoto.com/albuquerque-nm/market-trends
https://www.neighborhoodscout.com/nm/albuquerque/real-estate
https://www.realtor.com/realestateandhomes-search/Albuquerque_NM/overview
Landlord friendly
https://www.landlordology.com/new-mexico-landlord-tenant-laws
https://www.nolo.com/legal-encyclopedia/tenant-defenses-evictions-new-mexico.html
https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters
Economy and renters
https://realestate.usnews.com/places/new-mexico/albuquerque
https://www.usnews.com/news/best-states/new-mexico
