We also use third-party cookies that help us analyze and understand how you use this website. And I know listeners to the Kiva probably pay attention to politics a lot. The change in house price in 5 years was 56.9% while the monthly change in the same period was 1.4%. A Brief History of Albuquerques Real Estate Market, Pros and Cons of Albuquerque Real Estate Market. 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. After that point, he said hes hopeful demand will slow down and allow builders to catch up. New Mexico and ABQ News, Sports, Business and more, By Matthew Narvaiz / Journal Staff Writer Right? Interest in single-family rental properties has grown this past year as rental vacancy rates are at historical lows and rent growth has been strong. While hard numbers remain difficult to come by, real estate agents agree they also saw plenty of buyers from out of state in 2020. 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. The historical relationship from the end of the Great Financial Crisis up until the COVID outbreak was that a 100-basis point change in the 30-year mortgage rate over the course of a year was associated on average with about an 8 percent shift in existing home sales, with a one-to-two quarter time lag. 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). The lack of supply has simultaneously increased prices and decreased the number of days homes are on the market. Condominiums are selling nearly twice as fast as their single-family counterparts. You also have the option to opt-out of these cookies. As a result, real estate in Albuquerque remains relatively affordable. 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). Today, the average commitment rate on a 30-year fixed-rate loan is about 4.72%. Even common people with a lot of capital money can just buy land and keep it that way. Analytical cookies are used to understand how visitors interact with the website. Thomas has some advice for buyers. 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. You just cant fight against demographics, he said. 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. I still have to pinch myself to believe that it actually has happened, said Thomas. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". Many will turn to rental properties, as rates will help investors simultaneously offset higher prices and increase cash flow. But experts say that the Albuquerque area market may remain tight with the low inventory of homes. 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. 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? The donut shop has announced it has closed its South Valley and Northeast Heights locations. Some of them are famous cities like New York or Los Angeles. But there still is an inventory shortage.. It was so satisfying. However, this represents a large deceleration from 2021s expected record house price growth of 17.3 percent. And here our high price market is booming. The durability of changes in work, schooling, and housing arrangements is yet to be seen. And you know, you think about this, a builder is paying a hundred thousand dollars before they do anything on that piece of land. Its its exciting. 6703 Academy Blvd NE Albuquerque NM, 87109. 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. Speaking of, of Freddie Mac there was a news release that came out this week that I thought was actually really good. Albuquerque is one of the potential property markets in the country. 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. 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. But that rise in interest rates can also lead to hundreds more dollars on mortgage payments, said Kiegel. 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. 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. https://www.census.gov/quickfacts/albuquerquecitynewmexico Email addresses are used solely for verification and to speed the verification process for repeat questioners. Right. Their additional three locations remain open. So theyre saying home prices in 2021 across the States are expected to average 6.6% up. I think were going to see more of the same in 2021, Franco said. However, its unknown to what extent the reshuffling becomes a longer lasting phenomenon. WebAlbuquerque, NM Real-Time Housing Market Conditions. Subscribe now to access decluttered news, chosen by you. Inflation, and steps that federal policymakers have taken to curb it, remains a major factor in the local real estate market. Roxanne Thomas recently closed on her new home in Albuquerque and says it was the happiest day of her life. Our ongoing monitoring of MBS issuance data continues to show an upward trajectory in the average back-end debt-to-income (DTI) ratios of borrowers, particularly for first-time homebuyers, indicating growing affordability pressures on borrowers. Its just a bill. This year, theyre saying 7.1 in 2022, theyre saying 6.7 million homes sold. Now. This year, theyre saying 7.1 in 2022, theyre saying 6.7 million homes sold. However, if interest rates are readjusting due to new expectations over long-run inflation or a shift in monetary policy, then the effect could be larger. The report looks backward at the period of December 2000 or more than 20 years ago. I mean, young man, it was, it was really fun. The increase results from too few homes supplying buyers who are trying to take advantage of low interest rates and years of savings. Investor Trends: Albuquerque real estate investors, like homebuyers, will hurry to take advantage of relatively low interest rates before they get too high. It happens. And its, its the really high price markets where thats really bad. All rights reserved. Based on incoming data, we have revised upward 2021 refinance volumes by $5 billion relative to last month. Yep. WebReal Estate, Homes for Sale, MLS Listings, Agents | Redfin Most forecasts are calling for local home values to increase an average of 15.6% because of more buyers competing over fewer homes. Copyright 2023 Nexstar Media Inc. All rights reserved. We expect that rapid house price growth eclipsing gains in wages, combined with the waning effects of past stimulus checks and built-up savings, will make it increasingly difficult for many potential buyers. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Well, you cannot say that it is too cheap and the average price is indeed still higher than in places like Milwaukee. Here they are. At that time, 141 of the states 937,920 homes entered the foreclosure process. The problem, however, has been that supply chain disruptions and ongoing labor scarcity issues are delaying many projects from being completed. The number of new listings dropped year over year as well, from 968 in 2020 to 849 last month. The metropolitan area includes some big locations such as Rio Rancho, Bernalillo, Bosque Farms, Corrales, Belen, Placitas, and Los Lunas. So Freddie Mac, Im not, Im not I dont have as big a team of researchers behind me. That said, the Albuquerque housing market has come a long way in a relatively short period of time. It increases by 15.7% from year to year. Thus, the economy appears to be entering the mature stage of the business cycle, during which growth decelerates toward the long-run trend. Theyre not saying things are going to pull back. This cookie is set by GDPR Cookie Consent plugin. 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. Thank you. https://www.apartmentlist.com/research/ 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. Albuquerque foreclosures will increase Foreclosures are increasing on a national level, and Albuquerque doesnt look like itll be an exception. The cookies is used to store the user consent for the cookies in the category "Necessary". Meanwhile, if we look at it in the past, from 2000 to 2010, the population of the metropolitan area increased by 21%. Think of places like New Jersey, New York, certain parts of California that just got really overheated on prices. The analyses, opinions, estimates, forecasts and other views published by the ESR group represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie Mae or its management. In March 2020, Nob Hill mainstay Zinc Wine Bar & Bistro closed due to the COVID-19 pandemic. 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. The hot market in Albuquerque and surrounding areas follows a nationwide trend of rising home prices and low inventory. This cookie is set by GDPR Cookie Consent plugin. As interest rates increase the number of buyers that can afford to purchase a home right now decreases. Cancel anytime. In 2022, foreclosures were down 34% compared to 2019, according to the Year-End 2022 U.S. Foreclosure Market Report published by ATTOM Data. 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. 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. He was so cute and so, so excited. 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. Unless we get a mass exodus of people out of Albuquerque, we just dont have enough housing, Venturi said. 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. Okay. How this information affects Fannie Mae will depend on many factors. I wouldnt say that its like that across the board. Although the condition is still good enough for investors, 2022 is not better than 2011 as the average of median days has decreased. Some people are participating in recovery. Metropolitan areas in the Southwest saw particularly steep home price growth. So you actually read the story. When there are pros, there must be cons as nothing is perfect in this world. As the post-COVID housing market reveals itself, we anticipate the following themes to emerge over the year, as well as answers to some large unknowns: Affordability will increasingly limit home sales: This isn't to say that we expect a soft year for home sales in absolute terms. These cookies ensure basic functionalities and security features of the website, anonymously. Lower borrowing costs have brought down acquisition costs for those looking to add to their passive income portfolio. Other cities in the area are seeing the same conditions as here in Albuquerque, NM housing. Robust labor demand and the ample need for firms to continue rebuilding inventories suggests to us that economic growth will be solid in 2022, but the period of rapid recovery has passed. While not quite up to speed with home value appreciation, its only a matter of time until rent increases surpass their home value counterparts. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". Rehabbing and flipping still offer attractive profit margins, but rental properties look more conducive to a successful business model in todays environment. The share of panelists who believe their long-term outlook might be too optimistic jumped up to 67% from 56% last quarter. Statewide, the New Mexico Association of Realtors recorded more home sales in 2020 than in any year since the organization began tracking the data in 2008, according to NMAR president Danny Vigil. Yeah. Well, of course, while youve got me, I know youre my number one researcher, and Im every morning over coffee. 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. Even in the list of 75 most populated cities in the country, the city is considered one of the least expensive to live in. That, in turn, can make homes that may have been affordable for buyers just months ago now out of reach. I would expect that 2022 will start with all-time low number of homes on the market, Venturi said.