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. More specifically, the median home value in the United States is $337,560 (13.7% more than Albuquerque). 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 17%. Thank you. Yeah. For context, the median home value in the United States has increased 33.9% over the same period. 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. At that time, real estate in Albuquerque boasted a median home value of $170,000. Our forecast for refinance originations also had minor revisions relative to last month. 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. Housing Trends and Questions for the Year Yes. The donut shop has announced it has closed its South Valley and Northeast Heights locations. The website also states that the current real estate market trend in the city is the seller market. Supply trends are expected to continue; that is to say that demand will greatly outweigh inventory. Albuquerque is a great city for investors, of course, although you cannot say that it is the best one. I still have to pinch myself to believe that it actually has happened, said Thomas. 24 years old first house. Generally, real estate is one of the most promising investments worth trying. The cookie is used to store the user consent for the cookies in the category "Other. The average household income in Albuquerque is $72,265 with a poverty level of 15.95%. He was so cute and so, so excited. 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. These cookies will be stored in your browser only with your consent. Email addresses are used solely for verification and to speed the verification process for repeat questioners. Those houses are sold at prices of 3% higher than the offer. I mean, hes 24. Only modest changes have been made to our macroeconomic forecast since Decembers outlook. Click to register for our FREE online real estate class! 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. 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. Prospective home buyers Amanda Gonzales and Adrian Espinoza walk through an open house in Albuquerque with their real estate agent Adam Trujillo on April The average price of houses in Albuquerque is quite affordable. The cookie is used to store the user consent for the cookies in the category "Performance". Thats what happens when I read these stories a couple of days ago and then try to recite them back to memory. Lower borrowing costs have brought down acquisition costs for those looking to add to their passive income portfolio. And you know, you think about this, a builder is paying a hundred thousand dollars before they do anything on that piece of land. Albuquerque foreclosures will increase Foreclosures are increasing on a national level, and Albuquerque doesnt look like itll be an exception. It increases by 15.7% from year to year. 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. Yeah. The housing market is off to a busy start in 2022, with new records being observed in pace of home-price growth and median listing price last month. On top of that, the median sales price for condos has increased more than single-family homes22.6% and 19.8%, respectively. The other big story this week, other than the tax credit was FHFA, which is kind of the entity thats over Fannie and Freddie, They are putting together some programs to help. What we need are more homes in the model. And I said to clarify, thats how much you have to at least reduce your monthly payment by to qualify. About the Mortgage Lender Sentiment Survey, About the Refinance Application-Level Index, January 2022 Multifamily Market Commentary, Emergence of 'New Normal' Housing Market Begins, Mark Palim, VP and Deputy Chief Economist. *The information contained herein was pulled from third party sites. At their current rate, mortgage rates will save todays buyers thousands of dollars, and real estate investors will be able to pad their bottom line with more cash flow. Compared with some other big cities in the US, Albuquerque is relatively isolated. That, you know, its decay economy, the richer getting richer, the poor are getting poor. New Mexico Real Estate Market May 2022: Forecasts + Trends 1-833-225-3837 Find Agents Real Estate Blog New Mexico Real Estate Market New Mexico Real Declaration began March 11, 2020, and NM is one of five states that still have such orders. 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. It means that more people are interested in buying houses than the supplies. Most forecasts are calling for local home values to increase an average of 15.6% because of more buyers competing over fewer homes. Albuquerque may not be the best place to invest in the US but the chance for development is very big in the future. 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 donut shop has announced it has closed its South Valley and Northeast Heights locations. How long will the ski season last in New Mexico? Real estate is cyclical, and rehabbing has enjoyed a run as the countrys most popular exit strategy for a decade. By clicking Accept, you consent to the use of ALL the cookies. Opinions, analyses, estimates, forecasts and other views of Fannie Mae's Economic & Strategic Research (ESR) Group included in these materials should not be construed as indicating Fannie Mae's business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. You know, as long as theyre, you know, saving like $50 a month, theres some qualifications, they have to have a decent credit score. 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. There are some new home builds happening across the metro area, but supply chain issues have hampered timelines on construction. Yeah. Now this is really early. While the unemployment rate in the United States is about 3.6%, Albuquerques unemployment rate is approximately 4.4%. Garcia shares, There were very few homes on the market so every home that would come up you know youd have 50 to 100 people fighting for that same home. 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. The website also states that the current real estate market trend in the city is the seller market. One of the analysts coming from Freddie Mac. 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. Our forecast for purchase mortgage origination volumes for 2021 was revised downward slightly based on incoming data. Some people are participating in recovery. For December All of a sudden people were like, Shoot, Im going to buy property.'. The metropolitan area includes some big locations such as Rio Rancho, Bernalillo, Bosque Farms, Corrales, Belen, Placitas, and Los Lunas. Only a few houses in certain locations get high demands. But there still is an inventory shortage.. Yeah. Yeah. Im Im really, really glad to see it. 1119 Alameda Blvd NW Albuquerque, NM 87114. Home price growth will remain strong but decelerate: We expect the effects of worsening affordability to lead to a drag on home price growth. 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). While home price growth during an economic downturn might seem counterintuitive, Albuquerque wasnt the only city that saw significant home price growth in 2020. Im 62, jumping into the purchase of a new home and the economy the way it is, the interest rates the way that they are., Now that were seeing a slowdown in the market theres more supply but less demand. 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/. And theyre going to be credit for appraisal if you qualify stuff like that as well. Investors are lucky to have several viable exit strategies at their disposal. If it materializes, The spills. If interest rates continue to move up meaningfully and economic activity decelerates, investor demand for housing could quickly reverse, leading to slower house price appreciation, and perhaps a slower sales pace. In addition, the median home listing price per feet square is $185. Demand in the Albuquerque real estate market appears to be undergoing a shift from single-family homes towards condominiums. Mortgage rates now stand at about 5% and may continue to climb. Yeah. You just cant fight against demographics, he said. 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. Pretty hard to build a house on top of that and still be in that very affordable range. Denver saw their inventory increase 81% compared to inventory in 2021. But opting out of some of these cookies may affect your browsing experience. 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. 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. Unprecedented market and policy responses stemming from the pandemic will gradually be replaced by more typical pre-COVID economic and housing patterns. 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. Register for our FREE Real Estate Webinar and get started learning how to start a successful investment business today! Economic & Strategic Research (ESR) Group So Im glad to see that that FHA and Fannie and Freddie are doing that. There are actually markets where prices are down. Click here to stay informed with the Santa Fe market! 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. Relatedly, there is also risk that some of the hottest metro areas of this past year have overheated and will experience at least modest price declines over the next year or two as many of the above-mentioned temporary factors unwind. The average price forAlbuquerque homes for saleis $327,000, increasing from the average price in 2021 at 21.1%. Right. The Albuquerque market, not unlike the rest of the country, experienced a setback in the wake of COVID-19. Franco said she expects interest rates to remain low, homes to remain scarce, and Albuquerque to remain popular with new arrivals looking for sunshine and green chile. While Albuquerque has been a tight housing market for years, it got significantly tighter in 2020. In particular, home values continue to test new highs as inventory levels fail to keep up with demand. According to a February 2022 report from the Greater Albuquerque Association of Realtors, the average home price stood at $367,566. With, as a homeowner, there you go. But opting out of some of these cookies may affect your browsing experience. In March 2020, Nob Hill mainstay Zinc Wine Bar & Bistro closed due to the COVID-19 pandemic. As of April, the average rate on a 30-year fixed-rate loan was 4.72%, according to Freddie Mac. However, there is significant historical variation around this simple relationship stemming from the drivers of such rate changes. Right? 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.