albuquerque housing market forecast 2022
Theyre even saying for 2022, theyre saying 3.7. https://www.zillow.com/home-values/ Consequently, the pent-up demand created by todays pandemic has a great chance of returning many buyers to the market. 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. Are COVID-related shifts in housing over? And it looks like the trend maintains that way in 2022. Therefore, we describe this upcoming year as returning to a 'new' normal. 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. 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. For context, the median home value in the United States has increased 33.9% over the same period. Pretty hard to build a house on top of that and still be in that very affordable range. 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. Even common people with a lot of capital money can just buy land and keep it that way. Another 24% predicted that the housing market shift would come in 2024. How is theAlbuquerque real estate market? I mean, Ill, Im going to say this right now in April of 2021, that we are going to see probably double Im going to Im not going to say probably were going to see double digit home price growth for 2021. Investor Trends: Albuquerque real estate investors, like homebuyers, will hurry to take advantage of relatively low interest rates before they get too high. I dont think any of us could have predicted this last year in any way, shape or form, said GAAR president Belinda Franco. Necessary cookies are absolutely essential for the website to function properly. How durable is investor demand? Well, what theyre doing is they want to help people that maybe have not been able to take advantage of the low mortgage rates, do a refi. The cookie is used to store the user consent for the cookies in the category "Analytics". 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. After many offer rejections, she finally has a place to call her own after closing on a home in Albuquerque. Click to register for our FREE online real estate class! The New But interest rates for mortgages have risen, sparking a view from some that the market will balance out in the coming months. 1119 Alameda Blvd NW Albuquerque, NM 87114. The next end of the cycle was in March 2012. The website also states that the current real estate market trend in the city is the seller market. As a result, more people are being forced to rent. While rates are increasing, todays rates are still historically low. Yeah. https://www.neighborhoodscout.com/nm/albuquerque/real-estate So still not even getting to that, that 4% even next year. Home prices are expected to continue rising at a fast pace. 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. Subscribe now to access decluttered news, chosen by you. Well, you cannot say that it is too cheap and the average price is indeed still higher than in places like Milwaukee. And thats driving up prices for everyone. Here they are. 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. The local housing market still has some obstacles to overcome before realizing its full potential, but investors will have plenty of opportunities to capitalize on. In part, migration patterns evident pre-COVID were accelerated. Albuquerque real estate agent Tego Venturi said many of the conditions for strong growth were in place before the COVID-19 pandemic reached New Mexico in March. 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. More supply is coming eventually: The total number of homes under construction, including both single-family and multifamily units, is the highest since 1973. 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. 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%. 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. 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. 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 data show that the median home listing price in Albuquerque is $324,000 in April 2022. Yeah. So what theyre doing is theyre doing a program thatll help boost those people. Yeah. Their additional three locations remain open. According to ATTOM Data Solutions February 2022 U.S. Foreclosure Market Report, a total of 25,833 U.S. properties received a foreclosure filing (default notices, scheduled auctions or bank repossessions) over the course of February. One of the analysts coming from Freddie Mac. Economic & Strategic Research (ESR) Group The median home price in metro Albuquerque reached $247,500 for the year, the highest on record, according to GAAR. For December Expert investor Than Merrill explains how these time-tested strategies can help you to profit from the current opportunities in real estate. The data show that the median home listing price in Albuquerque is $324,000 in April 2022. Only modest changes have been made to our macroeconomic forecast since Decembers outlook. All of a sudden people were like, Shoot, Im going to buy property.'. The low inventory has created bidding wars among prospective buyers, with some paying as much as $100,000 over listing price, experts say. You just cant fight against demographics, he said. As a result, real estate in Albuquerque remains relatively affordable. So. Some of the houses and properties mentioned above are known as hot homes, including in the hot list, meaning that they will be sold out faster. It really seems like theyre moving to be closer to family, she said. Some good examples are the Ventana Farm, Cabezon, Enchanted Hills, Hills Village, Northern Meadows, Tanoan, and Alturaand. Statewide, all but three counties Mora, Quay and Sierra that recorded any home sales in both years saw a higher median sale price in 2020 than 2019, according to NMAR. You also have the option to opt-out of these cookies. But the Federal Reserve raised the key interest rate last month to address rising prices for consumers, which has also translated to an increase in interest rates for home mortgages a sign of hopefully slowing down the hot market, Bank of Albuquerque vice president David Garcia said. Mortgage rates dropped to record-low levels amid fear of an economic contraction, which Venturi and other real estate agents credit for keeping the market strong. Think of places like New Jersey, New York, certain parts of California that just got really overheated on prices. This cookie is set by GDPR Cookie Consent plugin. So theyre saying home prices in 2021 across the States are expected to average 6.6% up. But there still is an inventory shortage.. 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. Cause now if that person saving a hundred, 200, 300, $400 a month on their mortgage payment, well, thats money that now can go back into the overall economy. Speaking of, of Freddie Mac there was a news release that came out this week that I thought was actually really good. 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/. Supply trends are expected to continue; that is to say that demand will greatly outweigh inventory. However, our forecast of future growth has been revised upward, predominantly due to our modestly stronger expectation for home price appreciation. The average price of houses in Albuquerque is quite affordable. Albuquerque may not be the best place to invest in the US but the chance for development is very big in the future. Can I get back to this story now? This is especially true in certain hot markets. The hot market in Albuquerque and surrounding areas follows a nationwide trend of rising home prices and low inventory. The number of pending sales increased 41.1% year-over-year, and the Only a few houses in certain locations get high demands. Thats not to say rehabbing isnt still a viable exit strategy in Albuquerque, but rather that todays market landscape appears to favor an alternative investment strategy: procuring and building a portfolio of rental properties. Despite last years appreciation, the median home value in Albuquerque is still $40,899 less than the median home value in the United States. According to forecasts by the Federal Reserve and Goldman Sachs GS GS, GDP growth is estimated to be between 4.0 percent and 6.5 percent in 2021 with continued Those locations have many factors to make properties more valuable. While its too soon to tell, competition in the single-family market may have driven more buyers to seek out attached condominiums. As a result, competition will remain fierce over the short term, but should dissipate as rates get too high. Inventory will likely still be a challenge, with only 0.3% 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. I know. 6703 Academy Blvd NE Albuquerque NM, 87109. Yeah. However, new listings in Albuquerque are down 13.2% year-over-year, according to the Greater Albuquerque Association of Realtors. Of course, there are risks to this assumption, as well as the possibility of new waves of future variants. What are the experts saying? I mean, that was to help stimulate the housing market. The trend continues in 2022, making Albuquerque promising for property investment. Nationwide, home prices increased by 9.2% year-over-year in December, according to a monthly report from the national data and analytics firm CoreLogic. It does not store any personal data. So again, they, they are expecting a healthy growing residential real estate market. 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. Still, Venturi acknowledged that the pandemic exacerbated some of these trends. But professional investors, of course, will do more than just keep the land without doing anything. It means that the city is one of the most affordable real estate markets in the US. What do they call it? These cookies track visitors across websites and collect information to provide customized ads. I dont expect to see anything very quick on that. The Harwood Museum of Art's exhibition 'Outriders: Legacy of the Black Cowboy' explores this history through archival photographs and contemporary art. Nearly every Albuquerque real estate market forecast mirrors that of its national counterpart. That, in turn, can make homes that may have been affordable for buyers just months ago now out of reach. Albuquerque Real Estate Market Prices, Trends & Forecasts 2022 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. Inflation, and steps that federal policymakers have taken to curb it, remains a major factor in the local real estate market. The change in house price in 5 years was 56.9% while the monthly change in the same period was 1.4%. When you say there are some that are down. 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. WebAlbuquerque, NM Real-Time Housing Market Conditions. Some people are participating in recovery. I think 2022 could be a much healthier and stronger year.. Interested in learning more about today's most lucrative real estate strategies? Right. The Business The data are collected to analyze if the trend is just the same. But industry professionals acknowledged that even they were surprised that the market stayed as robust as it did during a devastating pandemic. But you can still say that the weather there is nice and super comfortable. There are less houses than there are buyers.. 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. According to a February 2022 report from the Greater Albuquerque Association of Realtors, the average home price stood at $367,566. So yeah, its a, its a good program. However, this will still take some time and we don't expect a complete reversal. Low income homeowners that have mortgages refinance because whats happened. Moving forward, Albuquerque real estate market appreciation is expected to reach upwards of 15.6%. We are getting a fair amount of people coming in here because of our affordability, Venturi said. But opting out of some of these cookies may affect your browsing experience. One of them is WalletInvestor.com which suggests investors invest in properties in Albuquerque for a longer-term. Recent inflation data has likewise been in line with our prior forecast, so related adjustments have also been modest. 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. But that hasnt been the case in Albuquerques 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. On top of that, the median sales price for condos has increased more than single-family homes22.6% and 19.8%, respectively. Our housing forecast has also been minimally changed; we expect total home sales to fall 1.2 percent in 2022 (from -1.4 percent last month), followed by a decline of 3.6 percent in 2023 (previously -3.8 percent). Rental properties will be the most viable investment strategy: Increases in home prices have made it harder to flip real estate in Albuquerque. More people have found jobs, particularly at the state and federal levels. Meanwhile, Realtor.com also publishes data about the current condition of the Real estate market in Albuquerque.