Now. 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. Think of places like New Jersey, New York, certain parts of California that just got really overheated on prices. Even WalletHub lists the city as the 31stbest market for renters in 2022. What do they call it? And they know theres a lot of bills floating around, out there in the house. The pandemic has impacted current trends and will continue to influence forecasts moving forward. Albuquerque's housing market remains tight according to These cookies track visitors across websites and collect information to provide customized ads. So thank you. Around 35% of the total population in Albuquerque is bilingual as the people are fluent in English and Spanish. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Recent inflation data has likewise been in line with our prior forecast, so related adjustments have also been modest. 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. Our next forecast will of course incorporate formally any recent interest rate changes. This is also the main reason why in some areas the rental price in theAlbuquerque housing marketis quite low. I still have to pinch myself to believe that it actually has happened, said Thomas. This year, theyre saying 7.1 in 2022, theyre saying 6.7 Home prices didnt have the same type of run-up as many of todays hottest markets, but demand persisted. Historically, it is not uncommon for significant regional variation in house price growth to occur when structural shifts in the economy develop, such as oil boom and busts or the post-Cold War aerospace and defense industry shocks. Investor Trends: Albuquerque real estate investors, like homebuyers, will hurry to take advantage of relatively low interest rates before they get too high. But that rise in interest rates can also lead to hundreds more dollars on mortgage payments, said Kiegel. 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). Albuquerque currently has a relatively high unemployment rate. Meanwhile, Realtor.com also publishes data about the current condition of the Real estate market in Albuquerque. 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. This is less than last month's market action index of 44. And I know listeners to the Kiva probably pay attention to politics a lot. Based on surveys and data per April 2022, Albuquerque along with some cities in New Mexico is the sellers market. To be clear, the latest increase isnt significant, but its important to note that positive net migration at the time of the pandemic is encouraging. I think it was six 20 or something like that, Tracy. Unless we get a mass exodus of people out of Albuquerque, we just dont have enough housing, Venturi said. Yeah. For all these reasons and more, home prices exploded in Albuquerque and across the state. 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. Yeah. https://www.zillow.com/albuquerque-nm/home-values/ but thats, thats the forecast from Freddie Mac. Of course, you cannot compare it with bigger cities like New York or Los Angeles. This cookie is set by GDPR Cookie Consent plugin. In particular, home values continue to test new highs as inventory levels fail to keep up with demand. Amen to that. However, its unknown to what extent the reshuffling becomes a longer lasting phenomenon. Only a few houses in certain locations get high demands. While hard numbers remain difficult to come by, real estate agents agree they also saw plenty of buyers from out of state in 2020. Third, many people prefer renting a house or an apartment unit in Albuquerque instead of buying. 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 next end of the cycle was in March 2012. 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. 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. https://www.neighborhoodscout.com/nm/albuquerque/real-estate Meanwhile, houses included in the hot list gain prices 7% higher than offers with the delay of 5 days. 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 I think it was higher than that, but that was a few shows ago now. Real estate agents credited an influx of residents from other states, low interest rates and a shockingly low inventory of homes for the jump in prices. In the past month, from May 26 to June 26, 2022, there are 753 houses sold in Albuquerque. But opting out of some of these cookies may affect your browsing experience. Furthermore, we expect the recent rapid house price appreciation and rising mortgage rates will lead to growing affordability constraints, dragging on home sales, but also likely limiting further price appreciation to a more sustainable pace. Indeed, there are some expensive houses in certain locations but some others are even very cheap. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. So again, they, they are expecting a healthy growing residential real estate market. The average prices of houses in those areas are fluctuating from year to year but the trend shows they are gradually increasing. Still, Venturi acknowledged that the pandemic exacerbated some of these trends. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We expect these drivers to wane moving forward, leading to a progressively softening pace of sales in coming quarters. We are assuming in the near term that the Omicron COVID-19 surge will have only modest and temporary economic impacts. I know. Thus, it makes Albuquerque the 59th biggest metropolitan area in the country. Yeah. 2022 Housing Market Forecast [INFOGRAPHIC] | Albuquerque And thats driving up prices for everyone. 24 years old first house. The big question in our view is "how durable is this demand?" By some measures, it was the strongest since before the Great Recession. And theyre going to be credit for appraisal if you qualify stuff like that as well. So Im glad to see that that FHA and Fannie and Freddie are doing that. Right. 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. 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. However, there is significant historical variation around this simple relationship stemming from the drivers of such rate changes. But that hasnt been the case in Albuquerques real estate market. Click to register for our FREE online real estate class! Overall, Albuquerques hot housing market didnt show any signs of cooling down in April. So, make sure to read this passage until the end. Manage the news you want to see, read exclusive content and explore other subscriber benefits. Subscribe now to access decluttered news, chosen by you. 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). Over the course of the pandemic, real estate in Albuquerque has appreciated an average of 36.7%. They know that should be buying a house. 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 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. As a result, competition will remain fierce over the short term, but should dissipate as rates get too high. Privacy Policy | Terms of Service | Sitemap | Cookie Policy 2022 Venturi Realty Group. 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%. Analytical cookies are used to understand how visitors interact with the website. Mon Dec 05 2022. Currently, the Maxwell Museum is displaying 'Conversing with the Land: Native North American Baskets of the Maxwell Museum Collections,' through Jan. 10, 2024. And you know, you think about this, a builder is paying a hundred thousand dollars before they do anything on that piece of land. Out-of-state home buyers drive up New Mexico real estate market With inflation measures continuing to come in strong (the CPI for December 2021 hit 7 percent on an annual basis, the highest since 1982), the Fed has increasingly suggested a move towards a swifter pace of policy tightening. While home price growth during an economic downturn might seem counterintuitive, Albuquerque wasnt the only city that saw significant home price growth in 2020. As a result, the Albuquerque real estate investing community has turned to rental properties. A lot of people arent participating in the, in the recovery after COVID. All rights reserved. There are less houses than there are buyers.. Whereas single-family homes are spending about 17 days on the market until they are sold, condominiums last a mere nine days. This compares to our previously projected rise of 7.4 percent and 2.9 percent. It is worth noting that the city has made great improvements since unemployment peaked during the pandemic. Unless we get that, you know, the so-called black Swan. Albuquerque Population 2022 Now this is really early. The average listing price of houses to sell in the city is $325,000. By remembering that the prices can be increased in the following years, 2022 is a good time to buy a house in the city. First, unemployment is one of the biggest problems in the city. 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. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented. Thats why the city was awarded as the most creative city in the US. So, what are the cons of investment properties in Albuquerque? Home price growth will remain strong but decelerate: We expect the effects of worsening affordability to lead to a drag on home price growth. But you can still say that the weather there is nice and super comfortable. By clicking Accept, you consent to the use of ALL the cookies. What we need are more homes in the model. Our quarterly house price forecast was modestly upgraded but still represents a view of significant deceleration in prices. Click here to stay informed with the Santa Fe market! 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. Read a little bit. Second, no matter how well the city has improved, you must still accept the fact that Albuquerque is not that popular. I think were going to see more of the same in 2021, Franco said. More specifically, the median home value in the United States is $337,560 (13.7% more than Albuquerque). In part, migration patterns evident pre-COVID were accelerated. Speaking of, of Freddie Mac there was a news release that came out this week that I thought was actually really good. Based on data published by Redfin, the housing market in Albuquerque in 2022 is not too competitive. And keeping with the trend of dwindling supply, about 523 single-family detached homes were available on the market in March. At todays levels, the median home value is under the national average. The industry professionals said new arrivals have been coming from all over the country, for a variety of reasons. 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. Okay. The metropolitan area includes some big locations such as Rio Rancho, Bernalillo, Bosque Farms, Corrales, Belen, Placitas, and Los Lunas. As we have discussed previously, we believe much of the surge in demand over the past year was due to many homebuyers moving up their plans to purchase a home.