The donut shop has announced it has closed its South Valley and Northeast Heights locations. Much like the rest of the country, the Albuquerque real estate market saw an influx in real estate investing activities after the Great Recession. However, the recent jump in interest rates leads to some downside risk to our originations forecast. Our forecast for refinance originations also had minor revisions relative to last month. Click here to stay informed with the Santa Fe market! Inventory has decreased to 48. The S&P 500 rose 1.6% to Universal Hydrogens test plane takes flight. And theyre going to be credit for appraisal if you qualify stuff like that as well. The pandemic shuttered the economy, as shelter-in-place orders issued by the government ceased a large portion of business activity for the better part of two years. https://www.census.gov/quickfacts/albuquerquecitynewmexico Inventory will likely still be a challenge, with only 0.3% This material may not be published, broadcast, rewritten, or redistributed. 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. 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/. Subscribe now to access decluttered news, chosen by you. That said, the Albuquerque housing market has come a long way in a relatively short period of time. Still, none appear more attractive than building a proper rental property portfolio in the wake of new Albuquerque real estate trends. There are significant uncertainties around the path of the macroeconomy and interest rates. In part, migration patterns evident pre-COVID were accelerated. 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. As interest rates increase the number of buyers that can afford to purchase a home right now decreases. These cookies ensure basic functionalities and security features of the website, anonymously. More specifically, the median home value in the United States is $337,560 (13.7% more than Albuquerque). Email addresses are used solely for verification and to speed the verification process for repeat questioners. *The information contained herein was pulled from third party sites. Simply put, too many important market indicators are pointing towards becoming a buy-and-hold investor to ignore, not the least of which include: With a metropolitan population somewhere in the neighborhood of 942,000, Albuquerque has seen its population grow a modest 1.4% year over year. So, make sure to read this passage until the end. ALBUQUERQUE, N.M. (KRQE) The Albuquerque real estate market took off over the last two years, often forcing home buyers into a bidding war. So, what are the cons of investment properties in Albuquerque? Many will turn to rental properties, as rates will help investors simultaneously offset higher prices and increase cash flow. There are less houses than there are buyers.. More supply is coming eventually: The total number of homes under construction, including both single-family and multifamily units, is the highest since 1973. Pretty hard to build a house on top of that and still be in that very affordable range. Your email is safe with us, we dont spam. Unless we get that, you know, the so-called black Swan. 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. The transaction process also doesnt take a very long time, it is averagely only dealt with in 12 days. In December, 30-year fixed-rate mortgages were available for less than 3%, according to Bankrate.com. Click to register for our FREE online real estate class! Supply and demand will contribute to increases across the board, but interest rates should temper price hikes relative to the previous year. 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. At the current mortgage rate of 3.22 percent, we estimate that about 32 percent of outstanding mortgage balances have at least a 50-basis point incentive to refinance. 1119 Alameda Blvd NW Albuquerque, NM 87114. 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. How durable is investor demand? Monday, February 8th, 2021 at 12:02AM. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. First, unemployment is one of the biggest problems in the city. Data sources for charts: Federal Housing Finance Agency, U-Haul, Core Logic, MRS Securitization Disclosure Data, Federal Reserve, Fannie Mae ESR Analysis. But dont worry, Albuquerque is not quiet at all as well as there are many interesting public places to enjoy. The next end of the cycle was in March 2012. Lower interest rates allow investors to offset high prices and increase monthly cash flow. So, do you want to try to invest your money in this city? Yes, yes. After that, the real estate price in the city increased by 11.5%. Albuquerque may not be the best place to invest in the US but the chance for development is very big in the future. Statewide, all but three counties Mora, Quay You can call him kid, you know, I dont know what age can you start calling? Garcia though he believes the market will remain relatively hot said he can see the prices for homes begin to even out with a rise in interest rates for mortgage loans. But some others are indeed less popular like Albuquerque. Rehabbing and flipping still offer attractive profit margins, but rental properties look more conducive to a successful business model in todays environment. The median home price in metro Albuquerque reached $247,500 for the year, the highest on record, according to GAAR. This cookie is set by GDPR Cookie Consent plugin. The most expensive one is High Desert with an average price of $612,000. 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. At that level, listings are down 40.8% year over year. Interested in learning more about today's most lucrative real estate strategies? Theyre not saying things are going to pull back. By December, just 950 homes were on the market, compared to 1,901 a year earlier. And it looks like the trend maintains that way in 2022. 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. The average home price stood at $372,002, according to the report. At that time, 141 of the states 937,920 homes entered the foreclosure process. Lower borrowing costs have brought down acquisition costs for those looking to add to their passive income portfolio. 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. Home Price Trends: The previously mentioned supply and demand issues have enabled home prices to increase almost exponentially. Fourth, Albuquerque may not be Miami where the sun shines brightly and warmly all day long. By remembering that the prices can be increased in the following years, 2022 is a good time to buy a house in the city. The trend continues in 2022, making Albuquerque promising for property investment. Compared with some other big cities in the US, Albuquerque is relatively isolated. For all these reasons and more, home prices exploded in Albuquerque and across the state. If it materializes, The spills. 15,000, you got to, you know, our listeners need to talk to everybody. Albuquerque Real Estate Market Investing: Should You Invest? This will likely delay somewhat further supply chain improvements and put additional upward pressure on inflation. Unprecedented market and policy responses stemming from the pandemic will gradually be replaced by more typical pre-COVID economic and housing patterns. Thomas says buying her home wasnt easy. The report looks backward at the period of December 2000 or more than 20 years ago. Well, he wasnt calling me that, but I wasnt really in charge at the closing, but just such a great kid getting his first house. The result is used to determine the current trend of the property market as well as decide whether the year is a better time to sell or to buy. I mean, that was to help stimulate the housing market. Albuquerque is one of the potential property markets in the country. In fact, having lagged behind many national indicators may have actually worked in Albuquerques favor over the last few years. Home prices are expected to continue rising at a fast pace. Analytical cookies are used to understand how visitors interact with the website. The Albuquerque market, not unlike the rest of the country, experienced a setback in the wake of COVID-19. While its too soon to tell, competition in the single-family market may have driven more buyers to seek out attached condominiums. Currently, the Maxwell Museum is displaying 'Conversing with the Land: Native North American Baskets of the Maxwell Museum Collections,' through Jan. 10, 2024. Some websites and experts have predicted the future of the Albuquerque real estate market at least for the next 5 years. Overall, Albuquerques hot housing market didnt show any signs of cooling down in April. I think it was higher than that, but that was a few shows ago now. https://www.zillow.com/albuquerque-nm/home-values/ This is especially true in certain hot markets. These cookies ensure basic functionalities and security features of the website, anonymously. This cookie is set by GDPR Cookie Consent plugin. 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. However, new listings in Albuquerque are down 13.2% year-over-year, according to the Greater Albuquerque Association of Realtors. 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. And were definitely seeing that in our market and many others that we watch. 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). I think it was six 20 or something like that, Tracy. Privacy Policy | Terms of Service | Sitemap | Cookie Policy 2022 Venturi Realty Group. Monetary Policy Tightening as Inflation Remains High Elsewhere in the state, Vigil said he was interested to see how recent federal restrictions on the oil and gas industry would impact real estate in Lea and Eddy counties, where a particularly tight housing market forced oil workers into RVs and temporary man camps while the oil and gas industry boomed.