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. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Right. 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. The cookies is used to store the user consent for the cookies in the category "Necessary". How long will the ski season last in New Mexico? Mon Dec 05 2022. The lack of supply has simultaneously increased prices and decreased the number of days homes are on the market. That, in turn, can make homes that may have been affordable for buyers just months ago now out of reach. Thomas has some advice for buyers. 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%. Yeah. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Pittsburgh Real Estate Market: House Prices & Trends, Dallas Real Estate Market: House Prices & Trends, Baltimore Real Estate Market: House Prices, Trends & Stats. On both ends, that has translated to a nearly 20% increase. In particular, todays economic indicators look to favor long-term real estate investing strategies. 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. The latest real estate investing content delivered straight to your inbox. Any reliance on this information is at your own risk. Save my name, email, and website in this browser for the next time I comment. We are seeing a little more cash come in because interest rates have risen so much and its becoming hard for people to afford a home, said Garcia. Indeed, some other cities in New Mexico overshadow Albuquerque; Santa Fe, Clovis, and Roswell. And they know theres a lot of bills floating around, out there in the house. These cookies ensure basic functionalities and security features of the website, anonymously. I dont think any of us could have predicted this last year in any way, shape or form, said GAAR president Belinda Franco. So, what are the cons of investment properties in Albuquerque? 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. 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. Second, theAlbuquerque cost of livingis also still not too high. We dont need more buyers in the market right now. Albuquerques 19.40 price-to-rent ratio would work against rental property owners in any other market. Besides, there are more methods conducted by investors to analyze the property market trend in the US. And I said to clarify, thats how much you have to at least reduce your monthly payment by to qualify. Get the Android Weather app from Google Play, NBA opens investigation after Ja Morants social, Chase Elliott out of NASCAR indefinitely after tibia, Athlete dead in shipwreck left Pakistan to help disabled, Skier Shiffrin locks up overall title, still chases, Olympic ticket sales for Paris Games get off to rocky, New Mexico Gas Company leaders explain high winter gas bills, San Juan County sheriff who shot a dog tells his side of the story, New Mexico man sentenced for trafficking 45 lbs of meth from Mexico. Additionally, the median home value in the United States looks as if it is going to appreciate at a faster rate moving forward. Amen to that. https://www.census.gov/quickfacts/albuquerquecitynewmexico That said, Albuquerque remains an affordable housing market, relative to the national average. Dating back more than two decades, in fact, the following neighborhoods in Albuquerque have appreciated the most: The Lofts At 610 Central SW / Silver Platinum. Lets connect so you can make your best move in the new year. We expect these drivers to wane moving forward, leading to a progressively softening pace of sales in coming quarters. Analytical cookies are used to understand how visitors interact with the website. One of them is WalletInvestor.com which suggests investors invest in properties in Albuquerque for a longer-term. 6703 Academy Blvd NE Albuquerque NM, 87109. Albuquerque currently has a relatively high unemployment rate. Rather, 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? I was gonna say, well see what happens. We also use third-party cookies that help us analyze and understand how you use this website. Yeah. 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). At the same time, the homes to sell are more limited than the demands. They may not pay the rent on time. Those houses are sold at prices of 3% higher than the offer. The average home price stood at $372,002, according to the report. With large companies like Amazon and Netflix increasing their footprint in the city, Venturi said a home shortage will continue forcing prices upward, making it more and more difficult for first-time homebuyers to afford starter homes in a city thats long been marketed for its affordability. Inflation, which has increasingly affected Americans, has played a part in increasing home prices, along with the low inventory and historically low interest rates for mortgages. Supply and demand constraints have directed the Albuquerque housing market for about 24 months and created the following trends: Supply Trends: The Albuquerque real estate market had about 523 single-family detached homes for sale at the end of the first quarter. Most forecasts are calling for local home values to increase an average of 15.6% because of more buyers competing over fewer homes. Your email is safe with us, we dont spam. Albuquerque may not be the best place to invest in the US but the chance for development is very big in the future. Our expectation of 7.6 percent growth in 2022 is still considerably higher than the average pace of 5.4 from 2012 to 2019. Copyright 2023 Nexstar Media Inc. All rights reserved. Right. 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. This year, theyre saying 7.1 in 2022, theyre saying 6.7 million homes sold. The report notes that was the biggest annual increase since 2014. Albuquerque is a city located in the area of Bernalillo County in New Mexico. 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. According to Freddie Mac, also as of this writing, the 30-year mortgage rate averaged 3.22 percent for the week ending on January 6, 11 basis points higher than at the end of December, and we expect additional rises in the near-term given the recent movement in Treasuries. Im Im really, really glad to see it. Condominiums are selling nearly twice as fast as their single-family counterparts. Generally, real estate is one of the most promising investments worth trying. While not quite up to speed with home value appreciation, its only a matter of time until rent increases surpass their home value counterparts. 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. The share of panelists who believe their long-term outlook might be too optimistic jumped up to 67% from 56% last quarter. First, unemployment is one of the biggest problems in the city. The problem, however, has been that supply chain disruptions and ongoing labor scarcity issues are delaying many projects from being completed. It increases by 15.7% from year to year. With local home prices increasing at such a fast pace, some neighborhoods have taken the momentum and run with it. 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. The S&P 500 rose 1.6% to Universal Hydrogens test plane takes flight. Albuquerque real estate has experienced hyperbolic highs and lows for a decade. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". This cookie is set by GDPR Cookie Consent plugin. And thats driving up prices for everyone. Well, theres a couple of news releases. Albuquerque foreclosures will increase Foreclosures are increasing on a national level, and Albuquerque doesnt look like itll be an exception. By clicking Accept, you consent to the use of ALL the cookies. Unlike the 8,000 back in like 2008, 2000, was it 2008 or 2008? It happens. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Meanwhile, if we look at it in the past, from 2000 to 2010, the population of the metropolitan area increased by 21%. February foreclosure activity looks a lot like what we can expect to see for at least the next six months double digit month-over-month growth, and triple-digit year-over-year increases, said Rick Sharga, executive vice president at RealtyTrac, an ATTOM company. Seven years later, that price has jumped nearly double. Were going to be ahead of that this year. Many will turn to rental properties, as rates will help investors simultaneously offset higher prices and increase cash flow. As such, there is upside risk to our published interest rate forecast. The long-run lack of housing supply would suggest some stability for investor demand, but much of this activity is potentially "hot" money taking an outsized interest in residential real estate due to low-yielding alternative investments and the current low-cost of leverage. Their additional three locations remain open. 15,000, you got to, you know, our listeners need to talk to everybody. This is less than last month's market action index of 44. San Diego saw prices increase 10.4% in December year-over-year, while Phoenix led the way with 13.7% growth, according to the report. Even though inflation is expected to eventually ease, a higher-than-pre-COVID range is forecast for the foreseeable future. Currently, the Maxwell Museum is displaying 'Conversing with the Land: Native North American Baskets of the Maxwell Museum Collections,' through Jan. 10, 2024. Some extra notes, quotes, news and notes from the Lobos Friday night basketball game in Fort Collins, Colorado. 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. The resulting activity should catalyze the local housing sector, and just about everyone participating should benefit. You just cant fight against demographics, he said. https://www.bls.gov/eag/eag.nm_albuquerque_msa.htm Because maybe their financial picture, they wouldnt qualify for the home right now because of unemployment or, Yeah. The cookie is used to store the user consent for the cookies in the category "Analytics". At a national level, this means we expect to see continued home sales growth in 2022 of 6.6% which will mean 16-year highs for sales nationwide and in many metro 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. The median home value in Albuquerque is $296,671. 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. Thank you. Even before starting to invest, they must do some actions such as planning, research, and choosing the best place for this. Thats why the city was awarded as the most creative city in the US. Interested in learning more about today's most lucrative real estate strategies? And he was like, yes, maam with all the closing documents, when the title officer would say, and this ones about, and hed go, yes. At that time, 141 of the states 937,920 homes entered the foreclosure process. Expert investor Than Merrill explains how these time-tested strategies can help you to profit from the current opportunities in real estate. WebInteresting. A potential shift could, however, decrease market competition for first-time buyers and potentially ease affordability constraints. Fourth, Albuquerque may not be Miami where the sun shines brightly and warmly all day long. You can call him kid, you know, I dont know what age can you start calling? All rights reserved. Yeah. While just 8% expect that to happen by sometime in 2026 or sometime in the next five years. With, as a homeowner, there you go. 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. The company flew its test plane for 15 minutes at low elevation above the Grant County International Airport in Moses Lake, Washington, where it ABQ sees second-best month for recreational cannabis sales. Garcia says she believes the housing market will balance out in the near future. 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. 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. But professional investors, of course, will do more than just keep the land without doing anything. Its April, 2021, where theyre forecasting next years home price appreciation. Much like the rest of the country, the Albuquerque real estate market saw an influx in real estate investing activities after the Great Recession. Besides, the population in the city has also significantly grown recently. Compared with some other big cities in the US, Albuquerque is relatively isolated. These cookies will be stored in your browser only with your consent. All rights reserved. Think of places like New Jersey, New York, certain parts of California that just got really overheated on prices. But that rise in interest rates can also lead to hundreds more dollars on mortgage payments, said Kiegel. This website uses cookies to improve your experience while you navigate through the website. Unless we get a mass exodus of people out of Albuquerque, we just dont have enough housing, Venturi said. Yeah. Demand in the Albuquerque real estate market appears to be undergoing a shift from single-family homes towards condominiums. Lets just be honest here. She explains, It was just a scary experience, especially at my age. Especially if they come from bigger cities. So Im glad to see that that FHA and Fannie and Freddie are doing that. Home Price Trends: The previously mentioned supply and demand issues have enabled home prices to increase almost exponentially. 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. The average prices of houses in those areas are fluctuating from year to year but the trend shows they are gradually increasing. It means that the city is one of the most affordable real estate markets in the US. Supply and demand will contribute to increases across the board, but interest rates should temper price hikes relative to the previous year. Metros such as Boise City and Austin, which have seen rapid price appreciation through Q3 of 2021 of 43.8 percent and 37.2 percent, respectively, since Q1 2020 are examples where there may be declines. For now, there appears to be ample prospective homebuyers engaging in bids to facilitate sales even as some drop out of the market completely, but the amount will likely lessen as the year unfolds. I dont think theres really one area thats the hot spot, Vigil said. Thus, the economy appears to be entering the mature stage of the business cycle, during which growth decelerates toward the long-run trend. I would expect that 2022 will start with all-time low number of homes on the market, Venturi said. For a snapshot of macroeconomic and housing data between the monthly forecasts, please read ESRs Economic and Housing Weekly Notes. Freddie Mac forecast: What experts are saying about Albuquerques Real Estate Market. However, new listings in Albuquerque are down 13.2% year-over-year, according to the Greater Albuquerque Association of Realtors. It should be giving credits to the home builders to get those houses built, to offset the increases. The average household income in Albuquerque is $72,265 with a poverty level of 15.95%. But interest rates for mortgages have risen, sparking a view from some that the market will balance out in the coming months. 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. The minutes from the December FOMC meeting stated that participants judged that "changes in the target range for the federal funds rate should be the Committees primary means for adjusting the stance of monetary policy" as "there is less uncertainty about the effects of changes in the federal funds rate on the economy than about the effects of changes in the Federal Reserves balance sheet." But experts say that the Albuquerque area market may remain tight with the low inventory of homes. Here they are. No, that was a good story. While its too soon to tell, competition in the single-family market may have driven more buyers to seek out attached condominiums. The Albuquerque real estate market hasnt had the easiest path towards prosperity, but the last few years have shown the citys resilience. 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. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. New Mexico and ABQ News, Sports, Business and more, By Stephen Hamway / Journal Staff Writer Its just a bill. Mortgage rates now stand at about 5% and may continue to climb. It is very beneficial if you are a landlord in the city. 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. 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. 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. Maybe were only getting an offer or two in. So, do you want to try to invest your money in this city? The median price for a single-family detached home stood at $175,000 in March 2015. 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 So. Duein large partto the previously mentioned supply and demand constraints caused by the pandemic, prices proceeded to increase nearly forty percent to get to where they are today. Additionally, the minutes from the December Federal Open Market Committee (FOMC) meeting showed participants raising the possibility of not simply tapering asset purchases, as is currently outlined, but an outright shrinking of the Fed's balance sheet, potentially not too long after the first interest rate hike. This material may not be published, broadcast, rewritten, or redistributed. According to the Greater Albuquerque Association of Realtors report on annual market statistics, the average sale price of a single-family home in the metro area in 2020 increased by 10.7% compared to 2019 the largest single-year jump in the metro area since 2006. The cookie is used to store the user consent for the cookies in the category "Performance". Even WalletHub lists the city as the 31stbest market for renters in 2022. When they sell it in the future, the profits are on their hands whether they are big or small. As a result, competition will remain fierce over the short term, but should dissipate as rates get too high. However, the same indicators that lowered profit margins on flips made rental properties more attractive. 1119 Alameda Blvd NW Albuquerque, NM 87114. Our forecast for refinance originations also had minor revisions relative to last month. De-extinction is a, Roundhouse Roundup: Paramilitary rules, youth parole, Rio Bravo Park cleanup will take longer than expected, More from KRQE NEWS 13 - Breaking News, Albuquerque News, New Mexico News, Weather, and Videos, Gun safety bill passes Senate, faces one more hurdle, Restaurants still struggling to recover from COVID, Roswell PD: Woman steals, drives wrong-way to get, State basketball tournament: Girls first round recap, BCSO: Kids were living in dirty home containing drugs, Whats happening around New Mexico Mar. And I know listeners to the Kiva probably pay attention to politics a lot. 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. Unless we get that, you know, the so-called black Swan. There was a significant increase in the average house price in Albuquerque, it was 55.3%. However, this represents a large deceleration from 2021s expected record house price growth of 17.3 percent. But she got lucky because its not easy buying or selling a home across the country right now including here in the metro. 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. Even buyers who are ready and willing to take the leap into homeownership are forced to rent in todays market, which is great news for rental property owners. The low inventory has created bidding wars among prospective buyers, with some paying as much as $100,000 over listing price, experts say. While the unemployment rate in the United States is about 3.6%, Albuquerques unemployment rate is approximately 4.4%. Well, you cannot say that it is too cheap and the average price is indeed still higher than in places like Milwaukee. At todays levels, the median home value is under the national average. However, based on the trajectory of cases abroad in some of the early outbreak areas such as South Africa and parts of Europe, we expect the U.S. wave to begin to pass in the coming weeks. Saturday, April 23rd, 2022 at 7:11AM. The data show that the median home listing price in Albuquerque is $324,000 in April 2022. It does not store any personal data. KRQE NEWS 13 - Breaking News, Albuquerque News, New Mexico News, Weather, and Videos. I mean, we, we have to get all those 20 somethings into their first house. According to a February 2022 report from the Greater Albuquerque Association of Realtors, the average home price stood at $367,566. Based on the latest Census in 2020, the population of the city was 563,165. Thats what happens when I read these stories a couple of days ago and then try to recite them back to memory.