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Albuquerque is a city rich with natural beauty and cultural heritage. It is a popular destination for people who want to live in a community with a booming economy since it is situated at the intersection of two of the state's busiest highways.
With affordable housing and a low cost of living, Albuquerque offers much promise for investors. The real estate market in this beautiful city is often described as competitive, and it shows no signs of slowing down.
If you are wondering whether you should buy or sell a property in this city in New Mexico, you have come to the right place!
In this article, we will provide all the information you need, including market trends, predictions, and more.
Albuquerque Housing Market Trends
To understand real estate markets, it's important to look at key indicators and how they have changed over time. In this section, we'll look at the most prominent trends to help you understand the local housing market better.
We've taken our statistics from Redfin and the Greater Albuquerque Association of Realtors.
- Sales trends. Homes in Albuquerque, NM, sell in 19 days and typically receive an average of three offers.
- Median sale price. The average selling price of a property in Albuquerque was $338,000, an increase of 5.6 percent over the previous year. According to data from the Greater Albuquerque Association of Realtors, the median selling price of a single-family detached home was $316,000.
- Sale price per square foot. Albuquerque's average selling price per square foot is $194, an increase of 3.2 percent year-over-year.
- Hot homes. In-demand real estate in the city goes pending in seven days and sells for 2 percent above the list price.
- Albuquerque home prices vs. national average. Sales prices in the city are 17 percent lower than the national average.
- Cost of living. This New Mexico city offers a low cost of living, roughly 7 percent lower than the national average.
38 percent of recent buyers in Albuquerque planned to leave the city, while 62 percent wanted to remain in the metropolitan area. This shows that although some people are moving out of the city, most choose to stay.
These statistics indicate that the real estate market in Albuquerque, NM, is competitive, active, and quick-moving, with home prices on the rise. It displays signs of growth that we expect will continue in the coming months and years.
What Factors Affect the Local Housing Market in Albuquerque, NM?
It's important for real estate investors to have a good understanding of the market before buying real estate. Likewise, sellers should also know whether it's a good time to make a sale. Therefore, you must understand the different factors that contribute to the market.
In essence, a real estate market is the buyers and sellers in the city, so the factors that influence their decision to make a sale or purchase will affect the market as a whole. Let's explore some of the most prominent factors.
The Size of the City
Albuquerque has a large metropolitan area, which impacts the housing market because more people are buying and selling houses in the city than in any other city in New Mexico.
It has the highest population in the state, with over 500,000 people living in the metro area and another 500,000 in the suburbs.
The geographic restrictions on expansion are one element that will continue to keep the value of homes in Albuquerque growing. General residential building is prohibited at Isleta Pueblo and a number of other nearby Native American areas. Furthermore, Cibola National Forest prevents the city from expanding to the east.
Quality of Life
Homebuyers always look to move to areas that provide a good overall quality of life, and Albuquerque offers just that. Compared to other New Mexico cities, it is easier to navigate on foot. Albuquerque earned a walk rating of 43.
It received a 30 on public transportation and excels in terms of bicycle friendliness. Its bike score is 60, which is far higher than the 50 average for the country. Despite not being a popular tourist destination, it is an excellent area to live in due to the abundance of outdoor recreational possibilities and service providers.
The Job Market
Job opportunities also play a significant role in determining the success of the real estate market. Employment at state and federal level is extremely important to the Albuquerque housing market. As an illustration, Sandia Laboratories generates numerous, well-paying government research employment in the area.
Additionally, close by is Kirtland Air Force Base. The lower average salaries in the region offset the inflationary effect, keeping the Albuquerque property market from seeing abnormal appreciation. However, the industries with the most employment are those that are more dependable, such as education and healthcare.
Moreover, the University of New Mexico and various hospitals rank among the top private employers, indicating a healthy job market and economy.
Affordability
Perhaps the reason why many investors are turning their attention to the Albuquerque real estate market is the fact that houses are affordable. Buyers are looking for the best value for money while ensuring a good return.
With a low average sale price of just over $300,000, this big city offers a great opportunity for investors.
How Will the Albuquerque Housing Market Perform in the Future?
Understanding current market trends is important, but you should also understand what these trends indicate about future patterns if you intend to invest in Albuquerque real estate.
While we can never truly predict how the market will perform (think COVID-19), we can analyze past trends to help create a forecast.
Home Values
With the median home value currently at $310,836, which is an increase of 5.2 percent, the local housing market has seen a consistent increase in home values over the previous year. According to Zillow's prediction, this tendency will likely continue in the months and years to come.
Real Estate Selling Price
Properties are selling for about their list price, as indicated by the average sale-to-list ratio of 0.999 in February of this year.
MSA Level
The Albuquerque metropolitan statistical areas (MSA) level is predicted to be 0.8 in June of this year and 3.1 in March of next year, indicating positive growth. Overall, Albuquerque is an excellent area for people looking to relocate because of its continually expanding real estate market.
Should You Buy Property in Albuquerque? (and Tips for Real Estate Investors)
Perhaps you've dabbled with a little real estate investing in Albuquerque, New Mexico, but you'd like to advance and turn it into something more than just a side business. It makes sense to consider the best ways to invest your money.
Cash flow is important in any real estate venture. It goes without saying that a positive cash flow indicates a beneficial investment. On the other hand, poor cash flow means that you won't have sufficient funds to pay off your debt.
Thus, the key to achieving your objectives would be locating an attractive Albuquerque property investment opportunity. Because it doesn't garner much attention, Albuquerque is a housing market that is sometimes disregarded in the West.
However, the solid underlying factors and encouraging long-term prospects make it a land of opportunity for many investors.
The Bottom Line
Buying or selling a home is an important decision that you must make after carefully considering the real estate market. Albuquerque, NM, has a booming economy and a balanced market that offers the hope of stability and long-term benefits.
If you run a rental business and are hoping to extend your reach to this vibrant city, why not try DoorLoop? Our property management software can help you run your business more efficiently.
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Frequently Asked Questions
1. Do properties sell for approximately the asking price in Albuquerque?
Yes. Most homes in Albuquerque sell for around the list price.
2. Is Albuquerque a buyer's or seller's market?
Trends suggest that Albuquerque is currently a seller's market. This indicates that there are greater numbers of potential house buyers in the city than there are available properties, which creates great opportunities for those hoping to sell their homes.
3. What is the median listing home price in Albuquerque?
According to Realtor.com, the median listing home price is $375,000 or $338,000, as indicated by Redfin data.
Frequently Asked Quesitons
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