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 However, if inflation pressures remain robust, the Fed may feel compelled to act more aggressively. TheAlbuquerque median home pricealso improves compared with it 5 years ago. 6703 Academy Blvd NE Albuquerque NM, 87109. 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. So what theyre doing is theyre doing a program thatll help boost those people. 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. 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. For more on multifamily market conditions please see the January 2022 Multifamily Market Commentary. Meanwhile, if we look at it in the past, from 2000 to 2010, the population of the metropolitan area increased by 21%. Albuquerque Real Estate Market Investing: Should You Invest? This should help alleviate some of the supply pressure in the currently tight housing market as both rental and existing ownership units are vacated for these new units. Kirtland Air Force Baseand Sandia National Laboratories, in particular, have helped Albuquerque improve its job market in recent history. But you can still say that the weather there is nice and super comfortable. Could this spring's housing market be the busiest yet? 3 Mar. 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 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. 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. Well, Freddie Mac says, prices are going to keep going up for the next two years. It is noted that there are around 207 locations in Albuquerque that are ideal for property investment. Out-of-state home buyers drive up New Mexico real estate market Condominiums are selling nearly twice as fast as their single-family counterparts. I think were going to see more of the same in 2021, Franco said. Now this is really early. Griffin has seen buyers from California, who she says are pricing New Mexicans out., They absolutely do affect our market, Kiegel said. Each month in 2022, home values have tested new highs, and they might continue to do so well into 2023. In March 2020, Nob Hill mainstay Zinc Wine Bar & Bistro closed due to the, The donut shop has announced it has closed its South Valley and Northeast Heights locations., Declaration began March 11, 2020, and NM is one of five states that still have. And its, its the really high price markets where thats really bad. Only a few houses in certain locations get high demands. Interest in single-family rental properties has grown this past year as rental vacancy rates are at historical lows and rent growth has been strong. 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. The number of new listings dropped year over year as well, from 968 in 2020 to 849 last month. That, in turn, can make homes that may have been affordable for buyers just months ago now out of reach. But she got lucky because its not easy buying or selling a home across the country right now including here in the metro. Supply and demand will contribute to increases across the board, but interest rates should temper price hikes relative to the previous year. It is the biggest city in the state of New Mexico as well as it is a home to around a half million people. Thats not a pending that one exists. 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." It is too soon to tell just how many foreclosures will be filed in Albuquerque, but the expiration of government assistance all but assures impending increases. Compared with some other big cities in the US, Albuquerque is relatively isolated. We now project 7.6 percent and 3.3 percent house priced growth for 2022 and 2023, respectively, as measured by the FHFA Purchase-Only Index. That said, Albuquerque remains an affordable housing market, relative to the national average. Our 2023 forecast is essentially unchanged from last month at $1.1 trillion, as the impact from stronger home prices and higher interest rates are projected to offset each other. Right. https://www.bls.gov/eag/eag.nm_albuquerque_msa.htm 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. Moving forward, Albuquerque real estate market appreciation is expected to reach upwards of 15.6%. 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. In fact, theres a good chance price will continue rising until more inventory is brought to the market, perhaps as much as 15.6%. Additionally, the median home value in the United States looks as if it is going to appreciate at a faster rate moving forward. While its too soon to tell, competition in the single-family market may have driven more buyers to seek out attached condominiums. https://www.apartmentlist.com/research/ Saturday, April 23rd, 2022 at 7:11AM. She explains, It was just a scary experience, especially at my age. I mean, young man, it was, it was really fun. Still, Venturi acknowledged that the pandemic exacerbated some of these trends. It increases by 15.7% from year to year. 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%. Across the U.S., home inventory stood at about 950,000 a decrease of 9.5% year-over-year and the median sales price stood at about $375,300, which is an increase of 15% from March 2021. 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. For a snapshot of macroeconomic and housing data between the monthly forecasts, please read ESRs Economic and Housing Weekly Notes. Be patient, I know situations are different. Register for our FREE Real Estate Webinar and get started learning how to start a successful investment business today! Oh, I hadnt heard that. While Albuquerque has been a tight housing market for years, it got significantly tighter in 2020. For 2022, we expect a deceleration to 3.1 percent growth (down one-tenth), while our 2023 forecast remains unchanged at 2.2 percent. At todays levels, the median home value is under the national average. I dont like the word crisis,' Venturi said. In March of 2021, when the pandemic was officially declared a global emergency, the median home value in Albuquerque was about $217,000. In addition, the median home listing price per feet square is $185. While not quite up to speed with home value appreciation, its only a matter of time until rent increases surpass their home value counterparts. One of them is WalletInvestor.com which suggests investors invest in properties in Albuquerque for a longer-term. Its a very few, its basically like a handful. Other cities in the area are seeing the same conditions as here in Albuquerque, NM housing. 1119 Alameda Blvd NW Albuquerque, NM 87114. What do they call it? This isnt an indication of economic turmoil or of weakness in the housing market; its simply the gradual return to normal levels of foreclosure activity after two years of artificially low numbers due to government and industry efforts to protect financially impacted homeowners from defaulting.. The New Mexico real estate market, as a whole, had the twenty-first highest foreclosure rate in the country as recently as February. Albuquerque Population 2022 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. WebInteresting. As such, we could expect home sales to be about 1 to 2 percent lower than our published forecast over this next year if the recent rate increase holds. Indeed, some other cities in New Mexico overshadow Albuquerque; Santa Fe, Clovis, and Roswell. 1119 Alameda Blvd NW Albuquerque, NM 87114. 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. Unprecedented market and policy responses stemming from the pandemic will gradually be replaced by more typical pre-COVID economic and housing patterns. Third, many people prefer renting a house or an apartment unit in Albuquerque instead of buying. These cookies will be stored in your browser only with your consent. How long will the ski season last in New Mexico? 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. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". Home Price Trends: The previously mentioned supply and demand issues have enabled home prices to increase almost exponentially. Albuquerque Real Estate Market Emergence of 'New Normal' Housing Market Begins | Fannie Mae 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. Can I get back to this story now? So theyre saying home prices in 2021 across the States are expected to average 6.6% up. A Brief History of Albuquerques Real Estate Market, Pros and Cons of Albuquerque Real Estate Market. Undeniably, in the USA, there are many places considered the best for real estate and property investments. Albuquerque may not be the best place to invest in the US but the chance for development is very big in the future. Email addresses are used solely for verification and to speed the verification process for repeat questioners. There are actually markets where prices are down. 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. Based on data published by Redfin, the housing market in Albuquerque in 2022 is not too competitive. Is the city a good place for property investments in 2022 and the future? But industry professionals acknowledged that even they were surprised that the market stayed as robust as it did during a devastating pandemic. Yeah. But, but for the most part, its, its East and Midwest markets, not the South and the Southwest where we are, everybody in the South and the Southwest is, is booming one way or another. I wouldnt say that its like that across the board. It really seems like theyre moving to be closer to family, she said. This cookie is set by GDPR Cookie Consent plugin. In the case where national house price growth is expected to be decelerating, some of these changes can lead to regional price declines. 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. 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.