Albuquerque housing market: Everything you need to know
Albuquerque, New Mexico, a vibrant cultural hub and the largest city in the state, is drawing new residents year after year. VisitAlbuquerque.org predicts a population growth of over 7 percent in the next five years. This appeal is attributed to its sun-soaked climate, boasting 310 days of sunshine annually, making it a haven for outdoor enthusiasts. Additionally, the city offers a lower cost of living compared to major Southwestern cities like Phoenix and Tucson, along with an affordable housing market well below the national median. Whether you’re considering buying or selling a home in Albuquerque, here’s an in-depth look at the housing market.
Albuquerque Housing Market Overview
Albuquerque’s housing market is experiencing robust demand, with a median home price of $350,000, notably lower than the national average of $400,000. According to Redfin data, properties typically receive an average of four offers and are often sold at their full asking price. However, there’s encouraging news for buyers: homes are spending more time on the market compared to the previous year, allowing potential buyers ample time to explore options without feeling rushed into making an offer.
Albuquerque Housing Trends & Stats
As of July 2023, the median sale price for a single-family, detached home in Albuquerque stood at $350,000, reflecting a 4.8 percent increase from the previous year, though still below the national median. Homes sold in July achieved 100.1 percent of their list price, just slightly above the asking price. The days on market increased to 21, a significant 75 percent rise compared to July 2022’s 12 days. However, the number of new listings dropped by 25 percent since the previous year. Closing costs in New Mexico typically amount to around 1.1 percent of the purchase price, equating to $3,850 on a median-priced $350,000 home.
Should You Buy or Sell in the Albuquerque Housing Market?
With limited available listings, rising prices, and consistent buyer demand, Albuquerque leans towards being a seller’s market. Nevertheless, there are favorable factors for buyers as well.
If You’re a Home Seller
The current market in Albuquerque favors home sellers. Knock, a real estate company, recently ranked the city among the top 10 seller’s markets in 2023. Strong demand is anticipated to continue with the city’s growing population. Home prices have seen a steady increase, rising from $300,000 in July 2021 to $334,000 in July 2022, and now standing at $350,000.
Before listing your home, it’s crucial to understand its current value. An experienced local real estate agent can help assess its worth by comparing it to similar homes in your area through a comparative market analysis. Given that homes are selling close to their asking prices, accurate pricing is essential.
If You’re a Homebuyer
Albuquerque’s relatively affordable homes make it an appealing market for potential buyers. This has led to increased competition, often resulting in multiple offers on listings. Getting preapproved for a mortgage before house-hunting is advisable. It enables you to act swiftly if you find a suitable home and signals to sellers that you’re a serious buyer.
Albuquerque Housing Market Predictions
While the national real estate market has cooled due to rising mortgage interest rates, Albuquerque’s market is gaining momentum. High demand benefits sellers, while affordable prices are advantageous for buyers. Although home prices have been steadily rising, they still have room to grow before approaching the national median.
Finding an Albuquerque Real Estate Agent
Navigating the complex Albuquerque real estate market is made easier with a knowledgeable agent. For buyers, a local agent can identify homes within your budget in suitable neighborhoods. For sellers, an agent well-versed in the area can help price and market your home effectively.
When selecting an agent, consider interviewing multiple candidates, seeking recommendations, and conducting online research. A comfortable working relationship with your agent can streamline the process and lead to a successful transaction.