Reporting Albuquerque Real Estate Market
Albuquerque real estate market has stayed soft for quite a few years. Unlike other markets of the US, we have not seen the market taking an aggressive turn although the lack of inventory is pushing prices in the entire country. The housing report indicates that Albuquerque is trending towards becoming a “buyer’s market.” With new building projects in the pipeline, consumers will soon notice a fresh supply of homes hitting the market. When the supply meets demand, the city will become one of the favorite spots for buying a new home.
The rental market in Albuquerque is soaring. We can see that from the construction of new homes. The median and average property prices have increased over the year by 6.8% and 5.0% respectively. Therefore, we can see that the number of sales is rising continuously for single-family units. We’ve seen a 9.4% increase in the number of sales while at the same time, the inventory is going down. The last year decrease was 18.4%.
Albuquerque market was at its peak in 2006. The entire housing market experienced a downtime from 2007 to 2011. From 2011 to 2015, we can see the prices improving by 1.36% each year which is not a reduction, but it is not a significant improvement either. In the last year, we saw a 6% price change in the housing market. Although the homes prices are increasing, they are still below the pre-recession mark. The current conditions show that property values will surpass the pre-recession values in upcoming months.
Currently, the average time a detached home spends on the market is close to 66 days which is eight days less than the past year. The reason is self-explanatory. We have fewer homes available, and customers are demanding more. The govt. has issued thousands of construction permits in the past year and new housing supply will soon hit the market. However, we can see that interest rates are volatile in Albuquerque. If you look at the big picture, interest rates are still low, but they are rising. That means, with an increase in inventory, we may also see an increase in mortgage rates which will make it difficult to buy your dream house.
It will be best to lock down the deal before interest rates go up again. That also means, buying earlier can increase the value of your investment over next few years. Prices are going up steadily so if you buy your dream house in 2017, its value will go up by several points in the next year. Click here, if you are looking to buy a new home in Albuquerque.
For sellers, it is our recommendation to set a fair price for your house. As we can see, the ABQ market is at the beginning of a real estate boom that will favor buyers for a long time. So if you want to sell your house, put it on the market in next few months and close the deal. If the mortgage rate goes up, it can also make it difficult for you to sell your house at a suitable price.