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Albuquerque, New Mexico’s largest city, is a cultural melting pot that continues to attract new residents with each passing year. In fact, according to VisitAlbuquerque.org, the city’s population is projected to grow more than 7 percent over the next five years.
That’s partially due to its sun-filled climate — 310 days of sunshine annually make this a popular locale for outdoor enthusiasts. But it can also be attributed to a cost of living that’s lower than other big Southwestern cities, like Phoenix and Tucson, and an affordable housing market that boasts prices well below the national median. Whether you’re thinking of buying or selling a home in the city, here’s everything you need to know about the Albuquerque housing market.
Albuquerque housing market overview
It’s no surprise that there’s strong demand for homes in this city: With a median price of $350,000, Albuquerque homes are downright affordable compared to national home prices, which top $400,000. Redfin data shows that properties here typically get an average of four offers, and according to the Greater Albuquerque Association of Realtors (GAAR), they are selling for their full asking price. But there’s some good news for buyers, too: Homes are spending a much longer time on the market than they did last year, which provides house-hunters more time to shop around without feeling pressured to make an offer immediately.
Albuquerque housing trends & stats
- The median sale price for a single-family, detached home here was $350,000 as of July 2023, according to GAAR data.
- That’s a 4.8 percent increase over July of last year, but it’s still far less than the national median home price of $406,700.
- July’s sold homes went for 100.1 percent of their list price — ever so slightly above ask.
- They spent about 21 days on the market before selling, a big 75 percent increase compared to July 2022’s 12 days.
- However, the number of new listings decreased significantly since last year, dropping a full 25 percent.
- Closing costs in New Mexico typically total about 1.1 percent of the purchase price, according to figures from CoreLogic’s ClosingCorp. On a median-priced $350,000 home, that amounts to $3,850.
Should you buy or sell in the Albuquerque housing market?
A lack of available listings, rising prices and steady buyer demand make Albuquerque a seller’s market. Still, there are buyer-friendly factors as well.
If you’re a home seller
For homeowners looking to sell, the Albuquerque market is currently working in your favor. Real estate company Knock recently ranked the city among the top 10 seller’s markets in the country for 2023. Demand is strong, and will likely only grow as the city’s population increases. Home prices in the city have been steadily growing as well, for several years running: According to GAAR, the median sale price has risen from $300,000 in July 2021 to $334,000 in July 2022 to $350,000 this year.
With that in mind, it’s important to understand just how much your home is worth before you list it on the market. An experienced local real estate agent can help you get a handle on its current value by comparing comps, or information about how much similar homes in your area are selling for, and creating a thorough comparative market analysis. Since homes are going for just about their exact asking price, you want to make sure you get that number right.
If you’re a homebuyer
With relatively affordable homes, Albuquerque is an attractive market for prospective homebuyers. This has increased the competition in the city, and multiple offers are typically received on listings, making it important to be prepared as you wade into the fray.
Getting preapproved for a mortgage before you embark upon the shopping process is a wise move. This will allow you to act fast if you find a home that suits your needs, as having a preapproval in hand signals to sellers that you’re a serious buyer. That can make a big difference in competitive markets. Just as importantly, going through the preapproval process helps you develop a clear picture of exactly how much home you can afford.
Albuquerque housing market predictions
Nationally, the real estate market has cooled considerably amid skyrocketing mortgage interest rates that have sent many prospective buyers to the sidelines. But experts agree that while the market is certainly slowing down, it will not crash. And in Albuquerque, the market is actually gaining steam amid high demand, which is good for sellers, and affordable prices, which helps out buyers. Home prices have been on a steady upward trend for the past few years, but there’s still a way to go before they approach the national median.
Find an Albuquerque real estate agent
Navigating a complex real estate market like Albuquerque’s can be far easier with a knowledgeable real estate agent by your side. If you’re buying, a local agent can help identify homes within your budget in neighborhoods that suit your lifestyle and needs. An agent can also be invaluable when it comes time to make an offer and negotiate a deal. Similarly, if you’re selling, an agent who knows your area well can help price your home perfectly and market it to attract quality buyers.
When it comes to finding an agent to work with, it’s a good idea to interview at least two or three different candidates before making a decision. Ask friends, family members and co-workers for recommendations, and do some online research too. An agent you feel comfortable working with can smooth your path to a successful transaction.
No. In fact, according to data from the Great Albuquerque Association of Realtors, median single-family home prices here have risen for three straight years. July 2023’s median price of $350,000 represents a 4.8 percent increase from July 2022.
The housing market in Albuquerque favors sellers right now. However, that doesn’t necessarily mean it’s a bad time to buy here. With a median sale price of $350,000, more than $50,000 less than the nationwide median, homes are relatively affordable here even in a seller’s market. And the cost of living is low as well.