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Expecting a dip in Albuquerque property prices in 2025? Think again.
Despite economic shifts, Albuquerque's real estate market is poised for growth, driven by increasing demand and limited housing supply.
In this blog post, we will explore why property prices in this vibrant city are set to rise.
We rely on solid, up-to-date data and statistics from multiple credible sources, ensuring our analysis is grounded in reality.
By thoroughly examining this information, we draw our own conclusions, which we share with you at the end. Enjoy the read!
How this content was produced 🔎📝
This article offers thoughtful insights and analysis based on reliable sources, but it should not be considered financial advice. We work hard to research, compile, and analyze data to give you a well-informed perspective. However, as you can guess, our analysis involves subjective choices, such as source selection and methods, and it cannot fully capture the market's complexity. Please, always do your own research, consult professionals, and make decisions based on your own judgment. Any financial risks or losses are your responsibility. Additionally, you should know that we have no affiliation with the sources mentioned, ensuring our analysis is completely impartial.
1) In Albuquerque, there are only about 0.45 homes for each person, which is quite limited
Signal strength: strong
The fact that there is around 0.45 home per inhabitant in Albuquerque indicates a relatively low housing availability. This low ratio suggests that housing demand is likely to exceed supply, which often leads to an increase in housing prices. In Albuquerque, a unique factor is the limited availability of land for new developments due to the surrounding Sandia Mountains and protected areas.
This geographical constraint means that expanding the housing supply is more challenging compared to other cities. As a result, the existing homes become more valuable, driving up prices. Additionally, Albuquerque's growing popularity as a cultural and economic hub attracts more residents, further increasing demand.
For potential investors, this scenario suggests that investing in Albuquerque real estate could be a wise decision as prices are expected to rise. However, if the ratio of homes per inhabitant were to increase significantly, say to 0.6 or higher, it might indicate a shift towards a more balanced market.
Source: USCensus
2) Albuquerque home values have risen by 4.5% since last year, and this trend may persist
Signal strength: strong
The fact that home values in Albuquerque have already changed by 4.5% since last year is a strong indicator of a rising trend in the housing market. This increase suggests that demand is growing, which often leads to higher prices.
Currently, the median home price in Albuquerque is around $330,900, which is a significant figure for potential investors to consider. Additionally, the median sales price per square foot is around $206, providing a useful metric for evaluating property value.
These numbers reflect a market that is gaining momentum, and if this trend continues, housing prices are likely to go up in 2025. For investors, this could mean a good opportunity to enter the market before prices climb even higher.
However, if the home value change were to drop below 2%, it might signal a slowdown, suggesting a different market dynamic.
Source: Redfin
We created this infographic to show how property prices in Albuquerque compare to other big cities in New Mexico. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
3) Albuquerque's "vacancy rate" is just 6.0%, showing it's a bustling and competitive market
Signal strength: moderate
The vacancy rate in Albuquerque is currently at 6.0%, which is considered very low. This low vacancy rate suggests that the housing market is highly occupied and competitive, meaning there is strong demand for housing. When demand is high and supply is limited, it often leads to increased housing prices as more people compete for fewer available homes.
In such a market, properties that are easily rented are typically well-maintained and located in desirable areas. For instance, modern apartments in the Nob Hill area are highly sought after due to their proximity to amenities and vibrant community life. Investors looking to capitalize on this trend should consider properties that meet these criteria to ensure a steady rental income.
However, if the vacancy rate were to rise significantly, say to above 10%, it could indicate an oversupply of housing. This would likely lead to stagnant or even decreasing housing prices as the market adjusts to the increased availability of homes.
Sources: NeighborhoodScout, DataUSA, USCensus
4) Albuquerque has a "Livability" score of 72, indicating it's a pleasant place to live
Signal strength: moderate
The livability score of 72 in Albuquerque is considered good because it reflects a balance of factors that make the city attractive to residents.
One key characteristic is the pleasant climate, with over 300 days of sunshine annually, which appeals to those seeking outdoor activities and a healthy lifestyle. Additionally, Albuquerque boasts a rich cultural heritage, with numerous festivals and events that draw both locals and tourists, enhancing the city's vibrancy.
Moreover, the city has a strong sense of community, with neighborhoods that are known for their friendliness and support, making it an appealing place for families and individuals alike. These factors contribute to the city's desirability, which in turn can drive up housing demand and prices.
If the livability score were to drop below 65, indicating a decline in these positive attributes, it might suggest a less favorable outlook for housing prices.
Source: AreaVibes
Our team designed this infographic to show how competitive the real estate market in Albuquerque is vs. other major cities in New Mexico. It shows the percentage of sales above the list price, a key indicator of market competition.
5) Two major websites predict that home prices in Albuquerque will rise in 2025
Signal strength: moderate
There are currently two major websites forecasting a positive growth for home prices in Albuquerque in 2025, which is a promising indicator for potential investors.
Among these forecasts, Redfin predicts a 4% increase in home prices, while Zillow anticipates a 2.70% rise. In contrast, Realtor projects a decrease of 4.20%, highlighting a significant gap in expectations.
While these forecasts provide valuable insights, it's crucial to approach them with caution and not rely solely on them for investment decisions. We will also consider strong, reliable, and current data to form a comprehensive and professional judgment.
If the majority of forecasts were to predict a decline of more than 5%, it would suggest a different trend for Albuquerque's housing market.
Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts
6) Albuquerque's median home price remains 24% lower than the national average
Signal strength: minimal
The fact that Albuquerque's median home price is 24% below the national average suggests that there is room for growth in the housing market. This gap indicates that Albuquerque is an attractive option for buyers looking for more affordable housing, which can drive demand and potentially increase prices.
In Albuquerque, the most expensive properties are likely to be luxury homes in areas like the North Valley, where amenities and scenic views are abundant. On the other hand, the cheapest properties are often small, older homes in neighborhoods like the South Valley, where prices are more accessible for first-time buyers or investors.
As demand increases, these lower-priced areas may see a rise in value, contributing to the overall upward trend in housing prices. Investors should consider that the current affordability compared to the national average makes Albuquerque a potentially lucrative market.
If the median home price in Albuquerque were to rise above the national average, it might signal a saturation point, potentially slowing down further price increases.
Source: Zillow
This infographic we have made will show you how market values have changed during the last decade in Albuquerque vs other major places in New Mexico. Here, the percentage increase or decrease in market value will help you see long-term trends.
7) In Albuquerque, about 26% of homes sell for more than their listing price
Signal strength: minimal
In Albuquerque, around 26% of sales close at a price higher than the listing price, which is a strong indicator of demand. When buyers are willing to pay more than the asking price, it often means that competition among buyers is high and they are eager to secure a property.
This eagerness can drive prices up, as sellers realize they can ask for more. Additionally, when a significant portion of sales exceed the listing price, it suggests that the market is competitive and potentially appreciating.
Such trends are often seen in markets where housing prices are expected to rise, as buyers anticipate future value increases. However, if the percentage of sales closing above the listing price were to drop significantly, say below 10% of sales closing above the listing price, it might indicate a cooling market.
Source: Zillow
8) In Albuquerque, home prices have steadily increased by an average of 6.5% each year over the past decade
Signal strength: minimal
The fact that home prices in Albuquerque have appreciated at an average rate of 6.5% over the last decade is a noteworthy signal for potential investors. This consistent growth rate suggests a history of demand and price growth, which can indicate favorable conditions for future increases.
When we see such a positive trend over a 10-year period, it often reflects a stable and growing market. This historical data can be a useful indicator for predicting future trends, even though it's important to remember that past performance doesn't guarantee future results.
However, the fact that prices have been rising steadily can give investors confidence in the market's potential for continued appreciation. It's crucial to consider other factors as well, but this long-term appreciation rate is certainly a positive sign.
If the appreciation rate were to drop significantly, say below 2% over a similar period, it might suggest a different market dynamic.
Source: NeighborhoodScout
This infographic designed by our team breaks down the latest livability score in Albuquerque but also in other big cities in New Mexico. It provides a clear view of which locations offer the best overall living conditions, which is a good thing to know if you want to buy real estate.
So, are prices going to climb in Albuquerque in 2025? Yes, they are!
Albuquerque's housing market is poised for a price increase in 2025, driven by several compelling factors.
First, the city has a low housing availability with only 0.45 homes per person, indicating that demand is likely to exceed supply. This is compounded by the limited land for new developments due to geographical constraints, making it difficult to expand the housing supply. As a result, existing homes become more valuable, pushing prices up.
Additionally, Albuquerque's home values have risen by 4.5% over the past year, and the median home price is $330,900. This upward trend suggests a growing demand, which typically leads to higher prices. The city's 6.0% vacancy rate further highlights a bustling and competitive market, where high demand and limited supply drive prices up.
Moreover, Albuquerque's livability score of 72 makes it an attractive place to live, enhancing its desirability and increasing housing demand. Forecasts from major websites like Redfin and Zillow predict a rise in home prices, reinforcing the expectation of a price increase. With Albuquerque's median home price 24% lower than the national average, there's room for growth, making it an appealing option for buyers.
Finally, the fact that 26% of homes sell for more than their listing price and the historical 6.5% annual price increase over the past decade further indicate a strong market. All these factors combined suggest that Albuquerque's housing prices are set to climb in 2025.
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- Yes, investing in real estate is a solid option in 2025 in Albuquerque