2022 Albuquerque Real Estate Market: A Comprehensive Overview
The real estate market in Albuquerque, New Mexico has experienced significant growth in recent years, making it a popular destination for both buyers and sellers. In this article, we will take a detailed look at the market statistics and trends that have shaped the real estate market in Albuquerque in 2022.
The Albuquerque real estate market has seen a steady increase in both home prices and sales over the past year. According to the latest data from the Greater Albuquerque Association of Realtors (GAAR), the average home price in Albuquerque has increased by 6.5% in 2022, reaching $295,000. This is a significant increase compared to the average home price of $277,000 in 2021.
The number of homes sold in Albuquerque has also increased in 2022, with a total of 8,245 homes sold in the first half of the year. This represents a 9.4% increase compared to the same period in 2021.
The popularity of certain neighborhoods in Albuquerque has also had an impact on the overall real estate market. Some of the most popular neighborhoods in Albuquerque in 2022 include:
- Nob Hill: Known for its vibrant nightlife and diverse dining options, Nob Hill has seen a significant increase in home prices in 2022. The average home price in Nob Hill is now $315,000, a 7% increase compared to 2021.
- Old Town: The historic district of Old Town is a popular destination for both tourists and residents. The average home price in Old Town is $325,000, a 6% increase compared to 2021.
- North Valley: The North Valley neighborhood is known for its large, luxury homes and proximity to the Rio Grande. The average home price in North Valley is $450,000, a 5% increase compared to 2021.
Based on the current market trends and statistics, it is likely that the Albuquerque real estate market will continue to grow in the coming months. Experts predict that the average home price in Albuquerque will reach $310,000 by the end of 2022, with a total of 16,500 homes sold.
The real estate market in Albuquerque, New Mexico has experienced significant growth in recent years, making it a popular destination for both buyers and sellers. With steady increases in both home prices and sales, the market is expected to continue growing in the coming months. Popular neighborhoods such as Nob Hill, Old Town, and North Valley have seen the biggest increases in home prices, making them a great choice for buyers looking to invest in the Albuquerque real estate market.
2022 Albuquerque Median Home Prices
The median home price for December 2021 through December 2022 rose by an impressive 12.3% from $285,000 to $320,000 in December 2022. Highlighting how great of an opportunity local real estate can be. Unfortunately, however, since then median home prices have dropped by 6%, as high-interest rates deterred many potential home buyers. On top of that, some sellers have been forced to reduce their prices due to homes taking longer than in the previous few years to sell which is a sign that the market may be waning. Taking these factors into consideration, those considering purchasing should take their time and review all available options before making any decisions related to this volatile housing market.
2022 Albuquerque Average Home Prices
The average price of homes for sale in Albuquerque has seen extraordinary growth this year from its average of $330,420 to now $371,791, a remarkable 12.5% increase. This exciting development in the Albuquerque housing market had been described as one of the fastest-growing increases in over 20 years. Yet, as interest rates rise, there are signs that the market is starting to slow down. From May 2022 to December 2022, average home prices have noticeably declined by 7.5%, confirming that indeed the market has been affected and has seen a decrease since its peak. As we look towards 2023, it will be interesting to observe whether average home prices continue to decline or return to their earlier levels of success.
2022 Albuquerque Days On Market
Despite the annual 6.7% increase in days on market to sell a home in Albuquerque, the real story begins to emerge when we look at December of 2022 – that month having 66.7% longer days on market than December 2021! This paints a very different picture, as it’s no longer feasible to expect multiple offers for your house within mere hours after putting it up for sale. Instead, an expectation of 30 days or less on the market may be more realistic and this adjustment back to normality doesn’t happen overnight; markets need time to balance out and recover from an extreme seller’s market, just as is the case here due to the Coronavirus pandemic.
2022 Sales Decline by 22% in Albuquerque
Albuquerque home sales have seen a substantial decrease in the year 2022, dropping by an astounding 22% according to the Greater Albuquerque Association of Realtors. Albuquerque is currently facing a shift in the housing market. The combination of high mortgage rates and high housing prices is making it more difficult for potential buyers to secure real estate in Albuquerque. With fewer homes on the market compared to previous years and mortgage interest rates edging higher due to rising inflation, Albuquerque homebuyers are faced with increasingly difficult conditions while attempting to purchase a home. Albuquerque’s current housing situation is creating unique challenges for potential buyers as they strive to find affordability and stability in a difficult real estate market.
The slowdown in real estate sales has caused buyers and sellers to feel its effects. Sellers are having to adjust their expectations; the days of their homes selling in a matter of hours, way over list price, are long gone. We have shifted to a more neutral market for both buyers and sellers, which means taking more time to find the right fit and making sure that both sides are in agreement on the terms of the sale. Sellers must now realize that although market conditions may be difficult, it is still possible to secure a sale at a fair price that takes into account current market trends.
The Changing Albuquerque Real Estate Market is Real
Albuquerque’s real estate market has been undergoing notable changes for the last few months, shifting from an extreme seller’s market to one that is more balanced. The current mortgage rates have rapidly increased in 2022, causing an affordability problem for many buyers who are looking at Albuquerque’s high prices of houses. This especially affects first-time home buyers, who have been finding it increasingly hard to get a foot on the property ladder. Although no one can predict when these factors may change, there is no doubt that Albuquerque’s high mortgage rates and expensive properties will remain a challenge for those searching for their dream home.
Mortgage Rates Are Killing Sales The Albuquerque Housing Market
The mortgage rate landscape has been drastically changed by the year 2022. At the start of the year mortgage rates were very low at 3%, however, were soon to increase at a dramatic pace. Mortgage rates doubled from the start of 2022 to their average rate of 6.53% at the end of the year. It is no wonder that many are struggling to qualify for a mortgage after such exponential growth in mortgage rates. It seems likely that mortgage rates will continue to grow throughout this next year, although at a slower pace than before. With mortgage rates fluctuating so drastically, it is unsurprising that the housing market across the country has been hit hard as well. Unfortunately, it is impossible to predict what will come in 2023; one thing is for sure though, mortgage rate volatility continues to create serious ramifications within housing markets around America.