Albuquerque Home Value Update: May 2024

The latest Zillow Home Value Index (ZHVI) data reveals the trends we have seen in other data we track. As of May 2024, the typical home value in the greater Albuquerque area has reached an all-time high of $335,649. This marks a 5.81% increase from May 2023, highlighting continued year-over-year home value growth in the Albuquerque housing market.

Monthly Trends

The first chart has the ZHVI from 1999. It shows a steady long-term increase in home values over the past two decades, with notable accelerations pre-2008 and since 2019 and seasonal decelerations after the GFC. The month-to-month change for May 2024 was +0.59% from April, indicating a slight flattening in the late spring appreciation rate compared to March and April. This trend mirrors other data sources we track, suggesting that while the market is still appreciating, the rate has moderated compared to earlier in the year.

Annual Shifts

The second chart provides a percent change heatmap of monthly and annual shifts in Albuquerque MSA home values. This detailed view allows us to track fluctuations and identify seasonal patterns. The annual year-over-year (YoY) May 2023 to May 2024 stands at 5.81%, reinforcing the gradual yet steady appreciation trend. This is consistent with the overall growth trend observed in the ZHVI data.

Analysis

The data indicates that while home values continue to rise, the rate of increase has slowed down slightly in recent months. We see this in the May list prices and a number of properties listed haveing price reductions. This could be attributed to various factors, such as higher mortgage rates, an increase in home supply, or affordability challenges for some buyers.

Implications for Buyers and Sellers

For buyers, understanding that the market is still appreciating, albeit at a slower rate, can inform purchasing decisions. It may still be a good time to buy, as waiting for significant drops in home prices might not align with current market trends.

For sellers, the ongoing appreciation suggests that now could be an opportune time to list properties, taking advantage of the high home values. However, being mindful of the flattening appreciation rate can help set realistic price expectations.

Conclusion

The Albuquerque real estate market continues demonstrating resilience and growth, with home values reaching new highs. Keeping a close eye on these trends and understanding the underlying data is crucial for making informed real estate decisions.

For more detailed market analysis and personalized advice, feel free to reach out to our team at Venturi Realty Group. We are here to confidently help you navigate the evolving Albuquerque real estate landscape.