Albuquerque Housing Market Mid-Summer 2024 Update

As we find ourselves in mid-summer 2024, it’s time to take a closer look at the Albuquerque housing market. Tego Venturi from the Venturi Group at Real Broker provides some insightful updates on the current trends, focusing on supply, demand, and pricing.

Supply: A Growing Inventory

The number of homes for sale in Albuquerque is currently about 2,000. This is a 44% increase compared to the same time last year. However, it is still 39% less than what we had in 2019. Despite this increase, the number of available homes is still historically low, highlighting a significant shift from the extremely tight inventory levels seen in recent years.

Demand: A Slower Pace of Sales

In 2023, there were approximately 9,600 homes sold in Albuquerque, marking a slower sales pace compared to the average of 12,000 homes per year over the past decade. At the peak in 2021, there were about 16,000 homes sold. For 2024, we are on track to see similar numbers to 2023, with an estimated 9,500 to 9,600 homes expected to be sold. This consistent but slower pace indicates a steady yet subdued market compared to the frenetic activity of previous years.

Prices: Record Highs Continue

Home prices in Albuquerque have reached all-time highs, with June setting a new record. Although final numbers for July are not yet available, it is anticipated to follow the same trend. Year-over-year price appreciation continues, though at a more moderate pace of around 5%, compared to the rapid increases witnessed in 2021 and 2022. Typically, home prices peak around this time of year before pulling back in the fall and winter months.

Price Reductions: A Notable Trend

One notable trend is the increase in price reductions. Currently, 45% of all homes on the market have experienced a price reduction. This does not indicate a decline in overall prices but rather reflects sellers adjusting their expectations and list prices to meet market conditions. Despite these reductions, closed sales still show year-over-year price appreciation.

Interest Rates: A Glimmer of Good News

Interest rates have seen a slight decline recently, hovering around the 7% mark for a 30-year fixed-rate mortgage. This is the best rate we’ve seen since February and provides some relief to potential buyers. Although this trend is part of a national story, it positively impacts the Albuquerque market by improving affordability slightly.

Market Outlook

In summary, the Albuquerque housing market is experiencing growth in supply, a steady yet slower sales pace, and continued price appreciation. While affordability challenges and limited choices have kept some buyers out of the market, the increase in inventory and slightly lower interest rates may encourage more buyers to enter the market.

If you have any questions or need assistance with your real estate needs, don’t hesitate to reach out to the Venturi Team at Real Broker. Contact us at 505-448-8888. We’re here to help!