Albuquerque Housing Market: Rapid Price Appreciation Favors Smaller Homes
June 2023 Home Prices
The housing market in Albuquerque is displaying remarkable year-over-year home price growth despite higher mortgage interest rates and affordability challenges. Based on analysis of Single-Family, Detached, Resale Homes that sold in June 2023, all indicators for home prices in the Albuquerque Metropolitan Statistical Area (MSA) have seen an increase in comparison to the previous year, resulting in new record-high sale prices. The extent to which home prices increase varies depending on the size and price range of the properties. Generally, smaller and lower-priced homes experienced the most significant price appreciation.
In June 2023, the Median sale price of single-family detached homes in the Albuquerque MSA rose to a new all-time high of $365,000, surpassing May’s $350,000 and up 10.9% from June 2022’s median of $329,000. Average sale price was also at an all time high for June at $416,213.00
When examining the price change from a different perspective, the average price per square foot also increased for these properties. It increased to $202 per sqft, a 4.7% rise in comparison to June 2022.
Interestingly, the rate of price appreciation varied noticeably depending on the pricing and sizing of homes. Homes sold for under $350,000 experienced a 5.0% gain in average price per square foot from the previous year. In contrast, homes sold for over $350,000 saw a slower, albeit still healthy, 3.4% increase in average per square foot.
The story is similar when the homes were segmented based on their size. Homes under 2000 square feet witnessed a hefty 7.2% increase in average price per square foot, whereas homes over 2000 square feet saw a more moderate 3.7% increase.
This market behavior reinforces that the current housing market dynamics are favoring smaller, more affordable homes, as evidenced by the comparatively higher rate of price appreciation. This could be due to a multitude of factors, such as changing buyer demographics, budget constraints in the wake of higher mortgage rates, and, most notably, a limited supply of moderately priced properties creating increased competition.
It’s worth noting that June is historically the seasonal peak in home prices in Albuquerque. This seasonal pattern could provide a valuable frame of reference for potential buyers and sellers when planning their real estate strategies.
The Albuquerque housing market’s current landscape presents a fascinating snapshot of the interplay between supply, demand, and socio-economic factors. With smaller, more affordable homes experiencing a faster pace of price appreciation, potential buyers, particularly first-time homeowners or those seeking investment opportunities, might want to adjust their strategies accordingly.
As we continue to navigate through these robust market conditions, it’s essential to stay informed, analyze market trends, and make data-driven decisions. The Albuquerque housing market is more vibrant than ever, and it’s an exciting time to participate in it.