Albuquerque Housing Market Update and Forecast: Q2 2025

Welcome to the mid-2025 Albuquerque Housing Market Update! As we dive into the latest real estate trends for Albuquerque, New Mexico, we’ll explore key data points from the second quarter of 2025, compare them to last year, and provide insights into what’s ahead for homebuyers and sellers. Let’s break down the numbers and see what they mean for you.

Closed Sales: A Steady Market with Notable Activity

In Q2 2025, Albuquerque saw 2,671 homes sold and closed over the past 90 days. That’s roughly 30 homes per day, or about 60 families making a move daily—either buying or selling. Despite chatter about a “slow” market, this level of activity shows a steady real estate market.

Breaking it down by price range compared to Q2 2024:

$300,000 and below: A 7% decrease in closed sales, largely due to fewer homes available in this price range as values rise.
$300,000–$400,000: Sales remained steady with last year, showing stability in this mid-range segment.
$400,000–$600,000: A 6% increase in closed sales, indicating a shift in the number of homes in this price bracket.
$600,000 and above: The luxury market saw a 3% increase, reflecting steady interest in high-end properties.

Overall, the market is holding steady, with growth in higher price ranges signaling a shift in available inventory.

Inventory: More Choices, But Still Below Pre-Pandemic Levels

The average number of homes for sale in the Albuquerque Area in Q2 2025 was 2,094, a 26% increase from Q2 2024. This growth means more options for buyers compared to recent years. However, for context, in 2019, there were approximately 2,700 homes on the market during the same period. While inventory is improving, we’re still below those pre-pandemic levels, particularly in the $300,000 and below segment, where supply has decreased due to rising home prices.

Pending Sales: A Slight Uptick in Activity

Pending sales—homes going under contract—reached 2,753 in Q2 2025, a slight increase from just under 2,686 in Q2 2024. This modest uptick suggests steady buyer demand, similar to that seen in 2023 and 2024.

Days on Market: How Long Does It Take to Sell?

The average days on market (from listing to contract) for homes that closed in Q2 2025 was 35 days, a 25% increase from Q2 2024. Notably:

Homes priced $300,000 and below took longer, with an 88% increase in days on market. This may be due to condition issues, as many lower-priced homes may not be move-in ready.
The median days on market was 14 days, meaning half of all homes went under contract within two weeks, while the other half took longer.

This split highlights a competitive market for well-maintained homes, while others may need updates to attract buyers quickly.

Home Prices: Moderate Appreciation Continues

In Q2 2025, the average home price in Albuquerque was $417,647, with a median price of $359,995. Compared to Q2 2024, this represents a 3% increase in the average price and a 2% increase in the median price.

Breaking it down by price per square foot:

$300,000 and below: Stable at $202/sq ft, even with last year.
$300,000–$400,000: A 1.5% increase in price per square foot.
$400,000–$600,000: A 3% increase.
$600,000 and above: A 3.5% increase.

Overall, the average price per square foot rose to $214, a 2.4% increase from Q2 2024. According to Freddie Mac’s May 2025 data, Albuquerque’s home price appreciation was 3.4%, outpacing the national average of 2.2%. This moderate growth positions Albuquerque as a strong performer compared to many markets nationwide.

Delinquencies: A Healthy Market

Nationally, the mortgage delinquency rate in Q2 2025 is 3.2%, below the historical norm of 4% (2000–2004). In New Mexico, the rate is even lower at 2.8%, with total distressed properties (including foreclosures) at 3.3%, compared to the national average of 3.6%. This suggests a stable market with fewer distressed homeowners, reducing the likelihood of forced sales impacting prices.

Looking Ahead: A One-Year Forecast

Zillow’s one-year forecast ranks Albuquerque as the #3 metropolitan market among the top 100 in the U.S., projecting a 1.6% year-over-year price appreciation by mid-2026. While the country as a whole may see a slight 0.5% decrease in home values, Albuquerque’s outlook remains positive, driven by consistent demand and limited inventory.

The market is showing signs of steady price appreciation through the summer, with pending sales data indicating a 2–3% increase in price per square foot ($217 vs. $210 last year) for homes currently under contract.

What This Means for You

Whether you’re buying or selling, Albuquerque’s housing market in Q2 2025 offers opportunities:

Buyers: Increased inventory means more choices, but act quickly on move-in-ready homes, especially in the $300,000–$400,000 range, where demand is strongest.
Sellers: Well-maintained homes are selling fast, often within two weeks. Pricing competitively and ensuring your home is in top condition can lead to a quick sale.

For a deeper dive into these trends, visit our Monthly Market Data page at WelcomeHomeABQ.com. Have questions about buying or selling in Albuquerque? Contact the Venturi Group at 505-448-8888. We’re here to help you navigate the market with confidence.

Stay tuned for our next update, and happy home hunting!