Albuquerque Real Estate | Venturi Realty Group

Albuquerque Housing Market Forecast 2025

2024 Insights and 2025 Predictions

As 2024 comes to a close, it’s time to take a good look at the Albuquerque real estate market and see what’s on the horizon for home prices and sales. In this blog, we’ll break down expert forecasts, share key data, and dive into the trends shaping the market as we gear up for 2025. Let’s get started!

Wrapping Up 2024: A Year of Reflection and Excitement

Can you believe it? 2024 is almost over! It’s been another eventful year for Albuquerque real estate. For us at Venturi Realty Group, it’s also a special milestone as we celebrate 10 years of sharing market insights with you. As we reflect on the past year, we’re not just looking back—we’re gearing up for what’s next. And trust us, there’s plenty to talk about when it comes to 2025. So, let’s dive in with some forecasts, trends, and data that will help you stay ahead in the Albuquerque market.

2024 in Review: Steady Growth in the Albuquerque Market

This past year has been a story of stable growth for Albuquerque home prices:

What’s driving this growth? A combination of limited inventory, steady demand, and Albuquerque’s relatively affordable prices compared to national markets.

Albuquerque’s Mortgage Landscape: A Stable Foundation

If you’re wondering why Albuquerque’s market has held strong despite rising interest rates, here’s the scoop:

  • 39% of homeowners in Albuquerque have no mortgage at all. That’s right, they own their homes outright.
  • 31.3% of mortgages are locked in at rates of 4% or less. In today’s 7% mortgage rate environment, that’s a huge advantage.
  • 16.8% of mortgages have rates between 4% and 6%.
  • Only 12.9% of homeowners are paying rates above 6%.

What does this mean? Most Albuquerque homeowners are sitting comfortably, which helps keep the market steady and minimizes the likelihood of distressed sales. 

What’s the Forecast for 2025 Home Prices in the Albuquerque Area?

Alright, let’s talk forecasts. There’s been a lot of chatter about what’s ahead for home prices, and not all of it adds up. Some reports predict declines, while others are more optimistic. Here’s the breakdown:

  • Realtor.com raised eyebrows with its forecast of a 4.1% decline in Albuquerque home prices for 2025. Honestly, we’re skeptical. This feels like a misread of local market conditions.
  • Zillow, on the other hand, predicts a 3.9% increase in Albuquerque home values for 2025. That’s much more in line with what we’re seeing.

When you consider the low inventory and steady demand in our market, a significant drop in prices just doesn’t make sense. For Albuquerque, the forecast is more about balanced, stable growth than any wild swings. We expect 2025 to see steady home price growth similar to the 3%-4% price and value appreciation we have seen in 2024.

National Home Price Trends for 2025

Taking a step back, what’s happening nationally? Well, the average forecast across 19 major institutions suggests a +3.1% increase in home prices for 2025. Projections range from -0.4% (Moody’s Analytics) to +5.5% (AEI Housing Center). Albuquerque, as usual, is expected to trend close to the national averages with that reliable stability we’re known for.

 

 

Mortgage Rate Projections: What Buyers Need to Know

If you’ve been hoping for a big drop in mortgage rates, 2025 might not be your year. Here’s what the experts are projecting:

  • Q1 2025: 6.58%
  • Q2 2025: 6.45%
  • Q3 2025: 6.32%
  • Q4 2025: 6.33%

The takeaway? Rates will likely hover in the mid-6% range. If you’re in the market to buy, waiting for a major rate drop might not be the best strategy. Instead, focus on finding the right home and refinancing later if rates improve. 

No Signs of Distress: Strong Homeowner Stability

The big question: Is the market about to crash? The answer: No way. Here’s why:

  • Delinquency Rates: New Mexico’s mortgage delinquency rate is just 2.9%, below the national average of 3.5%.
  • Foreclosures: Even better, foreclosures in New Mexico are at a mere 0.4%, close to all-time lows.
  • Inventory Levels: Albuquerque’s months of inventory sits at 2.4 months, which is historically low and still favors sellers.

 

 

On top of that, U.S. homeowners are sitting on record equity:

  • Total U.S. home values: $48.2 trillion.
  • Mortgage debt: $13.1 trillion.
  • Home equity: $35.1 trillion, the highest it’s ever been.

All this points to a market that’s healthy and stable, with no signs of distress.

 

 

2025 Design Trends: What’s Hot in Albuquerque Homes

Let’s switch gears and talk about what’s trending in home design for 2025. Whether you’re buying, selling, or just refreshing your space, these ideas are worth keeping in mind:

  • Bold Wallpaper: Think statement walls with vibrant colors or intricate designs.
  • Color Trends: Earthy tones like muted pink, purple, green, and yellow are in.
  • Defined Spaces: Formal dining rooms and more separated living areas are making a comeback.
  • Sustainability and Wellness: Eco-friendly materials and designs that prioritize natural light and functionality are in demand.

What to Expect in Albuquerque Real Estate for 2025

So, what’s the bottom line for Albuquerque? Here’s what we’re predicting:

  • Steady Price Growth: Expect home prices to rise by 3% to 4% next year.
  • Increase in Sales: We expect the number of home sales to increase in 2025 from the lows of 2023 and 2024. Although the increase isn’t significant, we anticipate pent-up demand will begin to enter the market. 
  • Low Inventory: Supply will remain tight, keeping the market competitive.
  • Economic Stability: Albuquerque’s diverse economy—from scientific industries to military sectors—will continue to support the market.

While affordability challenges persist, particularly for first-time buyers, the overall outlook for Albuquerque is solid. For buyers, this means acting sooner rather than later. For sellers, it’s an opportunity to make the most of a competitive market.