Albuquerque Real Estate Talk Episode 511 Recap: Insights from November 2024

This week on Albuquerque Real Estate Talk Episode 511, Tego and Tracy Venturi of the Venturi Group at Real Broker delve into the latest trends in the Albuquerque real estate market for November 2024. From home sales data to community highlights in Corrales, this blog offers valuable insights for potential buyers and sellers alike.

Introduction

The Albuquerque real estate market is constantly evolving, and understanding its dynamics is crucial for both buyers and sellers. In this blog, we will explore the latest market data for October 2024, delve into the unique lifestyle offered by the village of Corrales, provide an overview of the local real estate market, and analyze the profiles of buyers and sellers in the current landscape.

Albuquerque Market Data for October 2024

October 2024 has shown promising signs for the Albuquerque real estate market. Home sales increased by approximately 5% compared to the previous year, indicating a slow but steady recovery. However, when comparing this data to October 2019, we observe a decline of about 20-30%, suggesting that while activity has improved year-over-year, it remains below pre-pandemic levels.

The average home price in Albuquerque has surpassed $400,000, reflecting an increase of nearly 8% from last year. Despite this rise, it’s important to note that the actual appreciation rate is likely closer to 3-4%, considering broader market factors.

Additionally, new listings increased slightly, with a little over 1,000 new properties hitting the market, a 3% rise from October 2023. The total number of homes for sale has surged by 23% compared to last year, yet it remains about 25% lower than the figures from October 2019.

Days on the market have also changed, with an average of 37 days from listing to contract, marking a nearly 50% increase from last year. This trend suggests a return to a more normalized pace of home sales compared to the rapid turnover seen in previous years.

Corrales: Dining, Events, and Lifestyle

Corrales, a quaint village nestled between Albuquerque and Rio Rancho, offers a unique lifestyle that attracts many residents. Known as the horse capital of New Mexico, Corrales is not just about equestrian pursuits; it boasts a vibrant dining scene and a calendar full of community events.

Popular dining spots include Indigo Crow, known for its delightful atmosphere, and Y Hannah and Nate’s, which serves breakfast and lunch. The Sandia Bar has recently reopened after renovations, adding to the local charm.

Corrales is also home to several wineries, including Malro Posa and Tampo Corrales Winery, perfect for a weekend outing. The Farm Stand offers fresh produce and local goodies, making it a favorite for health-conscious residents.

The community hosts various events throughout the year, such as the Fourth of July Parade, where families and friends come together to celebrate. The Fall Harvest Festival is another highlight, featuring hay rides and an arts festival that showcases local talent.

For those who enjoy outdoor activities, the Bosque Preserve offers scenic trails along the river, ideal for walking and enjoying nature. With tennis courts, a swimming pool, and an equestrian riding ring, Corrales provides ample recreational opportunities for its residents.

Corrales Real Estate Market Overview

The real estate market in Corrales is characterized by its higher price points compared to other areas in Albuquerque. As of early November 2024, the average list price for homes in Corrales stands at approximately $1,123,000, with a median list price of around $800,000. This price point reflects the desirability of the area, which is known for its spacious properties and scenic views.

Currently, there are about 22 homes on the market, indicating a relatively small inventory. The average price per square foot for properties in pending sale is $295, with an average pending price of $842,000.

It’s worth noting that the market is still adjusting, with an average reduction of approximately $27,000 for homes currently listed. The average days on the market for homes until they go pending is around 59 days, suggesting a stable, yet competitive market.

2024 Profile of Buyers and Sellers

The 2024 profile of buyers and sellers reveals significant shifts in demographics and purchasing behavior. The median age of home buyers has risen to 56 years, while first-time buyers have seen their median age increase to 38 years. This trend indicates a growing challenge for younger buyers, who face affordability issues in the current market.

Interestingly, the composition of home buyers has also evolved. Married couples now account for 62% of buyers, while single females represent about 20%. In contrast, single males have seen a decline, comprising only 8% of the market.

Moreover, a record 61% of home buyers had previously owned a home, highlighting the dominance of repeat buyers in the market. First-time buyers are struggling to secure properties, primarily due to rising prices and limited inventory.

When considering the motivations behind home purchases, many buyers reported making compromises on their price expectations, with 30% indicating they paid more than initially planned. This reality underscores the competitive nature of the current market.

As we navigate through these trends, it’s essential for both buyers and sellers to stay informed about the changing landscape of the Albuquerque real estate market. Understanding these dynamics can significantly impact decision-making and strategic planning in real estate transactions.

Homebuyer Trends and Insights

The landscape of homebuyers continues to evolve, reflecting shifts in demographics, motivations, and purchasing power. As of 2024, the median age of homebuyers has reached 56 years, with first-time buyers averaging 38 years. This shift indicates a growing challenge for younger buyers, highlighting the need for strategic planning in home purchasing.

Interestingly, the vast majority of homebuyers—61%—are repeat buyers, showcasing a trend where those who have previously owned homes dominate the market. This trend underscores the increasing difficulty for first-time buyers to enter the market, particularly in the face of rising prices and limited inventory.

Moreover, the motivations behind home purchases reveal a willingness among buyers to compromise on various aspects, primarily due to the competitive nature of the market. Approximately 30% of buyers reported paying more than they originally planned, a clear indicator of the market dynamics at play.

New vs. Resale Homes

The current market data indicates a notable split between new construction and resale homes. In 2024, around 15% of homes purchased were new construction, while a significant 85% were resale properties. This shift reflects the changing preferences of buyers, who are increasingly drawn to new builds due to the incentives and financing options available, such as lower interest rates and closing cost assistance.

In Albuquerque, the share of new construction may be even higher, as buyers seek modern amenities and energy-efficient designs. Working with various builders can help navigate this segment of the market, ensuring buyers capitalize on available incentives.

Distance Moved and Compromises Made

Another fascinating trend is the distance buyers are moving when purchasing a home. Pre-pandemic, the average distance was around 15 miles. However, during the pandemic, this number surged to an average of 50 miles as many sought to relocate to areas where they could enjoy more space or return to their roots. As of 2024, the average distance moved has settled at 20 miles, indicating a blend of both pre- and post-pandemic behaviors.

Compromises made by buyers also reflect the current market conditions. Notably, 30% of buyers reported compromising on the price of their new home, while 23% made concessions regarding the condition of the property. This dynamic showcases the realities of a market where demand often outstrips supply.

Tenure in Home and FSBO Trends

The average tenure for homeowners has increased to about 10 years, up from 6-7 years in previous years. This change can be attributed to the lock-in effect, where homeowners with favorable mortgage rates are hesitant to sell and lose their low-interest financing. Consequently, many homeowners are opting to stay put or renovate their existing homes instead of moving.

Interestingly, the trend of selling homes without a real estate professional (FSBO) has declined significantly. Currently, only about 6% of sellers are opting to go the FSBO route, compared to 15-20% in the past. This drop suggests that as the market becomes more complex, the need for professional guidance has never been greater.

Conclusion and Contact Information

Understanding these trends is crucial for both buyers and sellers navigating the Albuquerque real estate market. Whether you’re looking to buy your first home, considering a new construction, or evaluating the value of your current property, having the right insights can make all the difference.

If you have questions about the market or need assistance with your real estate needs, feel free to reach out. The Venturi Group at Real Broker is here to help you every step of the way.

Contact us at 448-8888 or visit our website at welcomehomeabq.com.