It’s no secret that the Albuquerque housing market has been virtually ruthless last year. Demand for homes in the Albuquerque metropolitan area has skyrocketed since the start of the pandemic. The ultra-competitive housing market isn’t just limited to Albuquerque. US small and medium-sized cities are seeing the same trends as their markets as people struggle to escape less-than-desirable living conditions in overcrowded coastal metropolitan areas. Affordable lodging and many recreational opportunities in Albuquerque are attracting buyers from all over the country.
Nob Hill has especially felt the surge in demand for real estate. The Nob Hill housing market includes parts with zip codes 87106, 87108, 87110; and apart from a new apartment building near Central Avenue, no entirely new buildings are being built. “There are simply more buyers than homes in the market,” said Belinda Franco, president of the Greater Albuquerque Realtors Association, of the state of the market in one of Albuquerque’s most popular neighborhoods.
So what makes Nob Hill such a sought-after vacation spot? Its proximity to restaurants, shops, bars and walking distance have created a hub of activity in the heart of the city. It is also close to the university, which creates a demand for housing for those who want to live close to their work. Some of Nob Hill’s neighborhoods, such as the Monte Vista and College View neighborhoods, are listed on National Register of Historic Places.
According to the latest data from the MLS Real Estate Database, the average home value in Nob Hill has increased 13.3% from 2020 to about $ 345,000. As with other markets similar in size to Albuquerque, the rise in home values has been driven by a shortage of homes in stock compared to rising demand. However, the recent boom in the market is unique because of its absolute competitiveness. The median sale price of a 3-bedroom home in Nob Hill in June is over $ 380,000. The market has effectively turned into an all-out bidding war, with the average number of days for a home on the market is just three days.
When asked about out-of-state buyers, Franco said that many buyers from California and other regions with competitive real estate markets have an advantage over New Mexico residents because their properties are being sold at much higher prices. “We’re seeing a lot more variety and cash offers,” she said. The demand for relatively cheap Albuquerque housing is also not helping buyers in the state, as the sale of their property cannot compete with those sold in more competitive markets.
Albuquerque Market Comparison
According to GAAR, the price of a single-family home in Albuquerque increased 26.3 percent from May 2020 to May 2021. At the start of the pandemic, the price of a 3-bedroom single-family home was $ 290,000, up from $ 333,448 from a year ago. the most recent data was received in May 2021. Franco believes the pandemic has pushed many people to rethink what they want and need in the home. The pandemic has also forced more and more people to work from home, and many, especially with families, saw the need to move to larger spaces with a home office. “People have redefined their lives,” Franco said.
The bustling market has also dramatically reduced the amount of time a property is put up for auction. According to GAAR, “Single-family homes sell on average in 13 days, up 43.5 percent from May 2020.” As a result, Albuquerque residents not only face competition from out-of-state buyers, but it has become significantly more difficult to find property that meets the buyer’s needs.
Franco predicts that demand for real estate in Albuquerque is likely to continue into 2021. Keeping in mind past trends, she expects the traditional home selling seasons, spring and summer, to ensure that the market stays busy. Sellers are keen to list their properties, especially due to record market demand, she said in an interview.
A housing boom is a pain in buying a home, but it is also a boom for other industries in the city. “For every home sold in Albuquerque, $ 72,000 is returned to our local economy,” Franco said. Demand for homes translates into demand for services such as construction, cement production and a number of other related industries. The motives for buyers to move are primarily the same motives that bring money and investment back to the community. The pandemic has prompted many buyers to tailor their living space to their needs, leading to increased demand for services in other industries.
Nationwide, skyrocketing house prices raise the question of whether the housing market is on track to repeat the infamous housing bubble that fueled the Great Recession in 2007. experts across the country, Franco is sure that this is not a bubble. “This is a completely different feeling. It doesn’t look like a housing bubble before, ”she said. She noted that the factors driving demand are different from those of the early 2000s. Record low mortgage rates and a generation of millennials reaching the prosperous age of home buying were the main drivers of the nationwide boom.
GAAR predicts that Albuquerque’s hyper-competitive housing market is likely to last until 2022 and should not raise any concerns about a housing bubble. Franco believes there is still a lot of competition in the city and there is room for growth.
Briefly about Nob Hill:
- Average rent: $ 1244 (* weichert realty)
- Median home price: $ 345,000 (ml)
- Average income: $ 51,867 (* weichert realty)
- Economic factors: education, retail, food and beverages.
- Transit Rating: 47 (* WALKSCORE.COM)
- Crossing score: 82 (* WALKSCORE.COM)
- Work Nearby: UNM / CNM, Government, Retail, Food & Beverage.