Sales of Albuquerque homes declined by 22% in 2022. Read this article to learn more about the 2022 Albuquerque real estate market.
The median home price for December 2021 through December 2022 rose by an impressive 12.3% from $285,000 to $320,000 in December 2022. Highlighting how great of an opportunity local real estate can be. Unfortunately, however, since then median home prices have dropped by 6%, as high-interest rates deterred many potential home buyers. On top of that, some sellers have been forced to reduce their prices due to homes taking longer than in the previous few years to sell which is a sign that the market may be waning. Taking these factors into consideration, those considering purchasing should take their time and review all available options before making any decisions related to this volatile housing market.
The average price of homes for sale in Albuquerque has seen extraordinary growth this year from its average of $330,420 to now $371,791, a remarkable 12.5% increase. This exciting development in the Albuquerque housing market had been described as one of the fastest-growing increases in over 20 years. Yet, as interest rates rise, there are signs that the market is starting to slow down. From May 2022 to December 2022, average home prices have noticeably declined by 7.5%, confirming that indeed the market has been affected and has seen a decrease since its peak. As we look towards 2023, it will be interesting to observe whether average home prices continue to decline or return to their earlier levels of success.
Despite the annual 6.7% increase in days on market to sell a home in Albuquerque, the real story begins to emerge when we look at December of 2022 - that month having 66.7% longer days on market than December 2021! This paints a very different picture, as it's no longer feasible to expect multiple offers for your house within mere hours after putting it up for sale. Instead, an expectation of 30 days or less on the market may be more realistic and this adjustment back to normality doesn't happen overnight; markets need time to balance out and recover from an extreme seller's market, just as is the case here due to the Coronavirus pandemic.
Albuquerque home sales have seen a substantial decrease in the year 2022, dropping by an astounding 22% according to the Greater Albuquerque Association of Realtors. Albuquerque is currently facing a shift in the housing market. The combination of high mortgage rates and high housing prices is making it more difficult for potential buyers to secure real estate in Albuquerque. With fewer homes on the market compared to previous years and mortgage interest rates edging higher due to rising inflation, Albuquerque homebuyers are faced with increasingly difficult conditions while attempting to purchase a home. Albuquerque's current housing situation is creating unique challenges for potential buyers as they strive to find affordability and stability in a difficult real estate market.
The slowdown in real estate sales has caused buyers and sellers to feel its effects. Sellers are having to adjust their expectations; the days of their homes selling in a matter of hours, way over list price, are long gone. We have shifted to a more neutral market for both buyers and sellers, which means taking more time to find the right fit and making sure that both sides are in agreement on the terms of the sale. Sellers must now realize that although market conditions may be difficult, it is still possible to secure a sale at a fair price that takes into account current market trends.
Albuquerque's real estate market has been undergoing notable changes for the last few months, shifting from an extreme seller's market to one that is more balanced. The current mortgage rates have rapidly increased in 2022, causing an affordability problem for many buyers who are looking at Albuquerque's high prices of houses. This especially affects first-time home buyers, who have been finding it increasingly hard to get a foot on the property ladder. Although no one can predict when these factors may change, there is no doubt that Albuquerque's high mortgage rates and expensive properties will remain a challenge for those searching for their dream home.
The mortgage rate landscape has been drastically changed by the year 2022. At the start of the year mortgage rates were very low at 3%, however, were soon to increase at a dramatic pace. Mortgage rates doubled from the start of 2022 to their average rate of 6.53% at the end of the year. It is no wonder that many are struggling to qualify for a mortgage after such exponential growth in mortgage rates. It seems likely that mortgage rates will continue to grow throughout this next year, although at a slower pace than before. With mortgage rates fluctuating so drastically, it is unsurprising that the housing market across the country has been hit hard as well. Unfortunately, it is impossible to predict what will come in 2023; one thing is for sure though, mortgage rate volatility continues to create serious ramifications within housing markets around America.
Selling in this market can be a tricky proposition. Even homes in the best neighborhoods in Albuquerque are taking time to sell. It depends on the individual's circumstances and what their plans are after selling their house. If a seller is looking to purchase another home, then they must keep in mind rising interest rates and plan accordingly. On the other hand, prices are high and it may be an ideal opportunity to sell at an attractive price point. Ultimately, what sellers should do will come down to what they believe is best for them and what their objectives are when selling.
Those in the market for a new home and needing to purchase soon should act now rather than wait since it is impossible to predict what prices or rates will do in the future. Interest rates are on the rise and may continue to rise, so locking in a good rate now can be beneficial to buyers. Furthermore, when interest rates eventually come down, those who have already bought can take advantage of this by refinancing their mortgage if desired. With all things considered, what buyers stand to gain by waiting may be outweighed by what the cost of not acting could be - making now the right time for those needing to buy soon!
Existing Home Sales Increased By 22.6% in February 2023
Learn more about the status of the US housing market as the latest data from National Association of Realtors is released and other great updates.
Existing Home Sales Decline By 34% December 2022
Existing home sales were down 34% year over year, marking the eleventh straight month of declines according to the National Association of Realtors.
