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The Value Of Real Estate In Albuquerque Is Increasing At An Unprecedented Rate, Which Has Never Been Seen Before In The City’s History

A significant amount of people are aware that money does not go as far as it used to, but the situation for homeowners in our state has deteriorated significantly in recent years. Prices of single-family houses in the metro area have risen at an unparalleled rate for the second consecutive year, according to the latest figures.

A real estate agent in Albuquerque for 17 years, Amy Neal says the market has been extremely competitive in the last few years, and this is the most competitive she has ever seen in the city. “You should be aware that a large number of offers are being considered.” In addition, “we have more purchasers than we do residences,” according to Neal, who added that

Price increases in the city are reaching previously unheard-of heights as a result of the increasing demand for real estate. It was just a few years ago that a sum of $500,000 could have been considered a bit excessive. “That is no longer the case,” Neal continued, going into greater detail.

This is the area of Rio Rancho where the most fast development is taking place, as the city is seeing significant expansion in this area. Locations where the most fast development is taking place include the northeast heights, northwest heights, west side of the city north of Paseo Del Norte and west side of the city south of Paseo Del Norte, among others.

According to Neal, the value of properties, on the other hand, is increasing almost everywhere. As he went on to say, “We’ve seen a big increase in those values over the last five years,” Neal remarked.

Property values above $700,000 have climbed by nearly 600 percent in the two years between 2020 and 2021, with the number of million-dollar homes also increasing throughout this time period. According to real estate agent Neal’s data, “almost 150 houses sold for more than $1 million last year,” which translates to “nearly 150 properties sold for more than $1 million.”

At this time, there are 336,600 active property sales in the metro area, a considerable decrease from the national average of $417,500, which is currently at $417,500. According to Neal’s reasoning, persons in the $200,000-400,000 price range have a particularly tough time qualifying for a mortgage since there are more purchasers who may qualify in that price range than there are in other price categories. As the author notes, “Those are the ones who are genuinely competing against a group of 20 other consumers.”

Moreover, as Neal points out, it is the average buyer who is disproportionately harmed by the price surge, which she does not expect to abate any time soon. “I anticipate that it will retain its current appearance until at least 2022,” Neal remarked.

Rather than people who have relocated to the area from another state or another country, the vast majority of people who purchase homes for $700,000 or more are local professionals, according to Neal. According to her calculations, interest rates are expected to rise this year, making it an excellent time to purchase if you’re thinking about buying a house.