Albuquerque’s median home prices in 2022
From December 2021 to December 2022, the median home price increased an amazing 12.3%, from $285,000 to $320,000. demonstrating what an incredible opportunity local real estate can be. Sadly, as a result of high mortgage rates scaring away many would-be home purchasers, median home values have fallen by 6% since that time. Also, some sellers have been compelled to lower their asking prices as a result of homes taking longer than usual to sell, which is a sign that the market may be slowing. Considering these elements, folks who are thinking about buying should take their time and explore all of their choices before making any judgments on this unstable property market.
Albuquerque’s typical home prices in 2022
Albuquerque’s median home price increased dramatically this year, rising from $330,420 on average to $371,791 at the moment, a startling 12.5% rise. One of the fastest gains in the Albuquerque housing market in more than 20 years, this exciting development has been called. But, there are indications that the market is beginning to slow down as interest rates climb. Average housing prices have substantially dropped by 7.5% between May 2022 and December 2022, indicating that the market has been impacted and has experienced a dip since its high. It will be interesting to see whether typical home values continue to fall or reach their prior levels of success as 2023 approaches.
2022 Days On Market in Albuquerque
The actual story starts to show itself when we look at December 2022 because that month had 66.7% more days on the market than December 2021, despite the annual 6.7% increase in days on market to sell a home in Albuquerque. This presents a totally different image because it is no longer realistic to anticipate receiving numerous bids for your home within a short period of time after listing it for sale. This return to normalcy doesn’t happen overnight; markets need time to balance out and recover from an intense seller’s market, exactly as is the situation here due to the Coronavirus pandemic. Instead, an estimate of 30 days or less on the market may be more realistic.
Albuquerque Sales Fall by 22% in 2022
According to the Greater Albuquerque Association of Realtors, house sales in Albuquerque will drastically decline in 2022, falling by a startling 22%. The housing market is currently changing in Albuquerque. Possibilities for purchasing real estate in Albuquerque are becoming more limited due to the city’s high housing costs and high mortgage rates. Albuquerque homebuyers are facing more challenging circumstances when looking to buy a home since there are fewer homes on the market compared to prior years and mortgage interest rates are nudging up owing to rising inflation. Potential buyers in Albuquerque are facing particular difficulties as a result of the city’s present housing crisis as they try to find security and affordability in a competitive real estate market.
Both buyers and sellers have been impacted by the slowdown in real estate sales. The days of having their properties sell quickly and for much more than the asking price are long gone, so sellers must now modify their expectations. It now takes more time to discover the ideal match and ensure that both parties are in agreement on the conditions of the sale because the market has changed to be more impartial for both buyers and sellers. Sellers must now understand that, despite potentially challenging market conditions, it is still possible to close a deal at a reasonable price that takes recent market trends into consideration.
The Real Estate Market in Albuquerque is Real
Since a few months ago, there have been noticeable changes in the real estate market in Albuquerque. It has gone from being a market dominated by sellers to one that is more balanced.
In 2022, the existing mortgage rates sharply increased, making it difficult for many buyers to finance the high cost of real estate in Albuquerque. First-time home purchasers, who have been finding it harder and harder to climb the housing ladder, are particularly impacted by this. There is no doubt that Albuquerque’s high mortgage rates and pricey properties will continue to present a problem for people looking for their dream home, even though no one can say when these conditions may alter.
Rates on mortgages are killing sales. The Housing Market in Albuquerque
By the year 2022, the landscape of mortgage rates has undergone a significant transformation. Mortgage rates were extremely low at 3% at the beginning of the year, but they quickly began to rapidly rise. From the beginning of 2022 to the end of the year, mortgage rates doubled, reaching an average rate of 6.53%. Given the exponential rise in mortgage rates, it is understandable why so many people are having trouble getting approved for loans. It appears likely that mortgage rates will increase throughout the upcoming year, albeit more slowly than before. It is hardly unexpected that the housing market has suffered across the nation given the sharp fluctuations in mortgage rates. Regrettably, it is impossible to forecast what will happen in 2023; but, one thing is certain: the ongoing significant effects of mortgage rate volatility on housing markets across America.
In this market, what should sellers do?
Selling in this market can be challenging. Even in Albuquerque’s most desirable areas, houses are taking a while to sell. Depending on the person’s situation and future plans after selling their home. If a seller intends to buy a new house, they must consider rising interest rates and make plans accordingly. Nonetheless, given the high pricing, it would be a good idea to sell at a competitive price. What sellers should do ultimately depends on what they feel is best for them and what their selling goals are.
What Are Purchasers To Do In This Market?
As it is hard to foresee what prices or rates will do in the future, those who are in the market for a new house and must make a purchase soon should take action right away rather than wait. As interest rates are rising and may continue to do so, buyers may benefit from locking in a competitive rate now. However, those who have already purchased can benefit from the inevitable decline in interest rates by refinancing their mortgage if they so choose. When everything is taken into account, the benefits of waiting may be overshadowed by the potential costs of doing nothing, making now the ideal moment to buy for those who need to do so quickly!