Should You Wait to Buy in ABQ? – What Buying a Home Could Look Like in 5 Years in ABQ, New Mexico
Breaking down the market numbers for ABQ, New Mexico in a way you can understand!
NM Homies Real Estate – Helping you buy and sell in ABQ, New Mexico
If you are thinking of buying or selling in the ABQ market in the next 5 years we have a market breakdown for you. We are getting deep into the data on the market and putting the numbers we are seeing in perspective! You can scroll and read all the good stuff below or click on the video below to watch our team lead Mark give you the breakdown! ?
Decreases in Homes Sold – are we in trouble or is this just the way it was before the pandemic?
Nationwide they’re talking about a 25-20% reduction in overall home transactions meaning in the Q3, more specifically from July to the end of September, total home sales have been reduced by 20% to 25% nationally. Now we’re going to narrow that down⬇️a little bit.
Now looking specifically just at the Albuquerque area, Albuquerque actually was hit a little bit differently so when we look at the numbers what we are seeing is an almost 30%reduction in overall home transactions meaning the market is slowly but substantially going down.
According to the numbers it looks like we are in the same market we were experiencing in 2015 – 2017, which could be considered a more normal market. In 2015 there were 3,367 sales where we are at in the market now we are seeing 3,396 sales in 2022.
What is happening right now is that we’ve gotten out of the pandemic and we are back to where we were prior to the pandemic meaning home sales are averaging around 3,400. This is a regular number that we’ve been having consistently from 2015 all the way to 2018.
Increases in Home Value – What will it look like if I wait to buy a home?
What has changed dramatically is that in 2015 the average home price sold was at $207,000 and it increases by 4% the next year to $215,000, 4% the following year to $225,000, and another 5% to $247,000 in 2019.
The average home value in 2015 was $207,000 and currently, in 2022 the average home value in Albuquerque is $357,000 so that’s almost a $150,000 gain in equity from 2015 to 2022.
Sometimes we hear from clients that the home market is tough and they oftentimes want to back out. What we can really prove with the data is that on average in a normal market, home values are going up about 4% every year. Even in this down market where we had 30% fewer transactions we also had an 8% gain in equity.
Last year the average home price was $327,000 this year the average home price is $357,000 so if you wait any longer you are looking at the possibility of next year’s home value going up by 4% and now you’re looking at a home at a higher price.
If you have any questions about this information and how you can take advantage of the housing market contact us at 505-883-9400.