As we progress through 2024, the Albuquerque housing market is witnessing several notable shifts compared to last year. From rising inventory to changing price dynamics, the market is evolving. In this comprehensive Albuquerque housing market update, we’ll explore the most significant trends in home prices, inventory levels, and market activity year-over-year (YoY).

Whether you’re a homeowner, investor, or prospective buyer, understanding how these factors influence the local market can help guide your decisions. Let’s take a closer look at the changes shaping Albuquerque’s real estate market in 2024.

Albuquerque Home Inventory on the Rise

One of the most impactful trends in the Albuquerque housing market update is the sharp increase in inventory. In 2024, the market has seen a surge in available properties, with single-family detached homes experiencing a 28.7% increase in inventory compared to last year. This rise in supply is even more pronounced for single-family attached homes, where inventory has jumped by a remarkable 40.5%.

This growth in available homes is a welcome relief for buyers, particularly after 2023, characterized by limited inventory and high demand. With more options on the market, buyers may find it easier to find properties that meet their needs without facing the competitive bidding wars that defined the previous year.

However, while inventory is up, the demand remains strong. This creates a more balanced market, offering a level playing field for buyers and sellers alike. If this trend continues throughout the year, it could further stabilize prices and reduce the frantic pace that dominated Albuquerque’s housing market in 2023.

Changes in Home Prices: A Moderate Increase

Along with rising inventory, another key element of the Albuquerque housing market update is the change in home prices. In 2024, we are seeing moderate price increases across the board. The median sales price for single-family detached homes has risen by 0.9%, bringing the average price to $361,000. Meanwhile, the median price for single-family attached homes has increased by 2.6%, with prices now hovering around $261,750.

Compared to the sharp price hikes seen in 2023, these modest increases suggest that the market is cooling slightly. The rising supply of homes likely plays a role in tempering price growth, as more options lead to less urgency among buyers. However, despite this slowdown, prices are still on an upward trajectory, underscoring that demand for housing in Albuquerque remains robust.

This continued appreciation is encouraging for homeowners considering selling. While the price increases aren’t as steep as last year, sellers can still expect solid investment returns. On the other hand, buyers might be relieved to see a slowdown in price growth, although Albuquerque remains a competitive market.

Pending Sales: A Mixed Picture

The Albuquerque housing market update reveals a mixed picture in terms of pending sales. For single-family detached homes, pending sales have declined by 4.3% YoY. This decrease could be attributed to higher interest rates, economic uncertainty, or simply the impact of increased inventory, allowing buyers more time to make decisions.

On the other hand, pending sales for single-family attached homes have risen by 5.7%, suggesting growing interest in townhomes, condos, and other attached properties. The affordability and lower maintenance costs associated with attached homes could be driving this demand, particularly among first-time buyers or those seeking to downsize.

Overall, while there is a slight decline in pending sales for detached homes, the market for attached homes is gaining momentum. This trend highlights the shifting preferences among Albuquerque homebuyers as they adapt to changing economic conditions and lifestyle needs.

Mortgage Rates and Their Impact

One of the key factors influencing the Albuquerque housing market in 2024 is the fluctuation in mortgage rates. Over the past year, interest rates have been a hot topic, impacting buyer affordability and overall market activity. Lower mortgage rates in recent months have helped stimulate the market, resulting in the first increase in home sales in five months, according to the National Association of REALTORS® (NAR).

This recent uptick in sales, driven by more favorable rates, is a positive sign for the Albuquerque housing market update. As rates remain relatively low compared to historical levels, buyers and sellers find more opportunities to act. As of August 29th, 2024, interest rates were at 6.35% and have continued to drop.  For buyers, locking in a low rate can lead to long-term savings, while sellers can benefit from a larger pool of qualified buyers.

Outlook for the Albuquerque Real Estate Market

Looking ahead, the Albuquerque real estate market is likely to remain active, driven by a balance of rising inventory and stable demand. While the market is not as frenzied as it was in 2023, Albuquerque continues to experience healthy growth, with prices still edging upward and more homes hitting the market.

As we move deeper into 2024, buyers and sellers should keep a close eye on economic trends, mortgage rates, and local supply levels. With the Albuquerque housing market update showing signs of stabilization, both parties can benefit from this evolving landscape.

Conclusion

The Albuquerque housing market in 2024 reflects a shift toward greater balance. Inventory is up, prices are rising more moderately, and mortgage rates are helping fuel activity. Whether you’re considering a move or simply monitoring trends, staying informed about these key changes can help you make smarter real estate decisions.