Albuquerque Real Estate Market Update and What’s New

Here’s the latest on what’s currently happening in Albuquerque’s housing market! We’re breaking down the most recent numbers from the Greater Albuquerque Association of REALTORS® (GAAR) for August 2025 and the latest on mortgage rates. Whether you’re buying, selling, investing or just curious, this Albuquerque real estate market update will give you the inside track.

The Big Picture: GAAR’s August Numbers

The Greater Albuquerque Association of REALTORS® just released its August 2025 data, and here’s what we’re seeing:

• Prices Are Up: The median sales price for a single-family home is now $379,545, about 5% higher than last year.

• Inventory Is Climbing: We had 14.6% more homes for sale than this time last year, which means buyers are getting more choices.

• Sales Are Slower: Closed sales dipped about 7%, and homes are staying on the market a bit longer, averaging 39 days before going under contract.

In short, Prices are still rising, but homes are taking longer to sell, and there are more of them to choose from. It’s not the wild seller’s market of 2021, but it’s still competitive.

Closed Sales & Inventory

• In August 2025, the number of closed sales in Albuquerque dipped slightly compared to previous months.

• Inventory of homes for sale remains tight, creating competition among buyers. The lower inventory stresses how supply is still a constraining factor in the market. 

Median & Average Sales Prices

• Median sales price in Albuquerque has held steady or shown modest increases compared to the same time last year. Buyers are paying more than a year ago in many neighborhoods.

• Average sales price also climbed for both single-family detached and attached homes over the last year. For example, single-family detached homes saw a year-over-year gain; the same with attached properties, though often slightly higher percentage increases. 

Days on Market & Buyer Behavior

• Days on market have increased. For single-family detached homes, they rose by around 16-17%. For attached homes, the increase in time listed was even more pronounced.

• Pending sales are showing mixed signals. Some neighborhoods are still seeing strong demand, while others are cooling. Buyers are being more selective, especially with homes priced high or those in need of updates.

What’s Driving the Market

Rising Prices & Tight Supply

• Low inventory continues to be one of the biggest constraints in Albuquerque. Even when interest rates move modestly downward (more on that below), supply constraints keep prices elevated.

• Some areas are outperforming others; neighborhoods with newer development or more modern amenities are still in higher demand. Homes needing more repair or in less desirable locations are seeing slower sales.

Buyer Caution & More Time on Listings

• Buyers are watching mortgage rates closely. Even small rate drops can influence their decision to move forward.

• Sellers should expect homes may stay on the market longer than in the “hot” period of earlier in the year. Pricing well, staging, and showing quality will matter more.

Mortgage Rates & What to Expect

Here’s where it gets exciting: mortgage rates have dipped to the lowest we’ve seen in nearly three years. Lower rates mean lower monthly payments, which gives buyers some breathing room.

Experts expect rates could drift even lower if the economy stays steady, which might bring more buyers into the market later this fall. If you’re planning to buy, this could be the perfect time to get pre-approved and lock in a good rate.

Recent Mortgage Rate Drops

• The average 30-year fixed mortgage rate in the U.S. has dropped to around 6.26%, its lowest since early October 2023.

• Other reports show the 30-year fixed rate is near 6.13%, a 3-year low. This decline is prompting more refinancing and some renewed buyer traffic.

• Freddie Mac’s data indicates nearly 60% of mortgage applications are now refinance applications, reflecting the benefit current homeowners get from lower rates. 

What to Watch Ahead

• The Federal Reserve recently cut its benchmark rate by 25 basis points, and markets expect more easing in the coming months.

• Key economic indicators to follow: inflation rates, job growth/loss, and Treasury yields (especially 10-year). If inflation remains stubborn or economic surprises arise, rates might stall or increase. If things stay calm, further modest drops are possible.

• Homebuyers: Even though rates are easing, “waiting too long” may cost more. Rate locks or starting pre-approval now could save money if rates drift upward again.

Implications for Albuquerque Buyers & Sellers

For Homebuyers

• With the Albuquerque real estate market update showing modest price increases and low inventory, buyers should come prepared: good financing, strong offers, and flexibility on condition or location may help.

• Taking advantage of lower mortgage rates now could reduce long-term cost; if you can secure a 30-year fixed in the low-6% range, that’s more attractive than waiting with uncertainty.

For Sellers

• Sellers in Albuquerque are in a decent position, especially if your home is well-priced, in good condition, and competitively presented.

• Getting pre-inspection, staging well, preparing for showings, and being responsive to offers will help reduce time on market.

Forecast: Where the Albuquerque Real Estate Market is Headed

• Given the combination of modest mortgage rate drops, still tight inventory, and steady buyer demand, we expect a slow but positive trend into late 2025.

• Price growth may continue, but likely at a slower rate than in previous years. Homes may sit longer, especially those priced above market or needing many updates.

• If mortgage rates drop further into the mid-6% or even high-5% range, that could catalyze more buyer activity, but that depends on macroeconomic stability.

Bottom Line

The Albuquerque real estate market update shows a market in transition: cooling in some respects, but with lots of opportunity on the horizon. Lower mortgage rates are providing relief, though supply remains a challenge. Whether you’re buying or selling, preparation and timing matter more than ever.

Have questions! Let’s Chat

If you’d like help navigating this changing market, whether you’re buying, selling, investing, or curious what your home is worth in Albuquerque. Have questions? Our team knows Albuquerque inside and out. Reach out to us at Better with Baron for a free consultation, so you can make smart decisions backed by years of local real estate experience.