As the largest city in New Mexico, the Land of Enchantment, Albuquerque has started to unleash itself from the post-recession shackles. The predictions for the market are that the average home prices will continue to increase in the 4% range. Average home prices in Albuquerque have been increasing on a monthly basis over the past year, with the number of homes sold also increasing each month. The high demand for and low supply of homes has led to a constant price increase.
The head of the Greater Albuquerque Association of Realtors (GAAR), President Don Martindell, stated that the local housing market is a fast-paced one. Homes that are priced right are selling quickly in the greater Albuquerque area, which hosts around 910,000 residents. According to Martindell, the quick turnaround time of homes on the market portrays a market that is two weeks faster than the rest of the country. Homes have an average 54-day stay on the market while whole multifamily condos and townhouses sell within 43 days, on average.
According to the GAAR, houses under contract are at a 14-year high. In fact, houses under contract in March were at a 22.7% high compared to the previous year at that time. The median value of a home in Albuquerque stands at $183,400, an overall increase of 5.2% compared to the same time in 2017, according to Zillow.
The rental market has shown a positive outcome so far for 2017. Vacancies have maintained a low level since last year while rentals have had strong gains posted against previous years. Vacancies were at just 4.5% at the end of the first quarter, and rental price rises have reached an average of $791 p/m in Q1, which is a rise of 5 percent from the previous year. This displays an acceleration in rental growth since 2014, when the average growth per year was 2.7%.
Consumer confidence remains high with a low unemployment rate servicing the growing trend for this market. CBS News ranked Albuquerque as one of the best up-and-coming towns for college grads. Forbes rated the city as seventh among America's Engineering Capitals in 2014. Additionally, the city has been recognized by many as a great place to live for enhanced work/life balance.
As for cost of living, Salary.com named Albuquerque as one of the top places to build wealth. This is due to its reasonable housing prices and prices in general. With over 310 days of sunshine a year and outdoor recreational activities, the city also offers a fresh lifestyle choice for millennials looking to relocate.
The employment sector in the Albuquerque metro is stable and growing, with the government sector still accounting for 20% of all paid jobs in the economy. The city plays a pivotal role as the center of the New Mexico technology corridor, with a large amount of high-tech companies and government institutions located within it or in its proximity. These include Kirtland Air Force Base, the Los Alamos National Labs, and Sandia National Laboratories. The city is also home to the University of New Mexico.
Albuquerque is also ranked amongst the top metros in the nation for the percentage of workforce with college degrees. For instance, 32% of the workforce has a bachelor's or advanced degree. The education and health sectors also continue to drive expansion of the local economy, with these sectors adding an average of 4% more jobs year after year since 2014.
With a progressive job sector and healthy local economy driving the local real estate market, things are looking bright on the investment front in Albuquerque. The city has a continued demand for rentals, and real estate appreciation is forecast for years to come.