Welcome and thanks for stopping by. We’re the Sandi Pressley Team, longtime residents and real estate professionals who have guided countless families through uncertain real estate markets. If you’ve been wondering whether now is the right time to buy or sell in Albuquerque, you’re not alone. We’ve seen the real estate market shift dramatically in recent years, and understanding how our local market compares to national trends can help you make more informed decisions about your next move.
As longtime Albuquerque residents who have helped hundreds of families navigate the desert housing market, the Sandi Pressley Team has witnessed firsthand how our city’s market often follows its unique path compared to national trends. Let’s delve into what’s genuinely happening in our backyard and how it aligns with the broader picture.
Let’s begin with the tale of two markets: Albuquerque vs. America. Albuquerque’s median home price currently stands at around $340,000, which places us about 20% below the national average. While that might sound like great news for buyers, it’s essential to understand the whole story behind these numbers.
Our local market has experienced a steady appreciation of approximately 4-6% over the past year, with homes typically selling within around 30 days. Compare that to the national scene, where home values have grown by 2.5% nationally, and Albuquerque has been outpacing much of the country in terms of price growth.
As we observe parts of the country experiencing a more balanced market between buyers and sellers, we’re witnessing a distinct trend in Albuquerque. What makes this particularly interesting is that Albuquerque remains firmly in the seller’s market territory. We only have 2.4 months of Inventory available, so we’re still well below the balanced market threshold of six months.
Remember not to enter the market before getting a mortgage reality check. Let’s address the elephant in the room: those mortgage rates. Most experts agree that rates will likely hover between 6.5% and 7% throughout 2025, which is a far cry from the sub-3% rates many homeowners locked in just a few years ago.
This rate environment is creating what economists call the “lock-in effect” – about 83% of current homeowners have rates below 6%, making them understandably reluctant to sell and take on a new mortgage at today’s higher rates. This dynamic is playing out both locally and nationally, but it’s particularly pronounced in markets like Albuquerque, where steady job growth and quality of life continue to attract new residents.
The silver lining? Some forecasters expect rates to drift down to around 6.3% by the end of 2025, which could unlock some of that pent-up demand from both buyers and sellers who have been sitting on the sidelines.
We’ve lived and worked in Albuquerque for many years and have witnessed these cycles before, so let’s discuss what the current trends mean for Albuquerque buyers. If you’re thinking about buying in Albuquerque right now, you’re operating in a unique environment. Unlike some national markets where Inventory is starting to pile up due to sluggish sales, our local Inventory decreased by 8% in recent months, keeping competition intense.
However, there are some encouraging signs. Nationally, Inventory has been growing for 15 consecutive months, and we’re starting to see similar trends emerge in the Albuquerque market, meaning that you have slightly more options than you would have had six months ago. That said, you’ll still need to prepare to move quickly to the right property.
The key is to focus on what you can control. Four in five homebuyers nationally are waiting for rates to fall before purchasing. Still, history tells us that waiting for the “perfect” market conditions often means missing out on the right home. In Albuquerque’s current market, the right strategy involves getting pre-approved, understanding your accurate budget, including today’s payment realities, and being ready to act when you find a home that meets your needs.
Consider this: while you’re waiting for rates to drop, home values in Albuquerque continue to appreciate. Local forecasters predict continued price growth of 2-4% in 2025. Higher home prices could offset the potential savings from lower interest rates in the short term, presenting a significant challenge for our clients.
When we investigated new construction options, we found that nationally, new home inventory is at its highest level since 2007, and builders are increasingly offering incentives, such as rate buydowns or covering closing costs, to attract buyers in this challenging rate environment.
If you’re selling your home in Albuquerque shortly, you’ll need to consider specific seller strategies for today’s market. Currently, market challenges and opportunities for Albuquerque home sellers differ significantly from those of home sellers nationwide. While some formerly hot national markets are shifting from sellers to buyer’s markets, Albuquerque has maintained its seller-friendly characteristics.
Properties here are still receiving an average of 2 offers and selling relatively quickly, which puts you in an enviable position compared to sellers in many other parts of the country. However, that doesn’t mean you can put a sign in the yard and wait for offers to roll in.
Pricing strategy has become more critical than ever. Nearly one in five homes nationwide have experienced price reductions in recent months, and similar patterns are emerging in some Albuquerque neighborhoods. You need to partner with professionals who understand both micro-local market conditions and how broader economic trends might affect buyer behavior in your specific area.
Timing also matters more than it used to. While Albuquerque hasn’t experienced the dramatic seasonal swings that some markets do, spring and early summer typically see the highest activity levels, with approximately 29% of annual sales occurring during the second quarter of the year.
The rate environment creates some unique opportunities for sellers who are strategic about their next move. Selling in today’s Albuquerque market could provide substantial equity that helps offset the higher borrowing costs for your next home. If you’ve been planning to downsize or relocate to a more affordable area, this may be the right time.
Bear with us as we light a candle and some incense and dust off our crystal ball. The real estate crystal ball is often cloudy, but we expect several trends to shape both our local market and the national landscape for the remainder of 2025.
Nationally, experts expect slower price growth in the coming years, with annual appreciation settling into a more sustainable 3-5% range. Albuquerque will likely follow this broader trend, though our market’s fundamentals – including continued job growth, relatively affordable cost of living, and limited developable land – should help maintain steady demand.
We’ve been residents and professionals in Albuquerque for a long time and have seen these cycles before. We do expect to follow the National trend of a gradual shift to a buyer’s market. However, don’t expect a dramatic change to a buyer’s market overnight. The wild card remains the broader National economic policy.
Aside from that, Inventory will continue improving gradually, which should provide buyers with more options and potentially reduce some of the bidding war dynamics that have been prevalent in recent years.
Potential changes to government-sponsored enterprises and other housing policies could impact mortgage availability and rates, though we can’t predict the specific effects, so we’ll have to wait and see.
The current market is both confusing and challenging, so how do you make smart decisions in an uncertain market? Whether you’re buying or selling, the most important thing to remember is that real estate is ultimately about your life, not just market timing. The “perfect” market conditions may never arrive, and trying to time the market precisely often leads to missed opportunities.
For buyers, focus on finding a home you can comfortably afford at today’s rates, with the understanding that you may have opportunities to refinance if rates decline significantly in the future.
For sellers, you need a comprehensive market study showing truly compatible properties sold in your immediate area. This analysis will help you price your home competitively, taking into account current market conditions. I advise clients to list by numbers and remove the emotional aspect. You can’t price your home based on what you think it should be worth or what you’ve heard neighbors achieved in very different market conditions.
The advantage of working with a team that’s been part of the Albuquerque community for years is understanding how our local market responds to various economic conditions. We’ve seen boom times and challenging periods, and what remains constant is that well-priced, well-presented homes in desirable areas find buyers, while buyers who approach the market with realistic expectations and proper preparation find the right home.
So, what are your next steps? Real estate decisions are deeply personal, and while market data provides essential context, your circumstances should ultimately drive your timing. If you’ve been considering a move, now may be the ideal time to explore your options seriously.
The current market rewards preparation and local expertise. Understanding neighborhood-specific trends, pricing strategies that work in today’s environment, and financing options that can help you navigate higher rates are all crucial pieces of the puzzle.
Whether you’re curious about your home’s current value, wondering what you can afford in today’s market, or want to understand how recent changes might affect your real estate plans, we’re here to help you make sense of it all.
It would be our pleasure to help you explore your real estate options in today’s market. If you’d like to chat about your options, contact the Sandi Pressley Team today:
Website: www.sandipressley.com Phone: (505) 555-0123
Your trusted Albuquerque real estate advisors help you navigate every market condition with confidence and local expertise.
Contact The Sandi Pressley Team
📞 Phone: (505) 263 – 2173
🌐 Website: https://www.sandisells.com/
Let’s grab some coffee, crunch the numbers together, and show you why Albuquerque might be the best financial decision you’ll ever make!
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