Springtime in New Mexico

A Look at Today’s Real Estate Market

New Mexico is warming up—and I’m not just talking about the weather. The real estate market in New Mexico is looking like it’s going to get more active in the next few months, so if you’ve been thinking about buying a home in New Mexico, you should do so sooner rather than later to avoid potential price increases and competition from other buyers.What else can we expect the housing market to do? Let’s take a closer look at some predictions we have for the New Mexico real estate market.

Expect prices to increase in many areas

Home values have increased by over 12% in the last year. However, even with the low inventory, we don’t expect values to increase quite that much in 2024. High interest rates and inflation are scaring a lot of would-be buyers away from buying homes. That means if you’re in the market to buy, you’ll have less competition so you shouldn’t have to worry about bidding wars or any of the chaos we’ve seen in the real estate market the last few years.

Redfin reports that Rio Rancho has seen the largest price increase in the last year, followed by Albuquerque and Santa Fe. These areas have become very attractive to homebuyers for a multitude of reasons, one of them being the relatively low cost of living. These are also areas we predict to have a lot of growth in the next decade making them excellent places to invest in a home.

Future growth

New Mexico has always been an incredible place to live, and it seems like more and more people are catching on to that. A report by United Van Lines ranked New Mexico 9th for inbound moves. This means that people from outside of New Mexico have decided to move into our beautiful state and start, which is excellent news for the housing market!

With more out of state residents moving here, we can hope that new home construction will also pick up in order to keep up with the demand for housing. Plus, buying new construction is an excellent option for those who are interested in purchasing a home in New Mexico. There are quite a few newly built communities, especially in the larger cities like Albuquerque and Santa Fe which are great areas for families and retirees alike.

What about interest rates?

As of now, interest rates are still sitting right at 7%. This isn’t helping with buyer confidence, which is why homes that are listed for sale are taking longer to sell. It does not look like rates will be coming down either, but we can always cross our fingers!

If rates were to come down, more home buyers would enter the market and drive prices up. So, if you can afford to buy a home in New Mexico today, but are waiting for interest rates to drop, it might end up costing you more money in the long run.

Let’s chat

The real estate market has been wild and unpredictable for the last couple of years. If you want to learn more about it or how to get into a home of your own – let’s chat! We’d love to help you become a homeowner in New Mexico.