ABQ was “found” »Albuquerque Journal

There is a sales sign outside a recently constructed home in Dennison, SW, Albuquerque. (Adolphe Pierre-Louis / magazine)

ALBUQUERQUE, NM – After a year of record real estate prices and sales, Albuquerque real estate experts agreed that the subway area is on the map to an extent it has not been in the past.

Cathy Colvin

“I think we need to realize that Albuquerque has been discovered,” said Cathy Colvin, president of the Southwest Multiple Listing Service, during the annual NAIOP New Mexico real estate market update roundtable Thursday morning.

A group of real estate experts praised the market’s success, but acknowledged that the intense demand for housing brings a number of new challenges, including building quickly to keep up with that demand and finding affordable options for first-time buyers.

………………………………………….. …………..

“The challenge in our market is that we are running out of $ 200,000 homes to sell,” said Tego Venturi, real estate agent in Albuquerque. “I really think, probably next year … that will be a thing of the past in the Albuquerque market.”

This venturi

In any case, 2020 was a year of tremendous growth for the Albuquerque property market.

Despite the pandemic, Venturi announced that Metro Albuquerque had 14,904 home sales in 2020, more than any other year. Revenue last year was just under $ 4.13 billion, another Albuquerque record.

Venturi added that the high-end market in particular saw growth. He reported a 49% year-over-year increase in revenue for $ 500,000 or more.

“This market has really exploded,” he said.

Panellists agreed that a mix of low interest rates, demand for more space, extremely limited inventory, and new large construction projects has led a mix of buyers, from first-time homeowners to out of state retirees, to buying Houses to Deal Albuquerque Underground.

Jenice Eades

“We’re seeing a tremendous number of retirees looking to settle in our state,” said Jenice Eades, first vice president of the Home Builders Association in central New Mexico.

Panellists agreed that demand is expected to remain high in 2021, especially in remote parts of the metro area, provided interest rates do not rise significantly.

One challenge is building enough houses to keep up with this demand. According to Venturi, the supply of homes in the market decreased by 40% in 2020, and half of the homes in the market were sold in six days or less in 2020.

There are a few challenges that are preventing Albuquerque home builders from keeping up with demand. Eades said the cost of lumber, sheet metal and other building materials increased significantly over the past year, and challenges in the supply chain have prolonged projects.

Additionally, a shortage of shovel-ready land in and around Albuquerque is making it difficult to meet demand.

“That will continue to hinder us,” said Eades.

Venturi added that if interest rates rise slightly, it may not be the worst for Albuquerque’s real estate market. While panelists agreed that Albuquerque does not currently have a housing bubble, Venturi said the current rate of growth for the city is unsustainable.

“We could actually use a bit of slowing down,” said Venturi.

Comments are closed.