ALBUQUERQUE, N.M. – The real estate market in Albuquerque is doing pretty well. In fact, the numbers are looking better than ever.
Experts tell KOB Albuquerque tends to be on the tail end of things when it comes to things like real estate and the recession, which means while some other states may be doing better, New Mexico was still climbing up.
Now the state has finally caught up.
“When the inventory shrinks and the demand is there, then that’s when you start seeing some good increase in values," said Linda DeVlieg, an associate broker. "And it’s a more robust real estate market than I’ve seen in a long time."
Right now about 2,900 homes are on the market in Albuquerque. This time last year, there were 3,600.
"What we’re seeing in Albuquerque is we’re definitely balancing out," realtor Cheryl Marlow said. "For a long time, we’ve seen in a very strong buyer’s market, which is more inventory than demand. What we’re seeing now is inventory is down significantly. And especially in the $250,000 and below, we are in a sellers’ market."
The increase in crime has also led to a bigger demand for gated communities.
"Millennials are our biggest market right now for buying homes because they want the investment," DeVlieg said. "They don’t’ want to rent. You know renting here is more expensive than purchasing."
Even though the demand for homes is going up, the confidence to build them is going down.
"Predominantly that’s due to lack of inventory of lots, lack of labor, lack of lumber that’s happening, and of course interest rates impact that as well," Marlow said.
The City Council passed the integrated development ordinance in November, which would affect homes with multiple garages.
“Eighty feet is what they’re looking for is a three-car garage. The average lot in Albuquerque that’s being developed and built upon right now is 45-50 feet," Marlow said.
The change will more difficult for builders, which Marlow said can have a ripple effect.
"This will affect the entire real estate market based on what buyers are seeking out in a home," she said.
The home builders association says they’re working with the city council on a bill to make it easier for builders in Albuquerque.