Albuquerque Housing Market: Number-One in Home Price Appreciation

The Albuquerque housing market ranks first in home price appreciation in Housing Predictor’s annual survey of the nation’s top 25 markets.

The Duke City is projected to increase 9.1 percent this year.

The state’s growing statewide economy and its hunger for growth underpins the prediction. New Mexico mortgage applications remain popular as the area’s residents can afford the high prices.

“New Mexico may have the longest lasting booming real estate market in the nation,” Housing Predictor’s top 25 market report said. “New Mexico is one of the Sunbelt states that is still seeing unprecedented growth. People want to move to warmer climates and they doing it in droves.”

Job growth in entertainment and technology is helping increase the state’s population, the report says.

Las Cruces home prices are predicted to appreciate 4.1 percent and Santa Fe’s to grow by 4.9 percent. The median home price in Albuquerque has increased nearly $20,000 in the past year, the report said, to $194,000.

The McAllen, Texas mortgage market ranks second behind Albuquerque at 8.9 percent and there are six other Texas cities in the top 25, including El Paso at No. 8. Salt Lake City, New Orleans and Austin round out the top five.

The positive prediction comes despite slipping home sales in the metro-Albuquerque market.

Monthly homes sales have fallen by more than 10 percent each month since last summer, but despite the slowdown, prices have not dropped. Until they do, the demand for home mortgages in the region may remain low.