Are you in the market to buy a house? Each year, millions of people choose to become homeowners—whether that means buying their first home, an investment property or a new home. Before they hire a Realtor® and start shopping for a home, many people ask themselves (or a real estate agent) one simple question: “Is now a good time to buy a home in Albuquerque?” It’s a valid question, and one worth asking before you invest time in the home buying process. In this article, we’ll explore the answer based on several different factors.
- Time of year matters—even for Albuquerque buyers
- What do interest rates look like?
- The outlook on home values in Albuquerque
- Look at housing stock and market competition
- Are you prepared to become a homeowner?
- Is now a good time to buy a home in Albuquerque?
Before you start looking into purchasing a home, take a moment to consider the factors associated with that purchase. That means looking inward at your own finances, lifestyle and goals, as well as outward, at market conditions, borrowing ability and housing prospects. Is now a good time to buy a home in Albuquerque? That depends on how the following factors line up.
Time of year matters—even for Albuquerque buyers
Albuquerque is a relatively temperate locale compared to some other comparable cities in the U.S. For example, compare a 50-degree January day in Albuquerque, NM to a -10-degree day in Milwaukee, WI. There’s a reason the housing market in ABQ is more active throughout the year, as opposed to only in spring and summer. That said, season does matter for both buyers and sellers.
If you’re planning on buying during the spring or summer, you’re going to have more housing stock to choose from; however, that also comes with more buyer competition. You might find the home of your dreams, but you’re also likely to pay a premium for it. Fall sees less competition, but also less inventory. Winter sees the lowest housing stock, but there’s less competition and listing prices tend to be lower.
If you’re asking yourself, “is now a good time to buy a home in Albuquerque?” start by looking at the season and your intentions.
What do interest rates look like?
Unless you’re independently wealthy, your ability to buy a home hinges on your borrowing power. If the bank is only willing to lend you $200,000 and you’re looking at homes in the $300,000 price range, it’s a sign that your expectations need adjustment—that, or you might want to check your finances before you apply for a mortgage.
Much of your borrowing power hinges on interest rates, which happen to be at historic lows right now. This is a good thing! It means more prospective homebuyers can borrow more money at less of a cost. Now, your bank might be willing to preapprove you for $300,000, with the expectation that you’ll be able to afford a more expensive home due to lower interest rates.
If you’re looking at buying a home purely from a financial perspective, interest rates couldn’t be more attractive right now. Low interest rates are a big-time buy signal.
The outlook on home values in Albuquerque
The best time to buy a home is when the housing market starts to trend upward. As it so happens, home values in Albuquerque have been on the rise for the better part of a decade, and are climbing higher at a rate that’s faster than the national average. This is a healthy sign of the housing market and an indicator that ABQ is a city on the come-up. And, as more people flock to the city and lay down roots, the housing market will see stability as it grows.
If you’re looking at signals that your home will appreciate after you buy it, Albuquerque checks all the boxes—rising employment, rising population, rising median income, rising median property values etc. It’s hard to find any reason not to buy a home in Albuquerque right now!
Look at housing stock and market competition
While housing stock and market competition ebb and flow with the seasons, it’s also important to look at the general trends of the market. For example, Albuquerque’s housing stock trends newer than the national average, at 37 years vs. 40 years. A significant portion of ABQ homes were built between 1970 and 2000, which means homeowners can expect fewer upkeep costs and strong appreciation from their homes.
In terms of market competition, there’s a lot of it. As an up-and-coming, increasingly-established market, Albuquerque is a seller’s market. This means there’s more competition from buyers and you might end up spending more on your home or needing to move quickly on a property to purchase it. While your first instinct might be to wait for the market to slow down, this isn’t likely to happen anytime soon. Now is a good time to buy a home in Albuquerque because tomorrow will see more competition on less housing stock.
Are you prepared to become a homeowner?
The last and most important questions to ask yourself is whether you’re ready to be a homeowner. Are your finances in order? Are you ready to assume the responsibilities of owning property? Do you have stable employment? Will you reside in Albuquerque for the foreseeable future? There’s a laundry list of questions to ask yourself to ensure you’re ready to become a homeowner. If you have a partner or a family, there are even more variables to reflect on.
One thing’s for certain—the best time to buy a home in Albuquerque is when you’re ready and confident in your ability to be a homeowner.
Is now a good time to buy a home in Albuquerque?
All signs point to yes—now is a great time to buy a home in Albuquerque, but only if you’re ready. Financial prospects, market conditions and more are all in your favor. If your finances are set and you’re ready to take the plunge, all that’s left is to find a qualified Realtor® to help you get the ball rolling. Contact Myers & Myers Real Estate Inc. today to talk through any questions you have or to learn more about why now is a good time to buy a home in Albuquerque!
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