There’s been a lot of buzz about the decline of the housing market lately—it’s hard to miss. With interest and mortgage rates on the rise, many buyers are being pushed out of the market. It doesn’t help that the prices of homes are also particularly high right now. There has been a major lack of residential development for over a decade across the United States, which has created a gap between the supply and demand of homes. Currently the supply of houses on the market is low, while the demand has remained relatively high. It’s the culmination of these issues that has led people to fear that the current decline will result in a crash in the housing market, similar to what occurred back in 2008. However, New Mexico is already familiar with these problems, as our housing market hasn’t quite realized its potential since the Great Recession. Our market has done well for the past two years but has fallen behind the national market overall.
What’s looking up for New Mexico
The median home value in the New Mexico real estate market has been increasing continuously for almost a decade now and we certainly won’t be seeing a price decline in the Albuquerque area. However, unlike the majority of the country, New Mexico still has quite the inventory of relatively affordable homes. Now for New Mexico natives these prices probably seem absurd, but for those looking to move to The Land of Enchantment the price might be just right.
Not only are the homes affordable, but the job market is also growing. We’ve seen tremendous growth from the energy and tourism industries as of late. We’ve also got a lower cost of living than the national average. With utilities, transportation, healthcare, groceries and more costing less, an increasing number of people may have the opportunity to become homeowners here in New Mexico. With these factors in mind, hopefully this is only a dip for our housing market rather than a crash. It’s important to keep in mind that the market is never going to be perfect—there will always be some ups and downs.
CTE is here to help
Regardless of the current challenges the market is facing, the CTE Team is well-equipped to serve you. And, while we may be relatively new to the Albuquerque area, our title and escrow teams together have a combined total of 300 years in the housing industry. We have truly seen it all! The tenure of our team in the housing market has resulted in an abundance of knowledge that is indispensable to our buyers, sellers, and agents alike.
We also have a wealth of resources you can conveniently access from home! Our online library has a ton of organized and accessible information. We understand that, at the end of the day, everyone’s timing is different and you’re in charge of your own financial future, but we are always here to help in any way you need. Whether you’re just browsing or currently in the market looking for supportive title and escrow officers, feel free to get in touch with us!