Jun 29, 2022 / 10:04 PM MDT
ALBUQUERQUE, N.M. (KRQE) – The Albuquerque real estate market took off over the last two years, often forcing home buyers into a bidding war. But now that hot housing market is cooling off thanks to higher interest rates.
Roxanne Thomas recently closed on her new home in Albuquerque and says it was the happiest day of her life. But she says there were some challenges during the process. After many offer rejections, she finally has a place to call her own after closing on a home in Albuquerque. “I still have to pinch myself to believe that it actually has happened,” said Thomas.
But she got lucky because it’s not easy buying or selling a home across the country right now including here in the metro. Jessica Garcia is a realtor in Albuquerque and says, “It is slowing down so homes are listed on average now 10 days, 14 days instead of 2 or 3 days.”
As interest rates increase – the number of buyers that can afford to purchase a home right now decreases. “Maybe we’re only getting an offer or two in. We are seeing a little more cash come in because interest rates have risen so much and it’s becoming hard for people to afford a home,” said Garcia.
Thomas says buying her home wasn’t easy. She explains, “It was just a scary experience, especially at my age. I’m 62, jumping into the purchase of a new home and the economy the way it is, the interest rates the way that they are.”
Now that we’re seeing a slowdown in the market there’s more supply but less demand. Garcia shares, “There were very few homes on the market so every home that would come up you know you’d have 50 to 100 people fighting for that same home. Right now we have extra homes on the market.”
As of June 29, there are almost 600 homes listed on the market in Albuquerque. Thomas has some advice for buyers. “Be patient, I know situations are different. And sometimes it’s hard to be patient when you’re eager to get into a place when you don’t have your own home or you don’t have a home.”
Garcia says she believes the housing market will balance out in the near future. It’s just a matter of interest rates coming down and prices leveling off, instead of rising. According to The Greater Albuquerque Association of Realtors, between May 2021 and May 2022, the median listing home price in the metro increased by more than 17%.
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