The Latest Albuquerque Market News

How should buyers and sellers respond to our changing market?

Today we want to talk to you about what is happening in the market, specifically around prices. If you're thinking about selling, you should know that prices are a few percentage points lower than they were this spring. If your house was worth $500,000 this spring, be prepared that it might now be worth $475,000. That’s still a great price, but some sellers just have gotten their expectations too high.

The reason for these price drops is rising interest rates. We're seeing interest rates in the low 6% range now, and that's causing less demand, which means fewer buyers competing for the available homes and more inventory coming on the market. Sellers are trying to get their houses on the market to not miss out on this opportunity, but houses are taking a little longer to sell, and they're also selling for slightly less. 

We have several strategies to get our sellers' homes sold fast, including our 72-Sold program, our pick-your-move-out date program, and our buy-before-you-sell program. These strategies help our sellers get out of their houses for the most amount of money in a short amount of time.

"We can help make the best situation for you, whether you're buying or selling."

No one knows what the prices are going to do in the future. We have a feeling they're going to level out, and that inventory will go up significantly. Interest rates are expected to rise as high as 8%. That sort of increase in interest rates will change the cost of owning a home, especially until you can get refinanced, and that will continue to cause fewer buyers to want to purchase.

If you're a buyer, it might be the time to buy because you have less competition right now. The other big benefit is that because there's a lot of fear and uncertainty, we’re able to negotiate and get you help with closing costs because other sellers don't have a strategy. Interest rates are a little bit higher than they were, but 5% to 6% are historically low, and they should go back down to 3% to 4% in the next three to five years. Get a house now in the location you want, get some stability, and then you can always refinance your payment in a couple of years. For our buyers, we're also getting the sellers to pay for an interest rate buydown to get a lower payment. A little bit of help from a seller. There are lots of strategies right now, and it's a great market to buy.

It's a great time to buy, but it’s also a great time to sell because prices are still historically high. Come spring, prices may end up being less than what they were even last spring, and the media will go crazy. However, one or two percentage points lower doesn’t mean the sky is falling. We can help make the best situation for you, whether you're buying or selling. Reach out to us by phone or email. We look forward to hearing from you.