Realtors Judy and Larry Salas say, "Albuquerque is New Mexico largest city and the United States' 33rd largest city based on 2004 U.S. Census estimates. It is also one of the United States' finest and oldest cities having been founded in April 1706. Albuquerque is currently in the midst of celebrating the 300th anniversary of its founding. Located in central New Mexico at the foot of the Sandia Mountains and in the Rio Grande river valley Albuquerque is situated at an elevation of about one mile above sea level. Albuquerque is served by an International Airport, and is the seat of the University of New Mexico. On a percentage basis Albuquerque ranks 16th in the nation in terms of cities with the most college graduates. Albuquerque is a noted health resort and vacation spot. It has museums of art and anthropology, an Atomic Museum, a world class zoo, and a charming and historic Old Town with shops and world class restaurants."
They add, "While home sales usually start to slow down at this time of year and with interest rates inching upwards it appears that the Albuquerque housing market is still heated. To best understand what is going on in this market you need to consider past trends. As of today there are 1424 Albuquerque homes on the market at an average price of $305,001 and a median price of $209,900."
"Today we see the words "housing bubble" in headlines and hear them on television. The term refers to supply and demand getting way out of balance. Specifically, too much supply develops for the amount of demand and prices drop rapidly. A bubble can appear in any market--stocks, art, cars, and even housing. Around metro Albuquerque, it is fair to say that home prices have increased dramatically the past two years. I understand the concern for those of you thinking about buying a home. No one wants to buy an overvalued home," says Realtor Hedy Harwell.
She continues, "In light of the past two years, remember that the recent price increases have grown the wealth of people who own their own homes. That's nearly 70 percent of the people in metro Albuquerque. The added financial clout helps buffer people against challenges such as the recent rising energy prices. Also, the people who thought of buying a home two years ago but did not, have missed this increase in wealth. I have read the research about the status of markets around the country. I carefully monitor the Albuquerque market. With all that research in mind, I believe there is no housing bubble in Albuquerque. And, for a number of reasons, the chances of a housing bubble appearing in Albuquerque are pretty close to zero. Healthy housing markets in any community rest on two pillars. Growing employment is the first. The other pillar is the number of homes offered for sale (supply) meeting the desires of people wanting to buy (demand)."
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Published: November 3, 2005
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