Known for a thriving art scene, accessible outdoor sports, and chile-filled cuisine, it makes sense that New Mexico’s housing market is exploding. The state is currently one of the most popular places to buy a house. Across the state, the past few years have seen rapid growth in the housing market.
The growth in New Mexico’s real estate market is setting records. The year 2018 saw the highest number of sales in a decade (and 60% higher than the previous year)… and that was before the pandemic’s boom!
Just based on the data, one can see that this state is one of the most promising areas for making real estate investments. Let’s check out some of the most popular cities to invest in and where it is worth hiring a real estate agent in New Mexico to help you get started.
Our first city is Albuquerque. Parallel to the statewide trends, Albuquerque also showed record property sales during 2018. The average price for a house in the city was $251,895 in 2018, which was a 6% year-over-year growth.
One of the reasons behind that is in reducing housing inventory in Albuquerque. The number of houses on sale decreased by 16% in 2018. At the same time, new listings also decreased by 4%. Based on the simple tenets of supply and demand, Albuquerque realtors are confident that the real estate market in Albuquerque will remain high.
Another reason for Albuquerque’s popularity is the city’s economic prospects. The city has become a growing hub for the tech industry. Both Intel and Honeywell have offices in Albuquerque. Additionally, Netflix announced plans to open a production center in Albuquerque and plans to invest $1 billion in productions for the next ten years.
Besides the growing industry, Albuquerque is also home to numerous educational institutions, like the University of New Mexico. The city offers jobs, education, and culture, making it the perfect place to put down roots.
The artsy mecca of the state, Santa Fe is a city in New Mexico that has seen real estate market growth.
Data from the Santa Fe Association of Realtors reflects an increase in housing sales and an increase in real estate revenue. For example, 1,079 houses were sold in 2018 against just 842 deals in 2016.
Not only are more houses selling, but they are also selling for higher prices. The average price for a house was $355,000 in 2018, almost a 10% increase from the previous median price record of $325,000 in 2017.
But the growth didn’t stop there. Today, the median price to buy a house in Santa Fe is around $561,000, which is a 21.6% growth compared with last year.
One of the reasons behind Santa Fe’s popularity is the rich culture of the city. With representation from American, Spanish, and Native American lineages, the diverse way of life attracts visitors from all over the world. Moreover, surrounded by the Sangre de Cristo Mountains, Santa Fe is full of wonderful landscapes and natural beauty, thus it is always a pleasure to stay in that city.
The city of Los Alamos is another great option for investment in real estate. It’s become a standout city in terms of real estate, because of the gap between the average house price in Los Alamos and the state’s median.
Specifically, the median house price in Los Alamos is $401,000, meanwhile, the average for New Mexico is $291,000, demonstrating significant growth in the real estate market in this city compared to the rest of the state.
The reason for the sales and prices? Most experts connect the city’s real estate growth with the Los Alamos National Laboratory, a major center of research and engineering for national security programs. There are clear correlations between the company hiring rates and the housing demand. For example, in 2018 the company increased its hiring rate, which doubled the number of home purchases compared to the previous year. The rise in real estate market deals has accordingly pumped the median price of a house. Thus, quotes have changed from $315,000 to $380,000 in a year.
With new residents moving to Los Alamos (often because of the job market) and current residents staying put, increasing pressure has been put on the city’s real estate market.
Rio Rancho is another attractive real estate market for those looking to buy a house in New Mexico.
The popularity of Rio Rancho is based on several factors. This city boasts really beautiful landscapes due to its location in the Sandia Mountains. In addition, Rio Rancho is also known for its safe environment and quality infrastructure, which makes it well-liked by those who plan to move with a family.
The economy of the city is another benefit. Tech giants such as Intel and Hewlett Packard are based in Rio Rancho.
The city is also highly regarded by experts. In 2018, Money.com ranked Rio Rancho as one of the best places to live. The median house price in Rio Rancho is currently $317,000 and many agents expect it will rise by 4% next year.
The city of Las Cruces has both a developed infrastructure and a strong economic potential, making it an attractive place to invest in the real estate market.
As the second-most populous city in the state, Las Cruces attracts a large number of people every year.
In 2018 Las Cruces set the record for the third greatest number of real estate sales. During the past year, more than 2000 deals were made in Las Cruces. Today, the median house price in the city is $253,000. Without a doubt, it’s an excellent time to be both a buyer and seller in the Las Cruces real estate market.