Welcome to the latest edition of Albuquerque Real Estate Talk! I'm Steffan Walters with New Mexico Home Group, here to provide you with the most recent insights into our local real estate market. In this installment, we'll explore current home value trends in Albuquerque, highlight the groundbreaking of a new affordable housing project, and discuss the importance of understanding paying difference in appraised value for competitive properties and 'as-is' property sales.
Albuquerque Home Values: Current Trends
As of March 2025, Albuquerque's housing market continues to exhibit steady growth. The median home price reached $358,000, with an average home price of $417,956, reflecting a 7.9% increase from the previous year. This consistent appreciation underscores the city's robust real estate landscape.
Over the past three decades, both median and average home prices in Albuquerque have surged by approximately 220%, translating to an average annual growth rate of around 3.95%.
This long-term upward trend highlights the city's enduring appeal to homeowners and investors alike.
The Route 66 Flats: A New Affordable Housing Initiative
In a significant development addressing Albuquerque's housing needs, the Route 66 Flats project broke ground in August 2024. Located at 7600 Central Ave. SW, this $16.6 million initiative will offer 47 one-bedroom units and one two-bedroom unit, specifically designed for low-income individuals, including those exiting homelessness.
Developed by BlueLine Development, Inc., in collaboration with High Desert Housing, the project is slated for completion in late summer 2025.
This endeavor underscores Albuquerque's commitment to expanding affordable housing options and supporting vulnerable populations.
Understanding "Paying Difference In Appraised Value"
When a buyer is purchasing a competitive property, they may have to offer certain terms to the sellers to make their offer more appealing. One of these terms is offering to pay the difference between the appraised value and the agreed purchase price if the home appraises for less than the offer amount. This happens because lenders will only finance up to the appraised value, leaving the buyer responsible for covering the shortfall.
When Does This Happen?
Bidding Wars & Competitive Markets: Buyers often offer above asking price to win the home, but if the appraisal comes in lower, they must make up the difference.
Appraisal Gap Clause: Some buyers include an appraisal gap guarantee in their offer, agreeing to cover a specific amount of the shortfall.
Low Down Payment Loans: If the appraisal is low, the loan amount is based on the appraised value, and the buyer may need to bring additional cash to close.
Options If an Appraisal Comes in Low
Pay the difference out of pocket.
Negotiate with the seller to lower the price.
Request a second appraisal or challenge the valuation.
Walk away if the contract allows (contingency clauses).
There are multiple different ways to be competitive in todays market so you dont miss out on your dream home, so make sure you pick the right agent than can accomplish what you are looking for. This is where having Steffan Walters as your agent creates that competitive advantage for you!
Understanding 'As-Is' Property Sales
In real estate transactions, the term "as-is" indicates that a property is being sold in its current condition, with the seller not obligated to make any repairs or modifications. However, it's crucial for both buyers and sellers to fully grasp the implications of this designation:
Buyers: Even with an "as-is" sale, buyers retain the right to conduct thorough inspections. These assessments provide a clear understanding of the property's condition and can inform negotiations or decisions to proceed with the purchase.
Sellers: While selling "as-is" means no obligation to address repairs, sellers are still legally required to disclose any known defects or issues with the property.
Misunderstandings about "as-is" sales can lead to complications. Buyers might mistakenly believe they cannot inspect the property or negotiate terms, while sellers might think they are exempt from disclosure requirements. Clear communication and a comprehensive understanding of "as-is" implications are essential for a smooth transaction.
Conclusion on Todays Market UPDATE
Albuquerque's real estate market remains vibrant, characterized by steady home value appreciation and proactive efforts to enhance housing accessibility. Whether you're considering buying or selling, staying informed about market trends and understanding transaction nuances are vital.
For personalized guidance or inquiries about Albuquerque's real estate landscape, feel free to reach out to me, Steffan Walters, at New Mexico Home Group. You can contact us at 505-304-9773 or visit our website at newmexicohomegroup.com
FAQs
What is the median home price in Albuquerque as of March 2024?
The median home price is $358,000, reflecting a 7.9% increase from the previous year.
What does 'as-is' mean in real estate transactions?
"As-is" indicates that a property is sold in its current condition, with the seller not required to make repairs. However, buyers can still conduct inspections, and sellers must disclose any known defects.
Staying informed and working with knowledgeable professionals can help navigate Albuquerque's dynamic real estate market effectively.
