NEW MEXICO - To make the right decisions for your future home, it is crucial to understand how the market will develop. This article will cover forecasts for housing markets, rents, and the unemployment rate. By the end of this article, you will have a better understanding of what to expect from the New Mexico real estate market. The information contained in this article is not exhaustive. If you are interested in purchasing real estate in New Mexico, you will want to know the housing market trends in the state.
Forecasts
If you want to buy a home in New Mexico, you may wonder how the real estate market will fare in the coming years. While home prices in the state have increased in the past few years, most experts predict that they will increase even more this year. The market is expected to increase by 15.6% this year. Despite the recent upswing in home prices, several issues still need to be addressed. First, the amount of supply will continue to remain low. New builds will be slow to enter the market so competition will remain high.
Second, New Mexico is considered a landlord-friendly state compared to states like Texas and Colorado. In New Mexico, landlords are allowed to charge reasonable deposits for tenants. These deposits are typically one month's rent for leases of less than a year. In addition, there are no rules regarding pet deposits or non-refundable fees. However, the deposits are only available if the tenants cause damage to the unit or do not pay their rent on time.
Housing Market
The New Mexico housing market is expected to remain tight throughout the year, so the real estate market will be competitive. With mortgage rates expected to be near historic lows in 2023, buyers may get caught up in a rush to buy a home. As a result, they may take out larger mortgages than they can afford. This could leave them underwater, especially if they intend to sell the home in the coming years.
The Albuquerque housing market is also expected to remain competitive. While the housing market is extremely competitive, the supply of houses for sale is historically low - a good sign for those interested in entering the market. Investment properties in Albuquerque are also an exciting choice. The median home price is about 12 percent lower than the national average. And rental prices are relatively reasonable, too. The city also has ten colleges, making it an excellent educational location.
Rents
New Mexico's rents are rising, making it difficult for low-income residents to afford to live there. This is creating a problem of homelessness and crime. Homeless people are more vulnerable to crime and have a higher homicide, overdose, and sexual assault rates. According to Rachel Biggs, chief strategy officer at Albuque City Health Care for the Homeless, these increases will exacerbate these problems.
A number of bills have been introduced to address these issues, including a permanent emergency rental assistance program. The bill aims to balance the rights of tenants and landlords and was prompted by the COVID pandemic. In addition, lawmakers have introduced legislation that amends the state's Uniform Owner-Resident Relations Act to make it easier for tenants to get their rent current.
Unemployment Rate
New Mexico is on the edge of being landlord-friendly, but it is not quite there yet. There are restrictions on landlord fees, which can't exceed ten percent of rent and a minimum security deposit of one month. However, longer leases may be allowed if a security deposit is "reasonable." In addition, landlords must send a three-day notice if tenants are late on rent and have seven days to make the corrections before a landlord can terminate the lease.
Unemployment in New Mexico is expected to average 5.8% in 2023, which is lower than the previous year. The state has experienced steady job growth in recent years, though the state's payrolls remain at a three-year low. Meanwhile, the state's labor force is slowly recovering, although it lags behind its regional peers.
Home values
The median home values for 2023 are forecast to be lower than the current prices in 19 major housing markets. This means that sellers will be more likely to accept lower offers than the current median. GOBankingRates used the Zillow index to calculate the median home value in each state. The index accounts for more factors than the median list price of homes.
Zillow's home valuation model is based on a proprietary formula. It does not constitute a professional appraisal. The formula considers the location, condition of the market, and special features of a property. Zillow's automated valuation models use proprietary and advanced algorithms to analyze all home-related data to develop a reliable, accurate home value.
