If you are thinking about purchasing a home, you may be wondering if now is a good time to buy a home in Albuquerque. The housing market in Albuquerque is hot right now. Home sales are moving fast, in part because of record-low interest rates. According to GAAR, the average number of days a home spent on the market has dropped from 33 to 16 days in April. With everything going on in the world, and a fast-moving housing market, some buyers may be hesitant to jump into buying a home right now. But, right now is an excellent time to buy a home in Albuquerque.
Here are four great reasons to buy a home in Albuquerque now!
Record-low interest rates
One of the best reasons now is the right time to buy a home in Albuquerque is because of record-low interest rates. This is great news for qualified buyers because lower rates mean you will have a lower monthly mortgage payment and be able to borrow more.
How long will these rates last? While interest rates continue to drop, these rates may not last much longer. Sam Khater, Freddie Mac's Chief Economist said, “The low mortgage rate environment has been a boon to the housing market but may not last long as consumer inflation has accelerated at its fastest pace in more than twelve years and may lead to higher mortgage rates in the summer."
This means that if you’re thinking about buying a home in Albuquerque, the best time is now. If you wait six months or a year to buy, you may end up paying a point or higher in interest rates, which could cost you thousands of dollars over the lifetime of your mortgage.
Increasing cost to rent in Albuquerque
If you are renting a house in Albuquerque, you probably know how expensive rent is. Albuquerque has seen some of the largest increases in rent prices in the country. From 2020 to 2021, the average cost to rent went from $937 to $1,014, an increase of 8 percent. If you were to purchase a home right now, your mortgage rate would likely be less than what you are currently paying in rent.
Now is a great time for first-time homebuyers to buy a home as well. If you are renting and have been thinking about buying a home, it’s a really good time to finance your first home as interest rates are at record lows. Some renters have been hesitant to buy a home right now because the Albuquerque market is so competitive. They worry they won’t be able to find a home or will pay higher prices. While it is true, homes are selling quickly, if you wait around for the market to change, you may be missing out on an opportune time to buy your first home.
2021 is going to be a wild card year in the housing market
We are living in unprecedented times. This makes the home buying market hard to forecast. It’s hard to say what’s going to happen in the next year. Interest rates will likely go up, which will mean, you will be paying more for your home if you wait to buy.
Albuquerque is a great place to buy a home. It’s the largest city in New Mexico, with affordable real estate, a good job market, and a great place to live. People from all over the country are moving to the Albuquerque area. According to Synthia Jarmillo, Economic Development Director of the City of Albuquerque, “Our city is becoming a top choice, not only for businesses, but for all people looking for a healthy and robust quality of life.”
Albuquerque Homes are selling fast
If you want to purchase a home with a low-interest mortgage, the best time to start searching for a home is now. Homes are selling quickly, so the sooner you start the process of buying a home, the better. If you are thinking about buying a home, and want to wait until prices drop, you may be disappointed. Although the market is competitive, a fast-moving market means that you can get into a home quickly. The sooner you act, the better chance you will have of purchasing a home while interest rates are still low.
