By: Anna Padilla, Brittany Bade  Updated: Feb 9, 2022 / 09:02 AM MST

ALBUQUERQUE, N.M. (KRQE) – We all know a dollar doesn’t stretch as far as it used to, and the problem is even worse for homebuyers in our state. The metro is going strong into year two of record sales price increases for single-family homes.

Amy Neal has been selling homes in Albuquerque for 17 years and says the last several years have been the most competitive she’s ever seen. “We’re seeing, you know, multiple offers. We have more buyers than we have houses,” Neal said.

The demand is driving up prices to levels that the metro has never seen. “A few years ago, $500,000 might have been considered luxury. That’s not really the case anymore,” Neal said.

The greatest growth is happening in neighborhoods like north Albuquerque acres in the northeast heights, the northwest heights, on the west side north of Paseo Del Norte, where lots of new builds are going up and northern Rio Rancho.

However, Neal says home values are going up almost everywhere. “We’ve seen a major increase in the last few years, with those values increasing,” Neal said.

The number of homes selling for more than $700,000 doubled to about 600 from 2020 to 2021 and million-dollar homes are going up too. “We’ve had over 150 homes last year that sold over $1 million,” Neal said.

The average home sales price in the metro is much lower at $336,000. “It’s tougher for those people that are in the $200,000-400,000 range because we have more buyers that can qualify in that area those are the ones that are really competing against 20 other buyers,” Neal said.

Neal said the average buyers are the ones being hit hardest by the price surge that she doesn’t expect to slow down any time soon. “I anticipate through at least 2022, it’s going to be similar looking,” Neal said.

Neal says the people buying homes for $700,000 or more are largely local professionals as opposed to people moving here from out of state. She encourages anyone on the fence about buying to act fast as interest rates are expected to rise this year.

Source: "Albuquerque experiencing record sales price increases for homes"