Housing Market Nation’s Hottest: Forecast Credits Albuquerque’s Growth and Potential

RISMEDIA, May 8, 2007—(MCT)—The Albuquerque metro area’s residential real estate market is on top of the list of “Hottest Buyers Markets” compiled by a housing market forecaster.
The median home price is expected to increase by 9.1% this year, the most of more than 250 markets in the country, according to Florida-based Housing Predictor.

“Bulging with a population nearing a million, Albuquerque is growing like never before, attracting the movie business from Hollywood, a new airplane factory and many other new businesses,” the Housing Predictor Web site says in its report on the hottest markets.
Albuquerque was in the top 10 in last year’s ranking of the hottest markets,” said Mike Colpitts, founder and editor of Housing Predictor.

But while residential real estate has cooled in much of the country, he said, “Albuquerque is extraordinarily strong.”

The No. 1 ranking is a dramatic turnaround from 10 years ago, when home appreciation in the metro ranked near the bottom nationwide. Between 1996 and 2000, the median sales price rose only 8.6%, according to the Albuquerque Metropolitan Board of Realtors.

The median price actually declined in 2000.

“There were so many listings out there and no buyers,” said Board Chairman Scott Dean. “Today it’s much different.”

The first signs of a turnaround appeared in the spring of 2001. Between 2002 and 2006, the median price jumped 33.3%, according to the board.

Dean attributed the change to economic development efforts and a more positive business environment, both of which bring in more jobs and people.

The various top rankings that the city has attracted — such as the recent “Fittest City” in the country — has given the metro a higher profile, he said.

“One of the things we’ve seen is that Albuquerque was undiscovered for a long time,” he said. “I think in the past it wasn’t as business friendly as some folks would’ve liked.”

Texas had five markets in the top 10, with McAllen coming in second with an 8.9% increase predicted in median home price. El Paso was No. 8 at 7.2%.

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