Albuquerque Housing Market Report: What Happened in 2025 and What to Expect in 2026

The Albuquerque housing market continued adjusting in 2025 after several years of rapid price growth and extremely competitive conditions. Higher mortgage rates slowed activity nationwide, and affordability challenges made it harder for some buyers – especially first-time buyers – to enter the market.

Even so, our local housing market proved resilient. Home prices continued rising, inventory slowly increased, and sales activity stabilized after declines in previous years.

If you’re thinking about buying or selling a home in Albuquerque, understanding these trends is key. Here’s a breakdown of what happened in the 2025 Albuquerque real estate market and what it could mean for 2026.

Key Albuquerque Housing Market Trends for 2025

• The median home price in Albuquerque reached $360,000, rising 2.9% from 2024
• Closed home sales increased slightly to 9,969 homes, up 1.2% year-over-year
• Inventory increased modestly, with 1,850 homes on the market at year end, up 4.8%
• Higher-priced homes saw the strongest demand, while entry-level price ranges experienced slower sales
• Experts expect mortgage rates near 6% in 2026, which could help stabilize the housing market further

Albuquerque Home Prices in 2025

Home prices in our area continued rising in 2025, although the pace of appreciation slowed compared with the dramatic increases seen between 2020 and 2023. The median sales price increased to $360,000, representing a 2.9% year-over-year increase. Meanwhile, the average home price reached $417,233, up 4.1% from the previous year.

While those increases are relatively moderate, they reflect a broader reality: housing prices remain significantly higher than they were before the pandemic housing boom. Across the country—and in Albuquerque specifically—home values today are roughly 50% higher than pre-pandemic levels.

For homeowners, this means substantial equity growth over the past several years. For buyers, however, affordability remains a major challenge.

Albuquerque Home Sales in 2025

After declining for several years following the peak market of 2021, home sales in Albuquerque began stabilizing in 2025. A total of 9,969 homes were sold, representing a 1.2% increase from 2024. Pending sales also increased slightly to 10,062 homes, indicating continued buyer interest despite higher mortgage rates.

Although sales volume remains below the peak levels seen earlier in the decade, the small increase suggests the market may be finding a new equilibrium.

One key factor affecting both national and local sales has been the “lock-in effect.” Many homeowners who secured mortgage rates below 3% during the pandemic have been reluctant to sell and take on higher interest rates. This has limited the number of homes entering the market.

Housing Inventory in Albuquerque Is Slowly Increasing

Inventory remains one of the most important factors shaping our housing market. In 2025, the number of homes available for sale increased modestly. At the end of the year, there were 1,850 homes on the market, compared with 1,765 the previous year. New listings also increased, rising 3.9% to 13,121 homes listed during the year.

While inventory remains historically low, this gradual increase is an important shift. For several years, buyers faced extremely limited options and intense competition. In 2025, conditions began moving toward a more balanced market.

Buyers now generally have more time to evaluate homes, while sellers need to be more strategic about pricing and presentation.

Which Price Ranges Are Selling the Most?

Another notable trend in the Albuquerque real estate market is how activity varies across price ranges.

Homes priced above $379,000 represented the largest share of sales and experienced an 8.6% increase in transactions. At the same time, homes priced between $200,000 and $274,999 saw sales decline by 15.8%.

This shift likely reflects affordability challenges facing many first-time buyers. Rising home prices combined with higher mortgage rates have made it more difficult for entry-level buyers to enter the market. Add to that, there are simply fewer good homes in that lower price range.

Meanwhile, move-up buyers and homeowners with significant equity remain active, which helps explain stronger activity in higher price ranges.

What to Expect in the Albuquerque Housing Market in 2026

Looking ahead, the Albuquerque housing market is expected to continue stabilizing. Mortgage rates declined somewhat during the second half of 2025, and many economists expect rates to remain around 6% in 2026. If that forecast holds true, several trends may follow:

1. Sales activity should increase
Lower borrowing costs typically encourage more buyers to enter the market.

2. Inventory most likely grows
As more homeowners decide to sell, the number of available homes should gradually increase.

3. Home prices will likely rise modestly
I’d expect price growth to continue, but at a slower and more sustainable pace than the rapid appreciation of recent years.

So, rather than dramatic changes, the most likely scenario for 2026 is a rise in buyer activity that tracks a slightly wider inventory of homes as well as lower mortgage rates, and a resulting steady and more “normal” price improvement.

The Bottom Line: Albuquerque Real Estate Is Moving Toward Balance

The Albuquerque housing market in 2025 demonstrated resilience despite national affordability challenges and elevated mortgage rates. Home prices continued to rise, inventory improved slightly, and sales activity stabilized after several years of decline.

For buyers, the current market offers more options and less urgency than the market we saw just a few years ago.

For sellers, success increasingly depends on correct pricing, effective marketing, and presenting homes well to stand out in a more competitive environment.

Overall, the Albuquerque housing market appears to be transitioning toward a healthier, more balanced market, which benefits both buyers and sellers over the long term.

What This Means for Albuquerque Buyers and Sellers

Numbers are helpful, but what do these trends mean for you?

If You’re Thinking About Buying

The Albuquerque market in 2025 is noticeably less frantic than it was a few years ago. Buyers generally have more homes to choose from and slightly more time to make decisions.

That doesn’t mean great homes sit on the market forever. Well-priced homes in desirable neighborhoods still move quickly, but buyers are no longer competing with the high number of offers we saw during our peak market a couple years ago.

If mortgage rates continue trending toward the 6% range or even lower in 2026, more buyers may re-enter the market. That could increase competition again, especially in the most popular price ranges.

If You’re Thinking About Selling

The market still favors sellers in many areas of Albuquerque, but the strategy has changed. A few years ago, simply listing a home often produced multiple offers within days. In today’s market, pricing and preparation matter much more.

Homes that are well-priced, clean, and marketed effectively are still selling successfully. Homes that are overpriced or poorly presented may sit longer than they would have in the past.

The Big Picture for Albuquerque

Overall, the Albuquerque housing market appears to be moving toward a more balanced environment.

That’s actually a healthy sign. Markets that are extremely tilted toward either buyers or sellers tend to be unstable. A balanced market generally leads to more predictable prices, more normal negotiation, and healthier long-term growth.

– Joe LaMastra, RealABQ Real Estate, January 29, 2026