Albuquerque, NM Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Albuquerque, NM, Federal Housing Finance Agency (FHFA) house price index (HPI) is a weighted, repeat-sales index that measures average price changes in repeat sales or refinancings on the same properties. The index covers single-family homes and condominiums. The HPI value for a particular geographic area is the weighted sum of the indices for all transactions in that area.

The Albuquerque HPI was down 0.1 percent from June to July 2017 and up 2.6 percent from July 2016 to July 2017. Home prices in Albuquerque have been on the rise since early 2012 but have remained relatively flat over the past year or so. Despite this recent flattening of prices, home values in Albuquerque are still nearly 20 percent above their pre-recession peak levels.

The main drivers of house prices in Albuquerque are job growth, population growth, and interest rates. Job growth has been strong in recent years, with Albuquerque adding an average of about 4,000 jobs per year since 2014. Population growth has also been solid, with the city adding an average of about 1,800 people per year since 2010. Interest rates remain at historically low levels, which has helped to support higher home prices across the country.

Looking forward, job and population growth are expected to continue in Albuquerque, which should help to support further increases in home prices. However, interest rates are expected to begin rising over the next few years as the economy continues to strengthen, which could put some upward pressure on mortgage rates and lead to more moderate price gains than we have seen in recent years.