Albuquerque Market - Why are prices increasing?

[Kirsten M.]

I've been investing in the Albuquerque area for almost 3 years. In the last year, I've noticed that home prices are increasing more rapidly. While this isn't going to deter me from investing, I'd like to know if I need to change my investing strategy.

I live abroad most of the year and therefore, have not made an effort to attend any meetups. I read the local news and I talk to friends in the area about the happenings there. I know there are some big things happening in ABQ and surrounding areas - Netflix, Facebook, Intel, New Mexico United, etc. But what is driving the market higher?

Any thoughts would be apprecited. 

[David Torres]

@Kristen Marino I did a presentation on the state of the market in ABQ at last months ABQREIA.  Here is a copy:

https://drive.google.com/open?...

Highlights - 

NM Populations is not growing as fast as a lot of other places

NM Unemployment is at 4.9% (full employment is considered 6%)

July 2018 Inventory 3500 Detached Homes -  July 2019 Inventory 2300 Detached homes!

July 2018 Absortion 3.7 Months  - July 2019 Absortion 2.3 Months

July 2018 Median Sales Price $210k - July 2019 Median Sales Price $232K

Lots of good employment coming in to town - Intel and Sandia are hiring for sure.  My Rio Rancho rentals are getting picked up in a heartbeat due to intels numerous new employees and contractors.

In short - its a simple supply/demand imbalance.  Great topic!