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Sombra del Monte: Rising Home Values and Stable Ownership in an Albuquerque Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Sombra del Monte, a vibrant neighborhood in Albuquerque, New Mexico, has experienced significant changes in its real estate market over the past decade. The area has seen notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions. These changes have shaped the neighborhood's housing landscape and provide insights into its future trajectory.
Homeownership rates in Sombra del Monte have shown considerable variability, ranging from 64% to 77% between 2013 and 2022. This trend correlates with the average home prices in the area. In 2013, when the average home price was $169,862, the homeownership rate stood at 69%. As average home prices steadily increased, reaching $312,671 in 2022, the homeownership rate also rose to 76%. This suggests a positive relationship between rising home values and homeownership rates in the neighborhood.
Federal interest rates have played a crucial role in shaping homeownership trends in Sombra del Monte. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates in the neighborhood increased from 69% to 74%, likely due to more affordable financing options. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate remained relatively stable at 76%, indicating a resilient local housing market.
Renter percentages in Sombra del Monte have inversely mirrored homeownership rates, fluctuating between 22% and 36% from 2013 to 2022. Average rent prices have shown an overall upward trend during this period, despite some year-to-year variations. In 2013, the average rent was $1,038, which increased to $1,071 by 2022. The highest average rent was recorded in 2019 at $1,304, coinciding with a low renter percentage of 22%. This suggests that as rent prices increased, some residents may have transitioned to homeownership, particularly given the favorable interest rates during this period.
In 2023 and 2024, Sombra del Monte's real estate market continued to evolve. The average home price in 2023 reached $329,391, further climbing to $346,485 in 2024. This represents a significant increase from the 2022 average of $312,671. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the neighborhood.
Looking ahead, predictive models suggest a continued upward trend in both average home and rent prices for Sombra del Monte over the next five years. Based on historical data and current market conditions, average home prices could potentially reach the $400,000 mark by 2029. Average rent prices are also expected to increase, possibly surpassing $1,300 per month within the same timeframe. These projections may be influenced by various factors, including economic conditions, local development, and changes in federal interest rates.
In summary, Sombra del Monte has demonstrated a resilient and dynamic real estate market over the past decade. The neighborhood has maintained a high homeownership rate despite rising home prices, possibly due to its desirability and periods of favorable interest rates. The inverse relationship between homeownership and renter percentages, coupled with the overall increase in both home values and rent prices, indicates a competitive and evolving housing market in this Albuquerque neighborhood.
