Real estate is the theme of the week

Mar. 18—Real estate is the theme of this week's Outlook.

Our cover story is an overview of the Albuquerque area housing market. Long story short: Prices and interest rates are still high, but local professionals said it's still a good time to be in the market.

That's because there's no sign the housing market is going to crash anytime soon. And Realtors cautioned that if potential buyers try to wait out a decline in interest rates, housing prices will likely continue to go up during the wait.

There's several reasons why home prices are increasing. Low inventory, which is partially fueled by existing homeowners hunkering down and staying in their home instead of upgrading or downsizing because of market conditions.

There's also out-of-state buyers who have the potential to swoop in and buy a home with cash. Even though Albuquerque home prices are increasing, they remain a far cry from the likes of Austin, Texas, or parts of California. The Duke City is drawing the interest of those living in more expensive cities across the country.

Homebuilders said inflation is increasing the cost of their materials, which bumps up the prices of new homes.

That said, there are new homes being built. Rio Rancho and Los Lunas are seeing new homes sprout up.

That's not all that's important in the local housing market.

This week's Outlook also has a story about various housing bills from the 2024 Legislature that made it into law.

Through a collection of efforts, lawmakers approved $200 million for various housing projects. The money will go toward new housing developments, affordable housing and homelessness initiatives. New Mexico Mortgage Finance Authority officials called the investments historic.

However, despite those housing investments, some money that has been keeping New Mexicans in their homes since the COVID-19 pandemic is drying up.

The MFA reported last week that it has provided $43.5 million of housing funding to 4,217 households as part of the New Mexico Homeowner Assistance Fund program, which started in 2021. The money was part of $9.9 billion that went to all 50 states for housing initiatives as part of the American Rescue Plan Act of 2021.

The money was used for loan reinstatement, monthly payment assistance, homeowners property taxes and homeowners insurance.

The money has been pretty much spent. State officials said they are doling out the last few bucks, but they are no longer taking applications for the supportive funding and that no more additional dollars are expected.

Just as the state is making historic investments in housing initiatives, millions of dollars that have been injected into the economy to keep people in their homes in recent years is coming to an end.