Albuquerque housing market is stabilizing after a challenging 2025, with local housing experts feeling optimistic about 2026 after a period of low inventory, high mortgage and interest rates, rising home prices, high construction costs, relaxed supply chain, increased construction times and rising ages for first-time homebuyers. Jamie Aguilar, chief lending officer at Sunward Federal Credit Union, said his organization is seeing fewer loan applications from first-term home buyers due to decreased loan applications. The greater Albuquerque area's median home sales price was $370,000 last year. Local builders, Realtors, and lenders described last year's market as challenging but stabilizing. Mackenzie Bishop, co-founder and co-owner of the Albuquerque homebuilder Abrazo Homes, said the market is returning to some kind of equilibrium and stable level. However, he noted that the market remains constrained and that the housing market in the area is 13,000 to 28,000 units short of meeting demand for housing.