The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of the Appraisal Institute.
Q&A with Mark Raney, SRA and M Realty
Published by: admin@ivsinfo.net,
General Market + Appraiser Perspective
1) From an appraiser’s standpoint, how would you describe the current Albuquerque market in 2026? Are we stabilizing, correcting, or still adjusting?
I would call it a reset. A correction is when we paid too much. A reset is when we adjust to a new paradigm. In this case, that paradigm is high interest rates for buyers, combined with a floor under values because the vast majority of homeowners are locked into 3% and 4% mortgages. That keeps inventory low and prevents the price drop that typically follows a decrease in buyer demand.
2) What are the biggest challenges you’re facing right now when trying to determine value?
In the 2026 Albuquerque market, the biggest headache is that we are looking at two different worlds: the resale world and the builder world. Builders are working overtime to keep sticker prices high so they don’t upset the homeowners they sold to last year, but they are doing it by loading deals with “hidden” money. Between 4% interest-rate buydowns, flex dollars for upgrades, and giving away view lots, a builder’s $550,000 sales price is often a financial mirage.
The real danger is using those subsidized new homes to value a regular house down the street. We are not just appraising bricks and mortar anymore. We are trying to separate the actual value of the home from the financing package wrapped around it.
3) How are interest-rate changes playing in the market?
When rates were low and demand was high, buyers would overpay for luxury and ignore significant flaws. Even a home with a pool backing to the noise and fumes of a major thoroughfare could command a premium. Good luck selling that home now.
With higher rates, that trend has reversed. High rates have also created a lock-in effect for many sellers in the 3% and 4% range, which keeps inventory tight. Buyers have become more discerning. We are seeing, and will continue to see, a shift toward concessions and buydowns.
4) What misconceptions do agents and consumers have about how appraisals work in Albuquerque?
- That cost equals value. People assume a $100,000 pool or a $60,000 kitchen should raise value by the same amount.
- That out-of-state lenders are as good as, or better than, local lenders because they are cheaper.
- That homeowners own the appraisal.
- That an appraisal should match or exceed the Zillow estimate. Over the past five years I have had people call and say, “But Zillow says my home is worth more than the appraisal.” Not once has someone called to say Zillow says their home is worth less.
Albuquerque-Specific Trends
5) Are there particular areas where values are moving differently than the rest of the city? What’s driving that?
Land values in the East Mountains are under pressure from supply and higher construction costs. The Westside is under more pressure from new-construction incentives. Far Northeast Heights, High Desert, and the Cottonwoods area of the North Valley have steadier demand. Historically, the UNM area, Placitas, and Corrales have been bellwether locations when the market makes a real shift.
6) How do you handle rapid shifts in pricing when comparables feel outdated?
Actives and pendings are an indicator of where the market is going. If comps from six months ago are coming in higher than current actives, pendings we are seeing softening. If they are coming in lower then recent sales, we are still rising. We use market-condition adjustments to bridge the gap.
7) Albuquerque city limits have shifted from roughly a 70/30 homeowner-to-renter ratio 25 years ago to closer to 60/40 today. How does that show up in valuations?
Increased investor activity in single-family homes for the rental market can drive up competition for starter homes and push values higher in traditionally entry-level neighborhoods.
8) With more out-of-state investors and institutional ownership, are we seeing a measurable impact on neighborhood values?
Some people have said we are being colonized by hedge funds and out-of-state investors who treat Albuquerque like a spreadsheet with a view of the Sandias. They buy inventory that could have been starter homes for local families. Combined with higher rates, that increases demand at the lower end of the market.
9) Is the shift toward renting sustainable long term, or does it create instability?
As the city moves toward a 40% renter population and more capped-equity models, the “stake in the game” gets thinner. Residents focus more on monthly cost than on long-term asset protection. Without the ability to build generational equity through a deed, the market loses part of its foundation.
High rental density can also contribute to manufactured blight. The International District is an example. The city once pushed multi-unit housing to support Sandia Labs, and rentals skewed toward 70%. Later, the city recognized that imbalance contributed to transiency and crime. A commitment was made with a 2000 Metropolitan Redevelopment Area plan, and reaffirmed in 2010, to move that ratio back toward the city average.
Fairgrounds Project / Equity Model
10) Projects like the Fairgrounds redevelopment propose long-term lease models where the resident retains only a portion of the equity. How do you appraise that?
We do not appraise it as market value. We appraise it as a restricted leasehold interest. If the buyer cannot realize the full upside of the market, the value is capped. It is a complex assignment and requires a significant discount compared with fee-simple ownership. Because it is not market value, traditional lending is often not feasible.
11) Is this a new concept?
No. Albuquerque first saw this with the Sawmill lease during the Marty Chávez years. Coincidentally, Marty has also been part of the Fairgrounds Reimagined planning. It provides shelter, and one might call it affordable, but it is not fully equitable. It limits the one thing that has historically built the middle class: equity appreciation. It is ownership-lite. Sawmill residents have told me that while it is better than renting, it feels less like ownership and more like being “a renter with a mortgage.”
12) Could these projects influence surrounding properties?
Potentially negative, though we have not seen that at Sawmill.
High-End Homes
13) There may be an oversupply of $2.0 million to $4.5 million homes in North Albuquerque Acres. Do construction appraisals reflect that risk?
The risk is real, and construction appraisals should reflect it through longer marketing times and, in some cases, downward adjustments. A home that looks like a $3 million property on paper, but will not sell for two years because of oversupply, is worth less today.
14) When builders price homes on expected returns rather than comps, how do you reconcile that as an appraiser?
We don’t. Cost does not equal value. A builder’s profit margin is not a comparable sale, no matter how hard they try to convince us it is.