Home Inspections: What things they don’t inspect in your Albuquerque home

(Transcript Snippet): “Tracy:
So we’ve talked about home inspections before, but today we’re going to talk about what home inspectors, the general home inspection, the one who does the full house from roof to outside of the home, what things they don’t inspect. And, you know, it’s good because the list recently came out New Mexico, um, instituted a home inspector

Tego:
Licensing program.

Tracy:
It’s a requirement. So home inspectors went and got licensed, which many of them were, or they were members of large national companies that made sure that they knew what they were doing. Um, but now there’s licensing in place. So along with that came a really good list of things that they don’t look at. Right. But they’re not responsible for basically

Tego:
The list is, is, uh, it’s a 14 page document and it literally lists what they do and what they don’t do. But we just wanted to summarize some of the things that they don’t do, because we’ve seen that where, you know, somebody would say, well, why didn’t they look at the irrigation lines? Yeah. The sprinklers. Right,

Tracy:
Right. It’s just something that they don’t look at. It’s not a part of the general home. Right. So they don’t, so let’s go through some of I’m sure. I know a big one to go without looking at the list is that they don’t necessarily do a code inspection. Right. They don’t check things to make sure they’re up to code today. Right, right, right. Because the building codes change, you know, regularly,

Tego:
I think about the, just like a hot water heater, for example, let’s change so many times. And so, you know, if you have a hot water heater that was installed 10 years ago, 20 years ago, it’s going to be very different than if you’re getting installed today. So they’re not, you know, they’re not saying that that hot water heater isn’t up to the current code because when it was done, it was probably done to code or should it,

Tracy:
And they can’t expect the home inspector to know every code change. So they’re looking for general, um, hazards. They’re looking for, you know, things that could be a problem, but they’re not doing code work. So to speak. The other thing I know that they don’t do because I’ve been at a lot of home inspections is they don’t usually light appliances or turn things on, um, in general, if it’s not on. So if, um, the furnace is a non and its time, the furnace should be on, they won’t light. If the, if the, uh, pilot light isn’t lit, they’re not gonna light the pilot light. Right. Correct. And fireplaces, same thing. They typically don’t inspect fireplaces. And if it’s a gas fireplace and the pilot light, isn’t lit, they’re not going to light it. You know, if it’s a switch on the wall, they’ll probably turn it on, but they’re not going to do a Fireplace.

Tego:
And let me just address that. Cause you said fireplace, well, I want to get my fireplace and spec. Well, there’s people that do that right there. There’s fireplace specialists that will look at a fireplace and think about, you know, sewer lines. Right. So scoping a sewer line with a camera to see if it’s good, right? The, the standard general home inspection doesn’t do that, but you can hire somebody to do that septic tanks, another example, right. It’s a specialist that’s going to do that. Right.

Tracy:
You know, you think about the fireplaces and it’s not just, if it’s a gas one or a wood-burning one, but there’s the whole chimney all the way up. And so, you know, somebody inspecting the chimney in addition to just the fireplace unit. Right. And they typically don’t do that. So the, the other things that they don’t do Tiko,

Tego:
I mean, in general, it’s they in? And this is kind of covered the whole thing. They don’t take things apart. They don’t poke into walls. They don’t dismantle stuff. They don’t, they don’t do anything that could hurt the property either. Right. So it’s, you know, any of those things, they’re not gonna, you know, take, pull the dishwasher and unscrew it and take it all apart to see, you know, what’s going on in the back. Right. And then, and then they’re not gonna run or turn something on that isn’t operating in its normal sense. So, and this is an extreme example, but I’ll give it to you anyway. So there’s a garbage disposal. Right. And they flipped a switch on the wall and the garbage disposal doesn’t come on. Right. Well, they look under the sink and it’s not plugged in. Okay. They’d probably plug that in. Right. And turn it on. Right. To see if it works. But that’s an example right there that that’s a norm. Again, that’s a very extreme example, but the normal operating way to do it, as you flipped a switch on the wall or the counter and turn on the disposal, and if it doesn’t work, then they not write down. Disposal did not didn’t work. Right. They don’t change light bulbs. They don’t do anything like that as well. Another example. So totally.

Tracy:
Um, so another thing that I’ve seen quite a bit, we don’t have a lot of crawl spaces here, but we have addicts in a lot of our homes and a few homes have crawl spaces, but if the space isn’t large, they’re not going to go in, they’ll maybe put their head in and shine a flashlight or something, but they’re not going to put on their coveralls and go into a crawlspace. That’s not adequately sized or they’re not going to go into a roof attic if it’s not adequately sized. So, you know, it’s, it’s a tough one, but we have seen a lot of like, especially the pest inspectors, I’ve seen them put on their coveralls and come out covered in cobwebs and say, boy, there’s a lot of, uh, black widows down there.

Tego:
Yeah.

Tracy:
But that’s only when there’s enough room for them to do that.

Tego:
Yeah. And I think in general, Tracy, in this conversation is that, you know, the home inspection to general home inspection is intended to give a full scope of the visual, visual, you know, great way to put, they

Tracy:
Do turn on things. So if there’s a dishwasher, they’ll run it. Right. Right, right. They’ll check a furnace, they’ll check an air conditioning unit if the outside temperature allows because they can’t turn it on. If it’s too cold outside for a regular refrigerated air conditioner, they, they just can’t. It could damage the unit and freeze, freeze it up. Um, so lots of, lots of things that we’re wanting to make sure that our clients, when it’s a full home, they know this is what they do. This is what they don’t do. So there’s a new 14 page document that kind of covers what they do and what they don’t do. But most home inspectors have their own disclosures too. The other thing to remember Tico about home inspections is it’s a snippet snapshot of time. That’s a good way to put it, right. This is the house, the moment that that home inspector went through it.

Tracy:
And right when they leave something could break. I mean the very next day something stops working, right? So they say they don’t more into anything. They don’t provide a bunch of, um, warranties, coverage, anything they’re just saying at this time, this is what I found the house to be in the condition of. They don’t go into a bathroom and remove a tile and make sure there’s no mold behind the bath tub surround or, you know, it’s, it’s what they can see visually. And so not all things are found, you know, if somebody has a concern about mold, there’s a mold tester person. You can get out there. Right?

Tego:
Yeah. Well, we have this long list of, you know, of all the different types of inspections that you can get that we go through when we’re, uh, you know, somebody who’s looking at a home to, you know, generally though you’re going to get a full home inspection. Right. And I would never recommend that somebody not get a full home inspection, even if they’re there, they’ve already agreed to accept the home as, as is meaning they’re, you know, they’re going to, they’re going to just accept it no matter what they find, you still want to know what you’re dealing with. Right? You still want to know what the condition of the property is. Um, and then the other inspection we generally see, uh, happening is a, is a wood destroying. Insect is the proper term, but basically the termite inspection we’re destroying insect and, uh, uh, possibly, uh, dry rod inspection with that. That’s just checking a wood for wood, wood damage. So anyway, there’s a long list and, you know, we, we, we, we could spend an hour going through it, but it’s, there’s, there’s a lot to look at.

Top Trends in 2022: A list of what to expect in Albuquerque’s Real Estate Market next year

(Transcript Snippet): “Tego:
Tracy. I was, I saw a story that had a list of, um, top trends that are being expected for 2022 in homes in homes. Well, and just in, in real estate, in general, not in homes, I’m not talking about like design trends. And then I’m just talking about the, the real estate world, the whole, the whole, the whole world. And so there’s a list here as well as I threw a couple other in here that, that I thought were pretty interesting. Um, but, but first off, the, the, the trend is, is values, home values. Uh, everybody is expecting it. I say everybody, I should rephrase that. Most of the experts that are, you know, look at this stuff every day in the real estate world, uh, project that home prices will continue to rise, uh, across the country next year.

Tracy:
And our regular listeners will know all the reasons why, right. They know, because interest rates are predicted to go up. Some, we know that we’re not expecting a lot more homes on the market, and there’s a lot of buyers still waiting for homes. There are not a lot of houses in foreclosure about to hit the market. And even if 2 million across the United States came on the market, it wouldn’t make it unhealthy. Right. So for all those reasons, home prices will continue to rise. Yeah.

Tego:
The one projection is that the rate of appreciation will slow a little bit, which we need, because really this double digit, you know, annual price appreciation, it’s just not healthy. It’s, it’s not is it’s not. Um, and, and along with that, just to, to, as part of that, as home prices go up, rent are expected to continue to go, continue to go up as well. Right?

Tracy:
Speaking of France, adrenal suite from our team was featured this week. She manages an apartment complex in addition to doing residential real estate. And she got featured on the news this week on TV. And it was awesome to see that. Yeah,

Tego:
Yeah, no, it was, it’s interesting because [inaudible] did that story about, you know, the rent’s going up and, you know, we actually did that story last week on the radio shows K or queuing listening, uh, you know, get your, get your radio topics here, or get your topics, your TV topics here on the radio.

Tracy:
Some other trends for 2020,

Tego:
Some other trends, uh, is just tech tech adoption. But I think we all realize that that’s everywhere. You know, that there’s just going to be more and more tech in everything we do. Just, just so people understand in the real estate world. I think a lot of people know about the, uh, virtual tours and different ways to view homes and the way homes are marketed and shown, right. Tracy, that’s, that’s pretty popular. Um, other stuff that’s coming into real estate much stronger now is, uh, artificial intelligent things like reading, being able to actually read or, or look at photos of home for sale in and glean some data from that that’ll help, uh, a home buyer. So there was a lot going on.

Tracy:
We talked about this a few years ago. Tigo is so much more, um, possible now in that’s where the computers are reading the photos that you’re lingering on the most. So when you’re doing home searching online and you’re looking at pictures and there, the artificial intelligence says, wow, you’ve looked at this house four times. I’m going to find you other houses with photos similar so that maybe the color palette or the kitchen or whatever is similar is what pops in front of you.

Tego:
It’s all spooky stuff. And I’m sure people are cringing out there listening to this and it’s, but, but it’s here, it’s happening. And we know, we know that those, you know, home search website use different types of technologies to do that, to help serve you up homes that that may be, you know, uh, appeal to you.

Tracy:
It’s that whole, you know, they’re following you, you know, this is off topic, but I had read an article this week about apple and they’re developing the Evie car, the electric vehicle, and it’s autonomous, you know, pilot, no, no driver driverless. And it was crazy to me that it said that within five years, they plan to have this vehicle on the road. And it said that there will not be a steering wheel, a gas pedal brake pedal, and that the seats will face each other. You won’t even be looking out the front. Yeah, I don’t think so. But you know, think about how far we’ve come in just two years since the pandemic hit, how much we’ve all embraced things and things have changed much more quickly than we ever thought possible. Anyway,

Tego:
That is true. And speaking of tech, just actually, let me just make one, uh, uh, story here actually, or tell a story is in, in New Mexico, um, notarizing Tracy, you’re, you’re a certified, you know,

Tracy:
Notary public notary
Tego:
Republic, right. And in New Mexico, uh, starting at the beginning of 2022, you will be able to do, uh, electronic notarizing of documents signing the signing, but not, but actually notarize. I mean, we’ve had either

Tracy:
Notarizing. Yeah. Which is great. Um, I’ve been watching the secretary of state’s website and I, you know, you have to go back through training and get a new notary stamp to be able to do all that. And right now I haven’t been able to find that it’s even available yet for me to get trained on and get my new credentials for it, but I’m watching for it because boy, that has been so handy for us in other states and with some of our clients, when they’ve needed to sign in, they allow a notary in those states and that notaries online, they look at your ID online, they’re with you. They tell you where to sign. We’ve

Tego:
Personally signed, done some of that. Tracy. And, and to me, it seemed like it was almost more secure than in, in many ways. So anyway, that’s coming, you know, again, backward we’re, we’re talking about trends in real estate for 2022. And one of the things that’s coming to New Mexico is a

Tracy:
You notary notary. So one other thing Tego that I’m thinking is 2022 is the work from home is not going away. No,

Tego:
No. It appears, you know, all the surveys, all the stuff, you know, like you th the, the companies that do recruiting online, like, you know, ZipRecruiter and indeed, and all of our wives hire yeah. All those, they, you know, do tons of surveys and they’re looking at, you know, what the application or what the, uh, um, what employers or job requirements are. And one of the things is, you know, work from home has gone up quite a bit and it’s going to be it’s, it’s here to stay. Basically,

Tracy:
Of course, there’s lots of service jobs that you can’t work from home. Um, and a lot of businesses where you can, you know, it’s interesting because we were talking with someone who is interviewing right now, and it’s a type of position that can be done from home. And a major corporation was saying, no, we want you in office. So there may be some companies where they’re saying, Nope, we do want you coming in office, or at least in area, because right now we know there’s a lot of people who are on teams, where their teammates are all over the world now, and they don’t have to move for a job. Um, but I think, you know, maybe some will still require you to move. So you can have those occasional in-person meetings, but not every day.

Tego:
And just one last thing on the work from home thing that has driven a lot, uh, in the housing market and people needing to get a different home so that they could have a home office or a place to work from. And, you know, there’s, there’s these auxiliary early auxiliary dwelling units that you can buy, you know, so you can have like a, an office in your backyard. It’s like a little tiny house office. Right. And so there’s a lot of that stuff going on and it looks like that trend is going to continue

Tracy:
Off topic. Again, we were on a, um, Google meets with a really high level executive this past week. And their baby started crying and their dogs started barking. It was pretty funny. I was like, he goes, I need to step aside for a moment and close my dorm. Like, you didn’t have your door closed before. And then it was like the dog. It was sort of ironic.

Tego:
Well, that’s the way it is. Yeah. Yeah, for sure. Uh, trend another trend. That’s uh, if you’ve been listening to us, we’ve been talking about it for a long time, which is the millennial buyers in, in 20, I mean, 2021. It definitely millennials that, that generation, that cohort has dominated 2021 and is probably gonna dominate it even more in 20, 22, as, as home buyers,

Tracy:
72 million in that category, they’re obviously a huge segment of who’s ready to buy a house. And I believe that the average income of the millennial cohort heart right now is about 88,000 a year, probably in their joint between two people working together to be able to be in a position to buy a house. And that’s awesome. You know, we expect a lot of them to be buying in 2022, just like they were this year.

Tego:
Yeah, no, for sure. For sure. Um, one thing that I saw that I thought was interesting, and I’ve seen this in a few different places, is it the new construction? Um, we keep saying, we need more houses. We need more houses, keep building, keep building, but there are a lot of projections at the, the amount of new homes being built is going to stay pretty stagnant. That it’s not like we’re going to suddenly have this building. Boom, like we had in 2004 and five right there. There’s just so many constraints on building right now from availability of lots availability and materials, availability of labor cost of all of those things have gone up, you know? And so there’s a certain point where a buyer just says, no, I can’t, I can’t spend $500,000 on a, on a basic, you know, entry-level home. Right.

Tracy:
I can’t wait 14 months or some unknown date for that house to be built.

Tego:
So yeah, there there’s some projections at the new construction, single family home construction is going to stall a little bit, but there’s also projections that multifamily is going to boom a little bit because, because of the need for just housing, we just don’t have enough in this whole country. So yeah, I thought that was interesting. Um, and then the last thing that, that, uh, you know, I was thinking about is there’s going to be coming out a lot of different creative, uh, I want to say creative, but financing ways, homes, ways to purchase homes that aren’t the traditional, um, how do I want to say this? There’s going to be ways to help people buy homes and sell homes that have never existed before. And so what I mean by that is if somebody, uh, you know, Tracy, you and I were just at that conference here a few weeks ago that, uh, all the, the venture capital people in the real estate world that come together and talk about all this tech and both property technology, as well as financial technology in the mortgage world.

Tego:
And there’s a ton of innovation going on there. And I know as soon as you start saying creative financing for, for real estate people cringe because they think about, you know, what happened back in the day with the subprime and all that, right? But there there’s these solutions out there where somebody can, uh, hire a company to buy their home, you know, before they sell their home. So when they go to buy the next home, they’re a cash buyer, right? That’s just one solution. There’s, there’s a bunch of different products out there for these kinds of bridge loan products, right? To allow again, somebody to buy and sell and have some sort of financing, financing in place. Um, that’s, that is booming right now. We’re going to see more and more of that. Um, the other thing is the government. And if you, you know, I follow all these stories, uh, that’s related to real estate, federal government is doing a lot of stuff.

Tego:
They realize that there is a quote, air quote, housing crisis. We don’t have enough homes. Homes, prices are, are going up faster than, than is logical. And so there’s going to be programs coming out to help first time, home buyers, minority home buyers, um, you know, helping, you know, maybe distressed neighborhoods to bring those neighborhoods up. You know, there’s a lot coming, not just from the private sector in venture capital, but also expect some stuff from federal government for, for housing programs. So there it is, there’s my projections are our projections and all the experts that we follow projections for real estate in 2022, Tracy.

Running the numbers: The most expensive and the most affordable places in Albuquerque

(Transcript Snippet): “Tego:
Um, anyway, so Tracy, um, we were talking about, you know, okay. These different parts of Albuquerque, I saw a national story. It was talking about, you know, what are the most expensive places in the country. Right. And I’m like, well, okay, well, let’s, you know, you, and I know this, but I bet people are curious, what are the most expensive parts of Albuquerque? You know, where are the most expensive homes? And we could also talk about where the most least expensive homes as well. And so, uh, I ran the numbers and I’m sure you probably know,

Tracy:
I haven’t seen the numbers, but I could guess I know we always like that. So I’m going to say, well, most expensive, a couple things come to mind right. Far Northeast Corollas plus Cetus

Tego:
Yep. Good Job

Tracy:
So 87122, 87048

Tego:
So 87122. If people aren’t familiar with it, that is the area that is basically north Albuquerque acres and San Diaz height, right? Yep. Um, the, uh, the next one is a 7 0 4 8, which

Tracy:
Pirellis the next one is 043 Placidas

Tego:
Placidas is next. Yep. And then, um, well, 043 and then 047, which is, uh, eastbound.

Tracy:
Yeah, that’s north 14 up a ways. Not, not Cedar crest to Harris, but San park

Tego:
And then 87008, which is a old town I believe now. Oh my gosh. Now I feel,

Tracy:
I was going to say, oh

Tego:
Wow. Now I found it really silly. Um, oh, oh, I’m sorry. That’s that’s Cedar crest. I’m sorry. That’s why. Yeah. Yeah. So it’s these mountains also. Um, and then, uh, yeah, so, um, and then ACM 059 also, um, uh, east mountains. Yup. Yup. And then 87111, which is what we consider the kind of a traditional far Northeast Heights, you know, that’s like Tatooine and in everything around there,

Tracy:
Quavis school

Tego:
District, north of Montgomery. Yeah, exactly. Yeah. So yeah, it’s, it’s pretty interesting. And then we get into the north valley, um, and, and, uh, just kind of on down the list then like 87114 which is the north west, you know, paradise Hills, uh, T uh, my, on that really tailored ranch, I guess, but mostly paradise Hills, some of the newer areas. So yeah, it’s interesting, you know, it, it definitely seems, and I, I think we see that, right. Tracy has, we’re, we’re looking around the city, you know, there are certain pockets where there’s some, you know, very expensive homes, north valley, um, far, far Northeast Heights, San Diego, San Diego, um, um, Sandia Heights, north Albuquerque acres. So yeah, very, very interesting. If we look at the most active, uh, uh, zip codes and know, you know, the most number as in the most sales, it’s interesting because

Tracy:
This

Tego:
Rio Rancho, yeah. This year, it was north Rio Rancho with, uh, over 1600 homes year to date through.

Tracy:
Interesting. And second is, uh, 87120, which is, um, Southwest and a little bit over I, 40 west of

Tego:
We’re still considered Northwest, but it’s just a one, two. Oh, oh, I’m thinking of one to one. Yeah. Yeah. Got it.

Tracy:
Got it. Southwest and a little bit over I 40.

Tego:
Yeah. So, and then 87144. So you think about, you know, the areas where there is a lot of homes, right?

Tracy:
114, yeah. Northwest and then south Rio Rancho. So yeah, so those are all very hot and in a lot of newer neighborhoods, you know, in the last 20 years in those areas.

Tego:
Sure. And when we look at, you know, the, the buyer’s market versus sellers market, and, you know, what are the hottest zip codes in town? Uh, what we see are the zip codes of like 87120. And, you know, again, it’s these places where the prices are a little more moderate, right. Are going to be the, the, the most active you’re going to see the most competition for homes that come on the market. Right. Right.

Tracy:
And of course, if you think of a pyramid right. Of, of our home prices, the highest price homes we’re going to are going to be the least amount of sales. Right. Right. And the ones that are most affordable, obviously there’ll be the most or bulk of the sales. So it only makes sense for, for sure. For sure. We don’t have to be like really smart to figure that out.

Tego:
Yeah, yeah, yeah, no, that’s for sure.

When will we have more homes in the market? Looking at Albuquerque’s Real estate market data

(Transcript Snippet): “Tego:

So I did a little, uh, analysis here, Tracy. And, um,

Tracy:

When will we have more homes on the market to go? I know you were working on that analysis

Tego:

As I, I looked at a lot of different data. And so if, you know, if you’re not familiar with the pin going on in the Albuquerque real estate market, and by the way, this is Tico and Tracy Venturi with the Venturi Realty group of Keller Williams Realty in Albuquerque. And if people want to reach us trace,

Tracy:

Uh, best is just call us 448-8888 Of course, that’s in the (505) 448-8888 or welcomehomeabq.com.

Tego:

That’s great. Thank you. So, uh, you know, the, the, the real story of our market is just the limited number of homes on the market now, and that’s not just our market. I’m sorry. That’s, that’s nationally. That’s, that’s, I’m not going to say everywhere, but you know, most markets healthy, real estate markets have a, a much lower number of homes on the market than what would be considered healthy. And, and what’s what’s happened is that driven prices up substantially, you know, double digit, uh, home price growth in the last couple of years, each year. And so, you know, the question is, okay, what’s going to happen. That’s going to bring more homes on the market to hopefully maybe stabilize prices a little bit, give more opportunity, more options for buyers. And, uh, you know, if, if you’ve heard you probably, you may have been, if you follow the housing market at all, you’ve probably heard the narrative that we’re going to have foreclosures, and we’re going to have homes that were in this forbearance program that are going to come flooding on the market.

Tego:

Well, I, I’m here to tell you and I, and I’m very confident in this. That is not going to happen. There’s maybe some, but it’s not going to be a flood. One of the reasons for that is we, we know, as of today, we’re here in November of 2021. Most of the programs where people were in this for forbearance programs, uh, expired in October now that, you know, September, October, October was when a lot of them were coming up. And if there were a lot of people that were in a, in a situation where they couldn’t, you know, pick up and start making their mortgage payment again, that’s how you come out of the forbearance plan. Um, we would have seen, you know, a bunch of homes coming on the market. We haven’t seen it locally, and we haven’t seen it national

Tracy:

What’s really gone on with homes on the market. Well,

Tego:

Give me the context or what do you know, h

Tracy:

So how many houses do we have on the market compared to last month or six months ago? Okay.

Tego:

Yeah. Thank you. To put it in perspective. So we’re down about 30% over last year, which was down from the year before, which is down, but for the board the year before, let me put it this way right now, November of 21, we’re somewhere around 950 homes in the Metro Albuquerque area, which, you know, that’s residential properties, a healthy market when they say, you know, and they talk about a balanced market or a buyer’s market, or seller’s market, a healthy market, based on the current demand we have is 4,000 homes, 5,000 homes. We’re at 950, right? Yeah. So, so it’s, there’s, you know, a lot of things going on out there, interest rates has started to come up a little bit that might actually slow things down. Maybe, maybe not. Um, but, but the one trend in the data that I was trying to get to here the long way was when are we going to have more homes coming on the market?

Tego:

And if we look at the seasonal trends from now through probably the end of February, um, we’re going to continue, continue to have less and less homes in the market every week. Um, that, that holds true. I went back to 2013 and, and I’m sure it goes back further than that. I just didn’t need to go back any further is every year from about this point until the end of February, the following year, we see about 20% less homes on the market. Now, 2020 was an exception to that. But a 2020 is an exception to just about everything. Yeah, yeah. Which, which means from our 950, we have now, I mean, we could be down to 700 homes on the market.

Tracy:

That would be really tough

Tego:

It would be, and it’s, it’s unfortunate because there’s people that want to buy. We know that there’s thousands of people in our market that have, um, pre-approvals, you know, to, to purchase a home mortgage applications. We know that mortgage applications have been very strong. We’ve got that data. So, uh, I don’t know. I, I, you know, it’s just, I don’t know what to make of it other than it’s it’s not great.

Tracy:

Yeah. That’s tough. So when will we see more homes on the market? Probably March, March, probably April, definitely April, may, June, because that seasonally is when we see them, but will we see 4,005,000 homes on the market? No, we’re just going to slowly inch up for our busy season next spring. Um, which means if you’re thinking of selling might be a really good time. Yeah,

Tego:

Yeah, no, I, I mean, it’s, it’s a, it’s a challenge and I know I’m kind of tongue tied here because I’m not sure what the make of it, you know, there’s housing economists and economists out there that would like to see 4% interest rate just to suppress the market just to slow down the real estate market and, and that’s, um, possible, but not likely that we’re going to see 4% interest rates anytime soon,

Tracy:

Even if it’s 4, Tego. I mean, it can’t slow. It that much right for is still phenomenally great interest rates. And we were talking quarter percent, 8% here and there, and yes, it makes a difference. But

Tego:

Let me give you this thought experiment. Okay. If you have a home and you’ve locked in a 30 year mortgage at 3% interest rate and a year or two from now mortgage rates at, for four and a half percent, how motivated are you going to be to sell your home?

Tracy:

I think people still, you know, if they need to sell and they want to sell. Okay.

Tego:

Yeah. That’s fair. No, I’ll, I’ll accept that. I’m just, I’m just wondering with these ultra low mortgage rates that people are now locked into, um, if that’s going to be a deterrent for people putting their homes on the market in, in the future,

Tracy:

It could be. And probably Eddie would know that the lot of times what we’re seeing now is when people are buying their dream home or they’re moving up or they’re changing homes, they’re keeping their current home as a rental. So they’ve got a house that’s, you know, a great rental and you’re at a 3% mortgage might just make sense to keep that house. When you buy your other house,

Tego:

You just hit on another thing that’s that is also affecting the, the lack of supply of homes in, in the country is a lot of people are doing that. A lot of people own a second home rental home investment property, way more than, than, uh, any time in the past, right. That’s keeping homes off the market, or at least for the, for sale market. Yeah.

Tracy:

We’ve had plenty of, uh, home sellers that have chosen to keep their home and buy a new home as their primary residence.

Tego:

For sure.