If you’re a first-time buyer looking to break into the housing market but struggling to find a home to buy, condominiums (or condos) could be a great alternative for you.
Here are a few reasons condos may be something you’ll want to consider.
Exploring Condos Could Add Options That Fit Your Budget
Supply challenges are a reality across the board in today’s housing market. Broadening your home search to include condos could increase your overall pool of options. Just keep in mind, condos generally differ from single-family homes in average space and floorplans.
In a recent article, Bankrate covers some of these differences:
“Condos are generally more affordable because they come with less space — you likely won’t have your own backyard, for example, and the interior tends to be smaller than the square footage of a single-family home.”
But if the size of a condominium meets your needs, they could match your budget as well. Data from the National Association of Realtors (NAR) shows the difference in the median price for both housing types. For single-family homes, the median price is $363,800. And for condominiums, the median price is lower at $305,400.
So, if budget is top of mind for you, a condominium could be a great fit within your target price range.
Not to mention, buying a condo is a great way to break into the market and start building equity that can help power a future move up. The condo you purchase today may not be your forever home, but it can be a great stairstep that can help you buy your dream home later on.
Find Out if Condo Living Is Right for You
In addition, owning and living in a condo is also a lifestyle choice. While it’s true they may be smaller than single-family homes, the amenities condos provide could be a draw for many buyers. Less space in your home might mean minimal upkeep, lower maintenance, and more time for you to spend doing the things you enjoy.
To understand if condo life is for you, Bankrate recommends asking yourself a few simple questions:
“Hate to mow the lawn and trim the hedges? What about pressure washing your driveway? Are your finances such that having to lay out $5,000 or more for a new roof will be a burden? . . . Condos tend to work best for those comfortable with most of the aspects of apartment living, minus the built-in maintenance.”
Ultimately, talking with an expert real estate advisor is the best first step to determining if condo living might work for you.
Bottom Line
Condominiums are a great option for many buyers, especially those looking to buy their first home. If you’re willing to consider condos in your search, you could find something that’s in line with your target numbers and your needs. To learn more, let’s connect so you have an expert in the condo-buying process on your side.
Based on the Primary Mortgage Market Survey from Freddie Mac, the average 30-year fixed-rate mortgage has increased by 1.2% (3.22% to 4.42%) since January of this year. The rate jumped by more than a quarter of a point from just a week ago. Here’s a visual to show how mortgage rate movement throughout 2021 was steady compared to the rapid increase in mortgage rates this year:
Just a few months ago, Freddie Macprojected mortgage rates would average 3.6% in 2022. Earlier this month, Fannie Maeforecast mortgage rates would average 3.8% in 2022. As the chart above shows, rates have already surpassed those projections.
Sam Khater, Chief Economist at Freddie Mac, explained in a press release last week:
“This week, the 30-year fixed-rate mortgage increased by more than a quarter of a percent as mortgage rates across all loan types continued to move up. Rising inflation, escalating geopolitical uncertainty and the Federal Reserve’s actions are driving rates higher and weakening consumers’ purchasing power.”
Where Are Mortgage Rates Going from Here?
In a recent article by Bankrate, several industry experts weighed in on where rates might be headed going forward. Here are some of their forecasts:
Greg McBride, Chief Financial Analyst, Bankrate:
“With inflation figures continuing to surprise to the upside, mortgage rates will remain above 4.0% on the 30-year fixed.”
Nadia Evangelou, Senior Economist and Director of Forecasting, National Association of Realtors (NAR):
“While higher short-term interest rates will push up mortgage rates, I expect some of this impact to be mitigated eventually through lower inflation. Thus, I expect the 30-year fixed mortgage rate to continue to rise, although we aren’t likely to see the big jumps that occurred over the past few weeks.”
Len Kiefer, Deputy Chief Economist, Freddie Mac:
“Mortgage rates are likely to continue to move higher throughout the balance of 2022, although the pace of rate increases is likely to moderate.”
In a recent realtor.comarticle, another expert adds to the conversation:
Danielle Hale, Chief Economist, realtor.com:
“. . . As markets digest the Fed’s updated economic projections, I anticipate a continued increase in mortgage rates over the next several months. . . .”
What Does This Mean for You if You’re Looking To Buy a Home?
With both mortgage rates and home values expected to increase throughout the year, it would be better to buy sooner rather than later if you’re able. That’s because it’ll cost you more the longer you wait. But, there is a possible silver lining to buying a home right now. While you’ll be paying a higher price and a higher mortgage rate than you would have last year, rising prices do have a long-term benefit once you buy.
If you purchase a home today valued at $400,000 and put 10% down, you would be taking out a $360,000 mortgage. According to mortgagecalculator.net, at a 4.42% fixed mortgage rate, your mortgage payment would be $1,807 a month (this does not include insurance, taxes, and other fees because those vary by location).
Now, let’s put that mortgage payment into a new perspective based on the substantial growth in equity that comes with the escalation in home prices. Every quarter, Pulsenomics surveys a panel of over 100 economists, investment strategists, and housing market analysts about their expectations for future home prices in the United States. Last week, Pulsenomics released their latest Home Price Expectation Survey. The survey reveals that the average of the experts’ forecasts calls for a 9% increase in home values in 2022.
Based on those projections, a $400,000 house you buy today could be valued at $436,000 by this time next year. If you break that down, that means the equity in your home would increase by $3,000 a month over that period. That’s greater than the estimated monthly payment above. Granted, the increase in your net worth is tied to the home, but it is one way to put the home price appreciation to use in a way that benefits you.
Bottom Line
Paying a higher price for a home and a higher mortgage rate can be a difficult pill to swallow. However, waiting will just cost you more. If you’re ready, willing, and able to buy a home, now will be a better time than a year, or even six months from now. Let’s connect to begin the process today.
The Best Month to Sell Your Albuquerque Home: Insights from Market Data
Understanding Seasonal Trends in the Albuquerque Real Estate Market
Introduction
Hey everyone, Tego Venturi here from the Venturi Group of Real Broker. Today, I want to delve into the seasonal trends in the Albuquerque housing market and provide insights into the best time to sell your home in this area. Over the years, I’ve analyzed extensive market data to determine the optimal months for listing your property to maximize its value. Let’s dive into the details and help you make informed decisions when it comes to selling your Albuquerque home.
Tracking Home Value Index Changes
A few weeks ago, I shared a chart that illustrated the Zillow Home Value Index change by month in the Albuquerque area from 1999 to the present. This analysis aimed to unveil the seasonal patterns that influence home values in our region. What I discovered was a consistent trend: the months of June, July, and August typically witness the most significant increase in home values. However, it’s essential to note that there is approximately a two-month lag in the data. As a result, on average, home values tend to peak around September.
Revised April 2024
Granular Analysis of Price Per Square Foot
To further enhance our understanding, I delved deeper into the data by examining the price per square foot for residential properties in Albuquerque. This analysis spanned back to 2003 and involved a color gradient representation to show the fluctuations across different years. The data revealed that the lowest month, in terms of price per square foot, consistently falls in January. On the other hand, the peak months for home prices, based on closed sales, often occur in June and July, as indicated by the 21-year average.
Implications for Sellers
So, what does this data mean for potential home sellers in Albuquerque? On average, the highest prices for closed home sales are observed in July. However, it’s crucial to consider the timeline from listing to closing. With an average of 45 to 50 days from contract to closing and an additional 20 days for the property’s marketing period, it becomes clear that sellers should plan to list their homes between April and May at the latest if they aim to capitalize on the peak selling season.
Strategizing for Success
Given these insights, it’s evident that sellers need to have their homes market-ready well in advance. This entails thorough preparation, staging, cleaning, professional photography, and effective digital marketing strategies. It’s important not to underestimate the impact of these factors in maximizing the value of your home. By being proactive and leveraging these strategies, sellers can position their properties for success in the competitive Albuquerque real estate market.
Conclusion
Understanding the seasonal trends in the Albuquerque housing market can significantly impact your selling strategy. By aligning your listing timeline with peak selling months and implementing effective marketing and presentation strategies, you stand a better chance of maximizing the value of your home. If you have any questions or need further insights about real estate in the Albuquerque area, feel free to reach out to the Venturi Group of Real Broker. Visit our website at welcomehomeabq.com to access comprehensive market data and valuable resources. Take care, and best of luck with your real estate endeavors!
Are you thinking about selling your house? If so, you may want to make it a priority to start the process soon. According to realtor.com, the sweet spot for sellers is just around the corner. In a recent study, experts analyzed housing market trends by looking at data from the past several years (excluding 2020, since it was an atypical year). When applied to the current market, experts determined the ideal week to list a house this year. The research says:
“Home sellers on the fence waiting for that perfect moment to sell should start preparations, because the best time to list a home in 2022 is approaching quickly. The week of April 10-16 is expected to have the ideal balance of housing market conditions that favor home sellers, more so than any other week in the year.”
If you’ve been putting your move on the back burner waiting for the ideal time to sell, you should know your golden window of opportunity is coming up. If you’re able to get your house ready quickly, here’s what you can expect from that week.
You Should See More Buyer Activity
The article expects higher buyer demand based on what’s happened in previous years. This could result in increased competition among buyers and ultimately a bidding war over your house. And since mortgage rates recently ticked up over 4%, chances are good that analysis is right. When rates rise, experts say buyers often hurry to make their purchase before rates climb higher. As Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), says:
“. . . Buyers are rushing to lock in lower rates as the outlook is for even higher mortgage rates in the following months.”
Your House Is Expected To Sell Quickly
Additionally, the realtor.com analysis shows houses sell even faster during this week of the year, likely due to the heightened buyer demand. If you work with a trusted real estate professional to price your house right, it should sell quickly. And when homes are already selling in just 18 days according to NAR, that could set you up for a big win.
Your House Will Be in the Spotlight
Since the beginning of the year, the number of homes available for sale has been at or near record lows. According to the realtor.com study, the typical trend for this week of the year is that there will be even fewer sellers on the market. If you list when inventory is low, your house will be the center of attention for eager buyers craving options.
If you’re ready to move fast, you may want to shoot for April 10th-16th as your target goal. Just remember, even if you’re not ready to list within the next couple of weeks, rest assured this is still a hot sellers’ market. If you list later in April, you’ll still be in the driver’s seat.
Bottom Line
Ready to get the ball rolling? Let’s connect and schedule a time to go over your next steps. In the meantime, make a checklist of things you need to tackle to get your house ready. When we talk, we can prioritize your to-do list and get you on the road to selling your house.
New Constructions: Why Aren’t We Building More Homes in Albuquerque?
(Transcript Snippet): “Tego:
Can we talk about new construction a little bit.
Tracy:
So new construction Tego, why aren’t we just building more houses?
Tego:
Thank you for that setup. That was a lovely, just lob that, that ball over the net. Just make it really easy to hit. That was great.
Tracy:
We’ve been doing this for eight years. I know, you know, I thought that’s what you needed.
Tego:
I did. I, I appreciate that. So I get a lot of questions, you know, why don’t, you know, why don’t we have more homes or why aren’t we getting more homes in the market? Why don’t we just build more homes? And there there’s a lot of reasons, you know, we’ve talked about the lost decade, right? Which in, in new cons, in real estate world and new construction, that’s basically from about 2009 until whatever 2019, we just didn’t build as many homes as we needed. You know, all the builders got very conservative in new construction, you know, after what happened in 2008 and nine, and we just had, haven’t been building enough homes. So it just hasn’t been ramping up national association of realtors, estimates somewhere between five and 6 million homes short nationally, basically, you know, household units that have not been built in those 10 years and we’re just behind.
Tego:
But, but why don’t we just say, okay, well, let’s go build more. Well, I got a few things for you. One of ’em is a labor and I wrote it down here. The national association of home builders did a projection. They just came out with their latest data on this. They say that there’s 380,000 open construction positions nationwide. That’s up from 300,000 a year ago. So it’s going in the wrong direction. There’s a lot of need for skilled basically tradesmen LA labor, you know, people that, that build homes, they just don’t have. There’s just not enough. People out there to, to do that. I know here locally are local. Home builders to association is, is working on some programs with you know, education programs to help like
Tracy:
With CNM. Yeah.
Tego:
I’m not sure if it’s with CNM, but I know they’re working on some programs that, that, that bring people into the trades and help them learn those, those programs to get ’em into the deal. So that’s, that’s one thing, right? Is it is just labor. We don’t have enough people to build a home. Second is the materials. And we all know about the supply chain issues that we’ve had nationwide. We know about the, the challenges in, in all different types of things. But, but some of these stats, yeah, you look at this, look at this chart. I just pulled it up, Tracy, which I heard jaw dropped. So what is average lead time for each product CA category when they’re looking at different products that go into a new home and you look at appliances, they’re saying 55% of appliances are taking 16 weeks or longer to build, even if you go
Tracy:
To, to arrive,
Tego:
To arrive once you order. Yeah. Yeah. And, and, you know, cabinetry is, is one of the big ones they’re saying anywhere from 12 weeks plus is about 75% of all cabinetry is taking 12 weeks or more plus and you go to on the list, you know, you think about all the different bits and pieces that goes into a house doors, windows, siding, flooring, fixtures, countertops, the list goes on and on. So, you know, supply chain issues are definitely an issue in, in the new construction, which is, which is definitely slowing it down,
Tracy:
Which some of the supply chain issues are related to labor also, right? Oh, you know, who’s making those appliances, where are they coming from? How are they getting here
Tego:
A hundred percent, a hundred percent. I, I did see some, some national stats on a number of single family permits. These are, you know, new construction permits Albuquerque, or excuse me, New Mexico is up 8% year over year from which is good, which is higher than a lot of other markets around the country. Arizona’s actually 13% or 8%. So they’re one, they’re one of the highest
Tracy:
Of new construction permits being pulled.
Tego:
Yeah. Montana saw a 61% increase in new permits. I thought that was interesting. But then there’s other markets like Colorado. They had a 17% decrease in, in new construction permits. So I’m not sure what’s going on there, but this is one that really jumped at me. We were talking about New Mexico. So single family homes, we saw 8% increase in building permits. That’s good. You know, probably could use not probably, we could definitely use more than that, but that’s good for multi-family proper look at this Tracy hundred 75% increase for New Mexico in multifamily permits.
Tracy:
So those are apartments. Yep. Condos, town homes. Yep. Whatever multifamily is. Yeah. But
Tego:
For the most part, it’s generally rental, you know, properties that are gonna become rentals of some sort. So that’s good because we have a, a as much as we have a housing crisis, we have a rental crisis in, in totally in New Mexico. So you know, there there’s good news there’s stuff in the pipeline. Problem is new homes are taking, you know, 3, 4, 5 months longer than they were, you know, new construction used to be, you know, you could get a new home in five months now at 7, 8, 9 months, 10 months a year. Problem with multifamily is we could use more rentals today. Most multifamilies, you’re looking at a two year lead time, right before you they’re actually available. So you know, there, there’s definitely some challenges there. I know, I wish there was some good news and it’s, you know, it, it, it just is where we’re at and, and the shortage of homes doesn’t seem to be going, going away anytime soon.
Tracy:
Good news in interest rates is yes, they’ve gone up, but they’re still a historic yeah. Lower levels. And we expect them to stay that way. Yeah.
