If you’re thinking of buying or selling a house, you’re at an exciting decision point. And anytime you make a big decision like that, one thing you should always consider is timing. So, what does the rest of the year hold for the housing market? Here’s what experts have to say.
The Number of Homes Available for Sale Is Likely To Grow
There are early signs housing inventory is starting to grow and experts say that should continue in the months ahead. According to Danielle Hale, Chief Economist at realtor.com:
“The gap between this year’s homes for sale and last year’s is one-fifth the size that it was at the beginning of the year. The catch up is likely to continue, . . . This growth will mean more options for shoppers than they’ve had in a while, even though inventory continues to lag pre-pandemic normal.”
As a buyer, having more options is welcome news. Just remember, housing supply is still low, so be ready to act fast and put in your best offer up front.
As a seller, your house may soon face more competition when other sellers list their homes. But the good news is, if you’re also buying your next home, having more options to choose from should make that move-up process easier.
Mortgage Rates Will Likely Continue To Respond to Inflationary Pressures
Experts also agree inflation should continue to drive up mortgage rates, albeit more moderately. Odeta Kushi, Deputy Chief Economist at First American, says:
“… ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.”
As a buyer, work with trusted real estate professionals, including your lender, so you can learn how rising mortgage rate environments impact your purchasing power. It may make sense to buy now before it costs more to do so, if you’re ready.
As a seller, rising mortgage rates are motivating some homeowners to make a move up sooner rather than later. If you’re planning to buy your next home, talk to a trusted real estate advisor to decide how to time your move.
Home Prices Are Projected To Continue To Climb
Home prices are forecast to keep appreciating because there are still fewer homes for sale than there are buyers in the market. That said, experts agree the pace of that appreciation should moderate – but home prices won’t fall. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:
“Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022. . . Given the extremely low inventory, we’re unlikely to see price declines, but appreciation should slow in the coming months.”
As a buyer, continued home price appreciation means it’ll cost you more to buy the longer you wait. But it also gives you peace of mind that, once you do buy a home, it will likely grow in value. That makes it historically a good investment and a strong hedge against inflation.
As a seller, price appreciation is great news for the value of your home. Again, lean on a professional to strike the right balance of the best conditions possible for both selling your house and buying your next one.
Bottom Line
Whether you’re a homebuyer or seller, you need to know what’s happening in the housing market, so you can make the most informed decision possible. Let’s connect to discuss your goals and what lies ahead, so you can pick your best time to make a move.
Geographically Albuquerque: If We Build It, Will They Come?
Transcript Snippet: “Eddie:
And giving him some nice surprises. He wants to talk about more homes on the market. So let’s bring that into, into this portion, which is geographically Albuquerque. Will we, if we build it, let’s do a field of dreams. If we build it, I know you’ve brought ins. I know you’ve brought in a lot of other home builders into your show over the last four eight shows. If we build it, will they come? I think this is the, the thing. And so Todd, Todd Clark, you know, Todd Clark, New Mexico department advisors, great pillar in the, the apartment. You know that that’s his world. Is he a New Mexico apartment advisors? He ha he did a presentation. That was, well, we are both panelists there. I did my presentation on residential housing. He did a presentation on what’s going on economic development anyway. Sorry, what was the question?
Tego:
Oh, the, the more houses, more houses, right? You said policy makers. Yeah, yeah, yeah, no, no, no. What, what you, what yeah, you said if they build it, will they come well, this is the problem they’re coming, right. When you look at, so he, he, he put together a an analysis between what’s going on with Amazon Facebook Intel who else here do we got coming? NBC universal fidelity investment Netflix. Right? All of that stuff that the New Mexico and, and Albuquerque economic development has done such a good job, bringing those industries in those people are already coming. Okay. And that’s a problem. We don’t have the housing for those people. We do not have enough housing for this PE those people based on his analysis. And, and I, I and when I say housing, I’m not just talking about what we do, which is, you know, single family, residential sales, we’re talking about rentals.
Tego:
We’re talking about everything. There isn’t enough housing for the people that are coming. So when you say, if we build it, will they come? No, no they’re already coming or they’re already here. Okay. That’s why we’ve had rent increase, you know, 15% in the last year. That’s why we’ve seen home prices go up 15% in the last year. So if we had a higher supply for the accommodation, the people who were moving in from out of, out of town from California in the movie industry, from other places and Washington, you’re telling me that we would have a much more improved affordability index for the mid to lower tier home buyers. Well, absolutely for sure. I mean, we have accelerated our home price. Acceleration. Let me give you, let me give you a really good stat on that. So there’s it’s Wells Fargo, home builders, Associa national home builder association.
Tego:
They do this, this thing where they say, okay how many homes in a particular market are affordable to the median income for that market? Right? So it’s, it’s looking at affordability, it’s looking at medium incomes and it’s looking at medium home prices. We dropped to the lowest level, which was 61% in the fourth quarter of 2021 for our market. So, but it was still 61%, which is, which is better than other markets like Phoenix, like Houston, Austin, definitely by chance. Do you happen to have Phoenix? Do you happen to have Houston? I do. I do. I do. I do. You’re gonna have to gimme a second to make the greater point here for why folks, you guys are in such a good position. And let me couple it, couple it well done. Let, let me say it this way. We are, we’re, we’re compatible with Tucson from affordability standpoint, we’re compatible with El Paso from an affordability standpoint.
Tego:
You were just an El Paso. You love El Paso it’s and Tucson and Tucson. Right? we are, we are definitely better. Let me find the Phoenix number, but we are definitely better than, than Phoenix. Better than other markets in Texas, Texas is an interesting thing when we try to compare to our markets. Yeah, yeah, exactly. Like Lubbock is more affordable. Waco’s more affordable. Right, right. But, but you live there unless you, you know. Yeah. Right. I mean, there’s like moving to a foreign country. oh, it’s completely is totally like moving to a different country. You have to have that culture and that culture is not for everybody. So yeah. Hold on, keep talking while I, I search Phoenix. Yeah. You, you do your search. So the point that I was gonna make that piggybacks on everything that Tego is dropping, and this is the great thing about me coming from the outside of real estate and sort of helping Tego along is I’m looking at a macroeconomic thing here.
Eddie:
And Tego is looking at the housing market cause nobody transacts more business or real estate, which is like, Hey, how many bench presses did you do today? How many how many squats did you do if you’re not doing squats and benching and working out, guess what? You’re not doing it. You’re not a real estate practitioner. It’s literally being a realtor is an everyday thing. I always used to tell when I was in real estate and I’m gonna be in real estate again, is it’s a verb, not a noun. You’re not a realtor. Yeah. You’re realing and do it. And if you’re not doing it every single day, you’re not a realtor like today, you weren’t a realtor because you didn’t sell something. I, I, I’m gonna, I’m gonna, I’m gonna say something. I, I usually don’t you slam my colleagues, but there, there are definitely people in this business that play real estate that, that have a license that do real estate.
Tego:
And no, this, this is a full-time, this is a full-time gig. I mean, there’s so many different things that we need to know in this business, but let me, let’s go back. Let’s go back to this affordability thing. So wait, wait, wait takeover. Before you make that. Okay, go ahead. I’m telling people one more reason why you need to be in Albuquerque and why it’s good to be in Albuquerque. And the upside of doing that is we, since that insulation from the government, that’s gonna be about two to two and half years. So we benefit in the city of Albuquerque and in the state overall from whatever befalls or befalls the rest of the country, it will hit everybody else first. And just like natural disasters, hurricanes, volcanoes I don’t know earthquakes, all the natural disasters, those hit every other place, but New Mexico.
Eddie:
Yep. Guess the same thing, real estate. Market’s gonna hit every other place, but New Mexico, you’re gonna get about a two year head start at least 18 to 24 months before it hits New Mexico. And guess what? We can actually prevent that that thing happening this next time around, unlike the last time, remember the markets hit in 2008. Yeah. And New Mexico didn’t, didn’t get hit, start hit until 20 10, 20 11. When I’m sitting there on the court steps, waiting for people to say, okay, well, this property’s gonna be available. This property’s gonna be available. That’s what I was looking at in 2011, I was like, oh my gosh, why did it take so long where it had hit us in Vegas? It was like the, the fall of two, seven beginning of 2008. We were doing it three, four years ago. All right. So no, and I, and I remember that, right.
Tego:
I mean, we, we saw it happen in Phoenix. We saw it happen in Las Vegas. Those were the, you know, the big examples of, of home price depreciation. That’s where it hit first. And it took another year or so before it hit here and you’re a hundred percent corrected. It will not will see it if it happens before it hits us. For sure. I don’t think it’s gonna happen. Honestly, I even, even nationally, even nationally, you’re gonna have some, some pockets, like let’s say Boise, Idaho. Right. Which has seen just crazy price appreciation over the last couple years. Maybe, but, but again so, so let me, let me go back to this affordability thing. So if you look at Albuquerque and they, like I said, the, the way they calculate, this is how many homes, how many, what is the share of homes on the market that can be bought by people at median income and Albuquerque was 68% at the at the first quarter of this, this year.
Tego:
That’s so it’s pretty current. So it’s the most recent one. The only ones that are better in, in the west, the way they cut now, the west doesn’t include Texas, but it’s like Yuma, Arizona, Anchorage. Interesting. Oh, that’s cuz wages are so good there. Yeah. Yuma. Yeah. Yuma is better. I think that’s, it’s more affordable there. That’s awful there. I know Sierra Vista Douglas, which is basically the same. But but we’re basically equal with, with Tucson. Like I said like six there we’re at 68%. They’re at 66%, but Phoenix was 43%. And so Phoenix can buy house. Yeah. I mean, not, not, not your median income folks. Right. I mean, and, and and so, and, and, and actually let let’s, I got a real estate story for you real quick. Go for it, go for it all.
Eddie:
So I’ve got one of my best friends. He lives in Gilbert and he’s, you know, he’s to married this year and you know, he’s been going through all this quote, unquote relationship stuff. so his soon to be wife sold her house in AJ, which is the, what we used out there for Apache junction patch, junction. Yep. Nobody wants to live in AJ. Right. It’s like, oh, where do you live? Aha. Oh, yeah, yeah. It’s way out there. Yeah. I love MEA. Cause I just, I just, yeah, it’s a, it’s a cultural thing that up with me and I’m a big I, I have lots of friends in queen, too. People who are running the school out in queen Creek, by the way, and Bobby Newcomb coach, the queen Creek team out there. So he’s looking and this guy makes well into the six figures and he is getting married this year.
Eddie:
And he literally just called me again yesterday and every single time say, oh, I think we got it. I think we got it. Yeah. We put in our bid we’re, we’re anticipating putting 40,000 more than what it is. And he’s like looking for houses like in the 500,000 range. When I tell you about the 500,000 range at BFE, which is now Gilbert and green Creek, which is an hour’s ride at least to the airport. Yep. And, and I, and I, I, I translate everything as far as the airport. How far are you from the airport that tells me where you’re at. Because without being connected to an airport in my, in my opinion, it’s not worth it for me. That’s the way I see things. So he’s like, we got it. Then he didn’t, then he got it. Then he didn’t. Then he got it.
Eddie:
Then he didn’t every single time the seller of the house is breaking the contract across a penalty, even because they can’t go and find the house that they’re bidding on, that they are in the same exact situation. And they need to sell, to go find, they’re trying to get out of their house. And the, all the new house is already spoken for, which means it’s a pre and they won’t quote you a number to brother sold out, like, like, like, like a Tinder box. Like it just like sold out in two days. Like, yeah, we’re gonna put our deposit. We’re gonna put it down. We don’t care. We just need to be in the house. And I don’t want to be drive. And they’re all measuring their commute. It’s their pain threshold is their commute. Not how much money they have, because we’re all sitting on all this money that they’ve made during this time.
Eddie:
Exactly. His wife, his wife sold his house per house and made all this money. Meanwhile, the inflation is eating up all the value of the house. Do you know what, how much gas is in, in in Phoenix right now? It was probably five. So it’s for the very first time. Yesterday is over $5. Yeah. Yeah. Across the board. And now we’re gonna ship at 5 56 bucks. Does anybody know how long it takes to get from point a to point B into place like Phoenix that stretched out the way that it’s insane and you can’t tell a commute forever. So what’s, what’s what’s happening. This guy’s been telling commuting forever. Guess. He thought he had a house yesterday for the third straight time. The seller has pulled out after getting a bid more than what he is, because he can’t go and find the other house that he has also place a bid.
Eddie:
And he needs to close transactions have, are, have so much hair on them and it’s not, it’s transactional. It’s not based upon everyone’s qualified. Everyone’s running around with seven 50 credit scores, you know, piles of money in the bank and willing to pay more. Yeah. The problem is it’s not the value of the house because the value of the house is not gonna appraise for what it needs to and that’s what’s happening in those markets. So what, what are those people think, Hey, what’s it like over there? Or I might just get a double wide at this point and keep the rest of the cash. Oh, you can’t buy those either, by the way, there’s shortage of those, by the way. Right. but you can go by you, you have to wait for people to die out of their house. The re the joke is, is those are 55 plus communities, and you’re hoping that something should befall the person that you’re finding, like it is gone.
Tego:
Yeah, no, our, our there’s a, a, a housing analyst that I follow his name’s Logan Mota, Shami, and he’s with housing wire. He, he, yeah, he is a great, and, and he’s very charismatic and stuff. So he is, he’s fun to listen to. And his, the, the, the term he’s been using now for a few months is the housing market is savagely unhealthy right now. And, and what he’s saying is we’re not talking about this whole, you know, the, the, the, the whole bubble thing with, and that’s what PE first people think about is like, oh, no, the housing market’s gonna suddenly crash. No. What he’s saying is that we have a, a broken housing market from a standpoint, we have so few homes on the market. We have so many people that want homes. We have just literally a shortage of, of places for people to live.
Tego:
And so it’s kind of just locked. It’s locked it up. And that’s why we have these, what we’re calling bidding wars, where, where things are getting bit up, you know, we have multiple people wanting homes. So yeah, we he’s, he’s been actually cheering on the higher interest rates because he, he sees as, as an, as an economist is we need this housing market to slow down and, and, you know, that’s what the fed said, right? The fed said, we are gonna kill this housing market. They, they literally not, I that’s, that’s a, that’s an exaggeration, basically. They, the fed said, yeah, no, no, they, they want, they know that we have to slow this down. We cannot continue this double digit home price appreciation, because at, at some point you just get to a point where nobody’s gonna want to sell. And there’s nothing for first time home buyers to buy.
Tego:
The only people that will be able to buy are people that have all this equity in their homes and are able to just roll it into the next property. Right. So the, the, the housing market does have some challenges. And it’s not that it is building up to this huge bubble it’s that we, it, it needs to slow down. And the rate of appreciation has to slow down because we can’t keep this up forever. Or then we really run into some other who knows what happens then. Okay. So lemme throw something at, yeah, but couldn’t ay bubble also be, you just don’t call it a bubble. It just means that you can’t sell what you have and the equity that you have in your hat that you can tap into in your house doesn’t really exist either because everyone’s sort of in the same boat.
Eddie:
So you could say your house is worth a million, or you could say it’s worth five. This is not talking about Albuquerque talking about in general. Yeah. Yeah. Couldn’t just say that you trapped into your house where you’re, doesn’t that just sort of keep this, the reasons you to hunt people it’s profile. Well, I’m, well, can’t sell another property, so yeah. Yeah. It’s, it’s, it’s gonna be the, the people that can sell because they don’t need the property. So, and, and actually let me address that. Sure. You know, we recorded a new ad for the station and we, we haven’t put it on yet. Cuz we only did 30 seconds and Eddie’s like, why did you guys only do 30 seconds? You guys do 62nd ads anyway. And we were talking about people that own rental properties right now. And as you know, cuz you’re, you’re a commercial broker guy.
Tego:
I mean the, the, if you’re a real estate investor and you own property, you aren’t an amazing, good position right now. If you’re looking to be done with being a property manager and owning rental properties. So that’s one place. We hope that we can get some properties coming on the market. Another place we hope we can see some homes come on. The market is I talked to one of the big property managers in town the other day and he said, we’re starting to see this whole eviction moratorium go away. And so there, so, so there are people that have wanted to sell their, their multifamily property or single family house, but they haven’t been able to cuz they’ve got a tenant in there that they haven’t been able to. So as my friend, I’m gonna stop you. And the I’m gonna there’s sometimes you’ve he goes one my best guy pick he’s somebody ask for, oh I’m in trouble. But as my friend I’m you’ll commercial broker residential I’m from having your ideas are so good and looking. So he doesn’t know that he’s probably helping his he’s believes in growing the I do. So we share a lot of, well, I taught a class to couple hundred realtors yesterday about the housing market. So yeah. Well, you know, the thing is one of those things, it’s only gonna be so much opportunity and I wanna make sure I.
Albuquerque Housing Market: Things have shifted in a seismic way
Transcript Snippet: “Eddie:
Very important. Cause things have shifted seismically and we knew this was coming and the thing is, is what is it? Pigs get slaughtered used to say it all the time. And you know, there’s a lot of know part ate everybody. And there’s a great scene. I was telling my friend he’s in the commercial real estate business in in Phoenix. And I was having a conversation with him. I said, you know, when people really get made, cause now you have people who really are millionaires. You have people who are really truly worth something. You know, one of the things that I missed is I missed the fact that there’s actually really rich people and that there’s really poor people. You know, I, I, we don’t have that anymore. It’s like, everybody’s rich, everybody’s poor. Everyone’s got something it’s all suspicious consumption. You can’t tell who who’s he what it anymore.
Eddie:
And so we have this sort of, this level of everybody deserves as an entitled to, and everyone’s got a million dollar house. I mean, if you drive through queen Creek in Gilbert, Arizona, it’s like, oh, I, I can hear the pop already. The pop has already ha happened in my head. Right? And it’s like, these people are walking around like zombies. They have no idea what, what is, what is going on behind him? And there’s this great scene in this movie called margin pole. And it’s has this CMBS in the back. And that’s why I said Tego, this article this morning is about, well, they thought that there would never be another housing bubble. It’s just not a housing bubble. It’s something completely different. It is, it it’s an equity bubble, which means you still have a house it’s still secure. You have the best interest rate of your life. Aha. But there’s something else here that’s absolutely key. You might end up owning your house for the rest of your life. given where we’re at right now. And that’s gonna be very interesting. And I know Tracy would be jumping in here right now, cutting me off. And I, I mean,
Tego:
No, no, no, no. And, and I, I, I think this, this is the, the elephant in the room. When you talk about the housing market right now, right. It’s, you know, I, I did a presentation Eddie for the realtor association here last week on how to look at what’s going on in the housing market. Okay. And the thing, the thing that I found, so you get this. So I, I, I just did a quick search, just a new search in, in the main, you know, Google search for, for news real estate. And these are the headlines I saw us foreclosure activity sets, post pandemic highs for the first quarter of 2022. Okay. So, so that was, that was the headline actually read the story it’s yes. We had a foreclosure set a new high because, well, there were zero foreclosures last year. Right. So, so anyway but, but it’s stuff like that. Right. You know, us housing market has, has peaked. That was from the Atlantic. I know. That’s your favorite art paper to read. Oh,
Eddie:
Love it.
Tego:
Yeah. Yeah. I know that’s favorite. But Albuquerque journal just last week, less house, more money. And that’s true. I mean, that that’s, to me, that’s the story in housing right now is, is the affordability crunch and, and it’s not just purchase, it’s also rent. We, now
Eddie:
We saw those rents though, but the flip side of that which is something that if you were able to take advantage of, and you were a position of good credit, you were out able to buy up to 10 houses and you could have taken advantage of this and you would’ve loved the rent market. Right. Because rents in New Mexico climbed higher. Yeah.
Tego:
That’s me. Yeah. Right. I mean, that’s, that’s what I’ve done, right? Yeah. I’ve, I’ve maxed out the number of single family mortgages I can get at ridiculously low interest rates that we’ve had over the last couple years. Right. And, and I’m, I’m, you know, and, and I will say, I just, just so I can be, be key here. I am still optimistic on the housing market from a, a values standpoint. I do not see a pop coming to Albuquerque from, from a value standpoint. What I, the problem I have is the affordability and the fact that that first time home buyers are getting priced out of this market. And, and, and my frustration is with the policymakers and not realizing that this is a big problem in our market.
Eddie:
Let let’s go back because this is, this is really important. And we, we don’t hop into, and by the way, Tego, we’re gonna go all the way to 11 o’clock. We’re running through all the credit running over.
Tego:
Oh, no, man. Do I have that much content? I know I can talk for housing for hours.
Eddie:
Yeah. We’re going to this morning. Yeah. Great. So let’s, let’s sort of pick this stuff apart. This is super important. OK. So when we talk about the difference between Albuquerque mm-hmm and why you’re bull on Albuquerque is the very same reason I’m telling people don’t miss the opportunity. All right. There’s something else that New Mexico has that all the other things, all the other places that people Havelock to New Mexico isn’t Arizona, it isn’t Texas. It isn’t Colorado, but we’ve got a political ship that’s going on. Cause it can’t get much worse. all the population has moved. All the other places mm-hmm guess who’s been left sort of abandoned for the last, what we missed the whole thing. Right? What’s the opportunity that exists right here. Where are all those people gonna start? Flocking, who has the ability to absorb growth from a water perspective, right? Mm-Hmm from a population perspective, from a business startup perspective, we just have to sort of shift everything around just a little bit and all those populations. I mean, you can’t get around anywhere in Phoenix, Arizona without driving an hour. Yeah. You can’t get around Dallas, Texas without driving any place an hour and a half. You can’t get anywhere in Denver without driving. Have you seen the, the, the crowds that are in there as well as salt lake city?
Tego:
Yeah. I’ve been to Denver a while, but I’ve heard salt lake city is, is,
Eddie:
Is it’s a livable. Yeah. But Mexico is livable. And as we change that around, we have the ability to make up the difference between, and it’s the same as El Paso between here and Phoenix and here in salt lake. And here, those home prices are gonna stay where they are, but they’re so much more expensive than New Mexico. Right. What’s affordable and everyone’s zooming and everyone’s going anywhere. So where all where’s all the money gonna be made right here in the state of New Mexico folks. Yes. That’s exactly one of the reasons why it’s so, and we have the four seasons it’s miserable in Phoenix right now. Absolutely miserable.
Tego:
FIGO no, I, I, I, I know, you know, you know, I own a house in Phoenix and our son, son, and daughter-in-law live there and we get there all the time. And I mean, that’s why we bought a house there just cuz we do get there quite a bit. But yeah. I mean I, August no I’ll, I’ll pass, you know, I don’t wanna go, I don’t wanna go to Phoenix in August, you know? I mean it’s it’s but it is booming, you know, you go over there and that town is booming cranes, everywhere, construction everywhere, single family home construction everywhere. Let me just tell you a little story about that. I, I know I, I mean out Phoenix is like the poster child for housing. I, I, I hate to say appreciation depreciation, but it really has been right. It kind of has always led when things go up and it’s always led when things go down right. And
Eddie:
Las Vegas more than that, by the way. True. A little more or less to be in Vegas than, than, than Phoenix. But yes, go
Tego:
Ahead. Yeah. No, no, no, that’s a good, that’s a really good point. But, but, but what’s happening over the right right now is there’s, they’re building as fast as they can. And that’s true here in Albuquerque too, but it’s just at a much smaller scale. We just can’t scale as much as they can. There’s a lot of construction going on and people are very bullish on that market as well, but it has gone up a lot in the last couple years. Extraordinary amounts and, and much more than here, you know, the, the, and so I, I think the question is just, this is what I see when I hear, I hear people talking about the the bubble, right? The coming bubble in the housing market, they say home prices have gone up 30% in two years, home prices have gone up 40% in two or three years.
Tego:
It’s gotta pop. It’s like, well, you, you have to take the other things into the equation, right? You have to take the demand and the supply into the equation. The reason that home prices have gone up so much is there was a, a, a pen up demand. And there was a lack of supply for the last 10 years. And now we’re paying the price for it. And in the sense that that home prices have gone up very fast. The other problem I see coming, Eddie and you talked about this here a minute ago was we’ve got these people homeowners now that are locked in and at these 3% mortgage rates, let’s say, and how Mo and they’re locked and, and, and their home price is locked in now, right? Their mortgage payment is locked in for the next, let’s say whatever years they have equity in their home and their wages are gonna keep going up.
Tego:
So what’s their motivation to sell when they say, well, you know what, I, I I’d like to maybe move up to another house and suddenly they go, oh, shoot, I gotta pay five and a half percent mortgage interest rate. Now I’m not gonna sell. So we we’re, we’re seeing this. And I think it’s gonna get worse, which is the tenure in homes is gonna increase people. Aren’t gonna turn over as much. And I I’m concerned about that from a supply site. So I know I’m kind of all over the place, but there’s so much there. Yeah. Yeah.
Eddie:
So you’re, you’re dropping all this these brilliant points. And let’s talk about the benefits of somebody staying in their 2%, 3% mortgage. And let’s also evaluate which you can, because you’re thematic. We know that the average let’s start looking at the square footage of the homes that people have purchased.
Tego:
Right?
Eddie:
Yeah. People ask I’ll direct by asking you these questions. Okay. People over the last five years bought smaller homes or bigger homes.
Tego:
It’s. It’s actually been relatively flat. And, and, and what new construction though has grown slightly in the last few years.
Eddie:
OK. So, because
Tego:
They could,
Eddie:
OK. The size of a home has gotten larger. Right. And it has to do, and people have redesigned their home so that they can accommodate their new live work. Live work is no longer out there live work is at home with Amazon deliveries, with drone drops. And with the fact that we’ve got 2.9 let’s let’s design the future. Yeah. Yeah. I’ll tell you all
Tego:
The things we’re talking about Albuquerque. Let’s, let’s talk about Albuquerque, right?
Eddie:
I,
Tego:
Yeah. Yeah.
Eddie:
We have to talk about an overall perspective. Sure. So you already identified that Albuquerque is a market that people will invest in going into the future. Because one of the things that you have is, is at the bottom and it’s gotta level out with everything else, right? Phoenix, Las Vegas, salt lake there’s benefits from being this big hole in the donut, Oklahoma city, everything, all the rest of those places. Yeah. We have four seasons that are livable. We know that people by and large, 36% are, are, are have pretty stable jobs because of the state, federal, and local employment. Okay. And those aren’t going anywhere fast right now. Now we have something else that’s sort of factoring in. And that’s the fact that we’ve got this telecommuting trend, that being place, for sure. So owning a home for a longer period of time also does something else, which we haven’t talked about, which is the reason, the first thing a, a person asked you when they walk into the house.
Eddie:
I like the neighborhood. I like the neighborhood. How good is the, the neighborhood? You can’t talk to that it’s basically called red. You can’t speak to the, but it’s the very first thing that they want everybody to ask you now have the, of families, cultures, neighborhood parks. If you go any place in queen Creek or Gilbert or any place like that, it’s very interesting, right? They all have these common areas that are like, oh my gosh, this is like a water park in Albuquerque. and it’s in the middle of queen Creek. So the stability is so good that people’s values are gonna maintain. And I think this is when you have these two, 3% mortgages where you’re saying that people aren’t gonna be motivated to sell my gosh. We might actually have stability in homes, unlike Las Vegas, where people don’t know their neighbors, they resell those things within two to three months instead of two to three years. And oftentimes, you know, even faster than that. And I think what you’re gonna be building is a better city overall, just by dumb luck. Yeah. Because of the overall markets Tigo.
Tego:
Yeah. No it, yeah. Again, a lot, a lot to unwrap there. You know, I will say from an amenity standpoint, Albuquerque is lacking, right? When you, when you compare us to those, those places, like, you know, you go to downtown Chandler, downtown Gilbert, where they have, you know, those, those districts, you know, we just don’t have that. And I know, I know as long as I’ve lived in Albuquerque, which is 30, some years downtown is gonna get revitalized. Right. But
Eddie:
Right, exactly.
Tego:
Hey, I, sorry, I don’t want to go down that road, but the, the, the point is it’s like, yeah, we, we could have some more amenities. And I, I know that the, the, the thing I’ve always heard is when we get to a million population in the Metro Albuquerque, that’s the thing that’s gonna push us over the top and start bringing in some of those amenities, but it’s gotta be driven from the policy makers.
Eddie:
Yeah, well a little bit, but I think more, it’s gonna be a lot of good dumb luck by the fact that we’re gonna benefit that there’s.
Warmer weather and longer days mean summer is almost here. Celebrate by upgrading to the home of your dreams so you can enjoy all the season has to offer.
When you list your house, you can capitalize on today’s sellers’ market to fuel your upgrade. Then, you can move to a home with the features you want, like space to entertain or rooms for work and play.
If you’re ready to upgrade to a home that matches your changing needs, let’s connect.
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