April 2021 Albuquerque Real Estate Market update

(Transcript Snippet): “Tracy: So Tego tell us a little bit, I know you just did a market update for 2021. I’m curious, 2021. So, the median price.

Tego:

Okay. I got, I got rapid fire for you. You’re going to love this. You’re going to love this rapid fire. Okay. April, 2021. Here’s the rundown. You can also look for my video that I just did on this. It’s on my Facebook and on our YouTube, but for April average sale price, 314,787, basically 315,000 average sale price. That’s up 12% in the last 12 months. Okay. That’s March through April medium sale price, $273,000. I remember when it went over 200, not that long ago. Wow. That was a big milestone, right? Medium sale prices now to 173,500. That’s up 13% over the last

Tracy:

12 months. And tell us what median is.

Tego:

Median is,uthe, the number between all the lower price homes you take. Let me, let me rephrase it. I think people remember this from,ufor math, but a median is the middle between all the higher and all the lower.

Tracy:

It’s not like the middle price. Like it’s not like if the lower was to 500 in the upper was a million, it wouldn’t be 750. It’s the number of homes equal, lower than that number and the number of homes higher than that number. Correct. So I think that was about seventh grade

Tego:

I think we just confused everybody. But anyway, so anyway median of 12, yeah, it’s upstairs essentially averages up substantially. And again, those move up also. Not, not just because prices go up, but also because less lower priced homes are selling more higher price homes or something. Right. Let’s keep going. Rapid fire. Hey, you interrupted average price per square foot up to $160. Tracy. Remember when things were just getting over a hundred per square foot, we’re like going, wow.

Tracy:

I remember when a lot of my searches I would set up for my home buyers. I would put in a price per square foot of like 80 to 100 per square foot. And I would have a ton of houses too.

Tego:

Yeah, yeah. That was back in, you know, 10, 11 up 11%, the average price per square foot over the last 12 months. And that’s that’s probably a really good indicator of overall price appreciation that number Eddie said earlier about Rio Rancho up 18% that that had to do with same month, right. April versus April. Right. So, you know, if you look at that, it’s a little different than taking the whole rolling 12 months. So number of homes on the market down below 700 in the first time ever again, all in 1930,

Tracy:

There was less than 700 on the market, but we’re talking about since we’ve been keeping track and like the last 30 years or so,

Tego:

Well, actually that’s back to 2003 is the data I have. But even before that, almost 20 years. Yeah, exactly. Pending sale for, for April, that’s a number of homes going under contract. Again, this whole idea that what we have no homes to sell. No, we have homes to sell. We had the, the second highest number of pending sales, again, back to 2003, the only month that it was higher was June of last year.

Tracy:

Yeah. People. Yeah. It was the March and April people.

Tego:

Well, so this whole idea that there’s, well, there’s no homes to buy. Well, there’s plenty of homes to buy because we had a record pending month annualized close sale. I don’t do the monthly cause annualized gives you a better idea, but the number of closed sales, if you look at an a 12 month rolling up 8.4%,

Tracy:

Again, that we have the inventory, it’s just selling really fast.

Tego:

And this is shaping up to be a record year right now, if you look at it, just the pace, the 12 month rolling we’re ahead of April, 2006, which was the peak back then, we’re ahead of that. Now. average days on market, that’s another good indicator of just, you know, supply demand you know, what’s going on out there, we’re down to 15 days, average three days, median on days on markets,

Tracy:

Half of the houses are selling in three days, going pending sounds. Yes,

Tego:

Exactly. Half are selling in three days. Exactly, exactly. And months supply, which is a supply demand ratio. You know, we look at that to kind of get a gauge for, is it a seller’s market buyer’s market? You know, traditionally we said five, maybe six, maybe four months supply is kind of a balanced market, not, not a advantage buyer advantage seller, if you will. Right now, we’re at a half a month, 15 days. So, you know, clearly we’re very, very tight, tight supply homes are selling super fast. I think the question is, is there any relief coming? And when I say relief, I’m talking about homes coming on the market at this point, there’s no indication of it

Tracy:

There isn’t. We do know that there are many people right now who may be, we’re going to sell last year that are getting ready to put their home on the market this year. So we, we hope that that will happen, that they feel comfortable doing that. And we know there are a lot of new neighborhoods coming from builders around the area. A lot of new neighborhoods being announced right now by Twilight Hakes Dr. Horton Pulte Abrazo. So yeah, if people are thinking

Tego:

Of selling, I mean, this is what we do, right? Tracy is so much to get ahold of us, talk about getting their home on the market, getting the most money and most convenient sale for them. How do they get ahold of us?

Tracy:

Sure. The best way is to give us a ring four, four eight, eight, eight, eight, eight, I guess we need the five Oh five now five Oh five, four four, eight 88 88. And we will set you up with one of our best home selling partners here on our team who can do a free market analysis for you, talk to you about the market, how your home might compete in the market and what the process might be. And then you can kind of make a decision from there. If it’s the right time,

Tego:

Like you say, in the ad that we have running here in the Kiva is, you know, just cause the market is hot. Obviously you don’t want to leave money on the table, right? You want to get the most for your money. You know, you still need the premium marketing. You still need to make sure that your home is merchandised. Looks great. Get you those multiple offers. Get you an offer that, that really put some money in your pocket.

The power of pre-approval in the Albuquerque Real Estate Market

(Transcript Snippet): “Tego: So I wanted to jump over to this whole conversation about being a buyer in today’s real estate market in Albuquerque, and this whole idea of getting pre-approved or pre-qualified I know those terms get used interchangeably, but the, the term we’ve been using, and the thing we’ve been saying lately is the power of the pre-approval. And what is that? And why is it so important for folks

Tracy:

Is very different from pre qualified? Yes. Pre-Approval means you’re approved. We’ve checked your credit, we’ve checked your employment. We’ve looked at your taxes. We’re very confident that unless something changes and you go buy a truck and a new appliances or something, and open a bunch of credit, that you’re a very, very strong borrower.

Tego:

You lose your job. That’s your job. Yeah. So, the whole idea of this, the power of the pre-approval is it gives well, it not only for when you’re, when you’re making a offer, obviously when you’re making an offer, you need to have that to show that you are a qualified buyer for that property, because when we’re getting homes where you have 20 offers, and that is not an exaggeration, we are getting, you know, 20 offers on homes. When they come on the market right now, it shows that you’re ready to go, right.

Tracy:

Makes you much closer to a cash buyer than a pre qualifier qualifying.

Tego:

Talk about what the differences between lenders Tracy and, and how important that is.

Tracy:

Sure. So last weekend, you know, Tego, I spent most of the weekend fielding calls, texts, emails about a house that I had put on the market. And it was a hot property obviously. And in the end, we ended up with 21 offers to sift through and, you know, the it’s, it was interesting. And I kept saying that to you, I kept saying, Tego, look at this and see how they compare it to see this offer versus that offer and how they structured it. And honestly, the, there were a couple of cash offers, but there were a couple financed offers that were exceptionally strong, where the terms that they had offered in addition to financing made sense. They were waiving appraisals, they were waving inspections, or they were paying for things that maybe a seller sometimes pays for in our market. They were really tipping it in their favor. Sure. So, so the ones that were pre-approved from a local trusted lender versus ones where a lender letter came in and it said you’re pre-qualified. And once we check your credit and your stuff and subject to and subject to, then we will feel more confident. It says, this is not to be used for anything basically. And, and the ones that were from that were pre pre qualified, not pre-approved and from a lender I’d never heard of, or from an out-of-state lender, they just didn’t have the weight of a good local, trusted lender.

Tego:

It has a reputation in Albuquerque that also has a reputation to protect and wants to make sure that they’re doing the right thing for our community. And there’s a bunch of those. No doubt about it. Yeah.

Tracy:

So just to say, what does that mean? Right. A reputation to protect. So the realtor community has a lot of pull in, you know, the buyers call and they say, yeah, who do you suggest, you know, for the loan? And you’re going to pull out a couple of names and say, these are the ones that have closed on time, have had good communication, have great rates. And what they charged to do, the loan is fair and reasonable. And those are, you know, those are the ones when we get a lender, even local who has dropped the ball a few times, or in the end has to say, my client can’t buy the house anymore. They don’t qualify. We go, well, how could we get three weeks in? And they don’t qualify. And they go, well, we just pulled credit. We just checked their employment history. We just found out that their co-signer on this other loan or, you know, it stuff. And then when that happens, more than once you, you remember those things, everyone has issues come up. Yeah. Local lenders have issues come up and it’s oftentimes not there in their realm to affect it’s whatever the borrower did that didn’t disclose properly upfront. Right. Or they changed jobs or something changed with the borrower, but obviously a good local lender with a reputation for doing the right thing and getting it done is going to help an offer.

Tego:

Tracy, what are the factors that, that they look at when they’re doing a pre-approval

Tracy:

Pre-Approval? So typically they are going to look at their income, their debt, their assets, their credit history, their employment, and then deliver length of employment. So if they recently switched career fields, maybe a different job, but not in the same field, that can be very important. And so all of those things are really important income and assets, right. They’re going to look to make sure that somebody can afford to make the payment on the house. Long-Term they’re going to check, they’re going to ask the employer, whether they have employer answers or not, but they’re going to ask the employer, if there’s anything that looks like it’s on the horizon, is this job stable? Is this person going to be there?

Tego:

Yeah. And I’ve filled those out for, for people that work for us. And yeah. I mean, it’s, they want to know. Right. And they check and double-check and just the last thing on this subject is it’s not just so that you show that you’re a strong buyer. You then know, you know, what your purchasing power is, what your monthly payments are going to be. You know, so, so it really gives you clarity on determining and determining what you should be looking at.

Tracy:

Absolutely. And so a lot of times Tego, we talk to a client and we say, well, what kind of price range are you looking in? And really the better answer is what’s your monthly payment comfort, because most people know how much they’re paying right now, how much their rent might be, or how much their current house is and how much more they could do if they want to step up that and still feel comfortable and confident that that house isn’t going to be more than they’re ready to take on. So getting pre-approved does all that. And it gives you that confidence that you know, that when that house comes on and you have to maybe stretch yourself to a price a little bit higher than maybe what you wanted, you can move forward, confidently and know that it’s still in reach.

Is Albuquerque experiencing another housing bubble?

(Transcript Snippet): “Tego: The quote that I’ve been repeating is from Laurence Hune, who is the chief economist at the national association of realtors. One of the guys that I follow guys and gals, there’s some great housing economists out there that,uI follow. And,uyou know what, they’re all on Twitter too, which is great. I can, I can get an update, you know, hear what everybody has to say. Anyway, his quote that’s been repeated quite a bit right now is this is not a housing bubble. This is just a lack of supply. And, you know, we were talking to some folks the other day, Tracy,uat lunch, you know, and, and they were like, well, you know, well, there were no homes built. Well, yeah, that’s part of it. Yes. We had very few homes built. Right.

Tracy:

We were down over a 10 year span by about 20 million housing starts, right. During the teen years of 2009 to 2019, right?

Tego:

No, no. Yeah, no.

Tracy:

Instead of 28 million houses built over that timeframe, there was about 6 million. So that was a huge number of houses that we needed to be built to accommodate what we need right now.

Tego:

Yeah. And here in Albuquerque, we’re actually behind even some of the other markets and Southwest in construction, we have not built at the same pace as some of the other markets. So yes, we were definitely behind in new construction. There, I mean, again, there’s, you know, it’s a perfect storm of things happening, you know, we’ve talked about the fact that a lot of people decided not to sell last year for whatever reason. Right. You know, w we, April, may of last year, half the number of homes came on the market that normally do

Tracy:

So April, may last year was the beginning of COVID. Right. We didn’t know what was happening. People were at home, they weren’t going out. And I mean, how could people decide to make their house available to be purchased or for sale during the beginnings of the pandemic? I mean, it’s, it’s easy to forget how difficult it was. Then we did not know people were, you know, not even bringing groceries into their house before they let them sit for a day or two or wipe them all down if they had some sort of disinfectant. So selling a house was not the top priority a year ago.

Tego:

Yeah. No. So, so that’s part of it. So we’ve never caught up from that. So we got me find the, the thing is, and I’ve said this many times is February of last year, 2019, 2020. We were, we already knew that we were going to have tight supply, you know, the, the pandemic just kind of exacerbated the problem that was already building and had been building. Right. The, the other thing you have to account for is the millennial boom, right? The number of people that are turning, you know, are in that age from the late twenties to early thirties that are doing household formations.

Tracy:

Yeah. It’s mid thirties, I think now, but yeah. And, and a lot of them that are still first-time home buyers or move up,

Tego:

No, the Z are the gen Z’s are what? Like under 25 now I think somewhere in that range. Yeah. Yeah. Anyway so yeah, there’s this whole generational thing as well. And the whole demographic trend that that’s, that’s driving the need for more housing, you know, we haven’t had, we haven’t stopped having babies. Right. We haven’t stopped, you know, growing in population. So we need more homes. So any way I think we’ve made the point, Tracy, that there’s just a lack of supply.

Tracy:

Right. And so what, one of the bullet points that Eddie brought up that we wanted to talk about is people are saying, Oh my gosh, there’s so many less houses for sale. And we said, well, it’s really not that different year over year. Right? We’re still have houses coming on the market. It’s just, there’s more buyers for those houses and they’re selling quicker. So really we’re not down significantly.

Tego:

Phenomenon has happened here in the Albuquerque area over the last gosh, it’s been at least six months now, as you know, obviously, you know, I watched this all the time is the number of homes coming on the market and the number of homes going off the market in our area. And when I say off the market, either selling or canceling or for whatever reason, it’s stayed pretty equal. And so we’re having homes coming on the market, actually having homes coming on the market at a fairly good pace. It’s it’s down. Let me pull up the number here, give you that data

Tracy:

Rancho, I know,

Tego:

Turn off your rancho. If we look at well, Eddie was talking about the, the, the number of their appreciation for Rio Rancho, which the number he quoted wasn’t quite accurate, but,

Tracy:

But that’s what the Rio Rancho

Tego:

But it’s confusing anyway. The number of new listings coming on the market, if we look at the last 12 months versus the last 12 months, previous to only down 1%, now we do have to account again for that March, April, may of last year, where we were down to substantially. Right. But again, we’re getting a lot of homes in the market. I mean, if we just look at April of, well, just last month, we are, you know, almost 15,000 homes came on the market. That’s a lot of houses. It is a lot of houses. One thing I wanted to just talk about this, you were talking about the underwriting standards and making sure that people have a job can pay their mortgage. Can, you know, have maybe even have some money in the bank. Some, some reserves as they call it, right. That wasn’t happening in 2004 or five six, you know? And, and, and, and the point I wanna make is that this is, again, one of the reasons that this is not like 2008, when we had that real bubble where people were buying homes that had no business buying a home, to be honest with you.

Tracy:

Right. And, you know, Eddie’s intro into our segment today, laid it out really clearly. And I wanted to point out that, you know, kind of made it sound like all the lenders were at fault for that, but honestly, all those lending programs were available. All they did was say, Hey, this program will fit what you’re looking for. We’re going to put you in that loan. And, and the buyer borrower is the one who qualified for whatever the loan was at the time. Right?

Tego:

Yeah. So

Tracy:

I, I blame the borrower, not, not a lender.

Tego:

There was, there’s plenty of people to blame for that. And you know, all the way from, from government programs and government pushing you know, homes for everybody. Right. And that’s true. But again, I mean, th there there’s a lot of stuff to blame there. You know, the wall street has culpability, you know, again, it goes on and on and on, but the, the takeaway though, is lessons learned, right? We we’ve learned our lessons, right. We have, we have much better. I want to say programs we have much better data into what’s going on in the housing market, as well as you know, how to deal with it. Right. We didn’t have four Barron’s plans back in 2008 and nine. Like we do today. That’s helping people get through not being able to pair it, pay their mortgage. Right.

Tracy:

We didn’t have the government stepping in quickly and supplying funds to people also just to keep the money flowing.

Selling your ABQ Home? – Top Tips for Albuquerque Home Sellers

(Transcript Snippet): Tego:

Last thing we want to leave everybody with this week is if you are going to be selling your home this year, Tracy, what are some tips that people can do? Cause we know homes are going to sell for the most part relatively quickly in this market, but they may be let me leaving money on the table potentially right.

Tracy:

Possible. You know, it’s, it’s interesting because we want to make sure when a buyer goes in your home, it’s appealing to them that they’re attracted, that they feel comfortable. They feel welcome. And with COVID, it’s been a little bit hard, you know, we were making people put on, you know, some, some houses I show they want me to put on booties. They want me to put on gloves. They have hand sanitizer to use. They have, you know, the whole mask protocol. They don’t want me to touch anything. They don’t want me to open doors or cabinets. They, you know, so we walk through and it’s uncomfortable. You know, the more comfortable you can make it the better. And one of the ways is get a stager in. So even if you’re living there and you know, still occupying the home, have a stager, come in and take a look with you and say, Hey, you might want to move that picture over here and switch the couch this way. I know the couch works good for watching TV this direction, but it’s going to feel a lot better and make your home live larger or be more appealing to buyers if you change these things around.

Tego:

So stagers are professionals they’re, they they’re designers. They’re they’re, you know, designers, but they’re really specialists in merchandising, a home to maximize the desirability for, for home buyer. So staging is, is, is critical

Tracy:

And it maximizes the home sale for sure. And you know, a couple of weeks ago it was probably been three or four weeks. Now we had a house and we looked at it and went, I don’t know, it’s just not, not what people are going to want. The stager went in and we went back and went, Oh my gosh, this house looks great. And, and the buyers were raving, but you know, it, it maximizes your money to spending a little bit to stage if it’s occupied versus vacant, obviously vacant homes,

Tego:

Just to be clear, staging doesn’t mean bringing in furniture in many times, it’s just redesigning what you have. Like you said, I’ll make that clear.

Tracy:

Stager will give advice and say, Hey, pack all this stuff up, put these, this collection away. You know, things that sometimes it’s hard to say, but that’s their job. And you know what? We have some great stagers in our market, you know, really, really good staging. So there’s plenty of them here, great things. And if you do need to supplement with some furniture, they can rent it to you. Or if you need a whole house staged, that’s possible too.

Tego:

You know, the other thing that that’s, it really it’s just work. It’s no cost is clean, clean, clean, clean, you know, people want to see nice clean. They don’t, they don’t want know about anything. You know, they want the house to be theirs. And, and so cleaning bathrooms and kitchens in particular make a huge difference and little details. It’s the light switches tops of the baseboards, right?

Tracy:

It’s the around doors where you come and go and tend to push them with your hand or something. Other things we talked about briefly, the COVID issues, but giving buyers access and letting them feel comfortable is, is pretty important. You know, don’t be home, don’t be out in the backyard on the patio or, or out in the car, sitting in the street. So they’re feel like they’re being watched or anything. And, and even in this Mark T market Tego pricing it right, is still very important.

Tego:

Yeah, you can’t, you can’t just shoot any number out there and expect that people are even going to come and look at it. So

Tracy:

They really won’t, we’ve seen it in the last few weeks. People who push the market, I’m expecting, it’s going to sell for more than the market is dictating. They’re not getting the showings. We’ve had a few,

Tego:

You know, I don’t have the exact number for you, but there’s hundreds of homes on the market, in the Albuquerque area. They’ve been on the market for four months. And you know, that, that really just comes down to the price, the condition of the home, the location, but, you know, price can solve anything.

Tracy:

Yep. And even even in this market,

Tego:

So yeah, absolutely.

Freddie Mac forecast: What experts are saying about Albuquerque’s Real Estate Market

(Transcript Snippet): “Tego:

What about the forecast? What are the experts saying?

Tracy:

Well, as the market recovers from COVID. The housing market is going to stay healthy and slowly mortgage rates will move up. I don’t expect to see anything very quick on that. Right. but that’s, that’s the forecast from Freddie Mac. So Freddie Mac, I’m not, I’m not I don’t have as big a team of researchers behind me. I’m quoting Freddie Mac. Well, of course, while you’ve got me, I know you’re my number one researcher, and I’m every morning over coffee. I appreciate hearing about it.

Tego:

So Freddie Mac does a quarterly forecast where they look into Freddie Mac, you know, as one of the the, the big government sponsored mortgage funds basically. And they always look and like, kind of give a forecast what’s going on and what they’re saying for, you know, right now we’re somewhere around 3.1, 3.2% interest rates that, you know, it fluctuates obviously, but they’re saying through 2021, it’s going to stay pretty close to here in the low mid to low, to mid, to low threes. They’re even saying for 2022, they’re saying 3.7. So still not even getting to that, that 4% even next year. Interesting. the number of home sales they’re predicting to be above last year, last year was a record year, 6.5 million nationally. This year, they’re saying 7.1 in 2022, they’re saying 6.7 million homes sold. So again, they, they are expecting a healthy growing residential real estate market.

Tracy:

Let’s talk about the number that I hear the most that people seem to really want to know about when people are saying, I can’t buy a house prices are too high. Well, Freddie Mac says, prices are going to keep going up for the next two years. Yeah.

Tego:

And not just Freddie Mac. I’ve seen that on all the air quote experts are saying the same thing, right?

Tracy:

So they’re saying home prices in 2021 across the States are expected to average 6.6% up. And we’re definitely seeing that in our market and many others that we watch.

Tego:

We’re going to be ahead of that this year. I mean, I’ll, I’m going to say this right now in April of 2021, that we are going to see probably double I’m going to I’m not going to say probably we’re going to see double digit home price growth for 2021. I just, there’s no writing on the wall that says that home prices aren’t going to keep going up. Unless we get that, you know, the so-called black Swan,

Tracy:

And they’re saying, they’re going to keep going up in 2022. Now this is really early. It’s April, 2021, where they’re forecasting next year’s home price appreciation. And they’re saying four and a half percent appreciation, 20, 22 nationally. That’s nationally. Yeah. They’re not saying things are going to pull back. And everyone that bought a house today is going to be wishing they hadn’t,

Tego:

I, I don’t want to go into the detail, but I’ve seen some great charts on, you know, what markets in the country are down in. There are actually markets where prices are down. Think of places like New Jersey, New York, certain parts of California that just got really overheated on prices. But, but for the most part, it’s, it’s East and Midwest markets, not the South and the Southwest where we are, everybody in the South and the Southwest is, is booming one way or another

Tracy:

It’s it’s not, then it’s not very many communities. When you say there are some that are down. It’s a very few, it’s basically like a handful. Yeah.

Tego:

And it’s, it’s the really high price markets where that’s really bad.

Tracy:

And here our high price market is booming. Yeah. Right? Yeah.

Tego:

Yeah. like, I think it was an 80% increase in the number of homes sold over a million dollars in the last year.

Tracy:

I think it was higher than that, but that was a few shows ago now.

Tego:

Yeah. I know. I haven’t looked at it. I actually have it on our website. I just don’t have it up here now. Speaking of, of Freddie Mac there was a news release that came out this week that I thought was actually really good. Well, there’s a couple of news releases. One of them Tracy was that, that the the Biden administration and some lawmakers have put some bill forward to offer a $15,000 tax credit for first-time home buyers.

Tracy:

Oh, I hadn’t heard that. Unlike the 8,000 back in like 2008,

Tego:

2000, was it 2008 or 2008? Yeah. I mean, that was to help stimulate the housing market

Tracy:

Because buyers in the market.

Tego:

Right. Let’s just be honest here. We don’t need more buyers in the market right now. What we need are more homes in the model.

Tracy:

Right. It should be giving credits to the home builders to get those houses built, to offset the increases.

Tego:

Amen to that. And I know all the builders out there that listen are saying amen to that too, because you know, people are going well, how come there’s no new construction under $300,000 in Albuquerque? I mean, there, there is in a few places very limited. And you know, you think about this, a builder is paying a hundred thousand dollars before they do anything on that piece of land,

Tracy:

Just for the land and the permits and the yup. Yeah.

Tego:

And then the engineering and, you know, everything, you know,

Tracy:

Pretty hard to build a house on top of that and still be in that very affordable range.

Tego:

Yeah. So anyway, it’s interesting that, that this is that they’re doing it, that they’re offering a $15 Valor credit right now. It’s just a bill.

Tracy:

I was gonna say, we’ll see what happens. We’ll see if it happens. If it materializes

Tego:

The spills. And I know listeners to the Kiva probably pay attention to politics a lot. And they know there’s a lot of bills floating around, out there in the house. So

Tracy:

It happens. Yeah. 15,000, you got to, you know, our listeners need to talk to everybody. They know that should be buying a house. Right. I mean, we, we have to get all those 20 somethings into their first house. I closed one this week, Tigo. Yep. 24 years old first house. It was so satisfying. He was so cute and so, so excited. And he was like, yes, ma’am with all the closing documents, when the title officer would say, and this one’s about, and he’d go, yes. Ma’am.

Tego:

Yes. Ma’am that means you’re really old, right?

Tracy:

Yeah. Well, he wasn’t calling me that, but I wasn’t really in charge at the closing, but just such a great kid getting his first house. I mean, young man, it was, it was really fun.

Tego:

You can call him kid, you know, I don’t know what age can you start calling?

Tracy:

I mean, he’s 24. I need to call him a young man. Yes, yes. With, as a homeowner, there you go.

Tego:

Okay. Can I get back to this story now? No, that was a good story. It’s it’s exciting. That really is a satisfying part of what we do for sure. The other big story this week, other than the tax credit was FHFA, which is kind of the entity that’s over Fannie and Freddie,

Tracy:

Federal House Finance Agency.

Tego:

They are putting together some programs to help. What do they call it? Low income homeowners that have mortgages refinance because what’s happened. And we’ve heard a lot of this over the over COVID right. That, you know, it’s decay economy, the richer getting richer, the poor are getting poor. Some people are participating in recovery. A lot of people aren’t participating in the, in the recovery after COVID. Well, what they’re doing is they want to help people that maybe have not been able to take advantage of the low mortgage rates, do a refi

Tracy:

Because maybe their financial picture, they wouldn’t qualify for the home right now because of unemployment or,

Tego:

Yeah. So what they’re doing is they’re doing a program that’ll help boost those people. You know, as long as they’re, you know, saving like $50 a month, there’s some qualifications, they have to have a decent credit score. I think it was six 20 or something like that, Tracy. But anyway, it’s, it’s good to see that they’re doing that because not only does that help that person, it actually helps stimulate the economy. Cause now if that person saving a hundred, 200, 300, $400 a month on their mortgage payment, well, that’s money that now can go back into the overall economy. So I’m glad to see that that FHA and Fannie and Freddie are doing that

Tracy:

Program has been released. That’s not a pending that one exists. Now. It says, basically you have to save at least $50 a month in your mortgage payment, by refinancing to qualify along with a few other things, you said $50 a month. And I said to clarify, that’s how much you have to at least reduce your monthly payment by to qualify.

Tego:

That’s what happens when I read these stories a couple of days ago and then try to recite them back to memory. So you actually read the story. So thank you. Thank you. Read a little bit. Yeah. And they’re going to be credit for appraisal if you qualify stuff like that as well. Right. As well. So yeah, it’s a, it’s a good program. I’m I’m really, really glad to see it.

Patience is the Key! – Albuquerque Home Buying Secrets

(Transcript Snippet): “Tracy:

You know, the, the topic Tego that we wanted to talk about, we can jump right in. Right. you know, stay calm. Right. The market’s hard for home buyers right now.

Tego:

You know, one of the things that we’ve seen a lot of, and if you are a home buyer or know somebody that’s, you know, looking to buy a home right now, a frustration seems to be the key term. Right? Right.

Tracy:

Yeah. It’s an emotional roller coaster, right. Being a home buyer, you go, you look at houses, you pick your favorite one. You get that offer in right away. That seems like a good offer. And you don’t get selected. And you F you know, you go back out and look for more homes and find another one, and you get all your hopes and dreams in that house. And my family’s going to be here and, and you put in an offer and you might not get it. You know, that could happen several times. It can be very frustrating. But it seems like lately Tego, especially, I’ve always said this, but I’ve seen a few instances in the last few weeks where the house, the person didn’t get the first time the house that they ended up, being able to buy and being selected to buy is really the better house. You know, it was like, meant to be

Tego:

Times over the years, we’ve seen that Tracy and we, we can personally attest to that as well that, you know, we lost out on a house. We were purchasing and turns out the home we ended up buying was even better.

Tracy:

Yeah. Oh my gosh. I’m so glad for what we ended up with versus the offer that didn’t get accepted. Yes.

Tego:

So, so I think, you know, I think the, the takeaway for, for buyers right now is patience, patience, patience, you know, it, it is going to take some time or you might get lucky, right? You might decide, okay, now’s the time I’m going to go talk to a lender. I’m going to get my pre-approval, I’m going to be ready to go to buy. And you start looking and all of a sudden, Oh, well, there’s the perfect home. And you get it.

Tracy:

And you ended up being able to buy it,

Tego:

Buy it. However, more today it’s people are having to put in multiple offers. You’re going to have to spend a lot of time watching new home listings as they come on the market to be, be there, ready to go, to go look at it. As soon as it’s as available to hit the ground running with the offer and in a great realtor, Tracy, we’re going to, we’re going to talk about the realtor community here. And I know we’re kind of preaching. We’re talking about ourselves here, but having a great realtor is key, right? Because what’s that realtor going to do for somebody that that’s looking for that home?

Tracy:

You know, the realtor is going to go to their experience of works, you know, the communication and the strategies and tactics to help our buyers get their offers selected. And it’s not all about price. There’s a lot of human element in it, unless we’re working with a seller that’s, you know, a company or something, even then the agent has some human element involved. But yeah, patience is the key. Don’t, don’t lose faith. It’ll happen.

Tego:

Well, there’s the, the story we talked about last week, I’m just going to circle back to it because I think it’s, it’s part of this conversation is how come there’s so few homes on the market? How come we don’t have more homes on the market? I saw a chart.

Tracy:

I was going to say, I’m sure you have a chart for that. Yeah.

Tego:

And what it looked at was how many homes were built by decade. And so it went back, gosh, it went back, you know, from, yeah, actually actually the thirties to forties, the forties to fifties, 50 to 60 and so on. Right. All the way through. So in, in 2000 to 2009, for example, so during that 10 year period, there were 27 million homes built in the United States that 10 years before that the nineties, it was 26.7 and then 25 million and the eighties and 26 million in the seventies. Well, in the, the teens, let’s say from 2010, until 2019, there were only 5.8 million homes built in the United state, which is like, what’s the math on that? Less than a third, a quarter, it’s less than a quarter. Right. And it, and so we, we have underbuilt for the last 10 years, that’s nationwide, Albuquerque in particular. And along that line, I can talk about the journal article that came out last week that I was quoted in. And that, you know, Albuquerque actually for, for new construction is way behind many other markets in the country on new new residential construction.

Tracy:

So let me just recap that Tego from 1970 to 2009, each 10 year, decade, there were over 25 million homes built each year in the United States, 2010 to 2019, there were less than 6 million. So you’re right. Less than a quarter of what we were seeing all those other decades. So that contributed, we’ve been calling it the lost decade. And you know, all of those homes that didn’t come on the market, we have all these buyers. Now, interest rates are low. It’s a favorable time to buy, especially with people who’ve been in apartments, in multifamily. And with COVID being stuck there with, you know, not stuck with kids, but home with a full house bustling trying to do school, perhaps work from home, realizing it’s time to get a house that works for my family. We have a lot of people looking for her

Tego:

Well with the favorable interest rates that do not look like, and we’ll get to the the Fannie Mae, or is it Fannie Mae or Freddie Mac, Freddie Mac housing forecast and, and, you know, interest rates don’t look like they’re going to go down. Substain are, excuse me, go up anytime

Tracy:

They have gotten back down a little bit though, in the last week, that’s true. They did. They’re more favorable. Well,

Tego:

So just to wrap that up, if you, if people are looking to buy a home this year, get yourself a good realtor, that’s really gonna work with you and bird dog for you as well. Because we do hear about coming soon listings homes that aren’t on any of the national websites or any of the public websites. The other day, there were 60 homes in the local Albuquerque MLS that were in coming soon status, which means they’re there, they’re in the pipeline, but they haven’t gone out to what we call syndication in the MLS world. Haven’t gone out to all the websites that show up.

Tracy:

They’re not public yet. They’re not public yet. It’s giving us as realtors, the heads up that they’re coming, but they’re not public.

Tego:

So a good realtor patience

Tracy:

A good realtor is just a broad stroke though, too. I mean a good realtor. There’s a lot of good realtors. What makes one, but we won’t go into that. So a good lending strategy, a great local lender. Yep. So, yeah,

Tego:

And all those things, man. And there’s, yeah, we can name a hundred different things that are going to make a difference or two to winning that, that offer.

Albuquerque Real Estate Market: Multi-Generational Housing on the Rise

(Transcript Snippet): “Tego:

Tracy, I’m going to change the subject. And I want to ask you about this trend that we’ve been seen now for quite a few years, and it’s really catching on and the thing that’s interesting talkie, well, wait, hold on, hold on. I’m building it. I’m building or making us wait. It’s the multi-generational housing and, and we’ve seen builders adjusting their, their products to this meaning that has a, you know, there’s a lot of different terms for it in law suite, in New Mexico, it’s the casita or it’s the granny flats, or, you know, whatever, whatever you want to call it. It’s, it’s kind of like the second home within the home and, and the thing that’s interesting. There were some interesting stats here. Tracy, did you see this one? I did not. Yeah, it’s a, well, there we go. So the percentage of total home sold in 2020 that were this kind of multi-generational type type home, where again, it had one of those things the, what did they call it? ADU auxiliary dwelling unit is another term you hear sometimes too. 12% of the home sold. Well, that’s a pretty big, pretty big move in there saying the spring of, of it hit it, it hit even higher. So yeah,

Tracy:

You know what I find interesting looking at this visual that you pulled up that I hadn’t seen before is the most common age range of these buyers for these homes that have, that is 41 to 55. Now that’s young. These are people who are being [inaudible], but and the second age bracket is 75 to 95 years old. So they’re buying it and having a space for them and moving in one of their child, children or something. But it’s interesting. Cause 41 to 55 is pretty young right together. It’s really young and they’re buying these houses with a Caseta or an in-law suite or an extra living area that  is available. So

Tego:

Did you want to hit on the benefits that people are saying from it was that where you were going?

Tracy:

I wanted to just say, you know several years ago Dr. Horton and Pulte started adding that option into their floor plans and they had spectacular, they have spectacular floor plans that have that in, you know, the in-laws suite, isn’t just a bedroom with a bathroom, right. It’s typically on a main floor if the whole house isn’t main one, one level. But it also has some sort of an extra living space. So you’ve got a little living room in addition to a bedroom and then a small little kitchenette in addition to the bathroom, separate entrance sometimes. So we’ve seen that lately in Abrazo homes where they’re building in the new neighborhood in the parade,

Tego:

You know, what can we just sidebar here for a second? Because we, we, we overlooked it. And we were talking about the parade of homes this weekend and that Abrazo homes, which is a local locally owned home builder here. They have a neighborhood right by the balloon park. Just what would it be? Just West, North,

Tego:

South and West of the balloon park, if you can envision that and

Tracy:

Behind the big horizon business building,

Tego:

Right? Yeah. Yeah. But they have, you know, a lot of their models they have there do have the option of the in-laws suite or the,

Tracy:

They call it the casita. And from what we understand, they just started opening up that neighborhood to sales. It’s a gated neighborhood right there. It’s only like 34 home sites. Yeah, it’s right next to the balloon park. So I would suggest you go and check out the Abrazo homes, but they said that most people who have committed to purchasing there have taken that Kasita option and put that into their floor plan.

Tego:

It does make sense. So just to wrap up this conversation about this, this multi-generational housing trend and in some of the benefits that people are seeing is it, it takes the budget and it helps combine it. Right. Right. You know, it also, you know,

Tracy:

And you take two families. I mean, together, they can live in one home, both of their incomes from both families. They can typically afford a bigger home, but then, or a pricier home, but then they can sort of take care of each other and watch things. One can go on vacation and the dogs are taken care of and yeah. Not just health-related, it’s just, you know, the yard, the upkeep.

Tego:

Yeah. Yep. Yeah. And you know, and obviously it’s, you know, quality time together is, is always an important thing. Obviously, if you like your in-laws or your children or your parents. Yeah. and, and, you know, the, the way these floor plans are built now, they, they do work really well and get plenty of space for forever.

Tracy:

And then shared caregiving duties, which, which is the obvious one. So yeah, multi-generational housing, not a new trend, but definitely still on the rise.

Tego:

Well, and it’s, it is, it is a thing. And it’s I don’t think gonna go, go away anytime soon, especially with the millennial boom and the baby boomers, you know, aging too.

Albuquerque Real Estate News: 3 Things to Keep in mind

(Transcript Snippet): “Tracy:

So switching gears along the same vein, right? You were sharing with me a CNBC story saying Google is reporting that the hottest trends, some of the hottest trending searches right now regarding homes is when is the housing market going to crash?

Tego:

So get this Tracy that search has spiked 2450% in the past month. And it it’s interesting right

Tracy:

Along with other phrases that are similar, like why is the market so hot and how much over asking price should I offer on my home in 2021? So it’s interesting. Those are the spikes on Google searches, which you know, I completely understand. Yeah,

Tego:

Yeah. You know, it there, one of the things that, that happens and I know listeners to Kiva get this is that NEWS media will take something. It’s a very none, well, no, no. Yeah. The non, but, but it’s, it can be a trigger for people, a very emotional, you know, the housing thing, a lot of kids that are not kids now lived through the crash of 2008. Right. And so now they’re millennials right now, they’re getting into that, you know, maybe buying a home or maybe, you know, thinking about buying a home, they lived through that. They watched their parents go through that in 2008. So, you know, I understand that the angst that is out there, but what I was saying is, is Kiva listeners understand that news media will take something and, and try to create a story where maybe there isn’t a story, but obviously there’s a story there because people are curious.

Tego:

It’s like, how, how can this market be so hot? And when is it going to stop? We know it’s going to stop the question is, is it going to be just a slow coast to a stop or is it going to be a screeching halt? And, and my feeling right now is it’s, it’s going to continue at this pace for a while. Cause there’s no signs of anything, anything changing Tracy and, and a couple things just to talk about. So there’s three things that we want to keep in mind. And if you don’t see these in the stories that are talking about how there’s a, a home bubble building and it thought market’s going to crash, then they’re not telling you the whole story. And there’s one other thing too, that I’ll throw in here. But, but the first one is home price appreciation leading up to 2007, Tracy, it was like 10% average over the four years leading up to 2007, eight in the last four years now, today it’s been closer to 6%. So we haven’t had quite the acceleration in home price appreciation that did back then. The other one, Tracy, you could speak to this. I know, you know, this really well is, is the way lending standards have been now in the last, well, literally 10, 12 years versus the way they were back,

Tracy:

Right? The default risk now is so much lower than it was back in the 2000 early two thousands. Right? When now, now the products are very careful to make sure that the borrowers can afford the payment, that they have stability, that their credit score shows that they’re credit worthy. They’re good at paying their bills and being responsible. So the product risk is lower and the borrower risk is lower because the products aren’t available that allow people that shouldn’t be getting okay,

Tego:

Well, it’s those really aggressive what we call products, meaning loan products like adjustable rate mortgages, right? With the teaser rate that, that like, you know, for one year it would be 2%. And then all of a sudden it jumps up, you know, a couple of years later that got a lot of people in trouble in 2000,

Tracy:

Because when it jumped up, they couldn’t afford the payment anymore. And there are still adjustable rates, but why would somebody do that to go with the rates so low, right? Why not just lock in that low rate for 20 or 30, or

Tego:

The other thing you said was borrow or risk and borrow, or that’s always a tough word is you know, again, we, we know back in the day Tracy people were getting mortgages probably. Well, let’s just be honest, probably they probably shouldn’t have been getting mortgages. We know that that’s not happening today. That hasn’t happened in the last 12 years. I mean, you, if you haven’t applied for a mortgage in the last 10 years and you may, and maybe you did back, you know, in Oh, Oh three Oh four Oh five, it’s different, you know, you have to really prove your income, prove your ability to repay the mortgage. The other thing that’s happening is a lot of homes got purchased back in the day as a speculation. We’re not seeing that today. Most people that are buying homes today are buying homes to live in w the thing that’s interesting as a lot of people in, in just a side note on that, we’re seeing a lot of people that own rental properties, Tracy, that may be, you know, decided to keep it. They’re not really property investors. They just happen to have a home. They didn’t want to sell it. They didn’t like the market when they moved and they’ve been renting, but we’ve seen a lot of those people now putting those homes on the market, which is it’s actually hurt our rental market a lot from, from an inventory level as well. Right. Because it’s so strong,

Tracy:

Right. They’re saying, Hey, I’m finally at a place where I feel like I can make some money off that rental property and sell it because it’s not my passion. So we are seeing that for sure. So just two

Tego:

Other things I want to play. The third one is the, the, the number of homes for sale. W needless to say, if you’ve been paying attention at all, there are very few homes actually on the market for sale right now, very, very low it’s sub 700 homes on the market, in the greater Albuquerque area right now. Almost it, it hit almost 600. I think it’s gone up a little bit this week. I’ll know on Monday, if, when I get my, my new stats, I think we might be getting a little bit of buildup, which would be great. But just to put that in perspective, in 2007, when the market tanked, we had about 5,000 homes on the market, we have 700. Today

Tracy:

Is a huge indicator Tego, of how quickly the market could slow down, or the prices could come down. They just can’t when you’re at that inventory.

Tego:

Well, you know, it’s a supply demand, supply demand, right? It’s economics one Oh one,

Tracy:

A market shift for it to turn downward would take a long time just because we couldn’t get 4,000 houses on the market tomorrow.

Tego:

The fourth thing I wanted to bring up, which wasn’t on my list here, but I came to my mind is important when we’re, when we’re looking at, or looking at stories about the housing market, are they talking about the demographic trends? You know, what’s happening with the millennial group right now is a big deal. That’s a huge population. That’s moving through these age groups now that are right in their home PRI or prime home buying age. Right. And so you can’t, you can’t stop that. People want to start homes.

Tracy:

People want a home and they want ownership and they want to build your wealth there. Yeah, it’s, it’s interesting to go because again, what we’re seeing with that group is they don’t want the starter home. They’re buying like their second home as their first home, right. They’re not going and buying the cheapest home in a neighborhood. They can afford, they’re waiting until they can afford a home that they’re going to want to be in for a long time. And that’s part of, you know, w w their age too, right. They kind of skipped that first home, and now they’re buying the second home. Interesting.

Tego:

The thing I would say to people, if you’re, you know, watching the market and you kind of want to see that the two things that I’m watching really closely are the number of homes on the market, the inventory level and I’m watching interest rates, you know, if interest rates get up over 4% I think that will cause a little bit of a pullback in the market, even though they’re even know there’s still a bunch of people that want them,

Tracy:

You know, what it’s going to affect Tego is the people who were in that 200,000 price range that we’re kind of trying to get their first home. Those homes don’t exist in Albuquerque anymore, but very few and a lot of competition granted. But those people, if the interest rates go up 1% that rise in what their monthly payment could be, could price them out of the market. Yeah. But 4%, 5% for most borrowers that are buying 300, 400, $500,000 houses. It’s not going to matter. It’s for those entry level people where an extra $20 a month on a mortgage is going to start to push their limit. Right. Yep. Yep. Yep.

Tego:

You know, I just want to say one thing, if anybody’s listening and they’re going well, what about all of forbearance? What about the foreclosure rush it’s coming? We don’t have to time to get into that. My, my take my feeling on that. And most of the experts that I’m following and listening to is there just doesn’t appear to be there. There, isn’t going to be this big flood. And, and I did a couple of videos on that already, so I won’t go into that, but there just isn’t.

Parade of Homes – HBACNM’s Twice-a-year event for builders

(Transcript Snippet): “

Tego:

Okay.

Tego:

Let’s see. Parade of homes, Tracy,

Tego:

Big weekend for the home builders twice a year, the New Mexico, central New Mexico home. What is it? Home builders association, HBA is just what I always call them. They do their big parade of homes where they, they put homes out for open they’re open houses to show off the, the latest products and what the builders are.

Tracy:

Yep. And it’s Friday, Saturday, Sunday. So yesterday, today, Friday, Saturday, Sunday, and next Friday, Saturday, Sunday from 11 to 5. There’s 21 homes in the spring parade of homes. The the featured builder this year is Pulte homes at inspiration, which is in the petroglyph area. Just North of I-40 and West West of the river inspiration, the homes, the lots, there can be just some phenomenal views because it’s sort of below the petroglyphs. And if you haven’t been out that way and you’re thinking of new construction, give us a call. We’d love to show you that neighborhood as well as the others that are available, but that neighborhood is quick to everywhere. There’s some new cluster schools over there. There’s some new, big fields. Like if your kids play soccer, you probably know that part of town. But it’s, it’s a great neighborhood, but in addition, lots of other homes to tour to go, do you happen to know how people are touring them in the days of COVID?

Tego:

Well, I don’t,

Tracy:

I was thinking I didn’t find that out either because Eddie said that we’ll tell you how to get inside of them. There’s the safety protocol. So the homes vary right from Corales to the West side I’m sure there’s a map. So if you go to just Google homes of enchantment, but it’s the websites, homes of enchantment parade.com and it’s Home Builders Association of Central New Mexico. And it’s all the information is right there, but you can tour if you’re thinking of building anytime in the future or remodeling, this is the way to go, right? Go hit up these homes.

Tego:

Absolutely. And there’s so many people remodeling right now, Tracy, it’s, you know, there definitely has been a remodeling boom, and this is a great way to go see some of the designs, some of the looks, some of the trends, you know, what’s popular. One of the, you know, a couple challenges the home builders have had now, you know, in, in the last year is one supplies. There has been some supply chain issues for builders. So it’s going to be interesting to see if anybody had to improvise. I know there’s been some problems with certain appliance brands, people builders weren’t able to get. So they had to kind of do some creative stuff, their, you know, just, it’s amazing. You start thinking about all the different little bits, if you will, that go into a home. And you know, if you’ve got one part that, that you can’t get, you specked out a particular ceiling fan, and now you can’t get that ceiling fan, which, which has happened. You know, it’s a challenge. So they’re, they’re, they’re scrambling all the time. So it’ll be interesting to see. And, and I know, you know, there’s 21 homes this year, which is less than normal, which is, you know, no surprise however, there’s, you know, you’re going to be able to go see all of these and see what people have. The, the one thing is a lot of them are not for sale though. They’re either pre-sold or their, their model home that they’re not that they’re not selling. Right.

Tracy:

And the homes range from East mountains to Los Lunas, Corollas the Valley, it’s kind of everywhere. And what it says, it loads, just trying to read ahead on the safety protocol, it looks like you need to get on their website and click on each property, the ones you want to tour and see what they’re doing, because they’re each allowed to set up their own. But honestly you can view them virtually, right? Yeah. Just get on your computer if nothing else, but it’s going to be beautiful weekend. Get out, go out and tour some homes. So,

Tego:

Well, if nothing else, 2020 has 2021 has made a virtual tour of homes for sale. The, the standard, which, you know, we’ve been doing it for, I don’t know how long Tracy, but now it’s become much, much, much more common. Yeah.

Tracy:

We were ready for COVID unfortunately. So Tego you think back to 20, 21, 22 years ago, when we were getting ready to build our house, what we did, can you believe it’s been that long? No. We went to parade of home spring fall. We, we toured showrooms and it was part of how we figured out what our style was and what we loved. So when it came time to meeting with, you know, a designer to put our house together was an architect. It was a drafts person,

Tego:

You know, it’s funny, you, it just clicked with me. It was like, we didn’t have phones in our pocket, all the, I mean, cameras in our pocket all the time back then. Yeah. We would, we would have to like, you know, write notes and write names, a product, or try to find anyway that, sorry, I just, I aggressed there for a second. It was a little, little different now than 2022, 23 years ago. For sure. So, yeah. Yeah.

Tracy:

Think about, you know, people thinking about buying a home right now and wondering if it’s the market’s too hot and if the prices are too high and you know, when we were building many, many years ago, we felt like we stretched ourselves. Right. We built and we were saying to ourselves, well now is the time to put it in the house because once we get the house done, we’re not going to go back and change the floors to brick floors. Right. Yeah. And, and so we had to make some tough financial decisions back then of what we were going to put in the house. And we felt like we were spending too much. Well, 22 years later, we couldn’t have made a better investment. Yeah. Right.

Tego:

And what happens if, if you’ve never gone through, I, I always say everybody needs to build a house once in their life. You know, customer not, it’s an interesting process, you know, the, the custom versus semi-custom versus production. It’s a whole, you know, they’re totally different processes. And that is one thing I just want to mention if you’ve been thinking about building home especially custom, which is kind of a different animal get out there. Cause now you can talk to the builders. You can talk to lenders that

Tego:

Like L’Enfant, who’s the expert in financing for construction. She’s I know at one of the houses, for sure, she’ll, she’ll be out and about. And, and so the, the point is you’ll be able to talk to those experts about the process, what things are costing, you know you know, what, what their backlog is like. Cause a lot of the builders are right now, pretty backed up.

Albuquerque’s Real Estate Market – How does it really feel out there?

(Transcript Snippet):

“Tego:

I want to transition to another subject here. The market. I want to ask you guys, I mean, you guys know, I look at this all the time, but you guys are the feet on the street. So, so Corey, I mean, how has it feel out there? I mean, is it frantic? Is it, is it like boots on the ground?

Corey:

It’s amazing when you drive up to the house and see six realtor cars with all these kids coming out and everybody’s going in and out in and out in and out, it’s a lot, a lot of business cards.

Tego:

Don’t tell the governor, but no, I mean, it is, it’s kind of a frenzy sometime when that first day on market

Corey:

And we are wearing masks, just so

Tego:

We know, we know. So what do you think, Melissa? I mean, what are, you know, again, from out on the street, what are you hearing, seeing feeling?

Melissa:

I think Chase on our team said it the other day. It’s not days on market, it’s minutes on market. And when I call another realtor to say, Hey, before it was like, do you have any offers? And now it’s how many offers every time. And so that’s yeah.

Tego:

Yeah. I was hoping that we would see some more homes come on the market this week. And actually I’m looking at the numbers here right now. We’re actually at a net loss. So we’ve had more go off the market than come on the market in the last seven days. And I, you know, I don’t see any let up on this. Are you guys hearing people being concerned that we’re building a bubbles building up in the real estate market or you hear people say that

Melissa:

I have heard that, and then I have a lot of people asking about foreclosures. Are those going to start coming? Because the bubble is getting so high and

Tego:

Yeah, I mean, we’ve had what, 15% appreciation over the last two years, maybe even higher than that, just depending. It depends on whose numbers you look at. I mean, some of them say about 10% in the last year. Some of them say 13% in the last year. So home prices have risen dramatically in the last the last couple last year, for sure. And, you know, there’s this whole forbearance slash foreclosure overhang out there. And, and, and people are saying, well, there’s all these people that are still in forbearance plans. And all of a sudden they’re going to go out of those four Barron’s plan and those homes are going to flood the market. One thing first off, that’s interesting about that. Even if every one of those homes that are still on forbearance plans came on the market immediately nationwide, we’d still only be up at five months supply of inventory, which is still considered a quote balanced market, or maybe even still a sellers market.

Tego:

The, the, the, the lack of homes on the market is so low, right now that, you know, we could use any of those homes if they start coming on things interesting about the forbearance plans is they’re kind of tiered, right? So people, you know, a lot of them, you know, are expiring in March, obviously were your, were your through this. Now, a lot of them are now this month in April, may, June, so it’s kind of tiered out. And so those people either come off the forbearance plan meaning they’ll just start making, you know, making their payments again, they’ll do some sort of workout with their, their bank or potentially they sell their home, which most people have enough equity to just sell their home if they need to. And again, that’s not going to be this flood of homes, fire sale, you know, drastically reducing prices.

Tego:

No, these are people that will sell that are equity sales, where they’re selling it for enough to pay off, you know, their, their, their debt and, you know, move on to the next, the next property. And that brings up a good question that or point I want to make is that if, if you’re out there and you’re listening and you, you know, somebody that might be in that situation, you should reach out to us and let’s talk about, you know, have a private conversation about the different options that you may have, right, Melissa, cause you can sit down with them. Go ahead, go ahead and say some, say what you’re going to say.

Melissa:

No, there’s we can make it very easy with our instant offer programs. We can put it on the market and then just do the, have it sold by a Sunday potentially. So it really could be just painless as possible.