Affordability Crunch: Albuquerque’s Housing Crisis and Challenges

Affordability Crunch: Albuquerque’s Housing Crisis and Challenges

Transcript Snippet: “Tego:

And that’s that’s, I, I’ve got a whole bunch of stuff on that, that if we have time, I’ll get into that. What were, what all the experts are saying regarding 20, 22, 20, 23 going forward and, and forecasting it. And, and the short of it is most are predicting 20, 22 to be continued home price appreciation this year, and then maybe some flattening into 20, 23 out of, you know, hundreds of these experts that look at this stuff. There’s only a few that predict a, a negative equity gain, but, but most are just saying the pace of appreciation slowing down. And, and honestly we need that because of the affordability crunch. That’s really the crisis. When you talk, want to talk about a housing crisis, it’s the affordability challenges, right? And so let’s just go there.

Tracy:

We, we started on Corrales homes of the week. We haven’t even gotten to that. And here we are. I know thematic,

Tego:

I wanna, I wanna address something because the, the federal reserve has done us bad. They, they really

Tracy:

Us as in homes,

Tego:

As in, as in the real estate market and, and homeowner, well, let, let me rephrase that. It depends the way you look at it. If you’re a homeowner and you owned a home going into 2020, or you bought a home in 2020, or, or, or 2021, shoot, it’s great because they put so much money into the economy, lowered mortgage and interest rates. So low that it just made the housing market get on fire in, in the sense of, of just this, this really, really high price appreciation. And so now they’ve had to take interest rates. Mortgage rates were, you know, three, which were probably too low. Now we’re up at six. You know, some people are saying six and a half. They they’ve, they’ve really, they just overcooked it. And now they’re trying to auto, correct. And it’s really bad for, for first time home buyers that want to get into the market because home prices went up so fast because of what they did. And now interest rates are so high, it makes affordability even harder because of what they did. So I’m gonna just blame everything on the fed. No.

Tracy:

Okay. And when you say so high six, six, and a half percent, we’ve seen six and a half

Tego:

Percent. I know where

Tracy:

You’re going. It’s historically. Yep. It’s still very cheap money. Yeah. And you know, you see a lot of these posts through social media, right? Where people are saying 6% for your housing interest, but you’ll pay whatever percent for your car and this percent for your credit card, 18 or 20% on your credit card. But you think 6% is high for your housing. Yep. Right. And you can still get with six or 7% interest. You can still get a monthly payment that’s equal to, or less than monthly rent in our market.

Tego:

Well, and that’s that again, that’s the other equation you have to say is like, well, what is your cost of shelter? What does it cost to put you a, a, you know, a roof over your head? And, and it’s, it’s not like you can say, well, I’m not gonna buy, I’m just gonna rent because it’s cheaper. Well, no, UN unfortunately that’s not the reality rents have appreciated, you know, as a percentage wise, just as faster, even faster than home prices. So whew. That darn inflation just messes up everything, you know, it’s it is, it it’s, it’s rough, but you know, for, for if you, if you have a real asset, like real estate that is a, that is a certain bit of a hedge against inflation, right?