Affordability: The big move in Albuquerque’s Real Estate Market

Affordability: The big move in Albuquerque’s Real Estate Market

(Transcript Snippet): “Tego:

Just one last thing I just wanted to hit on one of the big conversations out in the real estate world. These days is affordability. That’s kind of the new, the new bubble, right? That’s the new housing bubble thing. It’s the affordability bubble now. Right. And, uh, you know, it doesn’t look like we’re going to have a price bubble, but, um, there is, uh, there is concern about, you know, affordability that, that, you know, home prices have gone up nationally anywhere from 10 to 20% in a year or more depending on the market here locally. I think we’re, we’re probably in this 15% range, something like that again, and just, you know, it, it, it really depends, but we’re somewhere, I mean that that’s a big move, right? I mean, that is a big move. And, um, and policy makers, basically politicians are, are, you know, I’ve, I’ve seen a flurry of stories about affordability programs, um, in the pipeline, different ways to help folks, especially folks that are first generation, uh, homeowners.

Tego:

Um, you know, they’ve never been able to participate in the American dream that as a, as a family, as a generational family, and there’s some interesting programs out there. I saw one the other day, a proposal that says that that was saying, okay, instead of, um, um, a 20 year, instead of as a standard 30 year mortgage, they would make it a 20 year mortgage, but they would make the payments the same as a 30 year mortgage, um, and subsidize the interest so that that person could have built equity much faster than, you know, if you’re doing an a on a 30 year program, but this was for, this was targeted for people that would be first-generation, um, uh, you know, in their family homeowners interesting, interesting program. There’s a lot more of that going on. I’ve been talking to some lenders and there’s more first-time home buyer programs, uh, in the pipeline as well,

Tracy:

News. And honestly, when you talk about affordability because of the low interest rates, homes are very affordable as relation to incomes. Well,

Tego:

Historically as well,

Tracy:

Historically as well. So even though our home prices have jumped up quite a bit, the interest rates being so low are keeping it very affordable. So last year, somebody might’ve called us and said, yeah, I’m thinking I need to buy a house around 230,000 or a few years ago, right? This year they might be able to afford 2 75 or 300. And they may not know that that because of the lower interest rates that they can afford the houses that are here, uh, the higher prices right now. So

Tego:

Yeah, for sure.