Albuquerque home prices: 16% further growth by the end of next year
(Transcript Snippet): “Tego:
There was a story this week. I just want to hit on because it is at least in the news that, that I follow. Like, you know, you know how today, you know, in this world is we all follow our own news, right? We all get our news. We see what we want to see, but yeah, that’s a whole different, we don’t want to go down that road, but, but, um, I try to look at all these different points of view, especially when it comes to housing and real estate. But there was a story that came out that the, uh, the folks at Goldman Sachs, which, you know, they’re, they’re economist and looking at the economy and the market and everything that the headline was that, uh, home prices are going to grow a further 16% by the end of next year. So basically from third quarter this year. So it’s actually five quarters of what they’re talking about, but still it’s, it’s, uh, that’s a big increase over the next year. And in, uh, 63 months
Tracy:
And Goldman Sachs has a team of economists, and that’s where this story came from. So 16% growth between now and the end of 2022. That’s big. And we’re still
Tego:
Especially sorry to interrupt, but especially when you consider, you know, we’re, we’re probably gonna end this year somewhere between 15 and 20% price appreciation. And to be clear, we’re talking national numbers here. We’re not talking local, but, but still I think it, you know, it, it all applies. Right,
Tracy:
Right. So the supply chain issues, the, um, a number of people wanting to buy the lack of new homes being built and being affordable. When you think about the new homes being constructed in and around Albuquerque Los Lunas, Berlin, Edgewood, Santa Fe, Los Alamos, you know, the prices of those new homes, the entry level price now has gone up significantly in a year. Right.
Tego:
You know, it’s interesting because just maybe a year, let’s say two years ago, we were having this conversation about new construction in the Albuquerque area, new home construction, single family homes. And we’re saying, well, there’s just no such thing as a $250,000 house in Albuquerque anymore. That was only a couple of years ago. Now we’re saying there’s no such thing as a under $300,000 house in, in the greater Albuquerque area,
Tracy:
It’s changed significantly. We know that new homes, the newly constructed homes have a lot of really great features, including energy efficiencies, for comfort, for a cost to own, for the, you know, investment of them. There’s a lot of benefit from, for a new home, however, prices are up.
Tego:
Yeah, yeah. So, so anyway, that was an interesting story. So, you know, that went obviously, um, let’s say maybe triggered some people a little bit saying, what do you mean 16% more? Can’t can’t, you know, a homes are getting unaffordable, but it’s just, it’s an interesting, uh, thing. And I look at a bunch of different economists and they’re kind of all saying the same thing, Tracy.
Tracy:
They are, we’re still seeing it, you know, Tigo, if you think about what’s our average price right now, approximately somewhere, maybe
Tego:
Just, it’s just shy of 300,000. It’s been hovering right around 300,000 for the Metro Albuquerque area now.
Tracy:
So if you took a 16% on 300,000, let’s just look at what, um, what that might mean in price, right? A $300,000 house today. If we had 16% increase by the end of next year, that’s $348,000.
Tego:
Promising that though. We’re just saying, that’s what it is, what it is, right? I mean, yeah, that’s, that’s gaining wealth.
Tracy:
The takeaway is, you know, if you’re going to be buying in the next year, do it today. Even if it means locking in a new home to be built, lot of the new home builders are saying a house we’re going to start right now. Won’t even be ready till next may or June. Now, many of them have houses already kind of in the works that might be ready in February, March, April. I know there’s a few builders that are ready November, December with homes, but really good time to lock in home prices. If you’re thinking in the next year, you want to be a buyer and we’d love to talk to you about that. You know, we have a team of great realtors together
Tego:
And we really do. And if you want to reach out to us, it’s the Venturi Realty group with Keller Williams Realty phone number is four, four, eight eighty eight, eighty eight. And of course that’s in the 5 0 5 and our website is a welcome home. ABQ dot.
Tracy:
And I might say, if you like stats and you like to know about our housing market and follow that, I would say, follow Tigo on Twitter. He’s got great stuff. He posts out there. He’s kind of a Twitter freak. So
Tego:
Yeah, and I’ve, I’ve actually really in, Twitter’s kind of my, my social media of choice these days. Um, and, uh, you know, of course it all comes down to who you follow and who you don’t follow too. So you have to do that or you can get down and down in the weeds on certain things.