Albuquerque Rents are Up, More Homes for Sale
Transcript Snippet: “Tego:
So I, I, I, a couple things we’ll just rattle through real quick real quick about going what’s going on with the housing market in Albuquerque in the Albuquerque area. One of ’em was the national not national, but they did national, but the, they did the top hundred markets, which we are in and looking at rental rates what’s going on with the, the rental market for, for real estate. And what they found is that in Albuquerque, we saw a 21% increase in rent year, over year for two bedroom units. And let’s see, I think
Tracy:
One that’s significant. Right?
Tego:
Wow. That is very significant. Right, right.
Tracy:
For a two bedroom. Yep. One bedroom,
Tego:
One bedroom that saw 16% increase. And so, you know, we’re, we’re seeing that, I’m hearing that you know, Tracy, you and I went to that event earlier this, this week the NAIOP event talking about some of the things going on in, in residential construction and development
Tracy:
NAIOP national office and industrial property. Yes. So it’s, it’s sort of the commercial
Tego:
Yeah.
Tracy:
Group.
Tego:
Yeah. We, we we’ll get into that in a sec, but I mean, I, you know, the, we don’t have enough either rental properties or for sale properties in the Albuquerque area to, for, for the demand. That’s why we’ve seen rent go up so much. And that’s why we’ve seen home prices go up. It’s very simple supply and demand. Right. And so speaking of supply
Tego:
It’s, there actually has been an increase in a number of homes on the market in the last few weeks. Right. We’ve been seeing that the, the thing I would caution people was, is, is don’t read too much into that. I’m hearing that in the realtor communities, where people going, oh, here we go, homes, you know, a lot more homes on the market home, you know price reductions are, you know, increasing and more homes are coming on the market. I just want to tell everybody that that happens every year, this time of year, that is very common that we see an increase in price reductions. And we see an increase in a number of homes on the market late may into June it’s in, and then going into July. Right. It’s very common. However, this year is very different because of this just incredible interest rate mortgage interest rate surge we’ve had.
Tracy:
Right.
Tego:
You’re gonna say something,
Tracy:
So how much are we up? I mean, I’m like, you know, you’re talking about being up, but we’re still significantly below where we could be so correct. Correct. When you say we’re up, but,
Tego:
You know, so let, let me give you some data.
Tracy:
Yeah. I figured you might have some,
Tego:
So this year we’re so for, and, and what I did is I looked at just you know, may of this year BA basically last week, right? How many homes we had on the market. And I compared it to the same week if we took 20 17, 18 and 19 averaged it out, okay, I’m not gonna include 2020. We’re gonna throw 2020 out in 2020, went out. Okay. But let’s go, we’re, we’re going back to,
Tracy:
We’re doing a three year
Tego:
Average, but the last kind of normal markets, we had 17, 18, 19 on average, in those years, we had, where do I have it here? About 3,200 homes on the market at, at the same time, in those years, on average, compared to the a hundred, or excuse me, the thousand we have on the market right now. So about a, about a 60 high, 60, 70% less homes on the market right now today than pre COVID, 17, 18 and 19.
Tracy:
Interesting. That’s a great stat Tigo. I love that you took three years to average ’em out and just kind of see what the average was compared to today.
Tego:
Yeah. And, and you could even say those years, I mean, Tracy, we were having those conversations here on the radio in 18 and 19 that, oh
Tracy:
My gosh, we need more houses on
Tego:
The market. We need more homes on the market. We need homes on the market. So, I mean, if you go back to, let’s say 20, 15, 16, it’s even more, it’s even more prominent that, that we just have a shortage of homes. Now, the thing that’s interesting is you look at what’s active for sale, and then you look at what’s under contract. There’s a lot of homes pending under contract right now. Yep. Much more than we normally would. Usually you have, you know a certain percentage of pendings to under contract
Tracy:
And to list active.
Tego:
Yeah, yeah. Yeah. And in, in this year, it’s in the last few years, it’s been always more under contract than actually active on the market. Wow. That was really complicated to say
Tracy:
That’s because they’re all selling and waiting to be closed. So the things are selling and we’re, we need more.