Cash sales: It’s actually happening in Albuquerque’s Real Estate market!
(Transcript Snippet): “Tego:
There’s a, there’s a, you know, kind of that, that, uh, we’ll call it a, maybe an urban legend in the real estate world. It’s like the, all those cash buyers from California, you know, they’re, they’re everywhere. Um, and so let’s talk about this actually, since we are on the subject. So I saw some reports and then I, I dug into it some more nationally, nationally, um, they’re, they’re saying cash purchases. We’re about 34, 4% of all home sales in the third quarter of this year. And when you, when you see it, it’s like, wow, that is a lot. And the thing that’s interesting about that is nationally, but when you actually look at, uh, what markets, those are the markets that are that’s happening the most it’s Atlanta, it’s Detroit Dearborn, right? It’s Tucson, it’s Las Vegas, it’s Phoenix, uh, Columbus, Ohio, um, St. Louis Sacramento, San Francisco, I think San Francisco for different reasons. But all of those, I just listed though, all of those markets have institutional home buyers. Okay. So these are companies that buy lots of homes and they either most of them just end up renting them. Right.
Tracy:
Interesting point. I hadn’t thought of TEgo, specially we know the Phoenix Tucson markets, right? There’s a lot of institutional buyers there. So of course there are paying cash.
Tego:
You’re seeing a lot of cash sales in those markets. Right. And that has a lot to do with it Albuquerque area. We don’t really have, I, you know, there’s, there’s a few institutional buyers here. Basically. People are
Tracy:
The one with open door that bought one of our listings, but they’re not really here.
Tego:
No, no, no, no. And that’s different. Um, I’m talking about the ones, the, the ones that buy it too to rent it. Okay. I mean, I know, you know, there’s a few, you know, there’s a company here that offers the lease purchase option for people where they’ll buy it for cash and then you can lease it back from them, you know?
Tracy:
Yeah. You’ve helped people buy that way. They can be cash buyers by agreeing to lease the house for a while, until they can convert it to a buy.
Tego:
The reality is, and I hear this narrative out there that, oh, it’s those cash buyers from out of state, you know, they’re coming in and, you know, buying up all the homes, it’s like, well, no, the truth is in our markets only about 17% of the homes that have sold this year or are cash sales, which is actually really not any different than any other time. It’s, it’s very common. A lot of those are met if we really dug into those, I bet we’d find that a lot of those are local investors, um, that, that are buying those homes for either, uh, investment to rent or investment as a, as a flip as well. So, you know, there’s always going to be those, and there’s always going to be that big money coming in from elsewhere to buy up all the homes. But we don’t see a big surge of that are huge, uh, part of that in, in the Albuquerque market. And like I said, it’s only 17%.
Tracy:
We have had a couple luxury homes on the market recently where we’ve represented the sellers. We have the one right now in tendon farms in the north valley, um, and, and a few others. And it’s interesting because I’m like, I can’t be that specific, but, uh, one particular home we represented recently, um, high-end luxury, um, ended up with offers over a million and over a hundred thousand over list price and cash and a backup offer, similar also cash. Um, but in general Tico in the last year, you know, I would say our team’s history is a lot of the luxury buyers are local. And a lot of those people are move up buyers there. They’re still in their first home that they bought grown. And they’re now in a better financial position.
Tego:
A lot of these people that have now on their own home, let’s say they bought their home in 2012, 11, 13, you know, at the bottom of the market, the equity that people have built in their homes. I mean, they have, they have a beautiful nest egg right now,