Equity and homes: The big story in Albuquerque’s real estate market

Equity and homes: The big story in Albuquerque’s real estate market

(Transcript Snippet): “Tego:

This was the big story in the real estate, you know, press this week was, uh, I thought, you know, in all of these different news sources that I follow was the amount of, uh, tappable equity or the increase in equity in the United States. You know, we’ve had somewhere 15 to 20% home price appreciation. Um, just, just in a year. Some places have seen more than that. Some seem less than that, of course. But, um, uh, the, the thing that’s interesting though, there’s going back to that whole conversation about, okay, if you just pick one piece of data and run with it, you can build a story around that. So I’ve seen stories about how much, um, people are pulling equity out of their homes, and they’re doing it all over again, like they did in 2005 and they’re, they’re cashing in and they’re going underwater.

Tego:

You know, they’re, they’re, they’re pulling out more money than, than ever before. And that is true. A lot of people are refinancing. Some people are doing cash out, refinancing. Some people are not doing cash out refinancing. They’re just refinancing to get a lower payment and a lower interest rate. Right. But, um, despite that, despite the number of people doing those cash out, refinances that tappable equity in, in the United States hit another all-time high at the end of quarter one. This is, and, and, and let me just share it. I’m getting this from a, a source called block night. I’ve talked about them before they’re they do a lot of mortgage data information. Great, great resource. If you want to really get wonky on this stuff. And 8.1 trillion at the end of the, the, uh, quarter one, they just came out and said, the end of quarter two, it’s not now 9.15 over a trillion in additional homeowner equity, just in the last quarter or that quarter, I should say, not the last quarter.

Tego:

And, and so it’s a 37% increase in tax tappable equity year over year, uh, that, that the homeowners have. So it’s some big numbers and that’s good. And, and the good thing about that is we’re not in the situation and I wish I had the number exactly in front of me, but I will say that 90, I think the sum, the number is somewhere around 98% of all mortgages in the United States have at least 10% equity. There are very, very few people that are negative equity underwater, you know, on their home, which is great news. When we get into this whole conversation about the delinquent mortgages and people in forbearance and people facing foreclosure, um, a lot of those people, in fact, 95% of those people that are in forbearance plans have at least 10% equity.

Tracy:

I was thinking about that, those, those people that tease about, uh, percentages and throw numbers out. And when you said 95%.

Tego:

Oh, got it. Yes. Yeah. So that’s kind of the crux of the whole forbearance story. Um, other than, you know, every month more and more people come in are coming off and September was a big month for, or is a big month for a forbearance expiration. So we’ll know next month kind of how things are shaking out with that. But right now everything’s going in very, very good direction there.