Fact or fiction: Albuquerque homebuyer fall edition
(Transcript Snippet): “Tego:
All right, Tracy, here it is. It’s fact or fiction, fall edition. Um, we, what were you pointing at? Oh, got it, got it. Uh, factor fiction. Um,
Tracy:
Home buyer Edition
Tego:
Home Buyer Edition. Let’s go through these.
Tracy:
I should wait for mortgage rates to drop what’s. The fact,
Tego:
The fact is mortgage rates are at an all time level, have been at an all time low. I mean, you know, we’re hovering anywhere from, you know, high 2% to low 3% and every indication is that mortgage rates are going to go up. Now we will say, we’ve been hearing that for years as well. Right? Mortgage rates are gonna go up. Mortgage rates are gonna go up, you know, back up about four or five years ago, they did go up, you know, got up over 4% and the market started to slow down. Um, obviously since the beginning, uh, just actually first couple of weeks after the beginning of the pandemic and in 2020 mortgage rates dropped substantially and have been down in this 3% range for a long time, every indication is that eventually they’re going to start going up.
Tracy:
They have to, but when, right. Yeah, exactly. So the other fiction, there are no houses on the market, so I might as well not look for a house to buy.
Tego:
Yeah. You know, what’s really interesting about that stat. We hear that and we, we hear that in the realtor community too. So realtor stop it. There’s no homes to buy. Well, of course there’s homes to buy. Do you know that, um, August of 2021 was the second most number of pending sales in the Albuquerque market ever.
Tracy:
Right. So
Tego:
Second to July of 20, 21, 20 20, Which was,
Tracy:
Which was off the hooks because the end of March, April, may, people were all at home, not looking at houses. So June went off the charts when people decided they could go with masks on and look at houses. So, so you looked at stats this morning, over coffee for, for us. And what we know Tego is houses are coming on the market, but they’re going off the market at a similar rate. So there’s no houses on the market, but we’re actually up a little bit too.
Tego:
I don’t know if you can say a little bit, but yes, slightly. Yes. A little bit is correct, but it’s a very little bit, we went from 1100 homes to 1,175 homes on the market, you know,
Tracy:
Weekly. We see that right at the end of the month, we are at the end of each week, we see a little bump up. And then by Monday, Tuesday, we go back down a little bit.
Tego:
Right? And so what’s happening is yes, there are very few homes in the market. And part of that is just coming on and going off so quick, you know, median days on is still four days, meaning half the homes that come on the market sell within four days. And that’s right.
Tracy:
So if you’re a home buyer, there are homes on the market, but you need to be ready. Right. You have to have your lending in order, if you’re using a loan, if you’re using cash, you know, you need to have something that proves you have the cash so that when we make an offer, it’s a solid offer.
Tego:
And I will say, you need a real estate agent. That is your advocate that understands how to work in this particular market. It’s very different than it’s been. And, um, you know, th the experience in working in this, this kind of high, I don’t want the thing high-speed market. Is that a good way to put it right now? Things are going really fast. You have to have a real estate agent that really understands how to work this market to be your out
Tracy:
And can be available. Right. Well, of course, we know that if you know, you’re working with somebody who wants to look at the house three days from when it comes on the market and that’s when they’re free, you’re going to miss out. So another, uh, fiction, every home is selling for above asking price.
Tego:
Yeah. Well, the, the, the truth is a lot of homes are selling above asking price. Um, the stat is it’s about 50% of the homes are selling for above list, price asking price. Right. And so, yeah, not everyone is, um, the, the thing, again, if you go back to the experience real estate agent, that’s in this market everyday knows what’s going on and sees what’s happening in the market. They’ll know which homes are going to be the ones that are going to be flying off the shelves as they say,
Tracy:
Right. The gems. Yeah. The neighborhoods. So, so best to connect. Let’s talk about trends. Let’s talk about positioning yourself as a home buyer and, um, being ready. Yeah. The, you know, uh, having a great realtor obviously is really important. Having a whole team working for you, your lender, um, realtor. Yeah. Yeah. All the inspectors, everybody.