Home Price Appreciation: What is going on in Albuquerque’s Real Estate Market?
(Transcript Snippet): “Tego:
I’m gonna talk about what is going on in our real estate market in Albuquerque. And this is Ventura Realty group with Keller Williams Realty. And you can reach us at 5 0 5, 4 4 8 88, 88. Right now there are very few homes on the market. When we, when we start looking at the real estate market, there’s a, some, some pretty interesting challenges out there. And the, the thing that that we’re seeing is that we’ve kind of got some, I’m gonna call ’em unhealthy dynamics in the real estate market in Albuquerque right now. And I know this is a quick segue into, in a whole nother thing and, and unhealthy in the sense that home price appreciation has very much escalated really quickly over the past couple years and Tracy’s here. And, and so home prices have gone like 17% per year over the last couple years, each year.
Tego:
Right? And, and in many ways that isn’t unhealthy market unhealthy in the sense that it really makes it challenging for first time home buyers, you know, to try to come into, get, get into that, that housing stair step, if you will, right. The housing ladder. Right? And, and we talk about that, Tracy, where people, you know, they get that first, it’s a starter home, you know, they’re in there a few years, they get that appreciation. They can take that appreciation and equity that they have in that home, move it into the next home and so on and so forth. But, but with the, the way prices have gone up so much so fast, it it’s been a challenge for, for first time buyers.
Tracy:
It really has. And I, I just jumped in here, but the MFA program mortgage finance authority has a couple different things. And maybe you just mentioned that, but they have some down payment assistance programs they do to help people. You have a maximum amount that a family or a single buyer can earn a year to qualify for the down payment assistance programs or for your next home program. So you don’t have to necessarily be a first time buyer.
Tego:
Yeah. And I think, I think you, you make a really good point in the sense that yes it’s and what I was getting at here is yes, it’s unhealthy, there’s some unhealthy dynamics going on a real estate market. It’s really challenging for first time home buyers that don’t have a lot of cash that don’t have, you know, that, that are, are, are trying get into this market. However, however, <laugh> the big, however is, you know, all the experts. So there’s, there’s a, a survey that’s done every quarter. Zillow actually sponsors it, but it’s about 110 different economists that are in the real estate housing that professors of, of real eight studies and all kinds of stuff, right. 110 of them. And they do a survey every quarter. And when they, and they do predictions home price appreciation out over the next five years. And if you, if you took all those 110 and average it all together, the average for this year is 9% is what they’re calling for for 2022. And that’s
Tracy:
For New Mexico or
Tego:
Nation. No, no, this is nationally. I’m sorry. Right. And, and then if you just look at, at it out over 23, 24, 25, 26, the it’s all in this, you know, three to 4% price appreciation. There’s very few in real, there isn’t really any significant person talking about home price depreciation. Right. and so it’s hard to get into the market right now. We get it. But, but at some point you have to start that stair step and, and the advice is it’s, you know, you buy a home to live in, right? You don’t a home as an investment necessarily either.
Tracy:
Right. It that’s one of the benefits, but really you need a place to live. Right. Right. So invest in yourself. The, the, go ahead, the home homeowner assistance fund.
Tego:
Yeah. This, this is yeah. And I,
Tracy:
It’s also by the mortgage finance authority that has those down payment assistance program REMS, but this one is specifically for people affected by COVID, right? Yep. Typically, yep. And you can show a monthly need or a need financial need, and it can help you with monthly assistance, getting, getting able to qualify for it. So if you’re kind of thinking you’d like to be a homeowner it can definitely help you. So, you know, reach out or contact us. We can connect you to the mortgage finance authority and get more information.
Tego:
The thing is, if somebody is in a, is a homeowner, now we’re talking about a homeowner in a distress situation, for whatever reason, there’s programs like this, that has money available to help people out. However, the <laugh>, you know, we’ve seen this a few times now, Tracy, where people are in a distressed situation, how, but because of what’s happened in, in home price growth over the last few years, they’re in a really good position where they can probably just sell, which is very different from 2008, 2009. Anytime I hear somebody try to compare what hap what’s going on in our market to 2008, 2009. It’s like, no, no, you, you, you’re, you’re comparing, comparing apples to hammers, right? I mean, it’s, it’s a different,
Tracy:
It’s not even apples to
Tego:
No, no, it isn’t, its it’s a different deal. Right? I mean, it’s like, you know, we have very low inventory, unlike 2008 where we had very high inventory, we have very strong, balanced homeowner balance sheets and high equity, which is the exact opposite of what we had in 2008. Right. Right. So it’s just a different situation. So the point is there’s options for people that maybe are in a distress situation,
Tracy:
Right? So the homeowner, this is not how to get in a home, but the actual homeowner that might be on unemployment insurance or has to be, I think, to qualify there’s money available to help you pay your mortgage, pay your property taxes, keep yourself in your home versus getting behind on your payments and not being able to afford to keep your home. So just know that there’s that fund out there, right? Yeah, yeah. Yeah. Very important. Cuz keeping that home is, is valuable.