How Much Economic Impact does Albuquerque’s Home Sales have in the Economy?

by | Jun 29, 2022 | Albuquerque Real Estate Talk | 0 comments

https://youtu.be/wkr4IkU0fN0?rel=0&showinfo=0

How Much Economic Impact does Albuquerque’s Home Sales have in the Economy?

Transcript Snippet: “

Tracy:

Anyway.

Tego:

That was great. No, that, that was really good. Thanks for opening the door. It got warm in here. So I wanted to go to this topic every year. The national association of realtor does a study where they say, okay, how much economic impact does home sales, residential, real estate sales have on an economy. And so, so, so you think about that every time a home sells, you’ve got a few things happening, right? You’ve got economic impact from the standpoint of income generated from the real estate industries, right? So that’s obviously commissions it’s mortgage fees, it’s moving expenses, title companies, you know, things that are directly associated with the purchase of a home, right? So that’s, that’s OB that that’s the obvious one, but the other one that’s not so obvious is the, they, they estimate in new Mexicos about $5,000 for every home purchase. And that’s for things such as remodeling new furniture, you know, just the stuff that you you do when you buy a new home,

Tracy:

New doormats to, to, and new towels and yeah,

Tego:

And then they, they, they have this thing called the multiplier effect where they say income earned from those, those sectors that also impact the economy. And then the last thing is they have this new construction, so that it’s estimated for every six home sales in existing home sales, you’re gonna have one more construction. So the, the short of it is for every home sale in New Mexico, it’s estimated that 93,000, almost $94,000 gets brought right into our local economy. So, you know, real estate is a big deal. One point 17.1 billion of the gross domestic product of the state was residential real estate or the real estate industries. It’s about 16% of the new, new Mexico’s gross to me, domestic products. So it’s a, it’s a big part of our economy. And, and I just like the, to highlight that when they put this out every year, because it’s, it’s a big deal. It is a deal, big deal. It makes a big deal. So think about this. That’s another good reason to sell. How about this one? Tracy, let me see if this one see if this flies good reason to sell. You’re helping the economy. Yeah,

Tracy:

No,

Tego:

No, come on. That’s a good reason. No, I like that one. I like that. No, it makes you feel good. That’s good. Let’s see.

Tracy:

How many homes have been on the market this week? Have we seen any uptick in the number of

Tego:

Properties? No, actually it’s really interesting because last week we had a spike up in the number of homes on the market this week. We did have, you know, some come up, but it’s actually down now from last week. We’re not talking a lot, but you know, we’re still hovering in this 900 to a thousand homes, active, available to purchase on the market at any given time in the Albuquerque area. And I always tell people, we could have 4,000, 5,000 homes on the market right now and still not be in a supply Glu. You know, we would have to get to, I’d say seven, 8,000 homes on the market to be in a supply Glu. We’re at a thousand. So we, we definitely have a deficit in, in the number of homes available to purchase. And, but you know, the, the, the thing that’s interesting is they’re coming on the market as you know, Tracy and they’re selling in three days, right. You know, last month median days on market was three days, which means half the homes have sold immediately. Right. And that seems to still be happening.