How’s the Albuquerque Real Estate Market: What to expect for the rest of the year?
(Transcript Snippet): “Tego:
Yep. So Tracy, I want to hit on this topic of how we are in the market right now and in what we see going into, or through the rest of 20, 21, what are you seeing and what are you feeling, you know feet on the street kind of feel of, of the real estate market in Albuquerque?
Tracy:
Sure. So I feel like I don’t know your stats, so we’ll see.
Tego:
That’s why I know I’ve got, I’ve got numbers, but she’s got like real world, you know, see is
Tracy:
Things are typical for this time of year. Things are flattening out. Not as frenzied, we have maybe a few more homes on the market. I’m still less than probably in previous years
Tego:
And like all time. Okay. Not all the time, but I mean, yeah.
Tracy:
And buyers not as much competition for a house instead of 20 offers, maybe there’s three or four offers. But buyers are still, you know, taking on more and taking things as is, or
Tego:
When you say it slowed down, do you don’t, I mean, it’s still, w w you know, if I look at the data, the data tells me that we are an extreme sellers market, terror territory in the sense that we have very little supply and there’s still a lot of buyers out
Tracy:
There. Yup. Yeah. I just am saying seasonally. It has slowed a little, it’s still really, really busy, but we are seeing like, it’s back to school time, we’re seeing that people are probably preoccupied with getting kids back in school, getting in a new routine, figuring out the latest mask stuff, and whether they’re at their office or at home working. And I think it’s, but it seasonal it’s normal. It’s just not quite as frenzied as it has been. Right. That’s that’s what I’m saying. So I pulled up the data.
Tego:
No, no, that’s good. I, I just pulled up for, you know, this is just a first look at August numbers since we’re not quite done with the month yet, but basic idea, you know, the thing I’m seeing is the inventory is down 15% from a year ago. And of course, a year ago, August
Tracy:
Inventory, the number of properties on the market. Thank you for
Tego:
Clarifying that. I’m sorry. I speak this, you know, realtor talk, realtor lingo.
Tracy:
And I think a lot of people have heard the news lately that more homes are on the market. A lot
Tego:
Of headlines of special Nash national headlines saying that, that all the market’s slowing down and there’s more homes coming on the market, you know, but it’s like, okay, it’s all relative. Yes. More homes are coming on the market where you’re in an extreme deficit. Like we were back in June, may or April. It’s really April is really when we hit bottom and then we’ve been building ever so slightly ever since. But we’re still in an extreme low supply situation.
Tracy:
You said the stat was,
Tego:
The stat was there’s 15% less homes on the market this year, same time versus last year. Perfect. Thank you. Got it. And of course last year was, you know, we were very down and the thing that’s interesting in a number of homes coming on the market is about equal to last year. The number of homes that are going under contract, meaning, you know, getting, getting a, a pending offer. It’s up a little bit over last year, which is interesting because last year August was really busy. It was off the charts. So it’s still busy out there. And I saw a national presentation about the, the overall housing market. And, and one of the things that really jumped out at me was they expect 20, 21 to be the fifth or sixth. I think it was the fifth going to be the fifth busiest number busy, busiest, not the right word. The total number of home sales is going to be the fifth most ever in history. And all indication is that is not going to change going into 20, 22 to then. So talking about the end of the year,
Tracy:
Right? Yeah. So I know you and I, we sit over coffee in the morning and talk real estate, right. So we were having our what’s the end of the year going to be like, what is, what
Tego:
Are, do we ever not talk real? I’m trying to remember a day. No, I don’t think we do. Okay.
Tracy:
What, what the next four months hold what we believe. Right. And what do you think?
Tego:
I, I think it’s, I, I, one thing I wanted to address and this this’ll go into that is home prices have, I’m going to call flattened out. We haven’t seen the the appreciation or the prices jumping up as much as we did. And, and that’s pretty normal. This time of year price has kind of flattened out and, and kind of stay just kind of level through. So people that are listing their home prices thinking, oh, prices are just keep going up, keep going up, keep going up. You may want to be careful because we have seen more price reductions, meaning people are maybe getting ahead of themselves on list prices. We’re seeing that with new construction, mercy net with resale as well, where we’re starting to see prices kind of come down because they’ve tried to push them up a little higher than maybe the market can support right now.
Tego:
And I, I suspect what’s going to happen going through the end of the year is prices are going to, you know, maybe take up slightly, but I think they’re gonna stay relatively level. Definitely don’t see a slide backwards for sure. Right. And then, you know, a number of home sales, I think it’s going to continue to stay strong. Buyer demand is going to stay strong. The latest stats from the mortgage bankers association, talking about a home purchase mortgage application, which is a great, very great early indicator of buyer demand. It just ticked up again last week. So there’s, and, and, you know, interest rates, right. We can talk about interest rates, but it doesn’t appear even with the stuff going on with the fed, it doesn’t appear that mortgage interest rates are going to change much anytime.
Tracy:
Right. So they have it. And most of that is fairly seasonal, similar. Right? We do set see typically every year from about now, we’ve kind of talked about the state fair and balloon Fiesta. And just between now and the end of the year, typically every year we have kind of a nice, steady it, nothing goes up, you know, prices don’t go up. They actually, they make, usually pull down a little bit, right. Price per square foot slightly, slightly. So we may not see that this year. Yeah. Yeah. Hard to
Tego:
Say. I just don’t, you know, I don’t see any big shifts in prices sliding backwards. And you know, if you’ve got four barons in the back of your mind, as I’m talking about this and all the coming foreclosures, we’re not going to go there today. We’ve talked about that before, but there really doesn’t look like there’s going to be any major flood of homes coming on the market from people that were need to do a distress sale. So.