Stat-O-Matic: Albuquerque’s Real Estate Market stats for October

Stat-O-Matic: Albuquerque’s Real Estate Market stats for October

(Transcript Snippet): “Tego:

All right. So let’s talk about the market. Um, October finished, very strong in, in home sales. We had an increase, uh, in, in closed sales versus, uh, I take that back. I’m sorry. We had a, actually a step down I’m I’m getting ahead of myself. I was thinking about prices. Um, we had an increase or a decrease in the number of homes sold for October versus October. Last year, you got to put a big caveat on that one because comparing any real estate market data to 2020, especially the late in the year, um, is, is not a fair comparison because you know, the, the third and fourth quarter of 2020, we’re just blockbuster, blockbuster sales,

Tracy:

Right. People were catching up from the early days of COVID. When everything was shut down, we weren’t even showing houses. We weren’t touring houses. Um, we didn’t know what was going on. So when you look at second quarter, last year of 2020 versus third quarter, and fourth quarter is significantly different than this year.

Tego:

Just to put this in perspective, though, we had a 1,250 homes sell in the Metro Albuquerque area. That’s a lot, a lot of homes changing hands. And, you know, so that’s, again, it’s a very strong, steady, healthy market. And if you look at the pending sales, which these are the properties that will now close these pending in October, meaning, so now they’re going to close probably November, maybe into December. Right. And that was very strong. In fact, it was above 2020, right. So, you know, th th there’s still a strong demand out there. There’s still very limited supply out there. In fact, we just hit a, another low this week, um, uh, you know, and

Tracy:

The

Tego:

Homes on the market. Yeah. Actually back in June, we had a really low number of homes on the market. It’s come up a little bit since then, but now it started to tick back down again, which is not uncommon this time of year, Tracy, because of just a seasonality to the real estate market. People started thinking, well, you know, the holidays are come in. I don’t really want my home on the market. And, you know, maybe there’s no buyers out there right now. And in that, so I’m going to go back to market stats.

Tracy:

Great. Start there and end there.

Tego:

Yeah. Um, home prices have definitely climbed substantially over the last year where we’re probably, we’re probably appreciating somewhere around 14, 15% in our market, which is, which is very strong, you know, and, and in some people would say unhealthy strong, but it’s actually less than a lot of other markets. So I kind of, I kinda liked that. Right. Um, we have seen, uh, prices plateau here in the last few months. And like I said earlier, that is, that’s very common this time of year where we see, you know, a big run-up in, in PR not a big, but you know, the, the jump and appreciation, uh, usually, um, goes through the summer. And then it, you know, it’ll plateau, you know, this time of year in which, which it is, um, we’re not talking big difference, but it’s, but it’s interesting. So, you know, people that are thinking to sell, just like we talked about earlier, you know, prices are at all time highs right now for the Albuquerque market area.

Tracy:

You know, what’s interesting though, and I know you don’t have the chart pulled up, but if you look at 20 to 30 years of, of home prices on a chart with the typical three to 4%, every year increase, and you go back to 2007, 2008, when it dropped way down, and we didn’t have that three to 4% for many years, we’re actually still just, you know, inline or still slightly below where home prices would be on that line. And that probably doesn’t make a lot of sense to a lot of people because you can’t visualize it, but

Tego:

I know exactly what you’re saying. We

Tracy:

Are. If we wouldn’t have had that, we probably would be at higher prices right now.

Tego:

I, I think another way to say that are kind of taking off of that is that Albuquerque from 2012, till today has not appreciated as fast as a lot of the other markets. Right? And so that’s, that’s healthy because this, you know, unhealthy 15% price appreciation, um, is something that that’s, that just can’t, you know, it can’t be sustained. Um, and, and it does appear that it starting the, you know, the pace of appreciation, uh, will be slowing down, which is, which is good. I’m not saying that price prices are going to go backwards. It doesn’t look that way, but, you know, but for, for casting, you know, what the market’s going to do is, is can also be pretty few tiles. So I, I, you know, I, I want to be really careful. We, uh, that there was a big story in real estate this week about, um, uh, Zillow, um, who was doing some stuff where they would buy homes and then resell them right away. Well, they got ahead of themselves and they overpaid for some homes and they’ve, they’ve stopped doing that, that practice. There just, it wasn’t happening in Albuquerque, but it was happening in other markets. So, you know, it’s, it’s difficult to predict the housing market. And I think a big company like Zillow, not, you know, figuring that out the hard way, just proves that it’s, you know, it, it’s very specific to the home, the neighborhood, the side of the street that it’s on everything be local.

Tracy:

Thanks, Eddie. Always happy to be here.