Top Trends in 2022: A list of what to expect in Albuquerque’s Real Estate Market next year
(Transcript Snippet): “Tego:
Tracy. I was, I saw a story that had a list of, um, top trends that are being expected for 2022 in homes in homes. Well, and just in, in real estate, in general, not in homes, I’m not talking about like design trends. And then I’m just talking about the, the real estate world, the whole, the whole, the whole world. And so there’s a list here as well as I threw a couple other in here that, that I thought were pretty interesting. Um, but, but first off, the, the, the trend is, is values, home values. Uh, everybody is expecting it. I say everybody, I should rephrase that. Most of the experts that are, you know, look at this stuff every day in the real estate world, uh, project that home prices will continue to rise, uh, across the country next year.
Tracy:
And our regular listeners will know all the reasons why, right. They know, because interest rates are predicted to go up. Some, we know that we’re not expecting a lot more homes on the market, and there’s a lot of buyers still waiting for homes. There are not a lot of houses in foreclosure about to hit the market. And even if 2 million across the United States came on the market, it wouldn’t make it unhealthy. Right. So for all those reasons, home prices will continue to rise. Yeah.
Tego:
The one projection is that the rate of appreciation will slow a little bit, which we need, because really this double digit, you know, annual price appreciation, it’s just not healthy. It’s, it’s not is it’s not. Um, and, and along with that, just to, to, as part of that, as home prices go up, rent are expected to continue to go, continue to go up as well. Right?
Tracy:
Speaking of France, adrenal suite from our team was featured this week. She manages an apartment complex in addition to doing residential real estate. And she got featured on the news this week on TV. And it was awesome to see that. Yeah,
Tego:
Yeah, no, it was, it’s interesting because [inaudible] did that story about, you know, the rent’s going up and, you know, we actually did that story last week on the radio shows K or queuing listening, uh, you know, get your, get your radio topics here, or get your topics, your TV topics here on the radio.
Tracy:
Some other trends for 2020,
Tego:
Some other trends, uh, is just tech tech adoption. But I think we all realize that that’s everywhere. You know, that there’s just going to be more and more tech in everything we do. Just, just so people understand in the real estate world. I think a lot of people know about the, uh, virtual tours and different ways to view homes and the way homes are marketed and shown, right. Tracy, that’s, that’s pretty popular. Um, other stuff that’s coming into real estate much stronger now is, uh, artificial intelligent things like reading, being able to actually read or, or look at photos of home for sale in and glean some data from that that’ll help, uh, a home buyer. So there was a lot going on.
Tracy:
We talked about this a few years ago. Tigo is so much more, um, possible now in that’s where the computers are reading the photos that you’re lingering on the most. So when you’re doing home searching online and you’re looking at pictures and there, the artificial intelligence says, wow, you’ve looked at this house four times. I’m going to find you other houses with photos similar so that maybe the color palette or the kitchen or whatever is similar is what pops in front of you.
Tego:
It’s all spooky stuff. And I’m sure people are cringing out there listening to this and it’s, but, but it’s here, it’s happening. And we know, we know that those, you know, home search website use different types of technologies to do that, to help serve you up homes that that may be, you know, uh, appeal to you.
Tracy:
It’s that whole, you know, they’re following you, you know, this is off topic, but I had read an article this week about apple and they’re developing the Evie car, the electric vehicle, and it’s autonomous, you know, pilot, no, no driver driverless. And it was crazy to me that it said that within five years, they plan to have this vehicle on the road. And it said that there will not be a steering wheel, a gas pedal brake pedal, and that the seats will face each other. You won’t even be looking out the front. Yeah, I don’t think so. But you know, think about how far we’ve come in just two years since the pandemic hit, how much we’ve all embraced things and things have changed much more quickly than we ever thought possible. Anyway,
Tego:
That is true. And speaking of tech, just actually, let me just make one, uh, uh, story here actually, or tell a story is in, in New Mexico, um, notarizing Tracy, you’re, you’re a certified, you know,
Tracy:
Notary public notary
Tego:
Republic, right. And in New Mexico, uh, starting at the beginning of 2022, you will be able to do, uh, electronic notarizing of documents signing the signing, but not, but actually notarize. I mean, we’ve had either
Tracy:
Notarizing. Yeah. Which is great. Um, I’ve been watching the secretary of state’s website and I, you know, you have to go back through training and get a new notary stamp to be able to do all that. And right now I haven’t been able to find that it’s even available yet for me to get trained on and get my new credentials for it, but I’m watching for it because boy, that has been so handy for us in other states and with some of our clients, when they’ve needed to sign in, they allow a notary in those states and that notaries online, they look at your ID online, they’re with you. They tell you where to sign. We’ve
Tego:
Personally signed, done some of that. Tracy. And, and to me, it seemed like it was almost more secure than in, in many ways. So anyway, that’s coming, you know, again, backward we’re, we’re talking about trends in real estate for 2022. And one of the things that’s coming to New Mexico is a
Tracy:
You notary notary. So one other thing Tego that I’m thinking is 2022 is the work from home is not going away. No,
Tego:
No. It appears, you know, all the surveys, all the stuff, you know, like you th the, the companies that do recruiting online, like, you know, ZipRecruiter and indeed, and all of our wives hire yeah. All those, they, you know, do tons of surveys and they’re looking at, you know, what the application or what the, uh, um, what employers or job requirements are. And one of the things is, you know, work from home has gone up quite a bit and it’s going to be it’s, it’s here to stay. Basically,
Tracy:
Of course, there’s lots of service jobs that you can’t work from home. Um, and a lot of businesses where you can, you know, it’s interesting because we were talking with someone who is interviewing right now, and it’s a type of position that can be done from home. And a major corporation was saying, no, we want you in office. So there may be some companies where they’re saying, Nope, we do want you coming in office, or at least in area, because right now we know there’s a lot of people who are on teams, where their teammates are all over the world now, and they don’t have to move for a job. Um, but I think, you know, maybe some will still require you to move. So you can have those occasional in-person meetings, but not every day.
Tego:
And just one last thing on the work from home thing that has driven a lot, uh, in the housing market and people needing to get a different home so that they could have a home office or a place to work from. And, you know, there’s, there’s these auxiliary early auxiliary dwelling units that you can buy, you know, so you can have like a, an office in your backyard. It’s like a little tiny house office. Right. And so there’s a lot of that stuff going on and it looks like that trend is going to continue
Tracy:
Off topic. Again, we were on a, um, Google meets with a really high level executive this past week. And their baby started crying and their dogs started barking. It was pretty funny. I was like, he goes, I need to step aside for a moment and close my dorm. Like, you didn’t have your door closed before. And then it was like the dog. It was sort of ironic.
Tego:
Well, that’s the way it is. Yeah. Yeah, for sure. Uh, trend another trend. That’s uh, if you’ve been listening to us, we’ve been talking about it for a long time, which is the millennial buyers in, in 20, I mean, 2021. It definitely millennials that, that generation, that cohort has dominated 2021 and is probably gonna dominate it even more in 20, 22, as, as home buyers,
Tracy:
72 million in that category, they’re obviously a huge segment of who’s ready to buy a house. And I believe that the average income of the millennial cohort heart right now is about 88,000 a year, probably in their joint between two people working together to be able to be in a position to buy a house. And that’s awesome. You know, we expect a lot of them to be buying in 2022, just like they were this year.
Tego:
Yeah, no, for sure. For sure. Um, one thing that I saw that I thought was interesting, and I’ve seen this in a few different places, is it the new construction? Um, we keep saying, we need more houses. We need more houses, keep building, keep building, but there are a lot of projections at the, the amount of new homes being built is going to stay pretty stagnant. That it’s not like we’re going to suddenly have this building. Boom, like we had in 2004 and five right there. There’s just so many constraints on building right now from availability of lots availability and materials, availability of labor cost of all of those things have gone up, you know? And so there’s a certain point where a buyer just says, no, I can’t, I can’t spend $500,000 on a, on a basic, you know, entry-level home. Right.
Tracy:
I can’t wait 14 months or some unknown date for that house to be built.
Tego:
So yeah, there there’s some projections at the new construction, single family home construction is going to stall a little bit, but there’s also projections that multifamily is going to boom a little bit because, because of the need for just housing, we just don’t have enough in this whole country. So yeah, I thought that was interesting. Um, and then the last thing that, that, uh, you know, I was thinking about is there’s going to be coming out a lot of different creative, uh, I want to say creative, but financing ways, homes, ways to purchase homes that aren’t the traditional, um, how do I want to say this? There’s going to be ways to help people buy homes and sell homes that have never existed before. And so what I mean by that is if somebody, uh, you know, Tracy, you and I were just at that conference here a few weeks ago that, uh, all the, the venture capital people in the real estate world that come together and talk about all this tech and both property technology, as well as financial technology in the mortgage world.
Tego:
And there’s a ton of innovation going on there. And I know as soon as you start saying creative financing for, for real estate people cringe because they think about, you know, what happened back in the day with the subprime and all that, right? But there there’s these solutions out there where somebody can, uh, hire a company to buy their home, you know, before they sell their home. So when they go to buy the next home, they’re a cash buyer, right? That’s just one solution. There’s, there’s a bunch of different products out there for these kinds of bridge loan products, right? To allow again, somebody to buy and sell and have some sort of financing, financing in place. Um, that’s, that is booming right now. We’re going to see more and more of that. Um, the other thing is the government. And if you, you know, I follow all these stories, uh, that’s related to real estate, federal government is doing a lot of stuff.
Tego:
They realize that there is a quote, air quote, housing crisis. We don’t have enough homes. Homes, prices are, are going up faster than, than is logical. And so there’s going to be programs coming out to help first time, home buyers, minority home buyers, um, you know, helping, you know, maybe distressed neighborhoods to bring those neighborhoods up. You know, there’s a lot coming, not just from the private sector in venture capital, but also expect some stuff from federal government for, for housing programs. So there it is, there’s my projections are our projections and all the experts that we follow projections for real estate in 2022, Tracy.