What’s going on? Why there are only a few homes in the Albuquerque Real Estate Market
(Transcript Snippet): “Tracy:
One of the things we a get asked a lot, Tego is what’s going on? Why are there so few homes on the market? And, you know, we’ve answered that on this show many times. And for all of you that are, are loyal listeners, you probably could have answer this, but I thought it was a good time because he also addressed it yesterday, mark from Wells Fargo. And it was interesting because some of the things we’ve talked about and there were a few things that perhaps we hadn’t really vocalized quite as well as he did yesterday. You know, one of ’em was which we’ve talked about as the whole pandemic and people, all that maybe had would’ve downsized previously because they have empty nest. They have too big of a house. Now. They, they would downsize well during the pandemic people, instead of going to the gym, they changed one of their former children’s bedrooms into a gym home gym, right?
Another one, maybe into a home office. You even if they weren’t actively working, some, some of those folks are retired, but they still do a lot of home things. And they needed a little bit of separation perhaps because two people rattling around in a house needed, needed different places to go sometimes to not always be in each other’s space. Right. Very interesting. Some of the things that lead to it, but, you know, we’ve said for the last two years, how home builders are way behind on building that for 10 years, they weren’t building, like they were previous to the original housing drop in 2008 and they got way behind and we need all those units and they’re going, where are all the people living that we can can’t find homes for right now? Well, some are in properties that they’ve been in, but they really wanna get into a different property. But he basically said a lot of people are living with family and friends just trying to find a home. So we know that supply is very limited.
Yeah. It, it, it’s interesting because, okay, I’m gonna say something that, you know, you shouldn’t say that, that, that you’re in this, in this business, but I’m gonna say it anyway, this whole idea, now that we’re gonna be at 4%, maybe, you know, more than 4% mortgage interest rates. Right. Which is high. Right. Which is, you know, us older folks, we’re going, yeah. That’s funny. 4% is high mortgage rates. That may slow down the housing market a little bit that there’s, there’s absolutely no doubt that some home buyers will just not be able to qualify. Okay. That, that we know for sure. The question is how many, and that the, the people that have the choice to buy or not to buy, they can qualify Joe us fine at 4% or four and a half or, or whatever it is, make the payment and, and be fine.
Are they gonna opt out of not buying? So the there’s a real conversation going in the housing economics world is like, okay, if the, these interest rates slow down the market, is it gonna slow it down enough to slow down this just really unprecedented and price appreciation, right? We’re not talking about home prices going backwards. We’re just talking about not going up at double digit percentage per year, which is, which is not healthy. Right. And really what, what I was getting at is, or what I was gonna say is we kind of do need the market to slow down a little bit.
Right. So we in New Mexico, and this was also a part of yesterday, so let’s talk about it right now in New Mexico. We are still one of the most affordable places in the Sunbelt, in the Southwest. Yep. For people to be home buyers. Yep. So right now they’re saying Tego. I mean, the headline right now on this segment is right now is a, could be a once in a lifetime opportunity for.