Where Will Albuquerque’s Real Estate Go: It’s Still A Good Time to Buy and Own a Home This Year

by | Mar 4, 2022 | Albuquerque Real Estate Talk | 0 comments

Where Will Albuquerque’s Real Estate Go: It’s Still A Good Time to Buy and Own a Home This Year

(Transcript Snippet): “Tego:

Tracy the, where do you think this year is gonna go for real estate? I’m gonna put you on the spot here.

Tracy:

Wow. I didn’t know that was on the agenda. So you’re talking about home price appreciation or depreciation

Tego:

All of the above.

Tracy:

So I think that this year is we’re gonna continue to see home prices, rise, interest rates. You know, I wish I knew based on the Ukraine situation in Russia, how that will affect it, but I think it might keep interest rates from going up might maybe as high as they had intended this year. Yeah. Might put a damper on some of that.

Tego:

There’s been a lot of conversation now, you know, is this gonna slow down the economy, which would in turn, make the fed, not raise interest? You know, the, the prime rate as much, which again, trickles down into eventually to mortgage rates.

Tracy:

I think that houses are going to continue to be scarce. It’s going to continue to be a sell market. There are lots of financing options for buyers, lots of great plans available for home buyers that they can take advantage of. And if they have decent credit, you know, I think that it’s, it’s fair and good.

Tego:

And well, it’s a, it’s a, it is that old question. When’s the best time to buy a home

Tracy:

Five years ago. Right.

Tego:

You know, wasn’t the second best time

Tracy:

Today. Yeah. So I think, you know that it’s still a good time to buy a house. I know we are always looking and, you know, over the long run, if you’re gonna hold it for a while, it’s, it’s a good time to buy a house. So that’s what I think

Tego:

From a financial standpoint,

Tracy:

From a financial standpoint. Yeah. Especially if you have to want a primary residence, if you need to live somewhere, our houses are still more affordable with interest rate increases than renting, and you get to choose your house. You get to make it your own. You get to plant the garden, you get to paint the walls, you get to enjoy it and live in it and know it’s yours and make it your own.

Tego:

It’s all those other reasons. Then us, the financial, you know, you know, most people, most of their nest egg is in their home. Right. Most people and that, that own a home. And what what’s been happening. I, I, I listened to a pot cast of these big brain guys, you know, talking about the economy overall. And they were, they were just saying, you know, people that own homes right now are in a really good position. Right. You know, that’s not me saying that these are, you know, quote the experts. Right. And there there’s nobody, there’s just nobody out there saying that home prices are gonna Ash. Right.

Tracy:

You know, you know, the other thing that I think we are going see this year, because we’ve already started to see it a little bit is property management mom and pops and smaller peop smaller holders of property are going to sell and take advantage of the market and move their money somewhere else. And just take advantage because we’ve had some people who own three, four rentals calling us saying, I’m ready to take advantage of this market and sell those properties. And I think we’re going to see more of that in, in this coming months.

Tego:

Yeah. I, it, honestly, I’m gonna say I hope so because we, it would be nice to get the, that freed up. Of course, now that takes it off the rental pool market. Right. Right. You know, so it’s, it’s just like, well, okay, we help, we help people that wanna buy, but now we’re, we’re, we’re removing inventory from the rental market.

Tracy:

We may be, but we know some of the buyers are also buying to rent it. So there could be some that end up being rentals that weren’t even rentals before. And some that’s a fair point that were rentals that continue to be rentals because, you know, we get calls every day of people who are wanting to buy a rental property. They, they know it’s wealth building. Yeah. They’ve been listening to us and to everybody else, this is how you can build the most wealth is through real estate.

Tego:

I’ve I’ve in, in all the years, I’ve been doing this Tracy in the last few years, this is the most I’ve ever seen people talking about real estate as an investment. It’s, it’s interesting.

Tracy:

I think we’ve moved the market.

Tego:

There we go. That’s it? Well, of course we did. Yeah. You know one, one last thing on that, I just wanted to say that we were talking about new construction and some of the trends there, one trend that, that is coming to Albuquerque that hasn’t quite hit yet, but it is coming and it’s the build to rent single family home trend. And if you haven’t heard about this, this is happening all over the country. There are, I saw a stat where, what was it, there was,

Tracy:

You saw a stat. I

Tego:

Know. Can you believe

Tracy:

That’s

Tego:

Unbelievable. I know, I know. I saw a stat and I actually paid attention to it,

Tracy:

Build to rent. So they’re building many homes like a neighborhood. Correct. And they don’t intend to sell ’em. They intend to rent them. Correct. Right. I’m just of really clear cause it’s a new concept for our, our listener.

Tego:

It is instead of a, a, you know, a apartment, you know, development and they’re, you know, doing multi-unit that way, what they’re doing is they’re just building a bunch of single family homes, standalone single family homes and turning them directly into rental properties. It’s a big trend. That’s happening all over country. There’s literally billions, multi billions of dollars being poured into that around the country. I know it’s huge in markets like Orlando, Texas, you know, Florida markets, California, well, California, not so much just cuz they’re high price Phoenix. And I’ve talked to a few people that are in the know in the Albuquerque area and it’s coming right. It’s coming to Albuquerque.