ABQ Real Estate Talk #357 – Feb 27, 2021

Eddy (00:07):
I’m glad to be here with you for another kickoff to a great Saturday morning with Tego and Tracy Venturi, the Venturi Real Estate Group of Keller Williams Realty. You can pick up the phone and dial them direct at 448-8888. Or welcomehomeabq.com for their website. They’re the leading real estate agents here in the State of New Mexico and glad to have him here on board and welcome KRSN 1490 Los Alamos as well as 107.1. The highest income demographic in the entire country. If you can believe it and happy to have both Tego and Tracy onboard marketing and merchandising your property. Good morning. How are you?
Tego (00:58):
I was over here cheering for you, getting your Northern New Mexico up and running. So that’s awesome.
Eddy (01:06):
That 1.3 million is the new population count for the coverage of our signals plural now. So that’s pretty exciting and it is good. And the average price for a home, if you can believe it in Los Alamos is according to one segment, I’ll compare it. Santa Fe, nearly $400,000, as the median price for a home. I know that the overall price for a home as the last 90 days was like $550,000. Pretty amazing in terms of those demos, a lot of people flocking and loving the life that we live here in the state of New Mexico. And I know you’ve been fielding your phone calls that have been coming in from California, New York Illinois, people from coming in from out of town because they love New Mexico, just like we do.
Tego (01:58):
And you know, there was some n bers that just came out for the fourth quarter, which we’re going to go over, along with price appreciation. And I just started looking here to see Santa Fe on this list of Cities but. No, we’re not big enough, but we do have Albuquerque and we’ll be talking about that. Good morning, everybody. And this is show n ber 357, going 7 plus years strong. We were just talking about this 357 for Albuquerque Real Estate Talk. Imagine how many shows have you done Eddie? Come on.
Eddy (02:36):
I don’t know, but I’ll tell you what, 357 real estate shows is pretty awesome. We appreciate you supporting the radio station and as always, we love your real estate expertise because I don’t know that we’ve ever need more expertise than we do right now. This is one of those times where there’s a shortage of a product out there on the market. And I have to imagine, I’m glad I’m not in your shoes because you have to navigate it very difficult market for a lot of people who are trying to sort of dip their toe in the water once again, and people are sort of unsure. And I know that we were trying to reassure them because you’re always making those data driven decisions.
Tego (03:12):
Yeah, no, that’s a really good point. And we’re going to talk about just some of the things we have today. There were some interesting headlines this week. We’ll hit on that in the real estate world. I’ve got this great story, Tracy. I want to talk about tax breaks. Seven tax breaks for home ownership, which is kind of timely. Tracy, what do you have on your agenda?
Tracy (03:35):
I actually wanted to spotlight one part of town, which we do sometimes, and I’m spotlighting the Georgia O’Keeffe elementary school neighborhood area, which we’ll talk about stats there in a little bit. And we have some homes of the week. In addition to quite a few open houses.
Tego (03:53):
The homes on the market, that’s a big deal these days. It’s interesting. We’re actually folks on our team that are working with buyers, they’re getting like a live feed, every new home that comes on the market just to keep an eye on what’s coming on the market because it’s, it’s very limited. There’s a lot of buyers out there waiting for the right home to come onto market. That’s just the market word right now
Tracy (04:15):
Reminds me Tego of like 2006, 2007, when all day I was looking for a new home to come on the market because we had to get in it within hours.
Tego (04:25):
Well, the tech back then was not quite where we are.
Tracy (04:29):
No, not like now we can get automatic notification.
Tego (04:32):
Yeah. We weren’t getting push notifications on our device and all that fun stuff and Slack and so on. And, but yeah, it’s an interesting time, a little scary when you say it just like 2006, 2007, but very different. It’s very different. Yeah.
Tracy (04:49):
So if there’s something you want us to talk about in the future on other shows or any questions you have, you can reach us at 448-8888, and we’d be happy to help you out.
Tego (05:01):
So Tracy just a couple of headlines real quick. Let’s just run through in the real estate world. This is more national real estate news– interest rates. If you’re paying attention, you know rates have pushed up a little bit, you know, three ish. You know, we were at 2.75%-2.875%. People were getting 2.5%, But they’re closer to 3%now maybe a little over 3%, you know, that always just depends on your credit, your down payment, all that stuff, right? But interest rates pushed up, which is funny, you know, interest rates are up there at 3% now, which is kind of funny. And I found this chart, Tracy, that I shows interest rates by decade. And it’s pretty interesting. And you know, if you go back to the seventies average interest rate was right around 9%. And then if you go to the eighties, it around 12, almost 13
Tracy (05:59):
Is the average, but it piqued some thing like 19%, 20% than. So the average was not that high those years.
Tego (06:05):
And then in the nineties it was about 8%. It was about 6% during the two thousands.
Tracy (06:21):
The 2000 to 2010. Yeah.
Tego (06:24):
Right, right. And then in 2010 to 2019, around 4% to 5%, remember that we were like, wow, this is amazing. We’ll never see this low interest rates again, well here we are, you know, and so far this decade, it’s only two years, two years and three months we’re right around 3%. Right. So if you look at it from a historical perspective, I mean, it’s still amazing.
Tracy (06:47):
And what that does is it makes homes more affordable, even though prices are up right. The monthly payment, because interest rates are so low is keeping affordability exceptionally low.
Tego (06:59):
Yeah. One other big headline. I want to bring up Tracy and you know, you’re absolutely right. And we’ve talked about that. The affordability is a big deal. One other headline here is FHFA, which is a kind of the group that is over Fannie Mae and Freddie Mac, which handle all the government back mortgages. Hey’ve now extended the eviction moratorium for foreclosures through June 30th.
Tracy (07:25):
And that’s for loans through Fannie and Freddie. Correct. That’s not conventional loans, not all loans. Right. So they’ve extended it through June 30th. Yeah.
Tego (07:36):
Yeah. I said conventional, that those would be anyway. It’s interesting, you know, we keep talking about and hearing about this foreclosure or forbearance overhang for people that haven’t been able to make their payments since last year. And it seems like we’re just kicking the can down the road. And I don’t think that’s in a bad way. I’m saying that in a sense that we’re going to have time to get that work through and get those homes into the market. Somebody told me the other day, or a statistician that works in the housing world. He put some data together, if all of those homes that were in forbearance right now came on the market immediately, which of course would never happen in the US, we’d still only be at five months supply, which is still considered kind of a balanced, almost leaning toward a sellers market. So it’s interesting.
Tracy (08:29):
Yeah.
Tego (08:31):
What else was on your list- you wanted to give info on that neighborhood and want to talk about very popular neighborhood in Albuquerque, right. Tracy,
Tracy (08:40):
It’s not really a neighborhood. It’s a school area. I started looking to do a school, like take Eldorado High School area or something. And I’m like, Oh, that’s too big of a sample. So I went to Georgia O’Keeffe elementary school area. So a couple of years ago, Tego, we did a home buyer seminar to get people prepared for being home buyers. And we invited them to our office and it was great. We went through the whole process with, you know, like an audience we brought in a lender and a home inspector and insurance agents and things. And we went over the whole process and the example somebody brought up, somebody said, Hey, well, if I were looking in Georgia O’Keeffe elementary school, which is where I’d like to live tell me about that neighborhood and how to find a home there. And they wanted to buy a $200,000 house in Georgia O’Keeffe schools. This was a couple years ago.
Tego (09:33):
So not today that price. Well, even then, yeah,
Tracy (09:36):
What we did is we showed them how MLS works. We did a search. We said, okay, here’s this school boundaries. We can search just by Georgia O’Keeffe. And so we did a search and there was one house for sale. So how many people do you think were waiting for that one house? Even then it was exceptionally competitive. Right now today I went to Georgia O’Keeffe just because I remembered that search and I said, you’ve got to be ready. Right. If you want to buy in that neighborhood, you need to make sure that you’ve got a strong local lender. That it’s a real qualified lender letter, not that they have applied, but we have checked their credit or everything. And, you know, be ready to make a decision quickly because there’s going to be a lot of competition. So I looked at Georgia O’Keeffe and the average price let’s see. Okay.
Tego (10:29):
I had the chart. I hid the chart from you. Sorry about that. There we go. Okay.
Tracy (10:34):
So, we have closed properties, right? There’s been 208 in the past year. So I went back a full year. So it’s, you know, the market has changed during the past year, but the average sold price in Georgia O’Keeffe elementary right now is 590,000 for the past year.
Tego (10:55):
Boundaries. Yeah. That’s exactly my next question. Perfect.
Tracy (10:58):
North of Spain, East of Eubank, and want to bow where Juan Tabo kind of comes into you Eubank as far as just on the North side of Tanoan, I think at San Antonio yeah. And then East to the foothills. So that encompasses neighborhoods like…
Tego (11:19):
Yeah. I need to let her be the driver.
Tracy (11:25):
The neighborhoods that it encompasses. Right. So it’s Tanoan and some of the different subsets of Tanoan, also, Peppertree, High Desert and all the subsets in High Desert, Antelope Run, Tanoan East, and Prospectors Ridge. So all of those neighborhoods are a part of Georgia O’Keefe Elementary School, and right now on the market, there’s, I think it was about 13 properties for sale. Lowest price is $425,000. And it’s a smaller home, well, not really, it’s 1,869 square foot in high desert. And I looked at the photos, it looked great. I went I could live there. There’s also one for sale on Peachtree. And one on Mimosa. There they’re both in Peppertree, I believe. N any event, the average price of those homes in Georgia O’Keeffe elementary right now is 996,000
Tego (12:33):
For sale.
Tracy (12:35):
For sale. Because in High Desert we have a 2.2 million and 1.8 million and another 2 million, well actually five or the 13 homes for sale are houses over a million dollars.
Tego (12:46):
So Georgia O’Keefe Elementary School area hasalways been a very popular part of town. Obviously, if you like the far Northeast heights living that’s it. And so, yep.
Tracy (12:59):
And we have 21 in pending sale there, and the average days on market is 50 because some of those higher priced homes take a little longer to sell. But when you look at the houses that were on the market from $350,000 to $750,000, the average days on market is very low. It ranges from zero days to 14 days. Yeah. So anything up to $750,000 in Georgia O’Keeffe is typically selling in less than two weeks and most likely less than five days. So it’s kind of interesting.
Tego (13:45):
The 2.2 million dollar home, which was sold by our team.
Tracy (13:49):
Yep. We brought the buyer to that property. So interesting. You know I think that back when we did that seminar about three years ago, maybe not even three years ago, we could find a $250,000 house. Think about today, how hard that would be. So, yeah. Anyway, the thought is, you know, Georgia O’Keeffe elementary schools, one subset of the far Northeast Heights of Albuquerque, but you know, if you want to buy in that area, we need to make sure we’ve got your financial plan in place, whether you’re a cash buyer or financing, be ready to move pretty quickly on an offer. If a house comes up, that’s the right one, we need to go see it right away. So there’s the snapshot of Georgia. O’keeffe, if there’s a neighborhood that you want to know about, whether it’s a neighborhood or a school area, we’d be happy to do a search for you and get that out to you via email, just give us a ring 448-8888 and we have our whole team of people that can answer that phone. So we’d be happy to help you.
Tego (14:52):
Want to take what you were just talking about and expand on this whole idea of this market, where we have so few homes on the market. We have a lot of buyers waiting for homes. I want to give some people that are looking for homes, some tips, and some things that they should be thinking about. If they’re looking for a home now, does it mean sitting on Zillow all night and refreshing your screen over and over and over again? Well, it might I will tell you though, that Zillow doesn’t always get instantaneous updates. It’s pretty quick though.
Tracy (15:28):
Zillow doesn’t get coming soon properties though. So it’s not going to show you things that are in coming soon. Right?
Tego (15:37):
Well, so what I wanted to say is let’s table coming soon for a second. Cause I think that’s an important conversation, but what I’m talking about is how do you know when that home comes on the market? What are you doing? What’s your real estate agent doing to get you set up, to know when that home home’s on the market. And so what, you know, what would you tell a buyer right now? That’s saying I’m looking for a home, looking for a home. I’m just, you know,
Tracy (16:02):
Yeah, totally. I’d say commit to a great real estate agent, have that agent set up a search. So when we set up a search in the multiple listing service, Tego, we as realtors have an option to say, how often are we going to send this search? Right? Are we going to send that to them twice a week? Are we going to hold them all and send them all at the end of the day? Or are we going to send them immediately when that property comes on the market? And it’s interesting because we know someone searching for a home in Arizona and search has got set up and they were set up to go on Tuesdays and Saturdays. And I laughed. And I was like, if you get a home on the market Tuesday afternoon, after you got your money, your weekly update, it’s pending by Saturday, you have to get them set up. So they come immediately, right?
Tego (16:48):
It’s too late. So that’s an important tip. If you are searching for homes, you know, get your real estate agent to set up the search so that you are getting them immediately, you can get it, you can get an email. Sometimes it’s a push notification, okay?
Tracy (16:59):
Just whatever we need to get them immediately,
Tego (17:02):
Let’s talk about coming soon properties. Cause that’s kind of a confusion for people. People hear, Oh, there’s a home for sale. It’s coming soon, but I can’t find it anywhere. Explain that for everybody.
Tracy (17:16):
Of course. So coming soon is a status that we have in our multiple listing service and it means, Hey, this house is not quite ready to view yet, but we want the realtor community to know that this house is going to be coming. So if you’re looking this weekend and you have to make a decision on a house that’s maybe not perfect. You might also know this one is in the hopper, right? Yeah. So it’s us as realtors. Once we put them in coming soon, we can see them, but they don’t go out to places like Zillow. But if you set up a search and you have your agents set up a search of homes for you, you can include coming soon as one of the options so that you can get notified about them. You just won’t find them on public websites. Yeah, yeah. Only through, through us realtors. So yeah. Yeah. so let’s talk about open houses. I’m afraid I’ll read out a time and pick it on stats. And you know, I love open houses and homes of the week and those types of things. So we could do that real quick, run them out.
Tego (18:19):
You know, what’s really interesting. You know, last week I had a Damon Maddox on with Maddox Property Management. We were talking about some of the bills before the New Mexico legislature right now. I just want to give an update if you guys caught that HB one 11, it had to do with the renter basically tenant landlord relations act and how that would could really affect landlords in particular landlord and actually a tenants as well. Long-term ,ust the update is it’s still in committee. It’s still sitting there. They’re supposedly revising it, but I don’t know. Maybe the more, it just kind of hangs out and doesn’t do anything the better, because it’s got a lot of, hholes in it that I feel personally create a lot of problems, r the, just the whole renting of, of properties. So anyway, just trying to give that update. Okay. Tracy homes of the week are homes of open houses of the week. Yeah.
Tracy (19:17):
So then we have two open houses in the Northeast Heights and one is,uat 7,700 Republic, 11 to one Saturday. It’s amazing. It’s been completely remodeled. I saw the photos of it. What a beautiful home. So 7,700 public
Tego (19:37):
Beast Heights area. And what’s that one listed for Tracy?
Tracy (19:41):
Okay. That one is three you’re on the wrong screen. Three, three, 12, 500. So three 12, 500. That’s going to be hosted by Addie Sambandam. Yup. And Addie will be there 312,000. So that one Roberts or Republic is close to Paseo and Wyoming Ventura. Yeah. So,uspeaking of schools and things were kind of right up in that, that area.
Tego (20:11):
Yeah, it is. Look, we have a high school district and it’s Dennis Chavez elementary up there. Yeah,
Tracy (20:16):
There we go. So the other one 95 17 Presley, which is also Northeast Albuquerque eight seven one one, one listed for 285,000 at 1,650 ish square feet, a three bedroom, two bath, two car garage you know, open house from one to three today, Saturday.
Tego (20:39):
Yep. You know, you know, what was interesting about this one? Tracy wa when I was looking at the photos and the floor plan and everything is that for this era of homes actually very open floor plan kind of, not kind of, but exactly how a lot of the new homes are built now where you’re, you’re kind of, you’re living your kitchen, your dining, everything kind of blends together. Yeah. I thought that was interesting. And again, that one was, what was the address? That was
Tracy (21:02):
Five 17 Presley. And it’s actually open from uSaturday one to three and Sunday, 10 to 12. So yeah, because Saturday and Sunday I’ll be gone this weekend. One more new, newly listed on the market. Brian Northwest B R Y a N. Bryan,uis from 11 to one. And Brian is in the Knowles of paradise Hills. So it’s behind the target off of cores and Irving and,uBrian is listed for 420,000. It’s a gorgeous two story, 2,740 ish square feet, four bedrooms, two car garage. ,T’s going to be open Saturday and Sunday, Saturday from 11 to one and Sunday from 10 to 12. So we’re happy to have you go through those, you know, with the whole being able to do open houses in person, we’re still watching and monitoring how many people are in a house at a time. And there’ll be a sign out front at all of these houses just saying, Hey, give us a call or text us.
Tracy (22:05):
I’m the agent inside. And it, and I’ll let you know if it’s okay to come in or I’ll text you when we have the right n ber of people in the house again, so that it’s very obvious of how to handle an open house and be safe. So we have also others coming and other new listings. So if you want the latest and greatest and want to connect with us, we can keep you in the loop on that. We’re at,ufour, four, eight 88, 88. That’s the best way to reach us mentoree Realty, group of Keller Williams Realty.
Tego (22:38):
Great. Tracy, I want to talk about tax benefits of home ownership. We talk about the benefits of home ownership in general all the time, correct Tracy. So we talk about obviously the financial issues and some of the
Tracy (22:53):
Talk about the more, you know, loving kind fun things about it, making it your own and painting your room and having your family memories there, but
Tego (23:03):
Of a community. And, and, and, and then the financial part, obviously the, the forced savings every month, you’re, you know, you’re paying down your principal, so that’s a for savings. And then there’s, you know, obviously equity gain as you know, over time as home prices. Appreciate.
Tracy (23:19):
So we’re going to talk about tax benefits and we are not tax accountants. We’re not tax advisors, but we know there are certain benefits, right?
Tego (23:27):
Oh, there absolutely is an in. I’ll tell you what in, in, I’ll tell you just, if you want to see this story, it’s a realtor.com store they put out really well done. If you just search seven tax benefits of owning a home
Tracy (23:41):
And it’s from February of 2021. So it’s very current information. And again,
Tego (23:46):
It’s, it’s a realtor.com. So just look for that. I’m sure it’ll come up on the first page of your searches. So the first one I think is the most obvious is, is most people recognize is the mortgage interest deduction, right? And so you can deduct most of your interest that you pay on your mortgage. And that could, that could add up to quite a bit. And you know, all of these, we’ve got to say, there’s always some reason that maybe you don’t qualify again, talk to your accountant. I don’t know how many times we’re going to say that, but that’s the big one that, that,uis got a huge advantage for people. ,Hne that’s a little bit, I don’t want to say if it’s not as well as lesser well-known is, is your property taxes. If you itemized, you can deduct your property taxes, but not everybody itemizes.
Tego (24:37):
So if you take a standard deduction and not an accountant here, you don’t, I know I’m going to say it over and over again. Okay. Okay, fine. Private mortgage. So anyway, taxes can be deducted private mortgage mortgage insurance. So if you purchase a home Tracey and you don’t put the,u20% down, you are the lenders going to want you to take out insurance on that. And so it’s private mortgage insurance, a lot of different versions of it, but that also can be deductible when that could be a big one. Right. ,He n ber four on this list was energy efficient upgrades. This one’s a little bit tougher and it’s been getting tougher. You know, I know, New Mexico there used to be some really great advantages in, in incentives for solar and, and other, ,ergy efficient stuff, but it’s not quite as great anymore. They are out there. And so look for those, if, if you have those types of things, , e’s the big one, Tracy, this year, year of 2020, guess what?
Tracy (25:40):
A home office space that you use within your home as your office? Yeah. Maxim deduction of 1500, I believe. Yeah. But you know, you just have to calculate how much space of your square footage you’re using for your home office and how often and how many times yeah.
Tego (25:58):
Talk to your accountant about it. Cause there may be some, some tax savings there for you that you may not even have thought of. You know, like us Tracy, we’ve been working in two, you know, our home office in our work office for many years. People that are self-employed are used to that, but people that are new to this in 2020 may not know. So, so look for that. This one, I had no idea even existed trace. I didn’t even know it was a thing. And it’s a n ber six on this list is home improvements to age in place. So if you need to do some things on the home to make it,ufor the holder, older homeowners
Tracy (26:34):
Or handicapped, not necessarily. So things like wheelchair ramps, grab bars and bathrooms, shower accommodations versus tubs, those types of things. I don’t know, widening hallways widening doorways, I suppose if you’re actually in a wheelchair.
Tego (26:51):
Yeah. Interesting. I didn’t, I didn’t know. That was one. And look at that, we learned something. Yeah. Your, your hilar interests
Tracy (26:59):
Interest on a home equity line of credit. He locked.
Tego (27:02):
Yeah. I was getting there, but yes. So your home equity. So if you take out a home equity line of credit, so that’s the basically borrowing against your equity in the home. And if you use it toward a home upgrades, many times that can be deducted. So again, check with your accountant on all of these things. But I thought it was an interesting list, Tracy.
Tracy (27:25):
It is more than I would have thought when you told me it was seven. I thought, I can’t think of more than about four. So there you go.
Tego (27:32):
My gosh, we have so much to cover. And I think the one I want to hit on this because I’m getting this a question a lot from other realtors and people just know that I watch all this stuff is how come we have so few homes on the market. And we do, we have a historically low level of, of homes available to purchase inventory, whatever you want to call it. And if you look back over the years, we were going to have a low supply of homes this year. Anyway, Tracy, I pulled up that stat from the the fed that does,ueconomic research. And it shows you the n ber of housing starts. And if you look at it from 1980s, all the way up until today, you know, there was really steady through the eighties and nineties, the two thousands up until 2008. And then all of a sudden it just fell off the cliff.
Tracy (28:31):
I sure wish our listeners could see this chart because what you see is in 2006, housing building permits were, you know, like five times, seven times more than we’ve had over the last 10 years or 15 years really
Tego (28:47):
What’s happened is we just, haven’t been building as many homes as the supply or the demand we got, we got behind and we’re behind. The other thing that we’re behind on is if you look at the chart and I’ve got another chart, but I obviously we’re radio. So I’ll just explain it. But if you look at the chart of n ber homes and this is just Albuquerque n ber homes coming on the market annually and the ebb and flow of that, right, we always get that big buildup in early s mer, March, April,
Tracy (29:20):
May,
Tego (29:22):
June. That’s usually when we get the, you know, this big influx of people putting their homes on the market, of course, what happened in 2020 March, April,
Tracy (29:32):
They didn’t come on the market. People could not move around.
Tego (29:36):
We’re still catching up from, from that. Right. And, and so that’s part of it as well. I suspect that as we come into the early spring, that we’re going to see more homes coming on the market definitely than last year. And that should, it should help loosen that up. And if you are thinking of selling Tracy, how did they get ahold of us? Because they need to think about it.
Tracy (30:01):
That’s right. It does take time four, four, eight, 88, 88. I always happy to be here on Saturday. Eddie, thank you so much for the opportunity.
Eddy (30:09):
Oh, thank you for the opportunity. And thanks for making all this great listening possible and thanks for doing what you do. You have a wonderful daughter who I had the opportunity to talk with recently. And she tells me how much you both enjoy the radio and enjoy promoting what you’re doing, how much you care about your clients. And I got to tell you, I know, I feel that way in many of the people that you work with also feel the exact same way. So thank you both for being real estate experts here in the Albuquerque market. Thanks Eddie. Happy to do all right. Back after a quick break right here in the Kiva. Thanks for joining us here on some great talk all day long, kicked up by Tego and basically Venturi the best real estate group here in the state of New Mexico. All you have to do is pick up the phone and dial them directly four, four, eight 88 88, or visit the website I’m on real estate website here in the state of New Mexico. Welcome home abq.com. This welcome home abq.com back after a quick break.