ABQ Real Estate Talk Jan 9, 2021

Speaker 1 (00:00):
Good morning. Good morning. And thank you for that introduction. And yeah, we’re, we’re proud to have served. What did we decide? A 523 folks this past year and get the record in New Mexico for sure. I mean, we’re just, we’re just blessed, right?
Speaker 2 (00:19):
We are. And you know, it’s, it’s hard. Like we talked about last week, it’s hard to talk about ourselves because really it’s all about those clients we serve and, you know, being the top seller of properties in New Mexico is awesome, but really it’s all our team. They’re so good. They’re so trained. They’re so knowledgeable about the market and how to help people with their real estate needs.
Speaker 1 (00:43):
And I can just say this from a, from a, I not, not tooting our own horn, but the standpoint that real estate traditionally is a solo agent that kind of does everything right. They work for, with a brokerage or something like that. But they’re, they’re really they’re doing everything themselves, right. You know, we follow a little different model than that. Tracy, we have a team, everybody has their roles, you know, just think about the doctor’s office, right? The doctor’s office doesn’t do paperwork, right? So we have special, the doctor doesn’t do,
Speaker 2 (01:18):
You don’t greet the person and they don’t take the vitals. They don’t follow up after the, the chart
Speaker 1 (01:26):
In and what that allowed us to do to better serve our clients is we have specialists that know how to work with, with buyers that are looking. We have specialists know how to work with sellers that are, that are wanting to sell. We have people that specialize in marketing. We have people that specialize in than actually doing the phone sales and making sure that somebody is there to answer the phone. If you’re listing your home for sale, or you have a question about real estate. So it’s, it’s served us very well. I th I, I feel it served our clients very well. If you, if you read all the reviews about our team online, I think it’s, it’s there. So anyway, I’m just, you know,
Speaker 2 (02:08):
Yeah. It’s, it’s really great. And I personally, I believe we have the best in the state that work on our team, dedicated, honest, high integrity, and just, they know so much, they’ve got such depth of real estate, you know, Tega we know the statistics, how much an average realtor that’s solo, or just an average year statistics. Yeah. Sorry. You got it. Got you. Going down there. Yeah. Well we know the average realtor in our market sells single digit of homes a year, right? So it’s typically under five a year. Well, when you’re on a team and you’re selling 40, 50, 60, 70, right? Our top sales person last year, I think was our net 70 range. You really know the market. You really know inventory, you know, prices, you know what to look for all the red flags, how to look at a house and help a home buyer go.
Speaker 2 (02:59):
You might want to realize this one doesn’t have updated windows. The roof hasn’t been done. You might like this one a little bit better. Cause they painted it a nice color. But the one that we just saw as new windows, new roof, new furnace, new AC, and all you have to do is paint the color you want and make it feel like you want. Right? So having somebody who really has seen them and knows houses in the construction and what’s important in a house besides just, Oh, I really liked this one, right. Is pretty important having that advocate on your side and when you’re selling home, same thing, you know, we sold over 200 houses as a team. Last year, we have an amazing listing manager, Jamie who helps button up every part of that transaction, right? She schedules the photos, make sure we have top photographers, gets the floor plan, make sure we have an amazing video tour of the home. We have a virtual walkthrough tour just, you know, schedules it all. And is there for, for our clients. In addition to the, the other realtor that’s assigned, that’s helping market the property. You know, it’s, we’re, we’re pretty fortunate.
Speaker 3 (04:06):
Well, we got to go in Tracy, the Venturi real estate team, all you have to do is reach out to them directly. Welcome home abq.com and we are live. Of course you can find us on parlor, Twitter, YouTube, Facebook. And this is all about the 21st century ladies and gentlemen, if you can also hear a recording of this on SoundCloud, iTunes, Spotify, and Stitcher, and visit their website, welcome home abq.com in this edition. Great opener guys. We will talk about is this the year to sell my house 2021, 2020 Albuquerque real estate market data statistics that gets a Tigo nice and excited. The 20, 20 United van lines movers study. I always like to see where people are moving and we do see quite a little bit of people coming into the state of New Mexico. So that’s kind of exciting in the U S home equity is skyrocketing and we’ll let that digo and Tracy take it away.
Speaker 3 (04:58):
We are alive. So for those of you who want to go ahead and participate and send me your email directly, I’ll give you a free 30 day membership to rock of talk.chat Tigo, Tracy, take it away. Thanks. Hey, and by the way, I got the subscription love great content. I’ll I’ll promote, promote it there a little bit. It’s a good, good product. So can we just, can we do a little bit of a run through, on some market conditions and where we are in the real estate market in Albuquerque? Tracy, I’ve got the December data and I’ve got a little bit of a summary of, of what we saw in 2020.
Speaker 2 (05:35):
I think that’s great considering we’re into January. Let’s let’s do a quick recap.
Speaker 3 (05:40):
So what I want to first couple, a couple numbers to just, just throw out here. The average selling price of homes in Albuquerque for December was 299, 820 to 300,000 where you almost hit that 300,000.
Speaker 2 (05:56):
Yeah. Yeah. And
Speaker 1 (05:58):
I do want to qualify the data that I’m sharing here, because you’re going to get numbers from the local association. You’re going to get stuff from the state association. I am focused on Metro Albuquerque. I’m not looking at, you know, what, what happens in our MLS as we get data from a lot of our outline areas. So I don’t want to intermix like Santa Fe data with, with Albuquerque, which unfortunately does happen. And I don’t want to go into the, the, the muckety muck on that, but just the point is just understand my, my numbers are good. Okay. I totally believe I know you do, but get this so average selling price, two 99, eight 22 in December, December last year, two 52, five Oh two. That is a, you see the number 19%, 19% increase. However, let’s, let’s look at this. That doesn’t mean that, that, you know, prices went up or home homes are selling for 18% more.
Speaker 1 (06:57):
That was just for December. But if we look at the, the actual 12 month rolling average price, so we went from two 48 in 2019 to actually two 73, if you look at the 12 month rolling. Right. So about about 10%, 10.14. Yeah. So th th the, the thing is, is, yeah, I mean, December was just off the charts. So I think it was the busiest December on record for him sales in Albuquerque. Yeah. and then the big story, Tracy has a number of homes on the market. You know, this, anybody in the real estate business knows this, anybody that’s looking to buy a home right now knows this, and that is, there are a, it’s a extremely low number of homes on the market right now. It is lowest. I I’ve got records back to 2004, and I don’t, I don’t see any time when we’ve had less inventory. You know, if we go back to 2004 or five, you know, that was the other big boom time in our market. They were low, but when you consider the difference in population, a different, you know, just everything, definitely the lowest number of homes on the market in, in recorded history that recorded history. That sounded interesting.
Speaker 2 (08:16):
That’s the two thousands
Speaker 1 (08:18):
In our recorded history. And so, yeah, you know, like 1200 homes. And actually, I think as of today, I think it’s close to 1100 homes or a thousand homes on the market,
Speaker 2 (08:27):
In our Metro area. And,
Speaker 1 (08:29):
And days on days on markets, you know, down average days on markets, 25 days, median days on market is now like six days. There were 1300 sales in December, so yeah,
Speaker 2 (08:43):
That’s a, that’s a good healthy amount for December. Right. And the, the average selling price at two 99, eight 22 T, when we say that’s 18.7% increase, 18.7, 4% increase over December of last year. Right. That doesn’t mean you said it but quickly. It doesn’t mean home prices are now 18.7, 4% higher. What it means is we have less affordable homes on the market selling. So it’s making the median higher.
Speaker 1 (09:17):
Yeah. And actually, let me go to my Facebook post. I put out there the other day. And by the way, if you want to just kind of get little snippets on what’s going on in real estate market, in Albuquerque, I post stuff on my Facebook and also my Twitter. It’s just Tigo Venturi on both of them. I don’t think there’s any other Tigo Venturi’s out there. So you’re going to find me but you know, little snippets, but I, I, I put out those market stats, but then I wanted to, to share one other thing is the average price per square foot over the last year. Okay. So this is much better. Yeah. So January through December, 2020, was it increased eight or excuse me, 9.3%. So that’s price per square foot. And so what that means is that that is probably where, when you know, all the data gets crunched and we get numbers from the the, the, the national statistician to put this stuff together.
Speaker 1 (10:17):
I think that’s, we’re going to end up for, for price appreciation in, in 2020, somewhere around that 9% range, which is healthy. Oh, it’s the highest we’ve had it. Well, no, there was a year. Oh gosh. Now you’re putting me on a point, but I think, I don’t know if it was no, no, no, no. It was in it was five or six. I don’t remember. Oh five or Oh six where I think we had like a 14% appreciation. And, and I think in let’s just, as we’re talking about stats, I’ll just leave with, this is that’s my big concern about our real estate market right now. It isn’t prices going down, its price is going up too fast and we get two, three years down the line and we’ve had 9%, 10%, you know, for a couple, three years that is going to outpace other commodities. It’s definitely going to out pay. It, pays wages. You know, part of this, the reason home prices have been able to move up so fast, not so fast, but they have moved up a lot. Is that the affordability, which is really funny, it’s still the same. Right? Right. If you compare that
Speaker 2 (11:33):
Or because interest rates are so low, you can actually afford more now at higher home prices than you could have.
Speaker 1 (11:40):
You know, I got to ride, I got to run the data on this, but I bet if you looked at the same house a year ago, at 4% interest, and you look at that same house today, that’s 10, 10% more expensive. Your payment is going to be identical.
Speaker 2 (11:55):
I bet you’re right. Or lower, close to identical. So the topics for today, yes.
Speaker 1 (12:02):
Should this be the year that somebody sells their home? Tracy, that’s the topic. That’s one of them.
Speaker 2 (12:10):
So should it be, well, obviously what we always say, the first thing is, is it time for you to sell your house? Yeah. Right. I mean, the, the approach we’re taking is does the market support, is this the year you should sell your house, right? Not, you know, if you don’t need to sell your house, you don’t have a reason to sell your house. Should you sell your house? So let’s say you need to move in the next couple of years. Is it the year that you should sell your house? Well, what do you think?
Speaker 1 (12:41):
I think if, if you let’s look at it from a timing, the market standpoint, right. If you’ve been waiting for home prices to be high or higher, then yeah. It’s a great time to sell. I mean, like just talked about home prices up nine, 10% versus last year. Right. however, if you’re just moving to somewhere else in town, you’re going to be paying, you know, 9%, 10% more than you did last year. So, you know, you have to balance that as part of it. When you look into the whole timing issue, now I will say this and we’ve said it before, and I’ll say it again is, you know, if you’re moving from a, let’s say sub median price, median prices around two 50 right now, if you’re selling a home in a lower price point, and you’re moving up into a higher price point, you know, lower price homes definitely went up higher in price last year, higher price homes, man. That was tough.
Speaker 2 (13:41):
So from that perspective, if you’re going to be a move up, buyer is what we call it. Yeah. It’s a great time. Yes. Right. Great time. Because you’re going to be in a great position when you sell and you’re going to be buying at a price point that hasn’t appreciated as much and taking advantage of the interest rates and rock, you know, assuming you use the loan locking in phenomenal interest rates and monthly payment for the next 30 years. Now, a lot of us say, I’m not going to be in my house for 30 years, but the analogy is you’re going to be paying to live somewhere in most cases, unless you’re moving in with mom or your children or a friend. Right. So if you’re going to have a monthly housing cost, you might as well be paying yourself instead of a landlord. So sidebar there,
Speaker 1 (14:27):
I think it’s good. W why do you think Tracy, what would be another reason somebody should be thinking about selling this year? If it’s kind of been on their radar and now they’re going, you know, maybe this is a year,
Speaker 2 (14:38):
You know, I’m, I’m thinking shorter term when I answer this question. So yes, 20, 21 good time to be a seller for sure. But let’s talk about today, next week. Isn’t it right now, a good time to sell seven,
Speaker 1 (14:53):
9:00 PM.
Speaker 2 (14:53):
We put a home on the market. Today’s we put a home on the market two afternoons ago. And by that night, okay. This house is on the West side, 519,000. And by that evening, they’d already had two showings. You know, it’s the early January, not when you typically think of putting a $500,000 plus house on the market. Right. It’s not what people typically do, but there’s a lot of activity on that property. And next time we’re on the radio. We’ll probably be saying that house sold, right? Yeah. So right now is a good time because the springtime come March, April, may, there will be more homes on the market. We still won’t have enough on the market, but there will be more homes on the market competing for your buyer. So getting it on right away before the market gets hotter, I think is advantageous to sellers right now.
Speaker 1 (15:48):
So if somebody’s going to sell this year, Tracy, what do you think? I mean, what are the, like, let’s say give three things that they should be thinking about. If they’re going to be selling their home this year,
Speaker 2 (15:59):
One of them would be to present it like a model home has best. You can get our advice, help us, let us get you staging somebody to give you advice. If you need it on how to present your home so that you get top dollar and then pricing your home, right. Would be number two, pricing your home, right? Even in this market is critical. We have seen it over and over the last couple of months, Tigo where somebody says the market’s hot. I think I can get more than what, what the statistics are showing. And what we’ve seen most times is they end up price, reducing, chasing the market downward. And then their house has been on the market for a month. And buyers are like, what’s wrong with this house? It’s not sold,
Speaker 1 (16:40):
But having sold in five days, there must be something wrong with it. Yeah. So they’re, they’re getting ahead of market appreciation. And so you want to be careful about that. And, and it, it’s actually not hard to do that because you can just look at the data at what homes are selling for. So you know that the data we have the data, right. That’s what we do is, is help you come up with that. You know how you’re going to position your home by price in, in the current market. Right?
Speaker 2 (17:08):
The other thing I would say is remember that your home is going to be a product now, and we need to think like a consumer, how will buyers feel coming into your home? What will attract them? What might turn them off, whether it smells clean, windows, pets, whatever it might be. You know, sometimes you have your beautiful paints that you’ve painted walls and, you know, we need to make the house more of a product.
Speaker 1 (17:35):
Well in its presentation, right? Presentation matters, merchandising matters. And the marketing matters just because somebody can go out and snap, a bunch of cell photos of the home, put it in the MLS and have it sold in a few days, you got to ask yourself, are you leaving money on the table if you’re doing that right. So we’re still doing the premium marketing on our homes. We’re making sure it gets presented properly so that we’re getting the clients the most money.
Speaker 2 (18:08):
Right. And I would say there’s a number four in there. You know, if we put your home,
Speaker 1 (18:15):
I don’t know. I lost track. Are we on three or four? We’re on four.
Speaker 2 (18:19):
Okay. So, so the w we might get an above price buff above list price offer on the home. When you put it on the market, we need to remember as sellers that the house most clear in most cases still needs to appraise. And so we need to temper what price somebody is offering along with the rest of the criteria of their offer. What, what type of loan, what’s their closing date? How long is, you know, how long will it be to closing who’s their lender because who their lender is matters, especially in this market. Are there other things in their offer that we need to be considering, right. So not, not re just remembering that if we get an above price offer, that it may not be the best offer because it may not appraise. Yeah. Yeah. So I have another topic.
Speaker 1 (19:15):
Well, I want to, I just want to tell one story. So we have a property that we just rented. We remodeled it here in Rio Rancho, and just put it up for rent. And if you’re looking for a rental, you know, there was a lot of demand, a lot of people looking for rentals right now. So not only do we have a shortage for homes for sale, we have a shortage for homes for rent.
Speaker 2 (19:38):
Well, so let’s give a warning to all those renters real quick and tell them what happened. Tell them the story. This is way too common
Speaker 1 (19:46):
Is very common. So the home I put it on the normal services that we use to list homes for, for sale, but also in this case, it’s worth for rant. I put her on our MLS ends up on Zillow and you know, all the other places it goes, well, somebody took our home for rent and put it on Craigslist for rent, much cheaper, much cheaper, you know, stole our photos off the listing. And they put their contact, put their contact info. Luckily multiple people, they were able to just Google the address and find it on Zillow and called me direct and said, something’s not right here. And the, the reality is if you’re looking for a rental and tell everybody, you know, I might be looking for a rental, be extremely careful for listings. You see on services like Craigslist, where there’s really no policing in making sure that the person that’s posting it is actually owner of the property.
Speaker 2 (20:48):
So what happens? And we don’t know of anybody doing this for this particular rental, but in past years, we do know of people who have put down a month’s deposit. And the first month’s rent to somebody, who’s not the owner that you never hear from again. And that’s really tragic because oftentimes when you’re moving from one rental to another, you know, money is scarce. You don’t want to lose two months worth of, of of the money that you needed for housing. So be careful with who you’re renting from. And there’s great property managers in Albuquerque. If you need the name of a great property manager, you can call us or Google property managers, Albuquerque and column individually.
Speaker 1 (21:31):
I think it comes down to the basic rule was if it looks too good, it probably is not right. It’s probably not real,
Speaker 2 (21:38):
But the next scam could be, it doesn’t look too good. And they say, we’ll meet you and give you keys as soon as you pay us on PayPal.
Speaker 1 (21:46):
Exactly. So just be again, tell all your friends, if they’re looking for rentals, be really careful. And it’s unfortunately, like I say, there’s, there’s very little policing on it. And the problem is when somebody does that, there’s, you know, what are you going to do? Especially if they’re overseas somewhere, right?
Speaker 2 (22:05):
So this is Tracy and Tigo, Venturi, Albuquerque real estate talk. We’ve been coming to you here on the rock of talk for over over seven years. You can reach us. Our real estate office is at four, four eight, eight, eight, eight, eight. And we’re all standing Vida help you with your real estate needs for the year. If you have any specific questions or topics, you’d like to see us cover on the radio let us know. Yeah. So Tigo my topic. Yes, please. You have time for it. Yeah,
Speaker 1 (22:36):
Let’s go. I want to talk about equity. So we got, we got time. Yeah.
Speaker 2 (22:40):
I’m wanting to talk about what homeowners want in homes in 2021. That’s unexpected. What are we seeing? That’s not usual. We know people are looking at, you know, we’ve heard over and over for a few months, the home office for kids home homeschooling. Right. We know that, but you know, there’s a few things that have come up that are unexpected and one of them is swimming pools. So if you talk to any swimming pool, contractors in our area, right now, get them on the phone. If you can get them on the phone, they are booked out a year or more.
Speaker 1 (23:15):
I, I heard two years from, from somebody,
Speaker 2 (23:18):
Right. And that’s because people couldn’t go to the swimming pools this summer. Right. And they were like, this is not okay. And they’re spending time at home and they’re going, okay, this is the time for us to add that pool. Other things we saw, we saw a tennis court being added. You know, another thing that’s sort of unexpected. It’s not too common here. And it’s, you know, you see them occasionally in people’s yards, but not very often. A few other things, new furniture, which is not unusual, right. You know, they’re, they’re spending more time at home. The other thing is multipurpose rooms. So they might be taking the living room and not just making it a home office or their homeschool, but they might be making a gaming area or they might be making a library, reading nook, or they, you know, a family game table. We’re seeing a lot more people playing family games, board games and things, or online gaming together when they’re in different stuff.
Speaker 1 (24:12):
Hey, I just got to give a shout out for, for Jackbox games. If you guys haven’t checked out Jackbox games for, you know, playing and you can play them online via zoom. And we do that with our kids that live in Arizona and friends and family around the country. So, sorry, side note. I want to, I want to ask you something. I mean, obviously I know the answer, but I want you to answer it, which is swimming pools, tennis courts sport courts, you know, another version of like a tennis court how much value or what value do those add tools?
Speaker 2 (24:44):
It’s a really hard question.
Speaker 1 (24:47):
Exactly. I want you, I want, I want you to answer that one.
Speaker 2 (24:50):
Well, the statistics come out every year. How much does value does a swimming pool adds? So, you know, a swimming pool is probably 40, 50,000 a minimum today in Albuquerque. Right. We don’t have
Speaker 1 (25:02):
In ground gunnite pool. Yeah. You’re going to be
Speaker 2 (25:06):
And a little slide. Yeah. So we’re not Phoenix. We don’t have a lot of pool contractors, first of all, competing for our work. Right. They’re all booked out. Like you said, two years. So how much is it going to be worth? It’s going to add some value to your house, to the right person, somebody who really wants a pool, the way you do the whole scape around the pool. What all the rest of the outdoor living is makes a difference. Right? But it’s not going to make it equal to what you put in.
Speaker 1 (25:36):
It’s not going to be a one to one return on investment from a pure economic dollars and some standpoint, but it
Speaker 2 (25:45):
Think about the family memories, the experiences, the time spent, you know, if you have family, friends that enjoy it with you, you’re making amazing memories. So you have to realize that that’s the trade-off and you know what, depending on what time of year you sell your home, a pool can actually add a little bit more value if you sell it spring time or early summer or summer, kind of it wanes as you get closer to cold weather, but the pool open with beautiful photos of it when we’re marketing your house is definitely going to help. We’ve. We’ve had winter time photos of, of pools where the grounds don’t look very well kept and the pool is covered and there’s equipment laying around. That’s not going to help you too much, but if you take the time to have the pool looking great, if it’s off season, it still helps. So yeah. So I didn’t give you an exact number Tigo cause
Speaker 1 (26:41):
I can’t, but one that’s that’s the reality. There, there is not one, obviously it adds value. It makes the home more sellable. But also on the flip side of that is there are certain people that will absolutely not buy a home that has a swimming pool. So you have to take that into account too, when you’re going to sell. Right.
Speaker 2 (26:59):
We don’t see that too often though.
Speaker 1 (27:01):
Yeah. [inaudible] those were great. Was there anything else on that, Tracy? I’m sorry. I,
Speaker 2 (27:07):
You know, making, maybe making your home more comfortable changing around maybe colors and putting in those colors on the walls that make you happy things that you, might’ve not done previously, but you’re like, okay, we’re here, we’re hunkered down. I’m going to, I’m going to make it how I want it.
Speaker 1 (27:23):
Yeah. Let’s, let’s hope that the hunkering slows down here real soon and hopefully we’re, we’re getting there. Home equity, I just want to hit real quick. Eddie, if we’ve, we’ve got a couple more minutes. There was J J the third quarter home equity numbers came out nationally and it was a record in new in New Mexico. Well, nationally what they’re saying is over, it was a Q3 19 Q3, 20 17% or $17,000 in home equity gain. And so home equity that, you know, actually money in the bank literally, or the house bank, if you will in New Mexico is actually 20,000. So it’s actually higher than the national average.
Speaker 2 (28:15):
So w what we always say Tigo is homeownership is for savings, right? Right. You’re, you’re saving your, for your own future by owning a home because you’re paying yourself and the home values typically go up. Yes. Some years they’ve pulled back, but that’s not the norm. If you look over a 30 or 40 year chart home ownership is the number one wealth builder for most Americans.
Speaker 1 (28:40):
And, and I’ve got just one quote here. I just want to, I want to hit this guys with a Realty track, which is one of the companies that do kind of like foreclosure processing, if you will. Yeah, yeah, yeah. Realty track. And, and, and what he said was all this equity is one of the things, one of the things, and there’s a few other that will, that should prevent a huge wave of foreclosures once the government memoranda on and the cares act for Barron’s programs expire. And so what they’re saying is we’ve had this huge build in equity. Now, this is nothing like 2008, where everybody was, had squeezed the equity they could out of their home, and then prices started going down. So it’s a, it’s a good thing, at least for the housing economy. And it looks good going into the future.
Speaker 2 (29:33):
So there’s our start to 2021.
Speaker 1 (29:36):
Yes. Real group from
Speaker 3 (29:42):
Keller Williams Realty. You can always pick up the phone and dial my friends the best to go. And Tracy Venturi four, four, eight 88, 88, that’s four, four, eight 88 88, or welcome home abq.com. That’s welcome home abq.com. Thanks for checking us out. Live on Facebook, Twitter.