SAVE ON YOUR PROPERTY TAX BILL – Albuquerque Real Estate Talk

Albuquerque Real Estate Talk 485 April 06, 2024

Tego Venturi: [00:00:00] Welcome to Albuquerque real estate talk. It is first week of April, 2024 episode four 85 is Tego and Tracy Venturi. And this week, Tracy, we’ve got. The March data, what happened with home sales and Albuquerque prices and sales and pendings and all that fun stuff that I love to go through. What’s happening with prices.

Tego Venturi: I know that’s what everybody really wants to know. It’s tax assessment time. We’ve got piles of tax assessment notices on our desk here. We’re going to talk about that. People get those in the mail and a lot of times they’re like, what do I do with this? So you’re going to go through that for us. I’ve got an update on what’s happening with the apartment market in Albuquerque.

Tego Venturi: We’ll get into that as well as I’m sure we’ll go off in some other places. And we have some homes and properties of the week. We want to talk about. We sure do. 

Tracy Venturi: Yep. Some great open houses this weekend, a few homes that came on the market just in time for the weekend. So you can check those out on our website.

Tracy Venturi: Welcome home abq. com under the open house tab. And find [00:01:00] everything there or, you know, call us. We can tell you, we have one in Corrales. New on the market under 500, 000. One in the near Northeast Heights that just came on the market and a few other open houses. I know there’s one on 1856 Cay Barbarita as well.

Tracy Venturi: So if you want to know that one’s in the Valley near Rio Grande and Griegos, really beautiful home, very high end finishes. 

Tego Venturi: Well, since you went, went there, let’s just talk about that. We did see another little, I want to call it a surge, but I don’t know, maybe a tiny surge. A little bump in new properties coming on the market this, this week.

Tego Venturi: It’s pretty common this time of year where we see a surge in people getting their homes on the market. So we have seen a little bit of an increase in the number of homes on the market. 

Tracy Venturi: Yeah, we have. It is that time of year this week, we had some nice days and some not so nice days and this weekend, again, a mixed bag of weather, but it seems like once we hit some really [00:02:00] beautiful weather everyone’s out looking for houses and people think, okay, it’s time to put my house on the market.

Tracy Venturi: So yeah, we’re, we’re hitting that time here in April. 

Tego Venturi: Spring and you know how we can tell it’s spring in New Mexico. 

Tracy Venturi: Everyone’s sneezing. No, 

Tego Venturi: it’s sunny and Chris and, and, you know, warm sun during the day, crisp nights and the wind is blowing. 

Tracy Venturi: Yeah. 

Tego Venturi: Sorry. 

Tracy Venturi: And people have allergies, but I guess that’s not just spring.

Tracy Venturi: That’s the wind. Yeah. Yeah. 

Tego Venturi: All right, let’s talk about some of the, the, just, just the market data that came in for March of 24 in Albuquerque. I’m looking at everything in the entire metropolitan statistical area, which is the, the four, four counties that we’re in here in central New Mexico. And I want to start off with the number of sales, because that’s really the number that has been shockingly low.

Tego Venturi: The number of homes that It’s sold in the Albuquerque MLS. So I got to change it. I just got to change the stat here. I don’t have it lined up quite right. [00:03:00] Okay. It’s down. I mean, it’s definitely down to put it in context. You know, this, this last month in March, there were 740 homes that sold in March in March.

Tego Venturi: If we go back to March of two years ago, it was almost double that. So I’m not two years ago, but three years ago. So the, the number of sales have definitely seen when you said 

Tracy Venturi: 700 something for March. I thought, Oh my gosh, that is significantly down. And yes. 

Tego Venturi: Yeah. And so it is something we’re keeping an eye on, but yet at the same time.

Tego Venturi: There’s people out there that want to buy. There’s people that are out there that are waiting for the right home to come on the market. So it’s not for a lack of demand. The demand is there. The thing that’s holding people back is affordability, of course. 

Tracy Venturi: Well, in the last week, Tega, 286 houses came on the market.

Tracy Venturi: And [00:04:00] 243 went pending sale under contract, not necessarily of the 286, but of all the ones available for sale. So the rate of sale of those coming on the market and them going pending is, you know, fairly equal. 

Tego Venturi: Let me show you that. Let me tell you that stat. I know you 

Tracy Venturi: probably have a monthly stat for that.

Tego Venturi: So, yeah, no, actually it’s, it’s, it’s very telling. So Previously owned homes, not new construction that the days on market because days on market for new construction is kind of wonky because Sometimes they’re not finished when they get put in the MLS. And so they just, anyway, but median days on market for the homes that closed in March, so probably went pending in, you know, February, you know, somewhere in there, right?

Tracy Venturi: Late January, January, February, 

Tego Venturi: median days on market was eight days. So half the homes. When under contract within eight days of going on the market, that was, you know, again, this is back January, February, like you just said, so there’s still [00:05:00] people out there looking for homes. 

Tracy Venturi: Absolutely. Absolutely. You know, just to switch back to my one week data, 

Tego Venturi: 194 

Tracy Venturi: properties had price changes in a week.

Tego Venturi: Yeah. That’s not unusual. Yeah. You know, again, you hear stats like that, like, oh my gosh. And, you know, so in a vacuum that sounds like, Oh, maybe that’s a lot. Maybe that’s not out of 1500 homes on the market. That’s a good number, right? I think 

Tracy Venturi: the reason I like to look at it is because there’s been so much news about how high the prices are and the prices are still going up.

Tracy Venturi: When we work with people who are ready to sell their home, a lot of times they want to price it. Very top of the market, which might be actually above the market, and then they end up, you know, getting price reductions and perhaps, 

Tego Venturi: yeah, having to adjust 

Tracy Venturi: having to adjust 

Tego Venturi: for sure. And, and I track that on a weekly basis.

Tego Venturi: And if I see a surge in the number of price reductions, That’s a red flag, right? That tells [00:06:00] us that, okay, there’s something going on where homes aren’t selling and sellers are getting a little more motivated and, you know, right now it’s, it’s about 30 percent of all the homes that are on the market have had a price reduction and that’s, that’s in line with normal.

Tracy Venturi: So just on done me one thing that I need to point out. So that was price changes didn’t necessarily say price reductions. And I did notice that a couple of new home builders raised prices on everything that appeared to be under construction or almost ready. And they had some price increases actually.

Tracy Venturi: And some new builders had price decreases to move some things that, you know, so not everything was a price reduction. 

Tego Venturi: Yeah. So talking to prices, just, just a quick rundown here. What happened with home prices for March, closed sales, single family, detached homes came in at 351, 000 median price. Came [00:07:00] in at 256, 000.

Tego Venturi: These are resale homes. So, you know, previously owned homes. That’s 8 percent for detached and about 8 percent what I’m sorry, 8 percent increase from March last year, median price, and about a 5 percent increase. Attach from March last year. The thing that’s really interesting though, and I want to break this down because it tells an interesting story is if you break out new construction versus.

Tego Venturi: Resale new construction. Median price is actually down about 12 percent from last year again. And I like I go back to resale was up about maybe, you know, 78 percent in that range. However, when you look at price per square foot, I know I’m getting really complicated here. Price per square foot on new construction is actually up 6 percent yet at the same time, median price is down 12%.

Tego Venturi: So how can that be? Well, [00:08:00] I think the term is shrinkflation. It’s the homes have been value engineered and the builders and you have to give builders credit, right? They’re trying to build a product that people can afford. They’re making the home smaller. They’re making them more affordable. You’ve got to look on your face.

Tracy Venturi: You just like led right into the next thing I was going to talk about. Okay. Well, perfect. Okay. So fellowship homes, local builder, great family fellowship homes. They have two houses on the market today. that we could help you with that’s in their Las Casitas series in Rio Rancho on larger lots, about a third of an acre off Northern Boulevard listed at basically 280, 279.

Tracy Venturi: 9. There are two bedroom, two bath, two car garages, new construction. 

Tego Venturi: Got it. 

Tracy Venturi: 279. 9. So wait, wait, 

Tego Venturi: wait. Where’s that? 

Tracy Venturi: Northern Boulevard in Rio Rancho. 

Tego Venturi: Got it. I didn’t know where that was. It’s 

Tracy Venturi: West of answer. 

Tego Venturi: That’s a, that’s a rare entity in [00:09:00] today’s market. New construction under 300, 000. 

Tracy Venturi: Absolutely. But it’s two bedroom, two bath, two car garage.

Tracy Venturi: So that’s great. At least it’s a two car garage because here in New Mexico, we need that two car garage. We don’t have basements, right? Yes, we do. We need it. So it’s out Northern past, you know, Unser on half, on third acre lots. So build beautiful homes. So, you know but that’s right to your point that a lot of the builders are building smaller to help with affordability.

Tracy Venturi: Now they’re building luxury homes to very beautiful custom luxury homes. So this is not, you know, what they do every day, but you get their beautiful building style and quality. At a more affordable price 

Tego Venturi: if you want to dig more into the market data. I did do a video about 9 10 minutes It’s on our youtube channel.

Tego Venturi: Just look for the venturi group On youtube and you can I I take you through all the market stats for march And of course i’ve got a bunch of stuff [00:10:00] on our website about the market data at Welcome home abq. com. And let me just, just put, put one, just ending on this whole market thing. The, the, the, the day, the takeaway is home prices are continuing to go up much more moderate pace than we’ve seen in, you know, the last couple of three years, which was kind of nutty but sales are down.

Tego Venturi: The number of people, you know, purchasing and moving is, is down. And we know that the number of people listing their homes is down. People aren’t moving as often because they’re locked in at these really great, you know, mortgage rates. So there is kind of a market lockup to a certain extent where there’s buyers that want to buy, there’s sellers that want to sell, but both of them are kind of locked for different reasons.

Tego Venturi: But yet at the same time, home prices have continued to increase. 

Tracy Venturi: Yep. All right. So we are Tico and Tracy Venturi with Real Broker here in Albuquerque. We appreciate you guys listening to us and watching us and [00:11:00] getting on our Instagram and our YouTube and, and all of those things and following us and, and Tico, we hit a big milestone this week, so we appreciate all of you on YouTube, on YouTube.

Tracy Venturi: We just. Went over a thousand subscribers, subscribers. There we go. So thank you. But if you do watch on YouTube, we’d love for you to follow us. And it it means a lot to Tego because you know, he spends a lot of time on all this data to keep everybody up to date and loves to do it. 

Tego Venturi: Well, like I said, on my, my market update is, I mean, obviously We’re trying to promote ourselves as, you know, a competent real estate team here, here in Albuquerque, no doubt about that.

Tego Venturi: But there’s been so much bad information about what’s going on in the real estate market that I really just want to get the, get the good data out there and the good information so people can really understand where, where things are at. 

Tracy Venturi: Totally. Yeah. 

Tego Venturi: Tracy. I appreciate 

Tracy Venturi: that. 

Tego Venturi: It’s April. 

Tracy Venturi: Yes, I know.

Tracy Venturi: You know what 

Tego Venturi: that, we just said, it’s April and it’s tax season, [00:12:00] yay. 

Tracy Venturi: I know what you’re going for. I know. Because we. Received our notice of value on houses. Hold 

Tego Venturi: on. It’s not just income tax season. I had, I had a whole script right here. Okay. Yeah. Let me, let me do my script. My script was, it’s not just income tax season.

Tego Venturi: It’s property tax season. Okay. Well, it’s property assessment season. All right. So let’s, let’s, let’s get into that. If you’re, if you’re a property owner, You’re going to be getting your, you should be getting a letter in the mail. If you’re on the video, you can see it looks like this is one from Bernalillo County.

Tego Venturi: I’ve got one from Sandoval County here. You get a letter in the mail and it says time sensitive dated material open right away. And a lot of people get them that like they’re first time buyers and they’ll call us in the first year they get this and go, what am I supposed to do with this? What is this about?

Tracy Venturi: And there’s a lot of people who get them who don’t open the envelope. Well, there’s that too, 

Tego Venturi: right? So, so Tracy. What is this all about? 

Tracy Venturi: So this is the time of year where [00:13:00] the tax assessor send out a notice of value and tells you here’s what we believe your home is worth. And this is what it will be based on for taxes.

Tracy Venturi: When we put together taxes later this year, this is not a bill, it’s a notice of value and it’s the time of year. where you get to look at it and go, okay, does this make sense? Because it’s the time you can protest what they say your value is. Now, Tego, we all know the news has told us over the years that if you have a residence, it’s residential, that they will only in New Mexico raise it by 3 percent max per year.

Tego Venturi: Correct. That is state statute. State statute. 3% of the full assessed value, not the taxable value, if you are in the home, but there’s exceptions to that. 

Tracy Venturi: Yes, there are exceptions to that. And when you get your notice of value, especially the Bernalillo County one, it’s very clear what the exceptions are right on this sheet of paper here.

Tego Venturi: I will say, so we, we own property in [00:14:00] Bernalillo County. We own property in Sandoval County and Valencia and Valencia County. And I will say that the Bernalillo County Assessor has a nice, very clear information sheet about what you need to know about your assessed value. 

Tracy Venturi: They do. 

Tego Venturi: So, 

Tracy Venturi: so the exceptions are upon sale, the title companies or the owner, if you don’t go through a title company are required to notify the owner.

Tracy Venturi: The county of the sale price, correct? And based on that sale price, they can raise the taxable value more than 3%. They can bring it up to assess value, right? To real value of the property based on the sale price. So that’s when years ago we had that whole talk about tax lightning where people bought a house and they were surprised because the taxes went up so high.

Tracy Venturi: So now as realtors we disclose what the taxes could be based on the sale price. 

Tego Venturi: Yeah, because what will happen if somebody is in a home, let’s say they’re in a home for 20 [00:15:00] years And it’s only been increasing the assessed value has only been increasing three percent per year When they do sell that property, you know, and it the assessed value may be 150 000 and the real value is 400 000 So that new buyer is going to see the current tax bill based at 160 And then they’re going to see And then, you know, the, the following year they get a tax bill based on 400 and it’s going to be a shock.

Tego Venturi: So yeah, you know, people need to understand that when, when they do purchase a property, it can get reassessed at full value. There’s no, there’s no cap. Another exception Tracy is if you do a, like a major remodel and upgrade the house 

Tracy Venturi: or add on to it. 

Tego Venturi: Yeah. Yeah. Yeah. That could trigger a reassessment if you change zoning, that could trigger a reassessment.

Tego Venturi: And again, the 3 percent cap, it’s just for 

Tracy Venturi: residential. 

Tego Venturi: And there’s a whole, I don’t know if I want to go down there. Let me just say it. There’s a debate out there about right, right now, if like Airbnb short term rental [00:16:00] type properties. Should get that if they’re 

Tracy Venturi: residential. 

Tego Venturi: Yeah, if they’re residential nuts, that’s just the debate that’s out there I’m not gonna go anywhere with it.

Tego Venturi: I just it’s an interesting debate that’s happening. 

Tracy Venturi: So the other thing about that is sometimes properties are sold and they don’t go through the title company to You know, automatically send the assessor’s office the, the sale price. So you will get a letter in the mail typically saying, Hey, you need to tell us within 30 days what you paid for that parcel.

Tracy Venturi: So sometimes that’s how it happens too. 

Tego Venturi: Well, in that state statute by statute, you are supposed to do that, 

Tracy Venturi: right? It’s interesting because I read the fine print and it said a failure to do so can be a misdemeanor. So, yeah, you probably want to do that. 

Tego Venturi: So a couple of things I did want to talk about and, you know, I actually, I actually interviewed Assessor Damien Lara for Bernalillo County here for a few months ago, six months ago or so, and they do have some [00:17:00] tax savings programs that I think people need to go know about.

Tego Venturi: And one of them is head of household. 

Tracy Venturi: Right. So, 

Tego Venturi: One person, primary resident. You can take 2, 000 off your 

Tracy Venturi: taxable value, 

Tego Venturi: which is only a third of your 

Tracy Venturi: full value. 

Tego Venturi: But you 

Tracy Venturi: have to do that proactively. Correct. You have to get with the county to apply for head of household for that deduction. 

Tego Venturi: The other tax programs are if you are low income, there’s an income limit.

Tracy Venturi: 65 

Tego Venturi: or older. 65 or older or disabled. Disabled. You qualify for a value freeze again. You got to talk to him and make sure you qualify. I’m not giving any advice here, but I just want you to know it’s there, meaning that they they’ll they’ll freeze the value wherever it currently is, and they won’t even do the 3 percent per year.

Tracy Venturi: So I worked with a home seller this past week. The house is already under contract and it was that way. It had a the value [00:18:00] was frozen and the seller said very clearly, Hey, I want to make sure that whoever buys my house knows that my taxes are unusually low because I’m over 65 and I got the County to freeze it.

Tracy Venturi: And I was like, well, good for you. I didn’t, you know, most people don’t know about that. Right. So he was lower income. Me. He did really well his whole life, but he doesn’t have a lot of income now. He’s fine, but he was able to freeze the value of his property. So when it is sold, it will jump up because the new value is, is different.

Tego Venturi: Yeah. Yeah. Yeah. And 

Tracy Venturi: then there’s another one. Well, there’s 

Tego Venturi: two more that, that apply to veterans. Well, one of them is any veteran there. There is again, you gotta, you gotta apply for it, but you have a 4, 000 reduction in your. Taxable value. But if somebody is a hundred percent disabled veteran, they don’t pay taxes.

Tego Venturi: Again, you got to qualify for it. You got to go through the process. They have 

Tracy Venturi: to get something from the VA. 

Tego Venturi: The VA is really helpful about that though. They will [00:19:00] help, help people do that and get, get all their information together. So, 

Tracy Venturi: so there’s that. So more, more about 

Tego Venturi: property tax. Yeah. Anyway, go ahead.

Tego Venturi: Choice. Well, I was going to say, you 

Tracy Venturi: know, the, the, the, the, the, the, the, the, the, the, the, The, the time that you can protest the value, if you opened your notice of value and that’s 

Tego Venturi: the most important thing I just interrupted you, 

Tracy Venturi: you know, you noticed your notice of value you feel like it’s high, we can help you with that.

Tracy Venturi: If we can find homes that have sold in your area that are similar for a lower value. We can help you if you want to protest and have to have some sort of justification for it. Or if you bought your house last year and it was 200, 000 and they’re saying it’s worth 300, 000, you know, get with your realtor and get a copy of your closing statement if you don’t have it and protest it and submit a copy of your closing statement along with it.

Tego Venturi: Well, there’s a lot of people that’ll look at it and go. Well, this seems high, but they don’t know, right? We can help you with that. Just reach out to us. That includes vacant land as [00:20:00] well. We can help you you know, get, get a, basically a baseline and see if it makes sense for you to do the, do the protest or the appeal, I guess they call it.

Tracy Venturi: The thing that’s important to remember about that is you only have 30 days from the day it was mailed to make your appeal of the value. And there are companies that will do that for you. If you feel like you better. I, I know somebody who bought commercial real estate, like millions of dollars was the purchase price and they protested through a company that did it for them, that really knew what they were doing, saved them a lot of money in taxes because they were successful in reducing the value of that property.

Tego Venturi: I would say for just individual homeowners. Do it yourself. Yeah. Because when you as a taxpayer, homeowner, resident, you have more leverage than some entity, you know, but again, in the commercial world, that’s very common. We’re talking more just about residential, but yes, hiring [00:21:00] somebody in the commercial You can though.

Tego Venturi: Yeah. Oh, absolutely. There are people who 

Tracy Venturi: will do it for you for land or residential if you wish. Yeah. I mean if it’s They just take a portion of the savings they get. So if they don’t get you savings, they don’t get paid. That’s the way I understand the ones that I know of. 

Tego Venturi: That’s my understanding as well.

Tego Venturi: And there’s a few companies in town that do that for sure. Tego, 

Tracy Venturi: do we have time for me to talk about what buyers and sellers want most from real estate agents? Realtor. com did a little magazine story and they interviewed a bunch of people about what buyers and sellers want. And I thought ahead of time before I read it, I went, okay, what do buyers and sellers want, right?

Tracy Venturi: They want competence. They want knowledge. They want information. They want someone that knows what they’re doing to hold their hand, because there are a lot of different things with the real estate transaction that can come up and a lot of dates and deadlines and a lot of who do I go to for this, right?

Tego Venturi: Can I tell you something? I looked at that list. And I thought it was interesting because to me it said, they don’t know what they don’t know. [00:22:00] 

Tracy Venturi: Right. 

Tego Venturi: Because there’s stuff on there that just not on there that should be. Anyway, go ahead. 

Tracy Venturi: Yeah. Right. They don’t know what they don’t know. And that’s what we learn a lot, especially with home buyers.

Tracy Venturi: So if you know someone that should be buying a house, a lot of times they don’t even want to pick up the phone and call us because They don’t even know what to say. They’re like I’m thinking of buying a house and they don’t know. I was shocked at someone that I know really well who said that to me, like, well, I don’t really know, like the first steps.

Tracy Venturi: And I’m thinking you’re kind of in the industry. And you know, that just told me again, That the general public really needs help. So what do they really, really want? It’s interesting, right? They want help finding the right home. We all have all of our apps. We can all find homes online, right? But they need help negotiating terms of a sale, price negotiations, help with all the paperwork determining what the home value is, like what should I be paying [00:23:00] for it?

Tracy Venturi: Determining how much you can afford. Right. We help get with a lender if you don’t have cash, right? And most people are using loans. We help them get with a great local lender to help determine what they can afford. And not just what you can afford, but what you’re comfortable with your monthly payment, right?

Tracy Venturi: Not just, Hey, you can spend this much because you might not be that comfortable with that much of your monthly, right? Help arrange financing. Help teach buyer more about the neighborhood and areas. They say restaurants, parks, public transportations. I love to, when we’re showing homes, I love to talk about livability and what makes people want to be in a certain neighborhood and what are the benefits and attributes of this location, right?

Tracy Venturi: Because. Right here by our office. We’ve got amazing parks. You know, the open spaces right here. We’ve got trails all, all throughout the Valley and along the river that make it really special. Right. But somebody coming from a different part of town might not know that two blocks away, there’s a parking lot [00:24:00] and a paved path for 35 miles.

Tracy Venturi: Right. But also teaching. people about the whole process and being a homeowner. That’s pretty hard, right? Like a lot of people don’t even know, like setting up utilities and things like that. They haven’t had an apartment even where they had to do that. So it’s, it’s that whole process. A lot of things that we learn.

Tego Venturi: So let me give the things that not on that survey that people don’t know that they don’t know. So what questions to ask, 

Tracy Venturi: right? 

Tego Venturi: Like if you’re, if you’re a first time home buyer, you don’t even know what questions to ask. 

Tracy Venturi: Right. 

Tego Venturi: You know, another example is in our, in our, in our residential sales, there’s probably a dozen different variables.

Tego Venturi: Again, if you don’t even know what to ask, is it in a pi? Is it in a HOA? What do I need to know about the HOA? What do I need to know about the pi? Is there cc and r? Right? And you know, what inspections should I be getting? [00:25:00] You know, again, it’s all these questions you don’t even know what to ask, right? When you get the inspection, what, what should I be worried about?

Tego Venturi: Right? There’s, there’s so many things to, to me, that’s the value, you know, in our, in our purchase agreement, I’ve, I’ve tracked it before. There’s 48 potential dates to keep track of from when you go under contract. Now that’s, that’s the maximum, but on average, there’s probably about 20 different dates That you have to keep track of from going under contract or closing because there’s contingencies like people don’t even know what contingencies are.

Tego Venturi: So what does a contingency mean? Right. Is there the financing contingency? Is there inspection contingency? Is there HOA contingencies that, da da da da da. Right? So it to, to me, that’s the big value when we talk about, you know, what realtors do, it’s not finding homes. 

Tracy Venturi: Right. You know what, in listening to that list, Tego, I think about some of the things that we [00:26:00] know from showing homes for.

Tracy Venturi: 20 years, right? We know about polybutylene piping. We know about Orangeburg. We know about Kitech. 

Tego Venturi: We have that list. It’s the red flags list. That 

Tracy Venturi: we created. That we 

Tego Venturi: created of different areas of town, different neighborhoods that we just know that there there might be some things to consider. 

Tracy Venturi: Yeah, it’s, it’s right down to if there are in floor ducks, that’s something you want to get checked.

Tracy Venturi: Right. And, and even sewer lines, you know, we talked about this the other day in a training and people, some, some people think, well, the house is pretty new. I don’t need to get a sewer line inspection and we’re like, oh, well we’ve had new construction have sewer line problems. And just because there’s no trees in the front yard near the sewer line or in the backyard, if it happens to be the sewer line that way.

Tracy Venturi: does not mean that there aren’t obstructions in that sewer line. So, those are the things that you know, we can really help with. Yeah, 

Tego Venturi: just in all the conversation going on in the realtor community about, you know, [00:27:00] what the value of, of what we do is, I think it’s important to point out it’s more than just finding the home, right?

Tego Venturi: That, that’s, that’s not really it. It’s everything else. I did just want to hit on one thing before we run out of time here. I was on a seminar, webinar. With costar, which is apartments. com. They, they do a bunch of anyway, they have the best data when it comes to apartments in, in rent, the rental market.

Tego Venturi: And I thought it was interesting. There was a couple of big things that jumped out at me. And that’s is that we might be going into a little bit of surplus in apartments in the Albuquerque market. The reason is we have a lot of properties under construction as you guys, if we all drive around, we can see.

Tego Venturi: There were 1800 units that came in like doors, apartments, basically units that came in last year when the normal number is maybe three to 400. Now there was. Some catch up as well because during the pandemic, [00:28:00] everything stopped there for a couple years also. Right. But, but what they’re saying is that we do now have a nine and a half percent vacancy rate, vacancy rate in, in apartments.

Tego Venturi: And it’s interesting because it’s, it’s It’s kind of across all price ranges. The thing that’s interesting though, is the ones that are being built right now are what they call the four and five star, right? So these are the higher end luxury type units, more expensive. The, the thing that took away that I took away from that is that the luxury is, you know, more like 14 percent vacancy, the, the one, two, and three star, which are, you know, more basic properties it’s under that maybe nine, 8%, something like that.

Tego Venturi: But there are 2300 units under construction in the Albuquerque area right now, and there’s a bunch more that are proposed but haven’t broken ground yet. I think a lot of that is because These developers are looking at the market and saying, I don’t know if I’m going to spend that 10, 000, 000 on an apartment building or whatever [00:29:00] it is right now.

Tego Venturi: And then. And the thing that’s interesting, wait, wait, let me just, oh, go ahead. With 

Tracy Venturi: that many and you saying 9 percent vacancy rate, I assume that that means that the rental rates are flattening out or not going up. 

Tego Venturi: Yeah. They project that, that rents are going to flatten, rent growth is going to flatten.

Tego Venturi: I mean, they’ve been very strong the last few years, but they projecting again, this is costarapartments. com. They’re projecting one or two to 3%. year over year price appreciation and rentals, which is for the consumers, for the end users, that’s good. Cause that’s lower than the rate of, of well, not home price in a row.

Tego Venturi: It’s lower than the the, the rate of wage gains, right? So, cause right now the wages to cost of housing is way out of whack. And we know that. And then just the, the last thing that was kind of interesting of all the units. That are under construction, this 2300 most of ’em, 60% [00:30:00] of ’em, well not most, but a good portion are the four and five star units.

Tego Venturi: These are the luxury, higher end, you know, type properties. There’s about 40% that are three star, which are still, you know, nice. They’re kind of middle range. There’s zero. I don’t know. being built right now. It makes 

Tracy Venturi: sense because the land cost wherever they’re building right now, they can’t afford to do a 

Tego Venturi: well, and what it is.

Tego Venturi: There’s no way that a developer can do affordable. Really without government subsidy is actually what it comes down to. Honestly, I mean, that’s, that’s just the reality of it. And that, that’s where we are. So gosh, we covered a lot today, Tracy. Never a dull moment. Never a dull moment. We’re the Venturi Group with Real Broker here in Albuquerque, New Mexico.

Tego Venturi: This was episode 485. Been doing this for 10 years, Tracy. 

Tracy Venturi: Yeah. You should enjoy 

Tego Venturi: it. 

Tracy Venturi: Yeah. 

Tego Venturi: And if you want to reach out to us, we’re at 505 448 8888 or our website is welcomehome. com. [00:31:00] abq. com and all kinds of goodies there. Find us on 

Tracy Venturi: YouTube and Facebook and Instagram. 

Tego Venturi: Yeah, all the normal places. All the normal 

Tracy Venturi: places, but call us ready to help you with home buying or selling or somebody that you know.

Tego Venturi: Thanks for tuning in again. Take care.