Is Right Now a Once in a Lifetime Opportunity to Sell your Albuquerque Home?
(Transcript Snippet): “Tego:
Yeah. So that was our, our next story or not really story, but just kind of a topic. This is, is right now a once in a lifetime opportunity to sell your home. I’m just said what you just said. I know, I know. I know. I know. It’s okay. I know I’m just reading the same, the same headline you did. And, and so I, I, there there’s a, a couple different dynamics here. So let’s talk about, you know, some of these bullet points as why this might be the best time to buy, but then I also want to bring in this story about all time high owner equity, right. And owner profits that, that are selling. So first off, you know, why is it a great time to be a home seller right now, Tracy?
Tracy:
So number one, demand is very strong. We have a lot of buyers looking for existing existing home sales report would say that the, the 15 year, you know, need for homes right now, we’re at the peak. We’ve got all the millennials that are in that home buying era.
Tego:
Can, can I actually just add to that a little bit is if you look at the, the millennial generation the, the biggest peak of ’em are gonna be turning 32 in the next few years. Right? Right. This is the biggest cohort of, of people and that’s the that’s largest population. Yeah. And so there’s still a bunch of people in that at age group that do not own a home yet and are just coming into home buying. So the demand is out there. So
Tracy:
The bullet point on that is the demand is expected to strengthen, not weaken for home buyers, because there are so many people in those home buying years yeah. That they say on average by 37 is when most people have bought their first home. Right. Yeah. And we know that there’s a huge cohort. That’s reaching that. Right. Our, our nieces had birthdays this week. Right. They’re in that group. Yep. They’ve both been home buyers for a while though. So next.
Tego:
Yeah. The, the next thing is, is supply TRAC. And I just wanna put some perspective on this. We all talk about, you know, supply of homes, right. And I know that’s kind of inside lingo. It’s like inventory supply. Basically. It’s a number of homes that are available to purchase on the market right now. And in Albuquerque, as we sit today, you know Friday, February 4th, we’re at like 660 homes actively for sale in the Metro Albuquerque area, the Albuquerque MSA, which is unprecedentedly unprecedented in the Nu, you know, in supply or number of homes on the market. We, we measure month supply of inventory as a, as a ratio of a supply versus demand, basically homes going off the market that are, that are being purchased versus the number of homes on the market. Generally a balanced market is, is considered around that five month supply, six month supply today, right now at the end of January, we’re sitting at half a month supply of, of homes in a greater Albuquerque area. So, you know, we are at again, I’m gonna say it one more time, unprecedented, tight supply on homes. And that doesn’t appear to be at good changing. And again, we’re, we’re, we’re talking about this in the context of being a home seller right now, right. Tracy. Right.
Tracy:
So supplies very low minute. Next up sellers have maximum leverage as in, is it a once in a lifetime opportunity for sellers? Lot of, lot of the sellers that are deciding to put their home on the market, they’re really in the driver’s seat. Yeah. Right. For sure. They’re, they’re getting competitive price offers on their property. They’re getting flexible closing dates. They’re getting potential for lease back. Once they, they sell their home. They’re getting offers with very minimal contingencies with regards to perhaps financing or appraisals or repairs. So from that perspective, boy, you’ve ever had a, a hard to sell property because of location condition or something. How it shows now is the time to be selling that property because you’re gonna get the most for it at this point that we’ve seen in our, our careers for 20 years. Right.
Tego:
Tego for sure. No, no, no doubt about it. And then, and then, and so the big catch 22 on all of this is a home seller is okay, well, I wanna sell my home, but where I’m gonna go, right. I, I can’t find another home. I, I can’t find a move up home or maybe you’re going to another area. The, the thing is, this is not a localized Albuquerque phenomenon. This is all over the country. Shortage of homes for sale is, is everywhere. And so the what’s your replace home. That’s the big question, right? If you do sell
Tracy:
It is, but you know, this is just a small piece of that. Tego is we’re seeing a lot of houses still come on the market, they’re just selling fast. So our 660 homes that you mentioned, you know, probably 660 came on the market in the last week or two. And they are already off the market cuz they’re selling quickly.
Tego:
I’ve got a stat for that.
Tracy:
You know, I, I bet you hadn’t looked it up ahead of time.
Tego:
Oh yeah, no I did. I did. Okay. So median days on market in January was six days, meaning 50% of the homes in the Albuquerque area sold within six days. Right.
Tracy:
But there are homes coming on the market that people who wanna sell their home can get themselves moved into. Right? Yeah. So we, we are able to find homes for most people. It’s just, there’s a lot of competition for ’em. You probably have to look at more than one house or fall in love with more than one. And know that there are homes coming on the market, the 660 homes we’re talking about today are not the 660 that were on the market last Friday. I’m
Tego:
I’m glad you said that because I know it sounds like I’m sure people, if you’re out there listening, you’re going, well, why would I wanna sell? Why would I wanna buy it sounds crazy out there. Well, the thing is, homes are getting bought and sold, you know, every day, every month, every week. And, and it’s gonna continue that way. It’s just it’s just at a little bit higher pace than, than what we’ve seen historically. So right. Competitive.