Albuquerque Housing Market 2024: Where Are Prices Now?

Albuquerque Housing Market 2024: Where Are Prices Now?

Albuquerque Housing Market 2024: Where Are Prices Now?

 

Hello, everyone!

I’m Tego Venturi from Albuquerque Real Estate Talk, and in today’s piece, we’re diving deep into the fabric of our city’s housing market. Albuquerque has been witnessing some fascinating developments, especially with the advent of build-to-rent communities, and there’s a lot to discuss concerning the current real estate trend wave.

New Developments in Albuquerque Real Estate

Firstly, let me share with you some details about the new housing projects taking shape in our beloved city. A notable one is a 10-acre parcel being transformed into a neighborhood of 90 standalone homes ranging from 850 to 1,070 square feet. Imagine sitting out on your front porch sipping your morning coffee or participating in communal gardening within internal courtyards β€” this is the kind of living experience that’s being created right here in Albuquerque.

Then we have the Eleanor development by Unser Gateway Realtyβ€”a promising venture in partnership with Westway Homes featuring 126 single-family houses. With home sizes varying between 650 and 1,500 square feet and about 30 units anticipated to be ready within the next year, the diversity and availability of housing options are indeed looking up.

The Trend of Build-to-Rent

Now, let’s talk about a trend that’s gaining significant traction: building single-family homes for rent. This concept has blossomed into neighborhoods like The Bedrock at Tracyβ€”a build-to-rent community comprising 199 townhomes and an additional 145 single-family homes. But why is this trend emerging?

In my analysis, the tightening of lending standards post the Dodd-Frank Act has played a pivotal role. It’s changed the dynamics of homeownership and has paved the way for build-to-rent communities to fill a need in our market.

Housing Market Insights

As we’ve seen, housing affordability continues to be a challenge, with building new single-family homes under $300,000 becoming increasingly difficult. With the median home price hovering around $350,000, a family needs an income surpassing $100,000 to afford these prices comfortablyβ€”a figure not attainable for everyone in our city.

Since late 2019, home prices have risen by roughly 50%, with mortgage rates fluctuating, adding another layer of complexity for potential homeowners.

Rental Properties and Market Accessibility

On the rental side, we’ve launched a new tool, nmhomerentals.com, aiming to streamline the search for rental properties while cracking down on scams. Despite a common misconception, institutional investors are not the primary rental property ownersβ€”it’s typically small-scale, individual investors that hold this market segment.

The real challenges to housing affordability lie in the administrative and regulatory terrainβ€”issues like zoning, planning, and permitting. It’s critical to have informed discussions around these topics, rather than pointing fingers at large corporations who, contrary to belief, are not the root cause of the problem.

Navigating Real Estate Commissions

In our episode, Tracy and I also touched upon the proposed changes to real estate commissions in New Mexico. Under the current system, the seller effectively covers the buyer broker’s commission, but this might soon change, with buyers directly reaching agreements with their brokers regarding payment. Although this could introduce new paperwork and procedural changes, it’s important to remember that real estate fees are always open to negotiation.

Reflections and Market Stability

In the midst of these shifts, I’ve felt an overwhelming sense of satisfaction in assisting our clients with their real estate journeys. The Albuquerque housing market has maintained stability with consistent price appreciation and a relatively low number of available homesβ€”promising signs for both buyers and sellers.

As the seasons change, we expect an uptick in listings, so buyers, keep your eyes peeled for that perfect home, and sellers, get ready to showcase your property’s charm.

For anyone navigating the Albuquerque real estate waters, the Venturi Group is here to steer you in the right direction. Feel free to reach out to us at 505-448-8888 for guidance or to discuss your property needs. We’re more than just your realtors; we’re your neighbors in this vibrant community. Let’s make your real estate dreams a reality together!

 

Tego Venturi:
This week on Albuquerque Real Estate Talk, episode 484, end of March 2024, we’re gonna we have to talk about the National Association of Realtors settlement agreement regarding commissions and all that stuff and tons of news on that. So we’ll get into that. What really what buyers and sellers need to know, Tracy, as well as a lot of lot more in in a good way, talk about housing affordability and solutions there. Now, Tracy, you have a story about some new construction coming to Albuquerque, some single family homes, but there’s a twist on that. So we’re gonna get into that. And just a couple other things. Of course, we’ll probably go down the rabbit hole and get off on some other stuff too, Tracy. Plenty plenty of stuff in the real estate world this week in Albuquerque.

Tracy Venturi:
Absolutely. So where do you wanna start?

Tego Venturi:
Start how people can get a hold of us.

Tracy Venturi:
Sure. So we’re Venturi Realty Group of Realty Broker, and, the best way is our phone, 505-448-8888. That’s an easy one. We should have a jingle. 448-8888. Or, you know, welcomehomeabq.com online. You can check out our website and reach us through that as well.

Tego Venturi:
I you know, I wanna start with housing affordability. Not not affordable housing. That’s a different conversation. I’m talking about housing affordability. Housing affordability is the issue of our time, I think. Now I’m a little biased because I’m a housing wonk. I believe in housing. Everybody needs a place to live.

Tego Venturi:
And we have a housing problem. There’s been a gazillion studies, you know, analyzing how many homes were short in the United States, in Albuquerque, in New Mexico, everywhere. Right? And the the challenge is right now to build a new single family home, it’s almost impossible now to build anything that could be sold as new for $300,000 and under.

Tracy Venturi:
In Albuquerque area, in our metro Realty.

Tego Venturi:
Honestly, in the country. I’ve heard that everywhere. I mean, I’m sure there’s some places maybe, but it it’s it’s it’s a real challenge.

Tracy Venturi:
You’re being very serious, Tego, but all I heard was wonk. I don’t know that word, wonk and kazillion, a kazillion stories.

Tego Venturi:
A kazillion. You know?

Tracy Venturi:
You you stopped me at wonk.

Tego Venturi:
Wonk. Wonk as in, like, I follow this stuff, and I’m very passionate about it. And I really get in the weeds on trying to figure out how to, you know, bring these solutions forward that that are gonna help the affordability challenge.

Tracy Venturi:
Right. So this week, there was a lot of news, right, about what it, what an income needs to be in our market to be able to buy, average median priced home?

Tego Venturi:
Well, median price is now around 350 in Albuquerque.

Tracy Venturi:
Yeah. And so what what that equates to as far as an income for a household is now over a 100,000 to be able to afford that house. Yeah. And it seems like pre pandemic, that was significantly less. What the the, rate that I think somebody’s I saw somebody’s stat. I think it was in the 50,000 or 59,000 or something was the income needed to buy the average price home, average median. Yeah. Yeah.

Tracy Venturi:
And now it’s over a 100. So, yes, it’s changed a lot because of interest rates, because of home prices. Everything combined together made it significantly different for affordability.

Tego Venturi:
Well, let’s just go back to pre pandemic. Home prices in Albuquerque have gone up about 50% since, let’s say, 2019. Right? End of 2019. Not not double, but, you know, half of double.

Tracy Venturi:
Right.

Tego Venturi:
Is that right? No. That’s not quite right. Anyway, 50%. So so home prices have gone up. On top of that, we went from again, pre pandemic, we were kind of in the 4, 4 and a half percent range on mortgages. And then when the pandemic hit, you know, we had that unbelievably low mortgage rates there where people were getting under 3%.

Tracy Venturi:
Especially if they did, like, a 15 year, which many people did

Tego Venturi:
Right.

Tracy Venturi:
Because the monthly payment was still so affordable on a 15 year at a 2.875 or whatever.

Tego Venturi:
Right. And then and then what happened is, you know, we had this price appreciation, and then we had mortgage rates go up to over 8% at one point. Now they’re more they’re hovering right around 7% right now, plus or minus, you know, in in that range, which is better than 8. However, it’s really put a strain on people’s affordability. And and we’re talking about purchase, but there’s also rent.

Tracy Venturi:
Right.

Tego Venturi:
You know, every type of housing is more expensive. Every type of housing is a much larger portion of everybody’s budget than it used to be. And, of course, everything else is a lot more expensive too. So there’s definitely been some some Tracy.

Tracy Venturi:
So that brings up 2 topics.

Tego Venturi:
Well, I’ve got one, but you go ahead.

Tracy Venturi:
Well, one of them is the multiple listing service, the Realty association that has a website to help with people find real rentals that are available, that are authenticated, that it’s really the person renting it using this site. So you’re not gonna get scammed by somebody pretending to be the owner or the rental manager.

Tego Venturi:
Yeah. So last year yes. So let’s talk about that. Last year, the we we at the Southwest MLS, we added a product that that basically aggregates all the different rental properties for the most part in the whole metro Albuquerque area. You can visit that website atnmhomerentals.com. And so it combines property managers and rental properties they have. It combines even individual private owners that want to post their their properties for rent and any rentals that are in the multiple listing service, which isn’t a lot, but it takes it all in one place so that a consumer can go there again, nmhomerentalsdot com, and see a really good, cross section of everything that’s available.

Tracy Venturi:
Right. And so there might be Tego, some of our listeners might have rental properties, and they don’t know this resources out there. They can get, go through the process to be legitimized as the owner of a property, and they can use this site to put their property for rent.

Tego Venturi:
Yeah. And a lot of people may not realize this, but the the rental scams on places like Craigslist, Facebook Marketplace, you know, these free listing services, the scams are just out of control, and it’s really sad. You know, we’ve had situations where we we’ve talked to people that thought they were putting the deposit down on a property and putting the 1st month rent down on a property. They sent it off, you know, they wired it off to somebody and that money was gone. Never seen again. Probably somebody overseas. Right?

Tracy Venturi:
Well and it it’s gotten worse than that. We’ve had people literally meet people with keys to properties, like, in person who aren’t the real property managers or owners. Anyway, so that’s one thing. Right?

Tego Venturi:
Yeah. That that’s again, the I mean, I know we’re having a conversation about affordability. Right. But it’s also part of that is just accessibility to properties that are available.

Tracy Venturi:
Right. Totally. Problem

Tego Venturi:
Right. For the rental side in Albuquerque. Yeah.

Tracy Venturi:
Totally. So that’s great. I really appreciate that the Realtors Association put that out there because, you know, it it costs them money

Tego Venturi:
to

Tracy Venturi:
to, have that. So we appreciate that they’re doing that.

Tego Venturi:
Okay. Can I just say I was very involved in making this happen, and I’m very proud of it? And I’ve heard some people pooh pooh ing, and I’m like, you know, there’s always gonna be your people that are detractors. But I’m sorry. This is this is for the community because it was broken. It was so bad if you’re trying to find a rental property.

Tracy Venturi:
So hard. We’d get calls all the time from people moving to Albuquerque or the metro area. They don’t know the area, and they need help finding a rental. And we are like, I’m so sorry. There isn’t one place that I can direct you. There there just wasn’t, and now there is one place that we can direct people.

Tego Venturi:
And Well, you can go to Craigslist. Good luck. Watch out for

Tracy Venturi:
this house. Careful.

Tego Venturi:
Yeah.

Tracy Venturi:
Yeah. So this is great. It’s great if you own some property and you wanna use it for your rental site because that’s part of what it’s good for. You don’t have to be a real estate professional to list your property there.

Tego Venturi:
Remember how at the top of the show, I said, we’ll probably go down some rabbit holes?

Tracy Venturi:
That was one.

Tego Venturi:
That was 1, but it was really good. I mean, it’s good information. I think the community needs to more know more about this resource. Again, it’s nmhomerentals.com.

Tracy Venturi:
Speaking of rabbits, you know, it’s Easter weekend, so it’s very appropriate that you would say rabbit hole, just this show. Anyway, so, Tego, the other part of where we were going on affordability, units, properties coming online. Right?

Tego Venturi:
Well, I I wanna I wanna hit on let me let me take this another direction just a little bit. I posted something about a week ago on my Facebook. Again, it’s Tego Venturi if you wanna follow me. I pretty much just post a lot of housing stuff, housing stat, housing news.

Tracy Venturi:
You don’t post pictures of your family and your vacation and your dogs

Tego Venturi:
I don’t know.

Tracy Venturi:
Post pictures of

Tego Venturi:
of yeah. I know. I I just don’t. I just don’t. Anyway, the the thing with affordability, there’s been this this kind of story kind of out there that that all the Wall Street, big investors are buying all the single family homes, and that’s why we have an affordability problem.

Tracy Venturi:
Right.

Tego Venturi:
And I just couldn’t take it anymore. And so I put together a long post that breaks down how many homes in the country and in New Mexico are owned by investors like institutional investors versus the mom and pop investors. And the short of it is most rental properties are owned by the mom and pop investor, basically, you know, 10 or less properties. And they’re they’re and and a lot of them are people where this is their, like, retirement fund. Right? You know, maybe it was their their home they had and they moved. They kept it. Now it is their nest egg.

Tracy Venturi:
Right.

Tego Venturi:
Right? And so the the the the problem I’ve had with it is the scapegoating of blaming, you know, the evil Wall Street people for the housing affordability problems when it is yeah, maybe it’s an issue, but it is minuscule compared to the other things that can be done. And what’s happened just this week, for some reason and maybe it’s just my bubble because I follow all these housing econ people. Everybody’s freely saying it’s like, look, blaming the Airbnb, blaming the Wall Street investor, you know, buying all the houses. Okay. That’s great. But that’s that’s easy for politicians to do is to, you know, blame some evil corporation that’s doing all this bad stuff when the real problem is zoning, planning, permitting, infrastructure, ridiculous regulations on on building. I saw a story. Again, this is just anecdotal, but, you know, this this person, he’s he’s trying to build these townhomes, and he’s, like, just about done.

Tego Venturi:
And he’s trying to get his CO, his certificate of occupancy. And and the city will not let him do it until he puts in the sidewalk in the front required. And for for whatever reason, he couldn’t do it in a timely manner, and they would not let him move forward until that was absolutely done. Cost him an extra $100,000, and it it cost him an extra 3 months. So this is the type of thing that’s broken housing. And the the scapegoating, you know, these evil companies is not solving the problem. And it looks like people are finally starting to break away from that that narrative and call it out what it is, is this is a local problem. It’s not a national problem.

Tego Venturi:
It’s really hard for national to do it. It has to be done at the local level. Okay. I’m done. I’ll fill my cell box.

Tracy Venturi:
Great. So let’s change gears. So let’s talk about I love

Tego Venturi:
it when you do this to me.

Tracy Venturi:
Let’s talk about

Tego Venturi:
I have this big profound statement and you just go, oh, okay. Great. Let’s go to something else. Sorry.

Tracy Venturi:
That was really awesome, Tego.

Tego Venturi:
Thank you.

Tracy Venturi:
Great job. Okay.

Tego Venturi:
Oh, and I got to say one more thing. If you believe that 44% of of homes got purchased by Wall Street Investors in 2023, you have been lied to, and I’m sorry you fell for it. That’s all I gotta say.

Tracy Venturi:
K. We’re gonna talk about the newest trend that we’ve talked about before, Tego. And we’ve put information out about it, and it seems to be happening more now, and that is build to rent. So there is a community in the North Valley.

Tego Venturi:
Speaking of affordability.

Tracy Venturi:
Speaking of affordability, these are homes being built to be rental properties. So, Jay Remby has one. It’s called Griegos Farm. It’s in the North Valley off Griegos, basically, between 12th and Rio Grande, and it’s well underway. It’s a beautiful master planned community with homes for rent. And it’s a 10 acre plot. Right? And, you know, it’s going up. They’re building there.

Tracy Venturi:
It’s a 10 acre area. They’re 1 and 2 bedroom, homes, 850 to a 1,070 square feet. 90 freestanding homes on the 10 acres. But there’s, you know, front porches, internal courtyards. There’s all sorts of areas for community gardening. There’s a pickleball court. I know that’s really important these

Tego Venturi:
days. Hey. That is that is a thing these days.

Tracy Venturi:
That is. So they also have some offices where you can rent, you know, space there so you can have kind of a work, live. Even though you might only have an 850 square foot house, there are some spaces for the community to use. So those ones are well under construction. Last time I was overlooking it, I think there was some streets going in and and, you know, things going up. So, that’s one of them, but we know that one was just announced this week in Rio Rancho. And last week on our show, we talked about Rio Rancho being one of the places in the whole country

Tego Venturi:
one of the highest in the entire country.

Tracy Venturi:
Right. Right up there. So Unser Gateway Realty, west side by Rust Hospital, They have, the Eleanor that was just they did the little groundbreaking with the whole row of men with shovels. Yep. I’m pretty sure there wasn’t one woman with a shovel there.

Tego Venturi:
What’s up

Tracy Venturi:
with that? Anyway, 126 homes in the Cabezon area. They’re gonna be 650 to 1500 square feet, and these are homes being built to Venturi. Single family homes. Right? And they said 30 units will be ready in 12 to 15 months. This is a partnership with Westway Homes. JLM Living owned has purchased the land about 2 years ago, and they’re finally getting to the point where they can say they did did a groundbreaking to start construction. And, you know, Westway Homes is one of our great local builders. They’ve been building in that, Diamante area, you know, rest hospital, very, southern end of Rio Rancho by Unser Yep.

Tracy Venturi:
In West Side Boulevard, just west of the hospital. They’ve been doing some building there as well as other areas of town. So, really excited to see how they’ve partnered with, Westway Homes to build this rent to or build to rent community.

Tego Venturi:
Right? And and when we say build to rent in in this context, it’s obviously build to rent apartments has been around forever. But this this concept of building single family homes to rent is been huge actually for the last 5 years in in other parts of the country. Right. You know, Phoenix, Atlanta, Dallas, Houston, you know, some of those big cities. And now it’s it’s here in Albuquerque. And other than that, there’s the 344 units that are going to go in. Oh, did I steal your thunder?

Tracy Venturi:
You did. That’s okay.

Tego Venturi:
Go ahead.

Tracy Venturi:
This was my story.

Tego Venturi:
Oh, man.

Tracy Venturi:
So so we That’s

Tego Venturi:
my deal.

Tracy Venturi:
We talked a long time ago, Tego, on the radio show and podcast that this was happening around the country and that it was destined to come here. And, yes, there is the Bedrock at the Tracy that’s also built to rent. It’s a little bit different. They’re going to have a 199 townhomes and a 145 single family homes, and it’s a big parcel, 37 acres. The trails, for those of you who don’t know, it’s by Volcano Vista High School, the whole cluster where they’ve got, by Ventana Ranch, West Albuquerque out at the end of Paseo del Norte, kind of between Montano and Paseo del Norte out on the west side Yeah. At the Tracy. So, those ones are under construction as well.

Tego Venturi:
Yeah. That that’s all coming. I I just, again, getting back to this housing affordability thing. I I, again, I read all this stuff and listen to all this stuff. I I I heard an interesting analysis, and there’s a lot of people that are are vilifying these build to rent investors. Again, the whole Wall Street, you know, they’re evil. They’re taking away all the homes. Why don’t they build them for people that can buy? Well, it’s it’s really a a supply and demand thing.

Tego Venturi:
There’s demand for rental houses that are single family homes for rent. There’s a shortage of those. Part of that and this is this was the the take that I heard, and I thought it was interesting is you go back to 2,000 and, I guess, with 2,009 when they passed the Dodd Frank Act. So if you’re not familiar with Dodd Frank, Dodd Frank was the the thing that came out of congress that was after the big the great recession. Right? And, you know, all the the crappy financing that happened pre housing recession 2,004 5 where they just loosened up the standard beyond belief and people were buying homes Realty that had no business buying a home.

Tracy Venturi:
Right.

Tego Venturi:
However, this this person’s take was it swung the other way way too far. With with Dodd Frank, it tightened up the lending standard so tight that now there’s people that are maybe they’d like to buy, but they’re kind of on the margin, you know, debt to income wise. They’re kind of on the margin maybe credit wise. Well, there’s no products available for those people anymore, and they might be good homeowners. The problem is they can’t get loans. And so now this person kind of hypothesis is this is why we see this proliferation of build build to rent neighborhoods because there isn’t a product available for somebody that wants a single family home that, again, maybe they’re on the margin, you know, credit wise, they can’t buy.

Tracy Venturi:
Right.

Tego Venturi:
And I thought that was an interesting an interesting idea. I mean, you can agree or disagree with. That’s not the point. I just thought it was an interesting take on on what’s going on in the, housing economy. Alright, Tracy.

Tracy Venturi:
Alright, Tego. We boy, we’ve done some light

Tego Venturi:
heavy news today.

Tracy Venturi:
Yeah. Wow. I was gonna say we need to talk about, you know, some of the fun things going on in our community. Right? We’ve got some really awesome new home communities all over the city. I was thinking about the new development by Hoffman Towne Church in Northeast Albuquerque where they’re selling homes there. So you’re looking at new construction in the far Northeast. There are several options besides that Realty community. There’s Stillbrook and there’s some others.

Tracy Venturi:
So give us a call. We’d be happy to help you, with that new home purchase. You know, a lot of times people don’t think of using a realtor to represent them when there’s a new home builder involved. And, honestly, we we kinda know the ins and outs of it, and and it doesn’t cost you anymore to have representation. So give us a ring if you’re interested in that, and we’d be happy to help help you find the different opportunities of homes and home builders that might work for you.

Tego Venturi:
That’s great. Yeah. K, Tracy. I know it’s been some kinda heavy news. We’ve been talking a lot about affordability and the challenges. We we must talk about the National Association of Realtors, settlement agreement, that has to do with some lawsuits that have been floating around for about 4 years. And and you know, Tracy, I’ve been following them, like, you know, since the beginning.

Tracy Venturi:
So but we need to be clear. This is a proposal. This is proposed. Proposed settlement. Yep. And that in New Mexico, our purchase or our listing paperwork I wanna be really clear that in New Mexico, the agreement that we fill out when we go to list a home is very clear on how the commission is shared with a different realtor, which is different. A lot of states didn’t have that. They didn’t show how that whatever the broker is charging might be being shared with the other realtor.

Tego Venturi:
Let let’s break down the way it is now, and and then we can also kind of go into how this is gonna look in the future for buyers and sellers. Right now, a seller agrees to sell a property, hires a real estate agent to a realtor to assist them with that. They agree on what that realtor, the listing agent is going to get paid. In that agreement, the listing agent also says, I’m gonna share part of what I’m charging with the realtor that brings the buyer to this house. Right. Right? So it’s an incentive or just just like any other, you know, sales, you’re incentivizing somebody to bring you a buyer on on this, in this case, a property. But, again, it’s in any sales cut. That’s basically the way it is now.

Tego Venturi:
The the the issue that really created the the the lawsuit was if if you’re hearing this noise in the background, Tracy has her dog in our in our studio here, and he’s, he’s

Tracy Venturi:
he’s having spring spring fever?

Tego Venturi:
He’s he’s having an allergy attack, if you can hear that. Sorry. Okay. Me get off get back on track. So, yeah, we gotta keep this light because this is kinda crazy stuff.

Tracy Venturi:
But the dog’s keeping it light.

Tego Venturi:
Yeah. So, so okay. So that’s the way it is. The the the let me get back to where I was going with this is the the the issue that that created the lawsuits, the issues that created the settlement without getting in going down that list of how it all came about because it doesn’t matter at this point, is that the listing agent would say, okay. I’m guaranteeing to the whoever the buyer agent that brings a buyer, I’m guaranteeing that I’m going to pay them x amount. Right? And I wanna be clear. There’s no set amount. Oh, we gotta talk about this.

Tego Venturi:
Can you believe how much poor reporting there has been and how so many people have no idea how organized real estate works, but yet they’re writing national stories about it. Some of the stuff I’ve seen is just absurd. And, you know, stuff like the the the 6% requirement from the National Association of Realtors now going away. There’s never been a requirement.

Tracy Venturi:
Right.

Tego Venturi:
I mean, do do a lot of people charge similar fees? Sure. Because that’s that’s what works in the

Tracy Venturi:
business model. Do a lot of, attorneys charge similar fees? Do a lot of other professionals charge similar fees? Yes. But there is no set fee structure in real estate.

Tego Venturi:
No. And there’s a bunch of different business models that that don’t charge

Tracy Venturi:
as much. And, you know, I could Or charge more.

Tego Venturi:
Or charge more. You can list them all off. Anyway, sorry. Just wanna make that clear. And and and then one one thing I’ve seen people say is, like, you know, we all say, well, commission fees are negotiable, and then people will say, well, my my my broker won’t negotiate it. It’s like, yes.

Tracy Venturi:
That’s that’s the negotiation.

Tego Venturi:
That that’s that’s what they charge. Could you go to another broker and do that? It’s just like buying a car at one place versus the other. It’s like, okay. That’s what they charge. Okay. If you don’t like that, go somewhere else. Right? And that’s that’s the negotiable part of it. Anyway.

Tego Venturi:
Alright. So back to what I was saying. Okay. Where where this is going with the big change is going to be instead of that guaranteed compensation to the buyer broker from the listing broker that goes away. Now the buyer will basically have a direct agreement with the buyer broker, and they will agree on what the buyer broker is going to get paid. K? So it it I’ve used this term and people said it’s not correct. It’s kind of decoupled The the seller paying or the seller basically portion of the proceeds helping pay for the buyer broker, where now the buyer broker and the buyer get to agree on what they get paid. There’s so much more to it than that, but that’s the simple the simple answer.

Tego Venturi:
And can sellers still incentivize a buyer broker bringing a buyer to their house? Absolutely. Can they still pay for the buyer broker? Again, that’s one of the other things that’s out there. Can the seller still pay for buyer broker’s fee or, you know, professional fee? Absolutely. It just can’t be guaranteed through the MLS system, and it it it must be negotiable, basically. And it but it can’t be promoted in the MLS is is the real big change. Okay. That was in the weeds. Yeah.

Tego Venturi:
But that’s the short of it. Yeah. And in in in right now, back to what you originally said, it’s all proposed. Nothing for sure yet. There’s gonna be a lot of changes. There’s gonna be a lot of new paperwork in how we do things. There’s gonna be extra steps, especially on the buyer side. Buyers are gonna have to get into agreement with a broker before they even go and see a home, which is very different than what we do now.

Tego Venturi:
But we’re still a few months away on this at least, maybe, you know, till till July is what

Tracy Venturi:
we do. Get to keep talking about it for several more months.

Tego Venturi:
Of course.

Tracy Venturi:
Can we just talk about the llama I saw when I was out showing a house instead? You know, there are some really cool houses on the market right now, Tego, just to change it up a little bit.

Tego Venturi:
No. That’s great. I know we’ve been Realty heavy this week, but it’s just because that’s what that’s what the real estate news is served up.

Tracy Venturi:
I saw 1 mid mod house that was so cool, Tego. It made me wanna, like, have a mid mod house even though I love our house.

Tego Venturi:
Mid century modern.

Tracy Venturi:
Century modern, you know.

Tego Venturi:
What part of town?

Tracy Venturi:
It was in the UNM kind of Altura area.

Tego Venturi:
Yeah. Of course.

Tracy Venturi:
And it had, you know, the the the little triangle type windows with the pitched roof line sort of where you could just tell from the outside that it was a mid mod. Anyway, it was it was pretty it’s pretty cool, but that’s part of the fun stuff we get to do. You know, I was, showing a house, was last weekend. Sunday? Sun? I don’t remember. Anyway, it was in outside Laguna, in Canyon Seto, 5 acres. And it was a beautiful day, and there was no wind. I’ve can’t remember. I think it was last Friday afternoon, actually.

Tracy Venturi:
It was like a blue ribbon day. And I was out there, and I did not have time to stop for a Laguna burger, which really bummed me out. That’s right.

Tego Venturi:
That’s right. Yeah. You have to

Tracy Venturi:
You know? It’s like I’m going right by, and I’m all by myself thinking I can do this. And then I ran out of time because we spent a lot of time looking at that property. But, anyway, that’s the best part about what we do is helping people with their dreams, their home purchases, their home sales, and making great representation happen. So we appreciate you. There are a lot of open houses this weekend on Saturday. Sunday, not so much because it’s Easter. But if you wanna reach out to us, 448-8888 is the best way.

Tego Venturi:
We didn’t even talk about Albuquerque housing market status this week, and and that’s fine. I’ll do a deep dive here next week because we’ll have the the March data and and get into that. I will just tell you that, you know, year over year price appreciation is still, you know, chugging along. We’re not, you know the home price are still going up. We still have very low number of homes on the market, and and that really hasn’t changed. So

Tracy Venturi:
We have quite a few coming on the market in our inventory personally. So if you’re looking for something specific, give us a ring and maybe we know about it.

Tego Venturi:
Yeah. The the we do see okay. Now we gotta do the low markets. Normally, it’s very normal this time of year, starting now, you know, into April, a surge in the number of people listing their homes. It’s just this is that time of year. So if you’re if you’re a buyer, it’s time to really start watching and thinking about it. If you’re a seller, you gotta get ready now because, you want you wanna be hitting the market right now too as well. So that’s it.

Tego Venturi:
Tracy, again, we’re the Venturi Group Realty Broker here in Albuquerque, New Mexico. You can reach us at 505-448-8888. Take care.

Insider Insights: Real Estate News, Housing Search Trends, and ADU Plans in Albuquerque

Insider Insights: Real Estate News, Housing Search Trends, and ADU Plans in Albuquerque

Casitas and AUD’s Accessory Dwelling Units in Albuquerque

The City of Albuquerque has made some significant movements in allowing Casitas (AUDs) on residential properties zoned R-1, and they are offering free casita construction plans on its website. The plans are so detailed and complete that they help streamline and make the cost of building Accessory Dwelling Units on one’s property very affordable, with significant savings in contractor fees.

There are many different reasons why people want to have a casita. Some people use them to produce rental income. They can also be used for home offices, home theaters, a painting space, or a hobby room. People should also have some extra living space for family members to stay in when they visit.

To be allowed to start construction, it is crucial to get a site plan, speak to a planning and zoning department, and make sure the construction plan is within regulation.

The increase in value that casitas allow is challenging to determine. The answer to this question will vary depending on construction costs and level of finish, to name a few.

What Home Buyers Searched for in 2023

The amenities inside the house you buy is significant and Zillow tells us what the top amenities people want are. Zillow, the number one Home Shopping website, looked at over 250 billion user searches in 2023.

The top 10 searches were primarily practical needs that an average family would ask for in a new home, such as a two-car garage and a backyard. However, some personalities were shown, with searchers seeking a house with a fireplace and a walk-in closet.

How vital these items are is crucial for people selling their home and for real estate professionals since it is essential to understand what is important to different home buyers.

From practical (the ever-wanted garage) to picturesque (a backyard retreat anyone?), these are the amenities that round out both the modern and traditional. Backyard: For most Americans, part of the β€œdream” is an eco-friendly, grass-filled backyard. Fireplace: An architectural luxury, the fireplace creates your dream home scenario on a cold, particularly fabulous winter’s day. Walk-in closet: The practical yet vain response to the master bedroom’s walk-in closet is always positive. Patio: There’s nothing better than extending your living room outside, friends. Open floor plan: A modus operandi of the millennial, the open floor plan is the dreamiest combination of kitchen, dining, and family rooms. Forever together. Pool: The ability to have your very own swimming pool in a warm area is a picturesque scenario. Family room: Who doesn’t love extra space for that big family? Basement: Just more space for any occasion β€” workout room, media room, etc. Granite counters: This durable feature signifies a high-end kitchen or bathroom.

Mortgage Rates and Buy vs Rent

Low interest rates, especially sub-seven percentages, factor heavily in the buying consideration, and we caution renters, in particular, to do the math regarding the cost of owning.

Air Ducts in Your Home
One of the topics we covered in our last episode was the importance of performing regular cleanings and inspections of heating ducts in residential properties. This is especially necessary in some older homes, which often have in-floor heating and cooling ducts. When purchasing, we cannot overstate how critical it is to perform a complete inspection of these ducts with a camera-scoping procedure to detect potential problems such as collapses or corrosion.

 

Our comprehensive coverage of the Albuquerque real estate market is designed to empower individuals with the knowledge they need to navigate this crucial aspect of their lives confidently. From housing trends to financing options, market dynamics, and buyer/seller tips, we strive to provide our listeners and readers with valuable insights to help them make informed decisions and achieve their real estate goals.

Using Real-Time Maket Data to Understand the Albuquerque Real Estate Market

Using Real-Time Maket Data to Understand the Albuquerque Real Estate Market

A Comprehensive Guide to the Albuquerque MSA Housing Market Tracker

Introduction to the Albuquerque Housing Market Tracker

We recently launched the Albuquerque Real Estate Market Tracker, your indispensable tool for navigating the dynamic real estate landscape of the Albuquerque Metropolitan Statistical Area (MSA), which includes Bernalillo, Sandoval, Valencia, and Torrance counties. This guide offers weekly insights into the market, focusing on single-family detached homes and providing an in-depth analysis of the latest trends, inventory changes, and price movements. Whether you’re a buyer, seller, or a real estate professional, our tracker is designed to give you a competitive edge in the vibrant Albuquerque housing market.

Coverage and Scope: What to Expect

The Albuquerque Real Estate Market Tracker offers a comprehensive housing market overview, covering key metrics such as the Market Action Index (MAI), inventory levels, new listings, and more. This seven-day snapshot is your gateway to understanding the nuances of the local real estate market.

The Importance of Real-Time Market Insights

In today’s fast-paced real estate environment, staying informed with the most current data is crucial. Our tracker provides up-to-date information, enabling you to make timely and informed decisions.

Key Metrics of the Albuquerque Market Tracker

Market Action Index (MAI): Understanding Market Favorability

The MAI is vital in determining whether the market favors buyers or sellers. It analyzes the current rate of property sales against existing inventory, offering a clear picture of market conditions.

 

Inventory Analysis: The Pulse of Market Supply and Demand

Monitoring inventory levels is critical to understanding market trends. It provides insights into whether we’re in a buyer’s or seller’s market and helps predict future market dynamics.

New Listings Insights: Tracking Market Entries

The number of new listings offers a window into seller behavior and market shifts. This data is crucial for anticipating changes in the market landscape.

Listings Absorbed: A Measure of Market Activity

This metric (listings absorbed) reveals how quickly properties are being purchased, indicating the current demand and the market’s overall health.

 

Median List Price: Decoding Market Value

The median list price is an essential indicator of seller confidence and buyer interest. It helps predict future price trends and provides insights into the market’s current state.

 

List Price per Square Foot: A Detailed Market Comparison Tool

By comparing the median asking price per square foot, we gain a more nuanced understanding of the market, factoring in variations in home sizes for a more accurate analysis.

 

Median Price of New Listings: Predicting Market Trends

This metric sheds light on the pricing strategies of new market entrantsΒ and is a crucial indicator of emerging market trends.

 

Percent of Price Decreases: Indicators of Market Health

Understanding the proportion of homes with reduced prices helps gauge market demand and potential shifts in pricing trends.

 

Average Days on Market: Timing the Market’s Pulse

Tracking the average time homes spend on the market provides insights into how fast properties sell, indicating the market’s pace and activity level.

 

Percent Relisted: Understanding Market Resets

This figure highlights the proportion of homes returning to the market, offering a perspective on the stability and fluidity of the market.

 

Why the Albuquerque MSA Housing Market Tracker is Essential

For Buyers: Making Informed Decisions

The tracker offers valuable insights into market trends for those looking to purchase a home, helping you make well-informed decisions.

For Sellers: Maximizing Market Advantage

Sellers can use the tracker to understand current market conditions and strategically price their homes to maximize their advantage.

For Real Estate Professionals: A Tool for Strategic Planning

Real estate agents and professionals can leverage the tracker for strategic planning, staying ahead of market trends, and advising clients effectively.

Conclusion: Navigating the Albuquerque Housing Market with Confidence

Summing Up: The Value of Real-Time Insights

The Albuquerque MSA Housing Market Tracker is an indispensable tool for anyone involved in the Albuquerque real estate market. Its comprehensive and timely data empowers users to make informed decisions, stay ahead of market trends, and confidently navigate the market.

FAQs: Your Questions Answered

Q1: How often is the Albuquerque Market Tracker updated?
A1: The tracker is updated weekly on Sunday, providing the most current insights into the Albuquerque housing market.

Q2: Can the tracker help predict future market trends?
A2: Yes, by analyzing current data and trends, the tracker can offer valuable predictions about future market directions.

Q3: Is the tracker useful for first-time home buyers?
A3: Absolutely, it’s a valuable resource for anyone entering the market, especially first-time buyers seeking to understand market dynamics.

Q4: Does the tracker cover rental properties?
A4: The focus of our tracker is on single-family detached homes, offering specific insights into this segment of the market.

Q5: How can sellers use the tracker to their advantage?
A5: Sellers can use the tracker to gauge market conditions, price their homes competitively, and understand buyer trends.

 

Albuquerque Real Estate Market Update: Sep 2023 – Buyer’s Market on the Horizon?

Albuquerque Real Estate Market Update: Sep 2023 – Buyer’s Market on the Horizon?

A Snapshot of the Albuquerque Housing Market: September 2023

Introduction:
In this post, we will delve into the recent data and trends of the Albuquerque housing market, as highlighted in Tego Venturi’s video. With a focus on key indicators such as market action index, supply and demand, list prices, and more, we will gain insights into the current state of the residential real estate market in Albuquerque, New Mexico.

1. Market Action Index: Buyer’s Market or Seller’s Market?

The market action index is a crucial metric used to determine whether the housing market favors buyers or sellers. As of September 2023, the market in Albuquerque is leaning towards a buyer’s market. Although the market is still technically classified as a seller’s market, we see a move toward a buyer’s market in the past few weeks, indicating a shift toward a more balanced market. However, any number over 30 signifies a seller’s market.

2. Inventory and New Listings:

The number of homes available for purchase in Albuquerque is relatively low, with fewer homes listed throughout the year. Hovering above the 2020 levels, the inventory has surpassed the previous year but remains significantly lower than the 2018 and 2019 levels. This scarcity of homes on the market creates competition among buyers. The lower number of homes being listed contributes to the limited inventory, potentially stifling market growth.

3. Listing Absorbed and Seasonal Factors:

The listing absorbed chart displays the number of homes that have been taken off the market after being listed. Recent weeks have witnessed a decline in this number, which can be attributed to seasonal trends and mortgage rate influences. Towards the end of the year, it is typical for fewer homes to be listed and absorbed. This decrease may also arise from the impact of increased mortgage rates, affecting affordability for potential buyers.

4. Median List Price and Price per Square Foot:

The median list price in Albuquerque has experienced a slight decrease, settling at $415,000 in September 2023. Despite this modest drop from early summer, it is important to note that year-over-year price gains persist. Comparing median prices from the previous three years, the market continues to show upward momentum. Additionally, the price per square foot has remained relatively steady, hovering around $211 in the current year, indicating that there is no significant pressure on prices at this time.

5. Days on Market and Price Reductions:

The average number of days on the market for listed homes remains relatively steady, indicating a market that is more active than the years of 2018 and 2019 but slower compared to the frenzied conditions of 2021 and 2022.

Approximately 40% of homes have undergone price reductions, which aligns with expectations during this time of year. However, this statistic suggests that sellers do not face significant pressure to reduce prices.

6. Number of Homes Relisted:

The number of homes that have been taken off the market and subsequently relisted has decreased to a low level. Only 15% of the homes currently on the market have had a previous contract that fell through. This could indicate that, once listed, properties are more likely to remain on the market until sold, potentially reducing buyer options and contributing to the low inventory levels.

Conclusion:

The Albuquerque housing market, as indicated by recent data, is going through a subtle transition towards a more “balanced” market. While the inventory of homes remains limited, making it a competitive market, both median list prices and price per square foot have remained relatively stable. With fewer homes being listed and absorbed, potential buyers will face limited options. As we continue through September and into the rest of the year, it will be interesting to observe how these trends evolve and whether the market finds a semblance of balance or continues to favor sellers.

If you have any questions concerning the Albuquerque real estate market, contact The Venturi Group of Real Broker at 505-448-8888.

Albuquerque Real Estate Talk with Tego and Tracy Venturi | #453 July 8, 2023

Albuquerque Real Estate Talk with Tego and Tracy Venturi | #453 July 8, 2023

A Comprehensive Review of Albuquerque’s Real Estate Market and the Renovate or Relocate Dilemma

Introduction:

As we reach the halfway mark of the year, it’s crucial to assess the current state of the residential real estate market in Albuquerque, New Mexico. In this blog post, we’ll delve into some interesting statistics and trends that have unfolded in the past six months. From record-breaking home prices to a limited inventory, let’s explore the key takeaways from the first half of 2023. Additionally, we will address the topic of renovating or relocating, which has gained traction in the real estate world, helping homeowners make informed decisions about their properties.

Increasing Home Prices and Limited Inventory:

One of the most notable trends in Albuquerque’s real estate market is the continuous rise in home prices. In June, the median price for single-family detached homes reached an all-time high of $363,000, while the average price soared to $414,000. Moreover, the price per square foot surged to $203, emphasizing the sustained growth in property values. Despite higher interest rates compared to last year, home prices in Albuquerque have defied expectations by continuing to climb. It’s worth noting that this upward trajectory is not observed in all markets across the country, making Albuquerque an attractive destination for buyers and investors. However, while demand remains strong, the number of homes available for sale in Albuquerque has declined significantly. Compared to last year, there has been a 25% decrease in the volume of homes sold. This scarcity of inventory has led to increased competition among buyers, making it a challenging environment for those in search of their dream home.

Monthly: Albuquerque Housing Market Report

Weekly: Albuquerque Housing Market Update

Renovate or Relocate:

Another topic that has gained traction in the real estate world is the dilemma of whether to renovate an existing home or seek a new one. With the surge in remodeling during the pandemic, homeowners have been evaluating the suitability of their current living spaces. Some are considering making changes to accommodate their evolving needs, while others contemplate the option of finding a new home altogether. This decision depends on various factors, including personal preferences, cost considerations, and the availability of desirable properties. Consulting with a knowledgeable real estate professional can help homeowners make an informed choice that aligns with their goals and circumstances.

Conclusion:

As we reflect on the first half of 2023, the Albuquerque real estate market has demonstrated resilience and growth. Record-breaking home prices indicate the strength of this market, while limited inventory poses challenges for buyers. Whether you’re looking to buy, sell, or make decisions about your property, it’s essential to partner with a trusted real estate team who can provide up-to-date information and expert guidance. The Venturi Group of Real Broker in Albuquerque is here to assist you with all your real estate needs. Contact us today to navigate this dynamic market successfully. Additionally, for homeowners facing the renovate or relocate dilemma, careful consideration of personal circumstances and consultation with professionals will help make an informed decision.

Albuquerque Housing Market: Rapid Price Appreciation Favors Smaller Homes

Albuquerque Housing Market: Rapid Price Appreciation Favors Smaller Homes

Albuquerque Housing Market: Rapid Price Appreciation Favors Smaller Homes

June 2023 Home Prices

The housing market in Albuquerque is displaying remarkable year-over-year home price growth despite higher mortgage interest rates and affordability challenges. Based on analysis of Single-Family, Detached, Resale Homes that sold in June 2023, all indicators for home prices in the Albuquerque Metropolitan Statistical Area (MSA) have seen an increase in comparison to the previous year, resulting in new record-high sale prices. The extent to which home prices increase varies depending on the size and price range of the properties. Generally, smaller and lower-priced homes experienced the most significant price appreciation.

In June 2023, the Median sale price of single-family detached homes in the Albuquerque MSA rose to a new all-time high of $365,000, surpassing May’s $350,000 and up 10.9% from June 2022’s median of $329,000. Average sale price was also at an all time high for June at $416,213.00


When examining the price change from a different perspective, the average price per square foot also increased for these properties. It increased to $202 per sqft, a 4.7% rise in comparison to June 2022.

Interestingly, the rate of price appreciation varied noticeably depending on the pricing and sizing of homes. Homes sold for under $350,000 experienced a 5.0% gain in average price per square foot from the previous year. In contrast, homes sold for over $350,000 saw a slower, albeit still healthy, 3.4% increase in average per square foot.

The story is similar when the homes were segmented based on their size. Homes under 2000 square feet witnessed a hefty 7.2% increase in average price per square foot, whereas homes over 2000 square feet saw a more moderate 3.7% increase.

This market behavior reinforces that the current housing market dynamics are favoring smaller, more affordable homes, as evidenced by the comparatively higher rate of price appreciation. This could be due to a multitude of factors, such as changing buyer demographics, budget constraints in the wake of higher mortgage rates, and, most notably, a limited supply of moderately priced properties creating increased competition.

It’s worth noting that June is historically the seasonal peak in home prices in Albuquerque. This seasonal pattern could provide a valuable frame of reference for potential buyers and sellers when planning their real estate strategies.

The Albuquerque housing market’s current landscape presents a fascinating snapshot of the interplay between supply, demand, and socio-economic factors. With smaller, more affordable homes experiencing a faster pace of price appreciation, potential buyers, particularly first-time homeowners or those seeking investment opportunities, might want to adjust their strategies accordingly.

As we continue to navigate through these robust market conditions, it’s essential to stay informed, analyze market trends, and make data-driven decisions. The Albuquerque housing market is more vibrant than ever, and it’s an exciting time to participate in it.