Interest rates: Its connection with Home buyer demand in Albuquerque
(Transcript Snippet): Tego: Can’t talk about home buyer demand without talking about interest rates in 2020, you know, Eddie, as you know, interest rate dropped to sub 3% for 30 year mortgages at the beginning of the pandemic that was driven by a lot of reasons. We won’t go into, maybe Chris can go into that, but you know, the, the whole, the whole thing is interest rates drop, which really drove demand. People went well, shoot, I’m going to take advantage of this, you know, and of course, refi, there was a refi boom at the same time because of that. So affordability, although prices have been climbing now since, since about 2012, affordability is still very good. When you account for the interest rate. Eddie: I think the affordability, as we’ve mentioned, we’ve had a discussion is one of the things that is at an all time high, despite the rocket, if you will escalations in year over year prices, we saw 18%. If I’m not mistaken in Rio, Rancho Albuquerque, I think it seems somewhere around 11, 12% year over year, even during the pandemic, you look at these numbers and that’s driven by those interest rates, but they’ve created a level of affordability that we didn’t have in the aughts. And even in the nineties
Tego: Here, get this. So just a side note, I posted this on my Facebook. You know, I post a lot of housing stats on my Facebook feed, just because that’s what I like to do. But I, I took a quick look at may so far and last year may again, of course, last year may was pretty weird time, as we all know that we all live through it, but may of 2020 was kind of crazy, but the average price back then, this is average. Now this is not appreciation, but I just, just for, for perspective here average price was 252,000. This year, same time is 316025% higher. The average price of 25%. It’s a very small site slice. Don’t say, please, don’t call me and say, Hey, you said home prices went up 25%. That’s not what I said. What I said is average price for may went up 25%.
Tego: And, and what happens? I do get feedback sometimes from the radio show, people are like, well, you said this, and you said that we’ll look, these are general numbers, right? Every home is different. That’s one thing that’s very unique in real estate is every product is unique into itself. It’s not like buying a car where you can get the exact same thing over and over and over and over and over again, right? Every home is different. These, all this data that I put out there, it just, you know, it, it’s going to be specific to your home, your neighborhood, your side of the street, even right. Obviously condition, all that stuff matters. So just kind of keep that in mind. I’m trying to give general ideas of what’s going on in the market, which I love to do. Eddie: If anybody looks at Zillow or any of those other places, people will see the huge price discrepancy and two houses across the street from one another. By the simple nature of the fact that the two houses one has age, the other one doesn’t
Tego: Yep. Okay. Eddie, it could, you know, views, right? Think about Albuquerque on the west side, certain sides of the street on the west side, you’ve got the, the east mountain views from your back patio, same house, same house across the street has got the Western sun on their back patio in the afternoon. And, and it’s just, you know, there is a difference between those two properties. They could be identical in every other way. So again, it’s it’s you got, you just have to, you have to look at, or not a house by house basis.