Albuquerque Real Estate Talk: Recent Episodes
Venturi Realty Group
The weekly Albuquerque Real Estate radio show that covers residential Real Estate in Albuquerque, NM. https://welcomehomeabq.com
Albuquerque Real Estate Talk: Market Trends, Selling vs Renting, and Custom Home BuildingIn episode 512 of Albuquerque Real Estate Talk, Tego and Tracy Venturi of the Venturi Realty Group discuss the latest market trends and real estate news in mid-November 2024. Key topics include market data showing a significant drop in home sales from 2021 to 2024 and discussions on whether homeowners should sell or rent their properties, along with the pros and cons of each option. They also delve into the challenges and opportunities of custom home building and land purchasing, offering insights into utilities, logistics, and working with builders. Additionally, they highlight various homes and land parcels available for sale and touch on the targeted areas program by the Mortgage Finance Authority, which provides homebuying incentives in specific neighborhoods
Albuquerque Real Estate Update Episode 511: Market Insights and Community Highlights In episode 511 of Albuquerque Real Estate Talk, hosts Teco and Tracy Venturi discuss the first winter blast in Albuquerque and delve into the 2024 profile of buyers and sellers. They highlight Corrales, a notable community in the Albuquerque area, detailing its attractions and current market statistics. The Venturis provide a comprehensive analysis of October 2024 real estate market data, reflecting on trends such as the increased median age of homebuyers, sale price fluctuations, and the rise in new construction sales. They also explore the evolving preferences and behaviors of homebuyers and sellers based on the latest National Association of Realtors report. Additionally, the episode addresses local amenities, upcoming events, and the impact of the post-pandemic shift on real estate. Listeners can view graphical data on the Venturi Team's various online platforms.
Unlocking Albuquerque Real Estate: Trends, Strategies, and Myths Revealed In this comprehensive episode, Tego and Tracy Venturi of the Venturi Group offer an in-depth analysis of Albuquerque's current real estate market. They explore the 'slow and boring' market conditions, address various home pricing strategies, and provide data-driven insights into market trends. Key topics include down payment assistance programs, debunking myths about needing a 20% down payment, and the impact of student loan debt on home buying. Emphasis is placed on the importance of setting the right initial listing price and understanding the time-on-market statistics. The episode also highlights recent trends, such as a slight decrease in median sales prices from August to September, ongoing price stability, and strong homeownership rates in Albuquerque. Comparisons with other cities and strategic advice on pricing during peak demand periods like the COVID-19 pandemic are discussed to underscore the significance of a well-thought-out pricing strategy for achieving timely and profitable sales.
Join Tego and Tracy Venturi in episode 509 of Albuquerque Real Estate Talk as they dive into key aspects of Albuquerque's housing market. The latest trends in home values, detailed analysis of Zillow's home value index, and the importance of full home inspections, and the New Mexico licensing standards for inspections. Learn about a new affordable housing project supporting residents with disabilities and mental health needs, and explore the current state of single-family home building and permit trends in Albuquerque. The discussion also covers the specifics of 'as is' home sales, buyer rights, and common scenarios involving repair requests. Whether you're considering buying or selling, this episode offers valuable insights and tips to navigate the Albuquerque real estate market effectively.
Exploring Albuquerque Real Estate: Market Insights and Innovative Housing Solutions | October 2024Join Tego and Tracy Venturi from the Venturi Realty Group for an insightful episode of Albuquerque Real Estate Talk (#508). Recorded during the second week of October 2024, this episode covers a wide range of topics including the latest market trends, inventory shortages, and pent-up buyer demand despite rising interest rates. Learn about ADUs, renovation loans, and explore innovative housing solutions like Boxable fold-up houses and modular homes. The episode features a stunning property in Rio Rancho, insights from a recent realtor event, and Tracy's induction into the Real Luxury Division. Discover expert opinions on foreclosure trends, home equity, and investor opportunities in Albuquerque's thriving real estate market.
Albuquerque Real Estate Talk #505: Best Time to Buy a Home & Mortgage Rate Updates
Welcome to episode 505 of Albuquerque Real Estate Talk with Tracy and Tego Venturi of Real Broker. In this mid-September 2024 episode, we discuss mortgage rates nearing sub-6%, top questions from home buyers, and the best time of year to buy a home, according to Realtor.com. We also delve into the debate between buyer's and seller's markets, share the latest home value data for Albuquerque, and highlight community events like the hot air balloon poster collection and a local book exchange. Tune in for expert insights and local market updates!
00:00 Introduction and Episode Overview
00:13 Current Mortgage Rates and Market Trends
02:00 Hot Air Balloon Fiesta Poster Collection
03:15 Book Exchange Event Details
04:46 In-Depth Discussion on Mortgage Rates
08:06 Common Home Buyer Questions Answered
18:42 Albuquerque Home Values and Market Statistics
24:34 Best Time of Year to Buy a Home
27:35 Conclusion and Contact Information
Visit: https://welcomehomeabq.com
Albuquerque Real Estate Market Insights: July Home Sales, Master Plan Communities, and Industry ChangesIn Episode 499 of Albuquerque Real Estate Talk, Tego and Tracy Venturi discuss the impact of economic data on the housing market, reviewing July's home sales which hit an all-time high. The episode also explores the intricacies of mortgage rates, with detailed information on current rates influencing decision-making for buyers. The hosts delve into master plan communities in the Albuquerque area, highlighting developments like High Desert, Loma Colorado, and Mesa del Sol. They also cover upcoming changes in real estate practices effective August 1, 2024, impacting buyer broker compensations and the negotiation process. Lastly, the episode features a segment on market data, new listings, and the importance of local lender collaboration for home buyers. For more tips, insights, and property highlights, visit their website or contact the Venturi Realty Group.
Albuquerque Real Estate Insights & Market Updates | Episode 498In Episode 498 of Albuquerque Real Estate Talk, Tego and Tracy Venturi catch up after a brief hiatus, discussing their recent trip to New York and Boston, a big change in the real estate commission structure coming to Albuquerque, and a detailed look into the advantages of renting versus buying. They also introduce a new segment on the New Mexico Mortgage Finance Authority's Targeted Areas Program, which offers special financing benefits in certain neighborhoods. The episode is packed with a market update, a tip for homeowners on documenting belongings for insurance purposes, and a rundown of some featured homes available in the Albuquerque area. Tego and Tracy emphasize the multifaceted benefits of homeownership beyond financial aspects.
Albuquerque Real Estate Update: Tanoan Neighborhood, ADUs, and Commission Changes In episode 496 of Albuquerque Real Estate Talk, Tego and Tracy Venturi from Venturi Realty Group discuss several key real estate topics for June 2024. They delve into the differences in home prices between Tanoan East and Tanoan West neighborhoods, insights on building casitas or accessory dwelling units (ADUs) in Albuquerque, and the significant changes due to a recent realtor commission lawsuit settlement affecting buyers and sellers from August 1st. They also mention the latest trends in Albuquerque home prices and potential future market shifts.
00:00 Introduction and Episode Overview
01:03 Question of the Week: Tanoan East vs. Tanoan West
07:01 Understanding the Realtor Commission Lawsuit Settlement
11:14 New Rules for Buyers and Sellers
24:18 Building a Casita or ADU in Albuquerque
26:55 Predicting Future Home Prices
27:55 Conclusion and Final Thoughts
Albuquerque Real Estate Trends: New Construction, Housing Affordability, and Los Ranchos Controversies In this episode of 'Albuquerque Real Estate Talk,' hosts Tego and Tracy discuss numerous real estate topics, including the current state of new home construction in Albuquerque and the impact of rising material costs. Tracy provides insights into down payment assistance programs, often unknown to many potential homebuyers. They also explore the ongoing controversy in Los Ranchos over high-density housing projects and the project's implications for affordability and community identity. The hosts delve into the broader issue of housing affordability, comparing Albuquerque to other markets and discussing proposed local policies aimed at alleviating housing shortages. Additionally, they share information about upcoming open houses and new listings in the Albuquerque area. The episode concludes with a look at the real estate market's complex dynamics and the continued challenge of balancing supply and demand in the housing sector. 00:00 Introduction and Episode Overview 01:11 Controversy in Los Ranchos 05:46 Housing Affordability Issues 10:26 New Construction Insights 19:53 Open Houses and New Listings 22:32 Down Payment Assistance Programs 24:20 Affordability Index and Market Comparison 26:58 Conclusion and Contact Information
Welcome to Albuquerque Real Estate Talk, your go-to podcast for the latest insights, trends, and updates in the Albuquerque real estate market. Hosted by Tego and Tracy Venturi of the Venturi Realty Group, each episode provides valuable information for home buyers, sellers, and real estate enthusiasts. Stay informed and make smart real estate decisions with expert advice, market analysis, and practical tips from seasoned professionals.
Albuquerque Real Estate Insights: May Home Sales and Insider Tips In Episode 493 of Albuquerque Real Estate Talk, Tego and Tracy Venturi from the Venturi Group of Real Broker review the May 2024 home sales data, addressing the rise in home prices despite slower sales activity, reveal Albuquerque's ranking on a Zillow list for new college graduates, and provide updates on local re-zoning discussions. The hosts also delve into the intricacies of home inspections, common issues found, and give an overview of open houses and newly listed properties in the Albuquerque area.
00:00 Introduction and Episode Overview
02:19 Albuquerque May Home Sales Data
07:47 Open Houses and New Listings
13:16 Zillow's Best Markets for New Graduates
17:47 Freddie Mac Insights and Home Equity
23:22 Understanding Home Inspections
29:04 Conclusion and Contact Information
Albuquerque Real Estate Talk, Episode 492: Summer Real Estate Highlights and Market Updates
In episode 492 of Albuquerque Real Estate Talk, Tego and Tracy Venturi dive into several important topics for homeowners and prospective buyers as summer kicks off. They discuss top reasons to own a home, focusing not only on financial benefits but also the stability and personal satisfaction of homeownership. They provide an update on recent changes to Veterans Administration (VA) loan rules, including temporary measures that allow VA buyers to compensate their agents directly. The panel analyzes fresh data from the FHFA on home price appreciation in Albuquerque, and Tego offers predictions for Q2 2024. Additionally, they highlight the upcoming city council meeting addressing zoning law changes that could impact single-family homes and duplexes in Albuquerque. Home listings and open houses in various Albuquerque neighborhoods are also featured, offering viewers diverse real estate options. The episode closes with a historical perspective on 40 years of home price appreciation across the United States, comparing regional trends and their implications. Visit WelcomeHomeABQ.com for more info on Albuquerque Real Estate.
00:00 Welcome to Albuquerque Real Estate Talk
00:22 Top Reasons to Own a Home
00:38 Updates on VA Loans
05:01 Current Market Trends
08:14 Homes of the Week and Open Houses
12:11 City Council Zoning Changes
17:53 The Importance of Homeownership
23:55 40 Years of Home Price Data
27:51 Conclusion and Contact Information
Albuquerque Real Estate Talk: Episode 491 - Appraisals, Affordability, and Market Trends
In this episode of Albuquerque Real Estate Talk, Tego and Tracy Venturi discuss various aspects of the real estate market in Albuquerque as the summer of 2024 begins. Topics include the home appraisal process, issues arising with low appraisals, and the implications for buyers and sellers. They delve into newly released data on home affordability by the National Association of Home Builders, highlighting how Albuquerque compares to other U.S. cities. Cross-market demand is analyzed, showing where people looking at Albuquerque are currently based and where Albuquerque residents are looking to move. Additionally, the episode features the home of the week—an impressive multi-generational property in Corrales, NM. Current market trends are discussed, including a notable rise in price reductions. The show wraps up with insights into specific features that affect home values and provides useful tips for both buyers and sellers.
00:00 Welcome to Albuquerque Real Estate Talk
00:24 Diving Into the Home Appraisal Process
15:21 Exploring Home Affordability and Market Trends
18:55 Cross Market Demand Insights
21:46 Analyzing Current Real Estate Data Points
28:26 Wrapping Up with Weekend Wishes
Welcome to Albuquerque Real Estate Talk, Episode 490! Join Tego and Tracy Venturi as they discuss the latest trends in the Albuquerque real estate market for mid-May 2024. This episode covers reasons to consider new construction homes, affordability comparisons with other markets, and a segment on misleading headlines that catch your eye. They also offer insights into the changing landscape of realtor commissions and preview several exciting properties currently on the market. Tune in for valuable tips and data-driven insights to help navigate the current real estate market.
Venturi Realty Group - Real Broker LLC (505) 448-8888 info@welcomehomeabq.com https://welcomehomeabq.com
RealEstate #NewMexicoRealEstate #AlbuquerqueRealEstate #RealEstate #VenturiRealtyGroup #Albuquerquehomes
Welcome to Albuquerque Real Estate Talk episode 489 on May 11, 2024. In this episode, Tego and Tracy Venturi delve into various key topics in the real estate market. They discuss the optimal timing for selling homes, revealing insights on the best months, such as June, July, and August, for securing higher prices. Additionally, they shed light on the Zillow Showcase Listing Plus program, highlighting its premium marketing features and increased exposure to potential buyers. The discussion also touches on the current landscape of home equity and net worth for homeowners, providing valuable information for property owners. Moving on, Tego and Tracy explore the dynamic nature of mortgage rates, presenting contrasting viewpoints from housing economists and homeowners on the future trajectory of rates. They emphasize the importance of considering personal circumstances when deciding on real estate transactions, irrespective of market fluctuations. The duo then delves into the process of home inspections, outlining the significance of comprehensive inspections and the various types of tests that can be conducted to ensure a property's condition. The conversation extends to environmental tests, structural inspections, and other essential evaluations that homebuyers and sellers should be aware of. Through engaging anecdotes and informative insights, Tego and Tracy guide listeners through the intricacies of the real estate market, offering valuable advice and expertise. To stay updated on the latest trends and insights in the Albuquerque real estate scene, tune in to the Albuquerque Real Estate Talk podcast by the Venturi Realty Group, available on YouTube and other platforms. Reach out to the team at 505 448 8888 for personalized real estate services and expert guidance. Happy Mother's Day and have a great weekend!
Episode 488 of 'Albuquerque Real Estate Talk' delves into the latest housing market data for the Albuquerque area for April, covering topics like housing affordability and the economic impact of short-term rentals in New Mexico. The hosts discuss the number of homes sold, price appreciation, and the increase in homes on the market, alongside interest rate pressures potentially affecting buyer affordability. Additionally, they touch on the surge in demand for service providers like photographers and home inspectors due to the influx of homes on the market. The episode also highlights the economic contributions of short-term rentals, disputing the notion that corporate investors significantly impact housing availability. It showcases local home listings, including a short-term rental opportunity near Old Town and a property on Pawnee Trail, emphasizing a variety of open houses ranging in price. Lastly, it mentions an investment opportunity in Tierras with acreage for potential buyers.
00:00 Welcome and Overview of Today's Topics
00:41 April Housing Market Update for Albuquerque
01:42 Surge in Home Listings and Impact of Interest Rates
02:36 Service Providers' Busy Schedules Indicate Market Activity
06:22 Exploring the Central New Mexico Parade of Homes
07:07 Highlighting Affordable Homes and Local Builders
12:44 The Economic Impact of Short-Term Rentals in New Mexico
17:45 Investment Opportunities and Open Houses This Weekend
20:39 Debunking Myths: Investor-Owned Properties in Albuquerque
26:31 Featured Property Listings and Closing Remarks
Join Tego and Tracy Venturi as they delve into the vibrant world of Albuquerque real estate in episode 487 of Albuquerque Real Estate Talk. This episode unpacks the intricacies of incorporating real estate into your investment portfolio, exploring options like 401ks and IRAs. Dive into the pressing question: why aren't renters buying homes? Witness Tracy tackle this query head-on, shedding light on current market dynamics and the psychological barriers potential buyers face. The duo also navigates through the maze of making strong offers in a competitive market, especially in a seller's dominated landscape.
Tego and Tracy don't stop there; they provide a thorough breakdown of Zillow's role in the real estate valuation process, demystifying the data behind home appreciation rates and confronting the skepticism surrounding these figures. They also touch upon the Albuquerque Metro area's housing data, offering insights into the complex blend of single-family homes, rental units, and the pivotal role of demographics in understanding market trends.
From discussing the challenges of home affordability to debating the merits of new construction versus older homes, Tego and Tracy cover a vast range of topics pertinent to buyers, sellers, and the merely curious. They even peek into the upcoming Parade of Homes event, highlighting its significance in the local market.
Whether you're a seasoned investor, a first-time homebuyer, or somewhere in between, Albuquerque Real Estate Talk episode 487 with Tego and Tracy Venturi is packed with valuable advice, insightful analyses, and engaging discussions that will leave you better informed about the nuances of today's real estate market.
In this informative episode of Albuquerque Real Estate Talk, hosts Tego and Tracy Venturi dive deep into the latest trends and forecasts within the local real estate market. From dissecting the impact of interest rates on home buying to exploring new construction opportunities and the economic influences of real estate, this episode covers crucial updates and analyses for both buyers and sellers. Featuring insights into buyer and seller desires, local market statistics, and the broader economic implications of housing in Albuquerque, listeners are given a comprehensive look at the current state of real estate as of late April 2024.
In this episode of Albuquerque Real Estate Talk, Tego and Tracy Venturi provide an in-depth analysis of the Albuquerque real estate market, including the latest property sales data, market trends, and updates on the apartment market. They also highlight exciting open house events, discuss tax assessments, and share valuable insights on property valuations. Additionally, the episode features helpful advice for both homeowners and prospective buyers, making it a must-listen for anyone interested in Albuquerque's real estate landscape.
The Venturis also offer valuable advice on property tax assessments, including how to understand and potentially contest your tax assessment notice. The episode concludes with insights into what buyers and sellers want from real estate agents and an update on the rental market's vacancy rates and expectations for rent growth.
Are you eager to navigate the bustling Albuquerque real estate scene? Tune in to Episode 484 of Albuquerque Real Estate Talk where hosts Tracy and Tego Venturi dive into the latest trends shaking up the market. Discover the rise of exciting new housing developments with 90 freestanding homes featuring internal courtyards and community gardens. Explore the innovative Eleanor development and understand why the concept of building single-family homes for rent is gaining traction in Albuquerque.
Stay ahead of the curve as the Venturis analyze the housing market, discussing the impact of lending standards on the growth of build-to-rent neighborhoods. Learn about the evolution of the National Association of Realtors settlement agreement and how it's shaping real estate commissions. The Venturis tackle the tough topic of housing affordability, shedding light on the challenge of building new homes under $300,000 and the median home price of around $350,000.
In this episode, you'll also find out about a new centralized resource for rental properties to combat the prevalence of rental scams. Gain insider knowledge about the true ownership of rental properties and what factors really affect housing affordability.
Plus, get a first-hand look at a new trend in the build-to-rent sector with a spotlight on Griegos Farm. With personal anecdotes and a preview of upcoming changes in real estate transactions, this is an episode packed with valuable insights.
Eager for more? Want to attend an open house or have some specific property needs in mind? Don't hesitate to reach out for personalized advice. Dial up the Team at 505-448-8888 for all your real estate needs in Albuquerque or visit https://welcomehomeabq.com to get in touch and learn more about your next steps in the real estate journey. Listen now to Albuquerque Real Estate Talk – your key to unlocking the door to your new home.
Are you curious about the latest real estate buzz in Albuquerque? Tune in to this week's captivating episode of Albuquerque Real Estate Talk where your hosts, Tracy and Tego Venturi, dive deep into the local property market's pulse. Discover which ZIP codes are currently the hottest seller's markets and why properties in areas like 87112 and 87121 are flying off the shelf!
As Tracy and Tego unravel the intricacies of the Albuquerque housing scene, they shine a light on mortgage rate trends and their impact on affordability, the surprising lock-in effect on home sales, and the volume of new listings and pending sales. Are you eyeing a home with a septic system? Our hosts provide a treasure trove of maintenance tips to keep your future property in top shape.
Hear the truth behind the headlines about the recent real estate commission lawsuit settlement and learn how it could affect your home buying or selling strategy. Plus, get the inside scoop on rare finds in the Albuquerque area, like homes in the coveted low $300,000s and an exclusive property with a swimming pool waiting just for you!
Don't miss Tracy and Tego's personal touch as they chat about the joy of local events and the quirks of April Fools' Day celebrations. Ready for a real estate enlightenment? Sit back, relax, and let the expert couple guide you through the complexities of the Albuquerque market in an easy-to-digest format, perfect for a morning commute or a quiet evening at home.
If you're chomping at the bit to learn more or need expert real estate advice, don't hesitate to call the Team at 505-448-8888. For more resources and information, or to get in contact with Tracy and Tego, visit https://welcomehomeabq.com. Don't let your real estate questions go unanswered – tap into Albuquerque Real Estate Talk now!
🏠 New Podcast Alert! 🎧
Hey everyone! Tracy here from Albuquerque Real Estate Talk, and I'm thrilled to share our latest episode with you all. Tego and I dove into the February 2024 housing market data for Albuquerque and unpacked some really interesting trends. Despite a slow month with 700 homes sold, we're seeing unique shifts in the market that definitely deserve a look.
We also chatted about the ins and outs of assumable mortgages, a topic that's getting a lot of buzz lately, and we covered some invaluable tax advice and tips for down payment assistance that might just make your path to home ownership that much smoother.
Tune into Albuquerque Real Estate Talk 482 to catch all the insights. Whether you're buying, selling, or just love keeping up with real estate, there's something in there for you. Your support means the world to us, and we're so proud to be a part of your real estate journey.
Catch the episode on our YouTube channel, and don't hesitate to reach out with any questions or feedback! Thanks for listening!
AlbuquerqueRealEstate #NewMexicoHomebuyers #RealEstatePodcast #AlbuquerqueRealtors
Welcome to this week's episode of Albuquerque Real Estate Talk, where Tracy and Tego Venturi, from the Venturi Group of Real Broker, discuss the latest trends and insights in the Albuquerque and national housing market. In this episode, they cover a wide range of topics, including the upcoming Albuquerque home show, the story of Rio Rancho, home affordability, median time people stay in their homes, and the top 10 home features in Albuquerque that add value. They dive into the importance of surveys in home purchases and explore the dynamics of the current housing market in Albuquerque, providing valuable tips for both homebuyers and sellers.
Tracy and Tego also analyze housing market trends, supply and demand dynamics, and the implications for buyers and sellers in the Albuquerque area. They share practical tips for navigating the real estate market, including strategies unique to the Albuquerque market. Additionally, they discuss the challenges and opportunities in the current market and offer insights tailored to the needs of their listeners.
Don't miss out on this insightful and engaging discussion about the Albuquerque real estate market. To get in touch with Tracy and Tego Venturi for your real estate needs in Albuquerque, call them at 505-448-8888 or visit their website at https://welcomehomeabq.com. Tune in to the podcast now to gain valuable knowledge about real estate in Albuquerque and beyond!
Are you looking for the inside scoop on the Albuquerque real estate market? Dive into this week's episode of Albuquerque Real Estate Talk with Tracy and Tego Venturi, where they break down the nitty-gritty of what's happening in the Metro Albuquerque area. Discover how the anticipated growth to 1 million residents is shaping the housing landscape and what this boom in population means for you, whether you're buying, selling, or simply love the thrill of the market.
Tego Venturi offers a deep dive into the Zillow home value index, revealing eye-opening trends and how homeowner equity has been impacted since 1998. Tracy Venturi joins the conversation with essential advice on how to determine your home's worth with a comprehensive equity analysis.
In this episode, you'll also learn about the latest zoning updates that could affect your property decisions and how the introduction of ADUs on r one residential lots can change the game. Get the lowdown on the handy assumable loan search tool, a potential game-changer for buyers seeking affordability in this competitive market.
Discover unique property highlights, from the ongoing project at 49 La Cressida Circle to the 'cabin-like' charm of certain Albuquerque homes. Enjoy a sprinkle of Super Bowl banter and take away invaluable life lessons from the Chiefs' victory that apply to real estate.
Need more convincing? Listen to how municipalities, HOAs, and land use regulations such as CC&Rs and KIVA can affect your property use. Find out how to take advantage of Energy Star rebates for making energy-efficient upgrades to your home.
Get ready to be informed, entertained, and maybe even a little bit surprised by what Albuquerque's shifting real estate landscape holds for you. Don't miss out on this valuable conversation. Tune in or call the Team at 505-448-8888 for tailored assistance with your real estate needs in Albuquerque. For more insights or to start your Albuquerque real estate journey, visit https://welcomehomeabq.com today. Your next real estate adventure starts here!
Are you navigating the ever-challenging waters of the Albuquerque real estate market? Look no further as Albuquerque Real Estate Talk 479 brings you an exclusive deep dive into the latest housing trends, affordability challenges, and savvy buying strategies in the Land of Enchantment.
In this week's episode, your trusted hosts Tracy and Tego Venturi address the pressing issue of housing affordability. With Tego discussing the increasingly popular model of co-buying through companies like CoBuy, they explore innovative solutions to owning a home in today's market. Tracy sheds light on the often overlooked impact of HOA fees on monthly payments and why considering the full package of costs is crucial for condo and townhome buyers.
Delve into the dynamics of fluctuating apartment rents in Albuquerque, the rise of multigenerational living, and the implications of builders constructing smaller, more affordable homes in response to market demands. The Venturis don't shy away from tough topics, discussing the often viral opinions on the quality of affordable housing and defending the necessity of such options in the current economy.
Discover how the concept of 'shrinkflation' has hit real estate, with homes getting smaller but not necessarily cheaper. Learn about the latest legislative efforts in New Mexico to combat this issue and why the Venturis believe there's more to solving the housing crisis than financial aid alone.
Whether you're a first-time homebuyer, a seasoned investor, or simply curious about the state of real estate in Albuquerque, this episode is packed with invaluable insights, data, and heart-to-heart conversations that can guide your property journey.
Don't miss out on this opportunity to empower your real estate knowledge. Tune in now to Albuquerque Real Estate Talk 479 – your home for smart, honest advice on buying and selling in New Mexico. For personal guidance tailored to your unique real estate needs, call the Team at 505-448-8888 or visit https://welcomehomeabq.com, where Tracy and Tego are ready to assist you with your Albuquerque real estate endeavors. Listen and take the first step towards making informed property decisions today!
Welcome to this week's episode of Albuquerque Real Estate Talk. Join hosts Tracy and Tego Venturi as they delve into the latest trends and insights shaping the Albuquerque real estate market. In this jam-packed episode, they analyze the unpredictable nature of mortgage rates, the impact of interest rates on buyer behavior, and the median price for single-family homes in Albuquerque. Tracy and Tego also explore the dynamics of decision-making between couples in home-buying situations, emphasize the importance of proper staging when selling a home, and provide valuable tips for creating an effective pricing strategy to sell a home.
Additionally, they dive into the implications of the housing shortage in the United States, the latest housing market trends nationwide, and the significance of using relevant sales to price homes accurately. A key highlight includes updates from Fannie Mae's chief economist, Douglas Duncan, projecting a stable real estate market in 2024 with slight increases in home sales. With insightful commentary and practical advice, this episode is a must-listen for anyone looking to navigate the Albuquerque real estate landscape.
Don't miss out on this wealth of information and expertise! Tune in to the full episode to gain valuable insights and guidance for your real estate journey. Or if you're ready to make your move in Albuquerque, call the team at 505-448-8888 or visit https://welcomehomeabq.com to get in touch and supercharge your real estate endeavors today!
Join Tracy and Tego Venturi on this week's episode of Albuquerque Real Estate Talk as they delve deep into the latest housing market trends and real estate news in New Mexico. With a focus on the Albuquerque market, they discuss the impact of baby boomers on real estate, neighborhoods with the most expensive homes, and the comparison between new construction and resale homes. Learn about the unique features of properties for sale in Belen, Ventana Ranch, Corrales, and Bareilles. Listen in as they touch on invaluable tips for home buyers and sellers, including pointers on neighborhood research, the importance of visiting neighbors, and considerations when choosing a neighborhood. Plus, get insights into a luxury home for sale in Corrales, priced at around $1 million, and discover a guaranteed sale program for those looking to buy a new home. Don't miss out on this wealth of real estate knowledge! Tune in now, or call the team at 505-448-8888, and visit https://welcomehomeabq.com to get expert help with your real estate needs in Albuquerque.
Welcome to this week's episode of Albuquerque Real Estate Talk! Join Tracy and Tego Venturi as they delve into the latest trends and insights in Albuquerque's dynamic housing market. In this episode, They also unpack the impact of the $15,000 down payment assistance program by the New Mexico Mortgage Finance Authority and provide valuable tips for potential homebuyers.
Additionally, Tracy and Tego unveil the hottest ZIP codes and median home prices in Albuquerque for 2023, exploring the challenges and opportunities within the city's diverse real estate landscape. They also touch upon the impact of rising homeowners insurance rates and how it affects New Mexico homeowners, making this episode a must-listen for both buyers and sellers.
If you're ready to dive into Albuquerque's real estate scene or need expert guidance on buying or selling a home, tune in to this episode and gain valuable insights from the Venturi Realty Group. Give them a call at 505-448-8888 or visit their website at https://welcomehomeabq.com to learn more about real estate in Albuquerque.
Welcome to Albuquerque Real Estate Talk! In this episode, Tracy and Tego Venturi dive deep into the latest real estate trends in Albuquerque, bringing you invaluable insights for both buyers and sellers. They discuss the exciting release of the MFA first down plus program, offering $15,000 towards the down payment for first-time homebuyers, and the potential impact on the local market. They also analyze the state of bank-owned properties and homes under contract, shedding light on what it means for buyers and sellers. Plus, they share tips for home preparation and offer assistance in navigating the Albuquerque market. With engaging discussions on football, skiing, and real estate statistics, this episode is packed with information you won't want to miss. Tune in for expert advice and timely updates, and visit https://welcomehomeabq.com, or call the Team at 505-448-8888, to get help with your real estate needs in Albuquerque.
Welcome to Albuquerque Real Estate Talk, where Tego and Tracy Venturi provide the latest insights and trends in the Albuquerque housing market. In episode 474, they delve into the best time to sell a home in Albuquerque and discuss the impact of the new down payment assistance program launched by the New Mexico Mortgage Finance Authority. Discover essential tips for preparing your home for sale, including the importance of digital curb appeal and the best month to list your property. Gain valuable knowledge on current trends, mortgage rates, and projections for the 2024 housing market. Whether you're a first-time homebuyer or considering selling, this episode offers practical advice tailored to the unique dynamics of Albuquerque's real estate market.
Don't miss out on expert advice and valuable insights! Listen to the full episode on your favorite podcast platform or call the team at 505-448-8888 to get personalized support with your real estate needs in Albuquerque. For more information or to get in touch, visit https://welcomehomeabq.com.
Welcome to the latest episode of Albuquerque Real Estate Talk, where Tracy and Tego Venturi bring you the hottest real estate insights and trends straight from the heart of New Mexico. In this episode, they delve into the burning issues facing the Albuquerque real estate market, discussing the impact of planning, zoning, and the 'Not In My Backyard' problem on the local housing shortage, and offering valuable advice for buyers and sellers in this unique market.
Tune in to hear their take on the current slow real estate market and the anticipated drop in interest rates, which could lead to a potential 'refi boom' in 2024. Gain valuable insights on the fluctuating trends in home prices, mortgage interest rates, and the expected surge in home sales and listings in the coming year.
Discover the controversy surrounding short-term rentals like Airbnb and Vrbo, and learn about the minimal impact of large entities on single-family home ownership in Albuquerque. Combined with their reflections on the 2023 housing market and predictions for 2024, this episode is a must-listen for anyone interested in Albuquerque real estate.
If you're ready to navigate the Albuquerque real estate market, don't miss out on their expert advice and valuable tips. Listen to the episode now, or call the Team at 505-448-8888 to get personalized assistance with your real estate needs in Albuquerque. You can also visit https://welcomehomeabq.com to learn more and get in touch!
Are you curious about the current state of the Albuquerque real estate market? Tune in to the latest episode of Albuquerque Real Estate Talk, where hosts Tracy and Tego Venturi share insightful analysis and trends shaping the local housing scene. In this episode, they delve into the rising demand for Accessory Dwelling Units (ADUs) in Albuquerque, discussing the availability of free casita construction plans on the city's website, and guiding listeners on navigating regulations and potential property value increase. They also unravel the significance of key amenities sought after by homebuyers nationwide, contrasting them with Albuquerque's unique market preferences. Plus, don't miss their expert advice on heating duct inspections, the rent vs. buy debate, and valuable insights from a renowned economist. Whether you're a prospective buyer, seller, or simply intrigued by the real estate landscape, this episode offers valuable tips and eye-opening discussions. Ready to dive into Albuquerque's real estate world? Listen now or call the Team at 505-448-8888 for personalized assistance with your real estate needs in Albuquerque. Visit https://welcomehomeabq.com to connect with the Venturi Group of Realty Broker today! 🏡 #AlbuquerqueRealEstate #NewMexicoRealEstate #AlbuquerqueRealtors
Welcome to the latest episode of Albuquerque Real Estate Talk, where Tracy and Tego Venturi from The Venturi Group of Real Broker dive into the hottest trends and topics in the real estate market. Joined by special guest Joanna Rushing, a seasoned mortgage loan officer with Primary Residential Mortgage, they analyze the recent interest rate drop and its impact on housing affordability. The hosts discuss the importance of pre-approval and strong lender letters when making competitive offers, share insights into the timing of buying a house, and provide expert tips for navigating the current market dynamics. They also explore the conversion of a hotel into affordable housing, emphasize responsible lending practices, and highlight the stability of the housing market in Albuquerque and beyond. If you're considering real estate ventures or simply want to stay updated on the latest market trends, tune in now to gain valuable insights! Or call the Team at 505-448-8888 to get help with your Real Estate Needs in Albuquerque and visit https://welcomehomeabq.com to get in contact or learn about real estate in Albuquerque.
Curious about the latest trends in the Albuquerque real estate market? Join Tracy and Tego Venturi, hosts of the Albuquerque Real Estate Talk podcast, as they delve into the hottest real estate topics of the week. In this episode, they analyze the surprising hotness scores for housing markets across the United States, uncovering the unexpected dominance of the northeast and Midwest. Get the inside scoop on Albuquerque's real estate market, ranked as a balanced market at 189 out of 300, and discover the factors driving the stable nature of the local market, including low supply and consistent demand leading to a 6% increase in prices compared to the previous year.
As they discuss the proposed "End Hedge Fund Control of American Homes Act of 2023" and recent real estate statistics, Tracy and Tego offer practical tips for home buyers and sellers in navigating the evolving real estate landscape. Learn about the potential for a refinance boom with interest rates predicted to drop into the 6% range, and gain insight into the wealth-building potential of homeownership, particularly for lower-income households. Plus, discover the latest partnership for AI space planning and interior design in real estate, and get a sneak peek at a desirable home for sale in Rio Rancho.
Don't miss out on the valuable information and expert advice shared in this episode! Tune in to Albuquerque Real Estate Talk and gain valuable insights into the local real estate market. Ready to take the next step in your real estate journey? Call the Team at 505-448-8888 or visit https://welcomehomeabq.com to get personalized assistance with your real estate needs in Albuquerque.
Get the inside scoop on Albuquerque's dynamic real estate market with Tracy and Tego Venturi, your trusted local real estate experts! In this episode, they cover a premium marketing opportunity for selling houses, where your property can gain added exposure and media content through a partnership with Zillow. Discover the benefits of this innovative approach, including increased visibility, extra promotion, and additional media content for listed properties.
Tego and Tracy also delve into their predictions for the next 2-3 years, discussing expectations for mortgage rates, home prices, and the limited supply challenges facing Albuquerque's housing market. They share November housing market statistics, the new trend of building homes for rent instead of for sale, and insight into interest rates and special mortgage packages offered for new construction homes.
Highlighting the impact of low supply, affordability challenges, and the positive effect of lower interest rates on the housing market, Tego and Tracy analyze the median days on market, number of showings, and pending sales in Albuquerque. They also discuss crucial pricing metrics, the FHFA's reported home price increase, and specific properties in various neighborhoods.
Discover why Albuquerque is a prime market for investment in rental properties and homes, and gain valuable insights into the latest real estate and mortgage news. Plus, don't miss out on practical tips for home buyers and sellers, tailored specifically to the unique nuances of the Albuquerque market.
Tune in now and stay ahead in Albuquerque's ever-evolving real estate landscape! Or, call the team at 505-448-8888 to get help with your real estate needs in Albuquerque. You can also visit https://welcomehomeabq.com to get in contact or learn about real estate in Albuquerque.
Are you in the market for a new home in Albuquerque? Look no further than episode 468 of Albuquerque Real Estate Talk with Tracy and Tego Venturi. In this episode, they discuss some exciting opportunities for buyers, including mortgage rate buydowns and special incentives offered by builders. They also give an insider's look at some of the properties coming on the market, including a unique fuchsia house in the Bareilles neighborhood and a stunning piece of land in Corrales.
But that's not all! Tracy and Tego also delve into the topic of quitclaim deeds and homeowners associations, shedding light on their importance and impact. They provide valuable insights on how to navigate these sometimes complex areas of real estate.
Whether you're a potential buyer or just interested in learning more about the Albuquerque real estate market, this episode has something for you. Don't miss out on the wealth of knowledge and expert advice provided by Tracy and Tego Venturi.
Ready to dive in? Listen to Albuquerque Real Estate Talk episode 468 now. Or, if you need immediate assistance with your real estate needs in Albuquerque, call the team at 505-448-8888. You can also visit their website at https://welcomehomeabq.com to get in touch or learn more about real estate opportunities in Albuquerque.
Listen in to Tracy and Tego Venturi on "Albuquerque Real Estate Talk" as they delve into the ins and outs of the current real estate market and homeownership options. In this episode, they cover vital topics such as VA loans – highlighting the benefits and the surprising lack of awareness surrounding them. The hosts also discuss mortgage rates, cash purchases, local lenders, market data, and recent property listings. Plus, they provide a market update, share insights on price trends, and explore the potential impact of a lawsuit on real estate commissions. If you're considering a real estate venture in Albuquerque, this episode is a must-listen! Tune in to gain valuable knowledge and make informed decisions about your real estate needs. For personalized assistance, call the team at 505-448-8888 or visit https://welcomehomeabq.com to connect with the Venturi Group and explore real estate in Albuquerque.
In this episode of "Albuquerque Real Estate Talk", Tracy and Tego Venturi delve into the latest trends, updates, and insights that you don't want to miss.
They discuss the recent changes in zoning ordinances, allowing for the construction of accessory dwelling units (ADUs) or casitas in the city. They also explore the benefits of multigenerational living and how it can be a solution for both financial and emotional support within families.
The Venturi Group sheds light on the impact of short-term rental properties being assessed as commercial properties, leading to potential higher property taxes for Airbnb and VRBO hosts.
They highlight the challenges and demand for affordable housing through programs like the Section 8 voucher program, managed by the Albuquerque Housing Authority.
In addition to these topics, they share updates on mortgage rates, the antitrust lawsuit in the real estate industry, and the increasing popularity of multigenerational homes. They also provide insights into the Albuquerque housing market, including sales data and opportunities for buyers, such as a house in Rio Rancho with a competitive price and seller-provided closing cost assistance.
To listen to the full episode and gain valuable insights from Tracy and Tego Venturi's expertise in Albuquerque real estate, tune in now. Don't miss out on this wealth of information! Call the team at 505-448-8888 for any real estate needs, or visit https://welcomehomeabq.com for more information about real estate in Albuquerque.
Are you curious about the current state of the real estate market in Albuquerque? Look no further! In this episode of Venturi Group's "Albuquerque Real Estate Talk," Tracy and Tego Venturi dive deep into the housing market trends, including affordability, accessory dwelling units, new construction homes, and more. They discuss key data points and share insights from industry experts. Want to know which builder is offering $25,000 in flex cash? Interested in the latest design trends showcased in the Parade of Homes? Wondering about the low inventory levels and the impact on homeowners? Tune in to find out! Don't miss out on this valuable information. Listen to Tracy and Tego Venturi's insightful discussion on the state of real estate in Albuquerque. Visit welcomehomeabq.com or call the team at 505-448-8888 to get in touch and receive expert assistance with your real estate needs in Albuquerque.
Are you in the market for real estate in Albuquerque? Looking for expert advice and insider tips to navigate the process? Then you don't want to miss this episode of Albuquerque Real Estate Talk! Join hosts Tracy and Tego Venturi as they dive into the world of mortgage loans and renovation projects with special guest Joanna Rushing.
In this episode, you'll discover the truth about mortgage loan officers and why a good loan officer is worth their weight in gold. Joanna shares her experiences renovating homes in poor condition, providing valuable insights on prioritizing safety and health issues during the renovation process. She also unveils the hidden gem of renovation loans, explaining how borrowers can finance repairs and renovations as part of a single loan without requiring existing equity.
The discussion delves into qualifying buyers for home purchases and renovations, exploring the concept of total acquisition cost and how down payments are determined. You'll gain valuable knowledge about finding a licensed contractor, obtaining detailed bids, and understanding the importance of considering the total acquisition cost when determining a down payment.
Tracy, Tego, and Joanna also touch on the current state of the market, the impact of COVID-19, and their predictions for future interest rates. With their expertise and guidance, you'll be well-equipped to make informed decisions and find your dream property in Albuquerque.
Don't miss out on this enlightening and informative episode! Listen now to gain valuable insights and take the next step towards your real estate goals.
To get help with your real estate needs in Albuquerque, call the team at 505-448-8888 or visit their website at https://welcomehomeabq.com. Listen to the podcast as a starting point and reach out to Tracy, Tego, and the team for personalized assistance!
Looking to buy or sell real estate in Albuquerque or anywhere in New Mexico? Look no further! In this episode of Albuquerque Real Estate Talk, Tracy and Tego Venturi discuss the current state of the real estate market in Albuquerque and provide valuable insights for both buyers and sellers. They cover topics such as townhomes vs. condominiums, title insurance, the importance of a healthy homeowners association, and more. Stay informed and make confident real estate decisions with the Venturi Group! #AlbuquerqueRealEstate #NewMexicoRealEstate
Keywords: Albuquerque Real Estate, New Mexico Real Estate, townhomes, condominiums, title insurance, homeowners association, real estate market, buying, selling, Tracy Venturi, Tego Venturi, Venturi Group
Looking to dive deep into the world of real estate in Albuquerque? Look no further! In this episode of the Venturi Group's Podcast, hosts Tracy and Tego Venturi discuss the latest trends and insights in the ABQ real estate market. They delve into the current builder sentiment, the low inventory of houses, and the shortage of developed lots. They also shed light on the Case Shiller home price index and the importance of accurate housing market data. Along with their engaging discussion, Tracy and Tego share valuable tips for buyers and sellers, including the importance of appraisals and how home prices are determined. Plus, they highlight the enchanting landscape of Albuquerque and why it's a great place to call home. Don't miss out on this informative episode! Tune in now or reach out to the team at 505-448-8888 for all your real estate needs in Albuquerque. You can also visit https://welcomehomeabq.com to contact the team or learn more about real estate in the area.
Are you in the market for a new home in Albuquerque? Look no further than the latest episode of ABQ Real Estate Talk! In this episode, Tracy and Tego Venturi, hosts of the Venturi Group, delve into the world of real estate and share valuable insights and tips for potential homebuyers and sellers.
They kick off the episode with a crucial piece of advice – hold off on buying new furniture until the house is closed on and avoid making big changes or opening lines of credit during the process. They also discuss the benefits of having a real estate expert guide you through the market and provide clarity when making offers on a home.
Tracy and Tego, who have a team dedicated to helping with all real estate needs, reveal interesting facts about the current housing market, including the scarcity of rental properties and the effect of low mortgage rates on buying and selling homes. They even touch on the advantages of owning a home with a low fixed-rate mortgage.
The hosts address common misconceptions about available homes and urge potential buyers to act swiftly if they find the right one. They stress the importance of understanding the local market, having a financial strategy in place, and getting preapproved before making offers. They also offer guidance on finding rental properties, cautioning against using platforms like Craigslist and Facebook Marketplace due to scams.
Exciting news! Tracy and Tego have been invited to be on a television show called Power Lunch by CNBC, where they will discuss Albuquerque real estate. They express their enthusiasm for the opportunity and invite listeners to tune in.
To catch all these fascinating insights and more, listen to the episode now! And if you're looking for assistance with your real estate needs in Albuquerque, call the Venturi Group at 505-448-8888 or visit their website at https://welcomehomeabq.com. Don't miss out on this valuable resource!
Are you curious about the exciting world of real estate in Albuquerque? Look no further because Tracy and Tego Venturi from Venturi Group are here to share their knowledge and expertise on the Albuquerque market. In their latest podcast episode, they discuss everything from forward-thinking entrepreneurship to managing affordability challenges in the real estate market.
One of the key talking points they cover is the different types of solar power systems and how they can impact property appraisal. They delve into the implications of owning versus leasing a solar system and share insights on how these decisions can affect the transfer of property ownership.
Tracy and Tego also shed light on the current state of the housing market, highlighting the limited supply, low affordability, and higher interest rates that are affecting potential home buyers. They discuss the impact of these factors on home prices and share valuable information on new home neighborhoods being developed by well-known builders in the area.
Aside from their market analysis, Tracy and Tego give a glimpse into their roles as transaction specialists, facilitators, and counselors in the real estate industry. They share their passion for helping individuals achieve their homeownership dreams and provide valuable advice for anyone interested in pursuing a career in real estate.
To catch all these insightful discussions and more, listen to their podcast episode now. And if you're in need of real estate assistance in Albuquerque, don't hesitate to call the Venturi Group team at 505-448-8888 or visit their website at https://welcomehomeabq.com. Jump into the world of Albuquerque real estate with Tracy and Tego Venturi today!
Are you curious about the current state of the real estate market in Albuquerque? Look no further than the Venturi Group's latest episode of Albuquerque Real Estate Talk. In this episode, Tracy and Tego Venturi discuss the top factors impacting the housing market, including the lack of inventory, multiple offer situations, mortgage rates, and affordability. They also dive into the importance of preparing a home for market and the role it plays in attracting buyers. With their expert insights, you'll gain a better understanding of the local and national real estate trends. Don't miss out on valuable information and tips from Albuquerque's premier real estate team. Listen now or call the Venturi Group at 505-448-8888 for any of your real estate needs in Albuquerque. You can also visit their website, https://welcomehomeabq.com, to learn more and get in touch.
Looking to buy or build your dream home in Albuquerque or the beautiful state of New Mexico? Look no further than this episode of ABQ Real Estate Talk by Venturi Group! In this video, they discuss the importance of working with a realtor who understands land and construction, the process of finding and consulting with builders, and the different views and areas for building custom homes in Albuquerque and Rio Rancho. They also delve into the intricacies of buying undeveloped land and the financing options available. Plus, they provide valuable insights on the current state of the real estate market in Albuquerque, including low inventory and rising prices. If you're interested in Albuquerque or New Mexico real estate, you won't want to miss this episode! #AlbuquerqueRealEstate #NewMexicoRealEstate #VenturiGroup
Demystifying Bernalillo County Property Taxes: Insights from the County Assessor In this episode of ABQ Real Estate Talk, host Tego Venturi is joined by guest Damian Lara, the Bernalillo County Assessor. Together, they dive deep into various aspects of the real estate market, property tax savings programs, valuations, and more. From learning about property tax savings programs for veterans and senior citizens to understanding the policy of capping property value increases at 3%, this episode covers crucial topics that impact current and potential property owners. Discover the valuable resources available on the county assessor's website https://www.bernco.gov/assessor/, explore the impact of property taxes on local government services, and gain insights into the unique challenges faced by homeowners in New Mexico.
Venturi Realty Group - Real Broker LLC
(505) 448-8888
info@welcomehomeabq.com
https://welcomehomeabq.com
Forbearance ends: Will Albuquerque homes come out distressed?
(Transcript Snippet): " Tracy: We look at a lot of indicators. Right. And the thing came up yesterday. Someone asked the question about all of the homes in forbearance and that one. Yeah, there's that one too. That whole question of all of a sudden a forbearance. And are we going to have a ton of houses come on. The market distressed? And our answer is Tego: No. In fact, the latest stats that came out this week on the whole forbearance and forbearance plans at down below 2 million, it was almost 7 million. At one point. Now it's down to 2 million, probably going to have a lot more drop-off because there's a bunch of them that expiration that expire in the next few months. And so either those people will you know, go into loss mitigation, meaning they'll go into some sort of you know, foreclosure, or maybe you do some sort of workout with, with the bank or they'll just pick up and start making their payments or they'll refinance or they'll sell. It just looks like most of those people that got into those forbearance plans are going to be able to come out of them without much difficulty, if Tracy: You're a listener and you're in a forbearance plan, you know, and you have questions about it, give us a ring Tego, or I would be happy to talk to you, you know, call the four, four eight, eight, eight, eight eight number. And just say, you want to talk to us about it because most people that are in forbearance, their house value has gone up over the last two years, year and a half. Tracy: You know, if, if you're not going to be able to pay for your mortgage, you know, you probably have equity that Tego: We could help you with. And, you know, Tracy: There's a lot of options to one of them and just real quickly as it might be that investor could buy your house and you could rent from them and not even move and have some cash in your pocket from selling your house. And we're seeing that happen Tego: In New Mexico in the last year on average homeowners gained $26,000 in equity. Tracy: Where else can you get that? Right? You don't get it by putting it in the bank. Tego: And, and so anyway, that's that, that was just, you know, one thing to bring up.
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
The skyrocketing cost of building a home in Albuquerque
(Transcript Snippet): "Tracy: Right. But what we do know too, is there are a lot of new neighborhoods. We have a lot of new homes available right now and coming and a lot of new neighborhoods that they have now got ready, that they're ready to start building. And it's in all areas of town. Right. We know that they're still building by the base you know, at the end of one to bow by the Kirtland air force space and [inaudible]. Yep. Tego: Yeah, no, there's a lot in the pipeline and there's definitely new construction. I, I will say. And I, I mean, this isn't anything about the builders. It's just, people are going to have sticker shock on what things are, because I just saw a study the other day, where they looked at a building costs in the last year, about 22% increase in just the cost of materials to build a new right. Tracy: And you know, we've talked about it on the show, the cost of materials that jumped way up, especially lumber, stucco, concrete, whatever. Tego: Well, everybody talks about lumber. Cause that's, that's the Tracy: Commodity that goes on the commodities exchange that they can really track. What really well, Tego: Here we go. Tracy. Here's okay. So you have a chart. I've got a step for that. I didn't even know that. No. So, okay. So we were talking about lumber, right? Lumber, 115%. Everybody kind of knows that story, but everything steel aluminum up 27% windows doors up 13% flooring up 8% appliances up 8% concrete up 10% brick stucco up 11% drywall up 14%. I've heard that one drywall Tracy: Framing block up 36%, Tego: 36%. So, you know, anything that's concrete stucco that stuff's gone up quite a bit. Of course, anything that's wood-based has gone up a bit. Tracy: This is a year over year, raw material and labor cost. So we know labor has also gone Tego: Up. Yeah. So just to bring that back to the, the positive is there are a lot of new home construction options out there for folks right now. And you know, there, it's just, the, the prices are higher. That's just the way,
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Albuquerque's Real Estate Market: It's still frantic out there!
(Transcript Snippet): "Tego: It's still pretty frantic out there in the real estate market. Is that a fair word? Tracy: You know, Tego? I didn't think we were going to talk about this, but let me tell you about Wednesday this week. Right? So we had, well, Wednesday and Thursday, we had four open houses, midweek for homes that had just gone on the market with us. I'm on two, three of them were in the Northeast Heights. And one was in far Northwest. We Rio Rancho on Thursday from four to six. Okay. And the Wednesday three open houses. I was at one of them and other agents from the team were at others. The house I was at had over a hundred visitors now, individual groups. Sometimes it was one person, three people formed with their realtors. Some without some have realtors, but were on their own, whatever, just coming to see the open house. Well, and it was Tego: The first time in and we've been doing this, right? Yeah. Tracy: It was the grand open house. First time anybody could see it. Yeah. I'm sure we had over 60 individual, not individual, 60 groups of people through. I mean, it was well over a hundred people at the house that I was at. The house Jane was at same thing over a, well, over a hundred people through that open house. Corey held a house open on Saint. She's the one who started this conversation among our team. And she was like, we had over a hundred people there. I'm sure of it. So her seller went to the ring doorbell and literally counted all of the people. And the seller says they had 500 people through their house that day. Corey said it was crazy. And luckily one of our title reps stopped by to give her some bottles of water to hand out and he stayed. So she wasn't there alone. But even though one in Northern Meadows, which is far Northwest Rio Rancho, you have to want to go there. You don't run into those signs. Right. The reason Tego: That one was in such high demand is it was, it was a lower price point. And definitely below the median, you know, our median is now up over $250,000. So, Tracy: So in any event she was exceptionally well attended as well. So what, what does that mean? We still have a lot of buyers in the market. A lot of people looking for the right house. Yep. And you know, it's interest rates are low. There's a lot of reasons we talked about them last week, Tego: As demand has not dropped off, Tracy: I would say in our market, based on this week and the number of showings we're having on houses, we've listed, demand is not dropping.
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Cash Home Buyers & Equity: What the stats are saying
(Transcript Snippet): "Tracy: Speaking of cash offers, Tego. I was saying, we talked about this on the show, but I want to bring it up again because it keeps coming up. People keep saying, oh, there's so many cash buyers and they're just beating us out. And oh my gosh, all the cash buyers narrative. And, you know, we've, we were hearing that. And of course, you know what I did, Tracy, I know you went and did the stats, but you know, we, we, as a team have closed over 250 houses this year already. Right. And we're going well, let's look at it. And, and really, yeah, there are some cash buyers out there, but that is not different. Right. Do you have a stat for it? Tego: Yes, I do. And so what I looked at was I looked at the first half of this year versus, well, actually it was the first I say the first half, it was actually the first five months of 20 17, 20 18, 20 19 and 2020. And then of course, 2021, because I just went, it went through through may. Yeah. So it was five years back. And I was trying to say, okay, of all the homes that sold in each one of those years during that specific period, how many of them closed where cash, how many were conventional loans? How many were FHA loans? How many were real estate contracts, which is, you know, seller financing. And then how many of them were VA loans? And that's, you know, those are the kind of the big, the five big buckets. And the thing that was shocking was it in 2021, that the number of cash buyers was actually less than 20 17, 18 and 19. Now last year, 2021, it was actually even lower. But this year it's bumped up a little bit, but it's, but it's interesting because we hear these narratives out there where, oh, well, all these cash buyers are just coming in and they're from California and they're buying all our homes and they're displacing us. It's like, no, no, no. It's, yes. There's some of that. And we've always seen that. Right, Tracy. It, it, it didn't just happen since last year that people from other states are coming here and buy Tracy: It. Right. And when we had our team meeting, we asked our team, there was about 20 some on, on the meeting, right. Where are people coming from? Are you seeing them coming from California? Is that the overwhelming? And it was like, everybody's like, that's just what people are saying. There's no, there's no facts behind that. And now it's like, no, people are move up. They're from here, they're coming back here. They're from all over there. They're moving from one house to another, within the city. They're, up-sizing, they're downsizing. Tego: A lot of, you know, household formation is what we call it where we're, you know, people that have maybe never been homeowners or, you know, maybe two, two people coming together to, to start a home and, and, and be the first-time purchaser. We are seeing a lot of first-time purchases, but most of those first-time purchases are people from, I mean, they're from here, they're not from elsewhere. So that was anyway. That's a little myth busting there. https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Lease to Purchase: How Albuquerque Renters can become Owners
(Transcript Snippet): "Tracy: Speaking of renting. So we really wanted to talk about a program for people who are renting or want to be renters that want a path to home ownership. Basically. Now there's lots of ways that we can use this program, but we have a program to help people who are maybe not ready to buy. For some reason, they need to get their credit score up above bed, or they need to be in a career for a little bit longer than what they have been before they can get the loan that they want. Lots of reasons why they might need to rent a little bit before they buy. So this program is very much like a lease purchase. Tego: Yeah. Let's talk, lease purchase or lease purchase is something that's been around forever where it's okay, I'm going to lease it for this amount of time. And then at a future date, I'm going to purchase Tracy: It. Right? Yeah. Then typically that purchase price is pre-determined. At the time you put the lease together, sometimes the amount of what you're paying monthly, the person who owns the home will give you like a hundred dollars credit for each month you've been a tenant there and kind of hold that and help you build your down payment. There's lots of ways they're done, but this is a little bit different than that. Tego: It's a program that's available to really anybody that maybe they're not in a position to purchase right now for, for whatever reason could be credit, could be just not sure if they want to commit long-term they, they want to rent. Maybe they want to try out the house for a little Tracy: Bit out the neighborhood or quiet the mountain. Exactly. And so what this Tego: Program is, this is a group that we, we have partnered with that allows the, the person to go pick out a home Tracy: That's for sale. https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
It's tough out there! Frustration for Albuquerque home buyers
(Transcript Snippet): "Tego: This kind of the, the, the underlying conversation that we're having in the real estate market right now, right now, which is frustration for home buyers. You know, there it's, it's really, it's, it's tough out there for, for home buyers right now. There's very limited choices. There's, you know, people are really wanting to get, get a home. They want to lock in these low interest rates. And so there's a lot of frustration. And so w w we're going to keep coming back to the, this right now, because this is really the, you know, top of mind for everybody right now. Tracy: Yeah. We talked about this a lot on last week show and what we want to say this week, again, is just hanging in there. There's a lot of reasons to hang in there and just work towards getting that home, right? The interest rates won't be this low, forever, and locking in that rate. Even if the price for the house seems a little higher, you're still locking in a really good monthly payment. Right. Which isn't going to happen if you're a renter long-term benefits certainly outweigh the short-term wouldn't you say? Tego: Yeah, I, I think you look at it's tough. It's frustrating. You're, you know, maybe have, have had to make multiple offers. Maybe you've had to make some concessions that you really weren't comfortable with making and being able to get a house you paid more than you think you wanted to, or whatever it is. Look at the long game, look at the long game and, and don't give up, yeah. Lock, locking in the, those, again, the low interest rate and locking in you're more than just a low interest rate. It's locking in your cost of housing. You've now locked it in. If you're making, you know, paying a mortgage, you've locked it in for a really long time. Versus if you're renting, you know, it's going to escalate every year, every year, every year, every year. Right. And so th th this is, you know, th there's just so much going on there. And of course, that's not even dimension the whole quality of life issues of, of owning a home versus, Tracy: Right, right, right. Which we've talked about all the quality of life. It seems Tego: Like we've beat this to death, but I know there's a lot of fear out there around the market. And, oh, my gosh, home prices are up 25% in the last two years. And are we going to have a bubble? And, you know, am I doing the right thing? And, and I, I get all that. Those are all fair questions in this current market condition, because it is so frantic, right.
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Kitchen rends and lumber futures: The lowdown in Albuquerque's Real Estate market (Transcript Snippet): "Tego: Let's talk about kitchen to real quick. Oh, I, I brought up the wrong wrong chart. What did I do with it here? Did it go here? It went. Okay. So I love this the headline on this story, it was kitchens you know, stirring the pot COVID customer desires reveal, and then the S the sub-headline was something like spoiler alert, kitchen offices are out, which is interesting. And I, I know some people like them, but for the most part, kitchen offices are out. Cause now everybody just wants their home office. Tracy: Well, and they want space. They're tired of being in the kitchen altogether. Right. We need to move around. Plus, you know, kitchen office kind of leaves a mess. Usually, at least for me, it would, I leave my papers all over the table and everything. Yeah. Unlike you who have a nice, neat clean desk. So, Tracy, what Tego: Do you see in kitchens that, that has been a big trend for this year and what people like and what people want. Tracy: Yeah. I noticed there's been more of that darker stainless. I don't remember what it's called. It's like a black stainless appliances. Yup. I've seen a lot of those. I've seen a lot more refrigerators that have computer door, you know, like a screen in the door where you can program it and you can have your Alexa or whatever, your whole house, your whole house automation through your fridge. I know, I know I said it and I thought, oh, ours is going to be saying, what can I help you with right now? But the screen where there's like, you automate your home off your fridge and me personally, I've seen our friends have that. And I'm like, yeah, I don't think I want to do that from my refrigerator door, but you know, whatever. What have you seen Tego: Big open kitchens, definitely the trend. You look at what the builders are building right now. You know, the production builders, you know, open, airy, open to a great room, open to a den, open to a dining room is definitely the thing. The Tracy: Other thing I've seen is bigger islands, bigger islands, more seating around islands, a little less, maybe even in live in dining space, like for dining tables, definitely not formal dining rooms, but more of a dining note in addition to a big island. https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Buyer fatigue: Why you should still own an Albuquerque home (Transcript Snippet): "Tego: What's what's going on with home buyers right now. Tracy: Sure. So buyers in general are getting fatigued, right? They're out looking at houses. They fall in love with the house. They can't sleep all night. They've got an offer in on it, but then there's 10 other offers in on it. And they get the call that they didn't get their offers selected. And so they go back out and look at houses again, fall in love with another house. They put another offer in there's a bunch of offers on it. They don't get the house, right? So this is happening. We had at our team meeting this week, you know, one client got their house under contract as a buyer that was their fifth offer that they had made right on the house on a house. And it was finally, they are, we're the ones selected, but we're seeing buyers say, I'm just going to wait it out. Tracy: I'm going to wait for the market to slow down. I'm gonna take a break and not, not look at houses and just give up. And we were like, don't have buyer fatigue. I know it's hard and it's frustrating, but we need to remember what about having a home and owning a home is important to go. We know there's lots of financial reasons why home ownership is important. Right? I get to go through the list. Yeah, not right now, but there we'll go through them, but let's talk about the other reasons, right? What are the other reasons besides the financial benefits of home ownership, right? You have pride in your community. When you own a home, you can make the house what you want. You can paint your bedroom purple. If you want. You can invest in, in an outdoor living area that you've always wanted or a big garden, and know it's yours. You can do all these things and have that pride of ownership. You can be making memories in that home. You know that, you know, your family's going to have memories there and you're not going to be having to find a different place to rent, whether it's an apartment or a house go through this list real quick. Oh, sure. I'm just going off my own Tego: You're just going to off the top of your head. But these are just, just some things to think about a reason for home ownership, I guess the best way to put it. And, and you know, when you think about, I know a lot of people out there understand this, this whole conversation around the big why, right. You know, the big, why is the thing that motivates us, right. Th the big, why is a thing that gets us up in the morning? And, you know, there's a book by a really great book by Simon Sinek talking about, you know, discovering your, I think it's called discovering your why. And it's the thing that motivates us, but we can bring it down to the whole idea of, Hey, there's a reason why you want to own a home. Right. It could be as basic as I need a roof over my head and I don't want to run out. Right. I don't Tracy: Want people banging on the other side of the wall when I'm trying to sleep or something. Tego: I don't want to pay, you know, the landlord's mortgage instead of my own mortgage. Right. Could, could be as simple as that. Obviously there's great reasons to be a renter too. And we're not saying there's anything wrong with it. We're just saying that, you know, there, there are some big advantages to own home ownership. So, you know, one of them, Tracy is just accomplishment that it, you know, it kind of shows it reflects your success, right? https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Stats: What's going on in the Real Estate Market in Albuquerque
(Transcript Snippet): "Tego: Tracy, I wanted to start off with just, just the pulse on what's going on in real estate market here in Albuquerque. If, if you've been listening, you know, we've been talking about how kind of, I know that the, the, the term everybody's using is how crazy the real estate market is in Albuquerque and it's, and it's everywhere. It's not just Albuquerque is an entire country. And just to kind of give a feel and, and then we're going to talk about this whole buyer fatigue kind of thing. Tracy, you did a video that, that we're, we're sending out just talking to buyers about, okay, it's hard, it's difficult. However, it's worth it. It's worth it. And let's, and we're going to go through the reason why it's worth it and, and, and really helping buyers discover their why on home ownership. So, but first off, just some stats. Tracy: I know Stat-O-Matic, you know, some of the things you've been teaching us in our team and posting for the public has been pretty eye-opening and stats. You don't see in the headlines anywhere. Right? Well, Tego: And I, I, it's easy to come up with average sale price. Number of homes sold all of that. That's fine. And that's great. And it shows us some, some good information, but it doesn't get to kind of the core of, of what a buyer should be thinking about when they're putting together an offer, what a sellers should be thinking about when they're getting ready to put their home on the market and price it. And all of that, a couple, but I'll start with just some big, big stats. Just what I did is went back and looked at the last 30 days, of course, in comparing it to last year, same period, which was a weird time Tracy: We were shut down last year, we did not do anything. We didn't even go to the store, correct stores. We had limited hours and limited availability. So we were figuring out how to show houses last June, but this is may. Yeah. Tego: What happened? You know, this, this time, last year, this is last half of may. First half of June is what I'm comparing. Right? the number of homes for sale is down, even from that period. And that's when it just fell off the cliff. Right? Right. But the number of homes on the market, so we're down 28% of homes on the market versus last year, same time list, excuse me, not list price. Average sale price. Average is up 25% versus last year average sale price. At least this, this little less 30 days, snapshot is now $323,000 per Albuquerque https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Monsoon Season is back in Albuquerque: Is your roof ready?
(Transcript Snippet): "Tego: We can talk about how high the river is this weekend and why is it high this weekend? Because monsoon is back. Tracy: Oh, let's talk about rain. Yeah. Hail and rain that we had in the Albuquerque Metro area. I know we had it all along the Rio Grande valley and Santa Fe. Well, and then the other day, Tego: The other day, it, you know, there was another cell that rolled through Albuquerque was that Thursday night, that was, it was pretty intense. It didn't hit where we live, but I know some parts of town got. So deluge as they say, Tracy: We had some loud thunder and lightning, like 9:30, 10 that our dogs were not happy about. Tego: Well, it's great to get the moisture, but let's talk about the home ownership part of this ownership. Tracy: Right? So roofs, we've talked about this a lot lately, like time to get the roofer out and I hope you already did it because what we know is this week, the roofers are very busy, right? We had huge amounts of rain on Tracy: Memorial day. Well, we had Tracy's. We had a long Tego: Time with no rain, no moisture. And then all of a sudden we get all of this all at once and roofs over time, they dry out, they crack there's, you know, seams that crack and open up and we don't know it until it rains. So Tego: Get up on your roof, Tracy: Get up on your roof. Tego: Oh wait, let me rephrase that. Getting on your roof could be very dangerous. So disclaimer, please have a professional. Do it. If you're uncomfortable, I'm not recommending that you get on your roof.
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Non-Financial Reasons to own your Albuquerque home
(Transcript Snippet): "Tego: On a side note on that, you know, I told you about, I think you listened, oh, I made you listen to, I made you that podcast from, gosh, I can't think of his name and I'm sorry, the CEO of Homeland, Tracy: Right from Santa who's based out of Santa Fe. Tego: Yeah. Santa Fe Albuquerque. And they, they really specialize in, in homeownership, helping people that may be one, otherwise have the opportunity to participate in homeownership, have that opportunity Tracy: That would be priced out of the market. Yeah. Yeah. Tego: And They, they have a whole thing to have coaching and they have a bunch of things to help people get into home ownership. And he said something that's really stuck with me. And that is that home ownership is affordable housing because he talks about, you know, that, that Tracy: How much rents have increased, how much rent is increased, Tego: But that when you're a homeowner, you know, for the most part, your cost of housing, this is a national stat, 10, your cost of housing is 10% less than renters as a whole. And I thought that was important, but okay. I was going to say, I was going to say the nonfinancial and here we go. I'm going all financial, Tracy: That was Jesse Abrams, with Home Wise Tracy: Really interesting. And since you brought it up, let's talk about that just a little bit longer. Okay. So, you know, well, Tego: It's so funny, we started off that. We're not going to talk about the financial reasons for owner home ownership, which there's a bunch of them we'll get to that, but go ahead. No, this is, well, Tracy: One of the things that really struck me that I hadn't hadn't really, I mean, I've heard it, but I, the way he said it, I really understood it. And I probably won't be as eloquent as he was in his podcast or the interview https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
National Home-ownership Month: Surprising stats in the Albuquerque Housing Market
(Transcript Snippet): "Tego: Great. Couple of things that are really telling about what's going on in the market. We just heard Eddie story about going to a house in cars, lined up around the cul-de-sac that that's pretty commonplace right now in, in the market. I pulled out a couple of stats just to give you an idea of some things that are going on in May, 2021. We had our list price to sell price ratio was 101%. Okay. That's a pretty normal, you know, stat that we look at that list to sell price ratio and you know, customer, I mean, it dropped as low as 95% something back, you know, when the market was really down, but, you know, traditionally is somewhere around 97, 98%, right there, a little bit of discount off of list normally. Well, we're at 101% in may, but it doesn't tell the whole story. Tego: And so what I did is I went into the MLS extrapolated, a bunch of data and found that of all the homes that closed in may, which means these are homes that probably pended sometime in March, April, let's say late March and April 50% of them sold for over list price. That is unheard of. It is unheard of. And that, that is very telling about what's going on in our market. And then, so Tracy, let me ask you this because, so I'm sure some of you are going well, how, why don't you just list them for more? Why are they, you know, why aren't you just listing them at a higher price since they're going to sell for a higher price? Well, why, why don't we, Tracy: Well, we could try, right. But what we have found is if we price them for the real market, people do pay more typically, but we don't Tego: Price it for the real market. What does that Tracy: Mean? I mean, we're looking at historical data, right? We're looking at most recent sales in the area and saying, okay, a month ago, this house nearby was similar. It's sold for X. So we're pricing it based on what is showing up. But when we price them over that we have seen over and over again, even in the last two months, right. Tego that the houses that we start to high end up getting price reductions. And I bet you have a stat for that.
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Is it a good time to buy or sell your Albuquerque home?
(Transcript Snippet): " Tracy: What we hear regularly Tego, and I know you've been listening to these podcasts and we've talked about it. Is it a good time to sell? Is it a good time to buy? Tego: Yeah, I heard, I heard somebody reframe this and it was just like, it was a, it was a light bulb, you know, it was just like, yes, of course the question. Is it a good time to buy as a good time to sell now if you're a real estate investor, maybe that is a good, that's a fair question to ask. I would even debate with that, that maybe it isn't, but if th th the question you're asking is where am I going to live? Tracy: Right. Instead of, is it a good time to buy or sell? Where am I going to live? Might be the better question. Tego: And so if you're a homeowner and you're saying, okay should I sell, well, where are you going to live when you sell? Right. And so what what's, what's a better option for, and I know people go through this, right? They, everybody goes through this exercise when they're thinking about it. I just, I think this whole idea of when a time the market, oh my gosh, are we in a bubble? Are we gonna, you know, are we the top of the market? Is, should I sell now? Will the prices are high? Or, you know, are they going to go down next year, blah, blah, blah, blah, blah. It's like, no, where am I going to live? Next is I think the question, right? Interesting. Tracy: So I had a gentleman call yesterday and wanted to speak to one of the Venturis, which was cute. And he he had our number from when we were on TV with Barbara Corcoran, doing ads with Barbara Corcoran. And he had written down our numbers, our office number and ourselves numbers from that commercial. And I don't know, I, he kept track of it. So he called yesterday and we talked because he's thinking it might be time to sell, but he's thinking maybe now maybe four months from now, maybe two years from now. And he wanted to ask that question, should I sell now? What's the market going to do? And so, of course I was asking them, what, where are you going to live? And what are you going to do if you sell now? And what's the motivation. And, you know, he feels like it's a good time to sell, and he does have a place to live. And he said, there's an active adult apartment complex nearby that he's kind of curious about, cause he lives alone and he's 60 years old now. And he thought if he moved into the apartment complex where there's 55 plus active adults, that he might have more social going on. So that was interesting not. And so the question I asked him of course, was where are you going to live if we sell it now? And he had that all figured out and it sure made good sense, didn't it?
Where are all the Albuquerque homebuyers coming from?
(Transcript Snippet): " Tego: Yeah. So one thing I wanted to get to Tracy is this whole narrative. I, you know, I've been interviewed now a couple of times by the journal about the Albuquerque journal. And I appreciate that. I mean, I, you know, I, I hope I'm adding some, some value to the stories we're doing on real estate here. And one of the questions that always comes up and I heard it again on a podcast, I know I drove to grants and back the other day, and both directions, I listened to podcasts from housing economists and people like that. That's what I do for fun. Anyway. That's why I was able to do it. But you know, th this whole idea that, oh, that's the Californians came, you know, where are the buyers coming from? We keep hearing that all these people coming from? Tracy: Everybody says, oh, the Californians are all coming here and buying our, built our houses with cash, especially luxury. Tego: And we hear that from our friends, at our agents in Austin. We hear that from, I mean, it's everywhere. It's everywhere in the country. You know, the, the one person I was listening to there in Sacramento, and they're saying, well, it's all those bay area, people coming to Sacramento. Well, it's partly that, but the little, the dirty little secret, it's not even really a dirty little secret. It's just the, the reality is most of the demand that we have in our markets is coming from within, right. It's, it's not, you know, people coming from elsewhere, it's just households getting formed people, not wanting to live stacked on top of each other, in apartment buildings anymore. The lack of, of rentals. And we're gonna talk about that in a second. And, and so, you know, it's, it's whole narrative that it's, oh, it's, it's those other people coming in and stealing our affordable homes. It's like, well, no, I think you need to let that go because yeah. Okay. There's always going to be people coming in and out of markets, but you, you can't say because it doesn't, it breaks down when you realize that this is happening in every market, around the country, except New York, and except San Francisco, Tracy: They're all saying something else because people aren't flocking there, right? Yeah, exactly. Everybody else says, oh, the new Yorkers are buying all our property, or everybody from California is coming and buying our property. So yeah. We'll have to do a poll of our most recent buyers Tego at certain, and just kind of see where they're found. I mean, we know generally have a pretty good idea of a pretty good idea. I would say probably 90%, 85, 90% at least are local. Yeah. Yeah. Or there, they were in New Mexico and are coming back to New Mexico for some reason.
Albuquerques's luxury Real Estate market: Things you should know
(Transcript Snippet): "Tracy: Say that not every house with a pool is luxury. We just in the last couple of weeks, we've had two transactions going where the houses were under 300,000, had a pool. I went to an inspection on behalf of one of our agents, who's out of town for the holiday and I happened to go and meet her clients and let them in their house. And it's a $250,000 house with an in-ground pool with an automatic cover. And it was two 50. So, you know, you think of a pool as a very high end luxury item, but there are pools on, on homes around not, we're not like some markets, right. Pools are not common here. The high desert, it gets cool at night. Yeah, Tego: It's not like Phoenix. When you look at a Phoenix, satellite aerial and you look down and every other house, or maybe every, maybe two to two out of three. Yeah. Obviously depends on the neighborhood. Tracy: Most of them have pools the majority. Yeah. Yeah. So Tego: One of the stories I saw last week and I was sitting there reading it when you walked into my office the other day tracing it. And I think the headline was, I might not get this just right. But it was basically, you know, the new status symbol in the country is, you know, outdoor living spaces, you know, glamorous, outdoor backyards or outdoor spaces, you know, and of course here in New Mexico, it's great. Cause we do have, you know, almost really almost four seasons, but let's say three seasons where you can really, where you can be outside if you do it. Right. Yeah. Tracy: And you know, I also saw an article. So you were, I walked in on you with an article and I had just read one in a, in a travel magazine. And they were talking about all the movie stars and actors and actresses doing outdoor living. And that was a huge thing. And how over the top they were. And it was kind of interesting, but we see a lot of beautiful outdoor spaces here in New Mexico. One of my favorite outdoor spaces in New Mexico is at the Hyatt, Tom. I Tego: Yes, it's pretty nice. That's such a great, if you haven't been out there, it's like going to a different world. You know, you just go a little bit north of, of the city here and you're kind of in a different place and you've got that beautiful view out there.
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.
The demand side: Why there are so few homes in the Albuquerque's Real Estate Market?
(Transcript Snippet): Tego: Speaking of, of misinformation. I hear a ton of people going, oh, but the foreclosures are coming, the forbearance, the everybody's going to be, you know, all these homes are going to flood the market. Well, one of the supply challenges has been that we've had this foreclosure moratorium since the beginning of the pandemic, which is great. I get it. I understand, you know, help people out that, that, you know, were basically unable to work for stuff out of their control. Right? We've got these forbearance plans, which are keeping people in their home that, you know, maybe would have been selling, but you know, on a forbearance plan, they're not paying their mortgage. They're able to stay in their home without a monthly payment. Now that's going to catch up to them at some point, there's going to have to make good on it at some point, but there are a lot of people that have been, been not making a payment for a year in or more so again, that's another COVID related reason for the short supply as this, again, these foreclosures distress sales not coming on the market. Tego: There's been a few, but it's, it's very limited, very, very limited it's any of the mortgages that were backed by any of the, the government plans. Those homes are not being foreclosed. Okay. Let's talk about demand. Homeownership rate dropped to a, a pretty big, low back. I'm going to pull up this chart here from the the fed they've do some great charts. And, and so in, just give you some perspective here in 2004, 2005, this was an all time high home ownership rate in the United States was 69%. That was a really high number. However, what happened was it dropped to a low in 2016 of 62%, which was really, it was a historic low. And I remember back at that time, there was all those stories, oh, these millennials, these young people, they are not going to want to own a home. Tego: They're going to want to live in, in the city. They're gonna want to commute to work in the Uber and they're never gonna buy a house and they're never gonna buy a car and they're going to get their door dash delivered and all this. Well in 2016, we saw reversal and ever since then, we've had this increase in home ownership rate. People started to come into the fact that home ownership is great. You know, there's tons of advantage, not just the financial, but it, you know, there, there is a lot of other reasons just American dream, that, that, that whole conversation, I won't go into all that right now. But so ever since 2016, we have seen an increase in buyer demand around the country. Another part of this demand story is something I just mentioned, which is the demographics, the millennial generation is the largest demographic generation ever in American history, bigger than us boomers on what do I call myself? Uh, I'm a tailing boomer. I'm a little older, a little younger boomer, but anyway, they are the biggest generation ever. And they're right now in their prime home buyer, first time, home buyer years. And there's a Logan Mashami, who's one of the, uh, economists housing economist. I follow. He's been, he's been talking about this for two years, that it's coming come to 2020 through 2024. We're going to have all this big, this big demographic of people coming into home by an age. And, and that's, what's happened. They've moved into home by an age, and that has driven demand a lot faces. Okay, let's get back to this demand thing. So, um, I, the demographics thing I hit on that let's talk about, um, the fact that there's a lot of people that were on the edge of buying had kind of been on their list.
The supply side: Why there are so few homes in the Albuquerque's Real Estate Market?
(Transcript Snippet): "Tego: So let's go through this. Why do we have so few homes on the market? Let's just talk about the supply side in the last 10 years. Well, let's put it this way. There's been a 10 year plus years of under building new constructions. There just haven't been enough homes built to take up the, the demand plus future demand. And future is now here. I'll get into the second, but we're going to talk about the whole millennial thing and why that, that demand is there. So the future is here and there's big demand, but there's been 10 years plus of underbuilding. There's a lot of reasons for that. Just give you some statistics to back that up from, in the seventies, in the United States, there are 11 million homes built in the eighties. There were, let's see, 9.8 million home built in the let's say the, the, the 2000, right. Tego: There were 12.6 million homes built. And then in the 2010 to 2019, there were 6.5 million home built. So, so you see about, you know, we've had this huge decrease in the number of homes built, and so it's really affected and just what's available. Couple of things have created that. Why were there so few homes built over the last 10 years? Well I will say that it's, it's partly just being conservative, the people, I mean, a lot of people got hurt in the housing bubble builders, developers, contractors, obviously. And, and they they've been much more conservative, but the ones that made it through, and then there were a lot that didn't make it through. Meaning there just were less home-builders in, in the entire country. Tego: One of the things that happened was the cost of lots, meaning finished, ready to build lots. So what happened was at the end of the pandemic, we had all this oversupply, a vacant lot ready to build lots. Well, now those all have been used up and they've been used up now for a few years and th the process to bring new lots new building sites out of the ground. It's a slow process. Think a year, two years, three years permitting construction investment, and again, millions of dollars of investment to get these subdivisions built out. And you know, people are being conservative on their investment. Interesting thing that that happened in the mid let's say 2013 to 2018, there were a lot of stories about the lack of skilled trades people. And it, you know, people that follow the news, you probably heard this well, that trend really caught up to us. Tego: What happened was at the end of the, the housing boom. And while at the beginning of the housing bust, let's think 2009 those jobs just kind of went away. A lot of people left the trade, the skilled trades, electricians, plumbers, framers, you refer to all, all those things. And I mean, there's a story from 2013 here I have here from Forbes talking about let's see. So the, the headline is, and this is from 2013, but think about this American skilled trades dilemma, shortage, loom as most in demand group of workers by ages and most what happened is over the years here, the trades people just were getting older and older and there were less trades people coming into the industry. When I talked to home builders or any of the groups that do surveys with home builders here, locally myself, or nationally with some of these other folks, when they talk to home builders and say, okay, what are your challenges right now? How come you're not building more homes, right. We're all saying, why aren't you building more homes? We need more homes there. They're just saying, well, costs let's put cost aside. That's a whole other conversation. Their costs have gone through the roof, but, but labor that just skilled construction labor is in high demand. And so they're, you know, they're, they just can't basically get people to build the homes as fast as they would like. So that's one part. Okay.
Is this the right time...to buy an Albuquerque home?
(Transcript Snippet): " Tego: Can we talk about this whole, is it a good time to buy question? Cause it's it's you know, obviously it's, it's a tough question to answer because we don't know, you know, nobody knows the experts don't know what is going to happen with the overall economy of this country. And I know there's a lot of opinions out there, right? You can jump on YouTube and you can get as many opinions or get on Twitter and get as many opinions as you want about the overall economy. And, you know, consensus, when you, when you listen to the experts, I do my air quotes, experts, you know, the economists and other people that are, you know, the pundents on the economy, everybody, you know, is saying there's, doesn't appear to be anything. You know, this is going to slow this down right now. Now, now in of course you, you know, you just look at the stock market, which is always the, the kind of the leading indicators. It's a leading indicator of what the economy, at least how people feel about the overall economy. Right? And so, you know, right now everybody feels good about it. Now, now inflation is the big topic these days, right? Inflation is, is very Tracy: It's very inflationary, Tego: Good answer. And I'm glad you laughed with me. Yeah, no, I know. I, and, and, you know, to be honest with you, I'm just going to give my opinion on this. If inflation is going to get, jump up, which it appears it is, or we're in the middle of it right now, we don't have the data yet, but you know, inflation is going to run up hard assets. Aren't what you want. Right. Tracy: Which is real estate a hard-ass correct. Right. Because you've already locked in the value of it. Correct. And your money won't buy as much with an inflation. Okay. Tego: To replace that asset is going to cost a lot more than it did today in the future. Right. And so to highlight that, I've got that story that I put on. Where'd I put that, I put that on Facebook about the cost of lumber, right. That's been a big conversation in our industry and, and actually it's kind of funny. It's kind of been all over the place. Lumber's kind of like this whole Canary in the coal mine thing about, you know, what's going on with, with housing, but you know, you talk to home builders. It's not just like, no it's Tracy: Windows in stores. It's light fixtures, it's facets. It sinks, it's bathtubs, it's it's everything. But lumber is a big pack part of the cost of construction.
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
How affordable is housing in Albuquerque?
(Transcript Snippet): "Tego: Tracy. You said something and I wanna, I wanna cause you corrected me the other day w you, you hardly ever do that. So, so I was talking with our team about the market and what's going on and just going through some data. And I was talking about how, you know, these homes under the median price of two 60 are selling really quickly. Right. And, and you made a really good point. You said, look, you keep saying, it's like the lower price point. Well, we've seen, you know, million dollar homes come on the market and have multiple cash offers right away as well. So it's, it's really every price range. It is. Now the thing that's curious about that as you look at the MLS and there's six, 700 homes, all that's on the market at any given day right now in our MLS. And there are a fair amount of homes that have been on the market for 30, 40, 60, 90, 180 days. Well, obviously there's something going on there, right. And maybe, maybe their price is still just too high or maybe that's a condition issue or the old, you know, location issue. Tracy: It's some, some combination or one of those things for sure in this. Tego: Yeah. The, the, the point is that demand is there and maybe the product just isn't fitting, you know, for the people that are out there. But yeah, it's every price range is, Tracy: Do you have any stats for that? Well, Tego: Like in the, in the higher end, you know, we've basically seen double putting it on the spot. Oh no, that's fine. I can, yeah. I, you know, in the higher end, what we, somebody asked me, he said, well, what's considered a luxury in Albuquerque. And it used to be just under 500. Now. It's probably over, I haven't calculated it in, in the last couple of months. Tracy: I think it's not necessarily by the numbers. This is not where a statistician makes it make sense, but it's what is our perceived luxury price? There is a definition I know there is, but you know, in my mind, I'm not the stat person. So in my mind, it's the perceived, it's like a half a million and above is what we consider luxury generally what people think. But yes, there's a stat for it. And the number is different from that. Tego: Well, the stat is it's the top 10%. Tego: Okay. You know, this okay. Of, of all the homes that sold, what are the top 10%, you know, of all those homes, what prices, you know, in above. And, and so, yeah, right now it's right around 500,000 and above. And so if you look at that price range, 500 and above the number of sales, it's not quite double, but almost doubled versus versus last year, you look at the, what I consider like the ultra high end, maybe a million, 1,000,002 it's, it's more than doubled.
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Albuquerque forbearance updates
(Transcript Snippet): "Tego: It has to do with, with what's going on with the forbearance world. Right. So if you're not familiar with it, when the pandemic started there were a lot of these programs that came into place to help people with mortgages Tracy: Couldn't afford to pay them, could Tego: Couldn't make their home mortgage payments enter into a forbearance program, meaning they're, they're basically putting their mortgage payments on hold. And, and of course, you know, now we're, we're past a year out. And and so there's been a lot of them that expired because, you know, I think initially it was what six months, or maybe it was three months and it extended and, and a lot of them, you know, are up on a year now. And so, so there has been a lot of explorations in, in what what's happened is as they've expired, meaning the plan most of these people have come off the forbearance plan, Tracy: Right? When you look at the numbers, the decline was pretty significant of people in the program. Okay. Yeah. So people Tego: Exiting the program. A lot of those people came, you know, did a workout plan with their, their mortgage per, you know, their mortgage servicers. We call it and meaning like, okay, we're going to, you know, set up some sort of repayment plan so you can get back on it. Some people didn't, and that's a really small number. And then some people extended again to that may, that may not have so, but, but the, the point is it's about half, I think from a year ago, shoot, I saw it earlier and I read the data on it, but substantially less number of people on those forbearance plans. And every month it keeps declining and the point is, it's going in the right direction. It's not looking like we're going to have a flood of foreclosures for, you know, people that, that have gone into foreclosure. Tracy: And typically what we've seen Tego for people that have come out of a forbearance program that maybe didn't pay their monthly mortgage for a year or some number of months during that year is a lot of times they took that amount that they should have been paying. And the lender put that at the back end of their loan. So it's not like now they owe 10 months or 12 months of mortgage. Right. They just added it onto the end of the loan. So now they've got a 30 or 31 year loan instead of a 30 year mortgage. Right. So it, th the, you Tego: Know, again, the takeaway is it's positive news for, for that situation. I know there was some really big, scary numbers, you know, last year on the number of people that weren't paying their mortgages, but every month it gets better and better.
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
April 2021 Albuquerque Real Estate Market update
(Transcript Snippet): "Tracy: So Tego tell us a little bit, I know you just did a market update for 2021. I'm curious, 2021. So, the median price. Tego: Okay. I got, I got rapid fire for you. You're going to love this. You're going to love this rapid fire. Okay. April, 2021. Here's the rundown. You can also look for my video that I just did on this. It's on my Facebook and on our YouTube, but for April average sale price, 314,787, basically 315,000 average sale price. That's up 12% in the last 12 months. Okay. That's March through April medium sale price, $273,000. I remember when it went over 200, not that long ago. Wow. That was a big milestone, right? Medium sale prices now to 173,500. That's up 13% over the last Tracy: 12 months. And tell us what median is. Tego: Median is,uthe, the number between all the lower price homes you take. Let me, let me rephrase it. I think people remember this from,ufor math, but a median is the middle between all the higher and all the lower. Tracy: It's not like the middle price. Like it's not like if the lower was to 500 in the upper was a million, it wouldn't be 750. It's the number of homes equal, lower than that number and the number of homes higher than that number. Correct. So I think that was about seventh grade Tego: I think we just confused everybody. But anyway, so anyway median of 12, yeah, it's upstairs essentially averages up substantially. And again, those move up also. Not, not just because prices go up, but also because less lower priced homes are selling more higher price homes or something. Right. Let's keep going. Rapid fire. Hey, you interrupted average price per square foot up to $160. Tracy. Remember when things were just getting over a hundred per square foot, we're like going, wow. Tracy: I remember when a lot of my searches I would set up for my home buyers. I would put in a price per square foot of like 80 to 100 per square foot. And I would have a ton of houses too. Tego: Yeah, yeah. That was back in, you know, 10, 11 up 11%, the average price per square foot over the last 12 months. And that's that's probably a really good indicator of overall price appreciation that number Eddie said earlier about Rio Rancho up 18% that that had to do with same month, right. April versus April. Right. So, you know, if you look at that, it's a little different than taking the whole rolling 12 months. So number of homes on the market down below 700 in the first time ever again, all in 1930
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
The power of pre-approval in the Albuquerque Real Estate Market
(Transcript Snippet): "Tego: So I wanted to jump over to this whole conversation about being a buyer in today's real estate market in Albuquerque, and this whole idea of getting pre-approved or pre-qualified I know those terms get used interchangeably, but the, the term we've been using, and the thing we've been saying lately is the power of the pre-approval. And what is that? And why is it so important for folks Tracy: Is very different from pre qualified? Yes. Pre-Approval means you're approved. We've checked your credit, we've checked your employment. We've looked at your taxes. We're very confident that unless something changes and you go buy a truck and a new appliances or something, and open a bunch of credit, that you're a very, very strong borrower. Tego: You lose your job. That's your job. Yeah. So, the whole idea of this, the power of the pre-approval is it gives well, it not only for when you're, when you're making a offer, obviously when you're making an offer, you need to have that to show that you are a qualified buyer for that property, because when we're getting homes where you have 20 offers, and that is not an exaggeration, we are getting, you know, 20 offers on homes. When they come on the market right now, it shows that you're ready to go, right. Tracy: Makes you much closer to a cash buyer than a pre qualifier qualifying. Tego: Talk about what the differences between lenders Tracy and, and how important that is. Tracy: Sure. So last weekend, you know, Tego, I spent most of the weekend fielding calls, texts, emails about a house that I had put on the market. And it was a hot property obviously. And in the end, we ended up with 21 offers to sift through and, you know, the it's, it was interesting. And I kept saying that to you, I kept saying, Tego, look at this and see how they compare it to see this offer versus that offer and how they structured it. And honestly, the, there were a couple of cash offers, but there were a couple financed offers that were exceptionally strong, where the terms that they had offered in addition to financing made sense. They were waiving appraisals, they were waving inspections, or they were paying for things that maybe a seller sometimes pays for in our market. They were really tipping it in their favor. Sure. So, so the ones that were pre-approved from a local trusted lender versus ones where a lender letter came in and it said you're pre-qualified. And once we check your credit and your stuff and subject to and subject to, then we will feel more confident. It says, this is not to be used for anything basically. And, and the ones that were from that were pre pre qualified, not pre-approved and from a lender I'd never heard of, or from an out-of-state lender, they just didn't have the weight of a good local, trusted lender. Tego: It has a reputation in Albuquerque that also has a reputation to protect and wants to make sure that they're doing the right thing for our community. And there's a bunch of those. No doubt about it.
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Is Albuquerque experiencing another housing bubble?
(Transcript Snippet): "Tego: The quote that I've been repeating is from Laurence Hune, who is the chief economist at the national association of realtors. One of the guys that I follow guys and gals, there's some great housing economists out there that,uI follow. And,uyou know what, they're all on Twitter too, which is great. I can, I can get an update, you know, hear what everybody has to say. Anyway, his quote that's been repeated quite a bit right now is this is not a housing bubble. This is just a lack of supply. And, you know, we were talking to some folks the other day, Tracy,uat lunch, you know, and, and they were like, well, you know, well, there were no homes built. Well, yeah, that's part of it. Yes. We had very few homes built. Right. Tracy: We were down over a 10 year span by about 20 million housing starts, right. During the teen years of 2009 to 2019, right? Tego: No, no. Yeah, no. Tracy: Instead of 28 million houses built over that timeframe, there was about 6 million. So that was a huge number of houses that we needed to be built to accommodate what we need right now. Tego: Yeah. And here in Albuquerque, we're actually behind even some of the other markets and Southwest in construction, we have not built at the same pace as some of the other markets. So yes, we were definitely behind in new construction. There, I mean, again, there's, you know, it's a perfect storm of things happening, you know, we've talked about the fact that a lot of people decided not to sell last year for whatever reason. Right. You know, w we, April, may of last year, half the number of homes came on the market that normally do Tracy: So April, may last year was the beginning of COVID. Right. We didn't know what was happening. People were at home, they weren't going out. And I mean, how could people decide to make their house available to be purchased or for sale during the beginnings of the pandemic? I mean, it's, it's easy to forget how difficult it was. Then we did not know people were, you know, not even bringing groceries into their house before they let them sit for a day or two or wipe them all down if they had some sort of disinfectant. So selling a house was not the top priority a year ago. Tego: Yeah. No. So, so that's part of it. So we've never caught up from that. So we got me find the, the thing is, and I've said this many times is February of last year, 2019, 2020. We were, we already knew that we were going to have tight supply, you know, the, the pandemic just kind of exacerbated the problem that was already building and had been building. Right. The, the other thing you have to account for is the millennial boom, right? The number of people that are turning, you know, are in that age from the late twenties to early thirties that are doing household formations.
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Selling your ABQ Home? - Top Tips for Albuquerque Home Sellers
(Transcript Snippet): "Tego: Last thing we want to leave everybody with this week is if you are going to be selling your home this year, Tracy, what are some tips that people can do? Cause we know homes are going to sell for the most part relatively quickly in this market, but they may be let me leaving money on the table potentially right. Tracy: Possible. You know, it's, it's interesting because we want to make sure when a buyer goes in your home, it's appealing to them that they're attracted, that they feel comfortable. They feel welcome. And with COVID, it's been a little bit hard, you know, we were making people put on, you know, some, some houses I show they want me to put on booties. They want me to put on gloves. They have hand sanitizer to use. They have, you know, the whole mask protocol. They don't want me to touch anything. They don't want me to open doors or cabinets. They, you know, so we walk through and it's uncomfortable. You know, the more comfortable you can make it the better. And one of the ways is get a stager in. So even if you're living there and you know, still occupying the home, have a stager, come in and take a look with you and say, Hey, you might want to move that picture over here and switch the couch this way. I know the couch works good for watching TV this direction, but it's going to feel a lot better and make your home live larger or be more appealing to buyers if you change these things around. Tego: So stagers are professionals they're, they they're designers. They're they're, you know, designers, but they're really specialists in merchandising, a home to maximize the desirability for, for home buyer. So staging is, is, is critical Tracy: And it maximizes the home sale for sure. And you know, a couple of weeks ago it was probably been three or four weeks. Now we had a house and we looked at it and went, I don't know, it's just not, not what people are going to want. The stager went in and we went back and went, Oh my gosh, this house looks great. And, and the buyers were raving, but you know, it, it maximizes your money to spending a little bit to stage if it's occupied versus vacant, obviously vacant homes, Tego: Just to be clear, staging doesn't mean bringing in furniture in many times, it's just redesigning what you have. Like you said, I'll make that clear. Tracy: Stager will give advice and say, Hey, pack all this stuff up, put these, this collection away. You know, things that sometimes it's hard to say, but that's their job. And you know what? We have some great stagers in our market, you know, really, really good staging. So there's plenty of them here, great things. And if you do need to supplement with some furniture, they can rent it to you. Or if you need a whole house staged, that's possible too. Tego: You know, the other thing that that's, it really it's just work. It's no cost is clean, clean, clean, clean, you know, people want to see nice clean. They don't, they don't want know about anything. You know, they want the house to be theirs. And, and so cleaning bathrooms and kitchens in particular make a huge difference and little details. It's the light switches tops of the baseboards, right?
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Freddie Mac forecast: What experts are saying about Albuquerque's Real Estate Market
(Transcript Snippet):"Tego: What about the forecast? What are the experts saying? Tracy: Well, as the market recovers from COVID. The housing market is going to stay healthy and slowly mortgage rates will move up. I don't expect to see anything very quick on that. Right. but that's, that's the forecast from Freddie Mac. So Freddie Mac, I'm not, I'm not I don't have as big a team of researchers behind me. I'm quoting Freddie Mac. Well, of course, while you've got me, I know you're my number one researcher, and I'm every morning over coffee. I appreciate hearing about it. Tego: So Freddie Mac does a quarterly forecast where they look into Freddie Mac, you know, as one of the the, the big government sponsored mortgage funds basically. And they always look and like, kind of give a forecast what's going on and what they're saying for, you know, right now we're somewhere around 3.1, 3.2% interest rates that, you know, it fluctuates obviously, but they're saying through 2021, it's going to stay pretty close to here in the low mid to low, to mid, to low threes. They're even saying for 2022, they're saying 3.7. So still not even getting to that, that 4% even next year. Interesting. the number of home sales they're predicting to be above last year, last year was a record year, 6.5 million nationally. This year, they're saying 7.1 in 2022, they're saying 6.7 million homes sold. So again, they, they are expecting a healthy growing residential real estate market. Tracy: Let's talk about the number that I hear the most that people seem to really want to know about when people are saying, I can't buy a house prices are too high. Well, Freddie Mac says, prices are going to keep going up for the next two years. Yeah. Tego: And not just Freddie Mac. I've seen that on all the air quote experts are saying the same thing, right? Tracy: So they're saying home prices in 2021 across the States are expected to average 6.6% up. And we're definitely seeing that in our market and many others that we watch. Tego: We're going to be ahead of that this year. I mean, I'll, I'm going to say this right now in April of 2021, that we are going to see probably double I'm going to I'm not going to say probably we're going to see double digit home price growth for 2021. I just, there's no writing on the wall that says that home prices aren't going to keep going up. Unless we get that, you know, the so-called black Swan, Tracy: And they're saying, they're going to keep going up in 2022. Now this is really early. It's April, 2021, where they're forecasting next year's home price appreciation. And they're saying four and a half percent appreciation, 20, 22 nationally. That's nationally. Yeah. They're not saying things are going to pull back. And everyone that bought https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Patience is the Key! - Albuquerque Home Buying Secrets
(Transcript Snippet): "Tracy: You know, the, the topic Tego that we wanted to talk about, we can jump right in. Right. you know, stay calm. Right. The market's hard for home buyers right now. Tego: You know, one of the things that we've seen a lot of, and if you are a home buyer or know somebody that's, you know, looking to buy a home right now, a frustration seems to be the key term. Right? Right. Tracy: Yeah. It's an emotional roller coaster, right. Being a home buyer, you go, you look at houses, you pick your favorite one. You get that offer in right away. That seems like a good offer. And you don't get selected. And you F you know, you go back out and look for more homes and find another one, and you get all your hopes and dreams in that house. And my family's going to be here and, and you put in an offer and you might not get it. You know, that could happen several times. It can be very frustrating. But it seems like lately Tego, especially, I've always said this, but I've seen a few instances in the last few weeks where the house, the person didn't get the first time the house that they ended up, being able to buy and being selected to buy is really the better house. You know, it was like, meant to be Tego: Times over the years, we've seen that Tracy and we, we can personally attest to that as well that, you know, we lost out on a house. We were purchasing and turns out the home we ended up buying was even better. Tracy: Yeah. Oh my gosh. I'm so glad for what we ended up with versus the offer that didn't get accepted. Yes. Tego: So, so I think, you know, I think th the, the takeaway for, for buyers right now is patients, patients, patients, you know, it, it is going to take some time or you might get lucky, right? You might decide, okay, now's the time I'm going to go talk to a lender. I'm going to get my pre-approval, I'm going to be ready to go to buy. And you start looking and all of a sudden, Oh, well, there's the perfect home. And you get it. Tracy: And you ended up being able to buy it, Tego: Buy it. However, more today it's people are having to put in multiple offers. You're going to have to spend a lot of time watching new home listings as they come on the market to be, be there, ready to go, to go look at it. As soon as it's as available to hit the ground running with the offer and in a great realtor, Tracy, we're going to, we're going to talk about the realtor community here. And I know we're kind of preaching. We're talking about ourselves here, but having a great realtor is key, right? Because what's that realtor going to do for somebody that that's looking for that home?
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Albuquerque Real Estate Market: Multi-Generational Housing on the Rise
(Transcript Snippet): "Tego: Tracy, I'm going to change the subject. And I want to ask you about this trend that we've been seen now for quite a few years, and it's really catching on and the thing that's interesting talkie, well, wait, hold on, hold on. I'm building it. I'm building or making us wait. It's the multi-generational housing and, and we've seen builders adjusting their, their products to this meaning that has a, you know, there's a lot of different terms for it in law suite, in New Mexico, it's the casita or it's the granny flats, or, you know, whatever, whatever you want to call it. It's, it's kind of like the second home within the home and, and the thing that's interesting. There were some interesting stats here. Tracy, did you see this one? I did not. Yeah, it's a, well, there we go. So the percentage of total home sold in 2020 that were this kind of multi-generational type type home, where again, it had one of those things the, what did they call it? ADU auxiliary dwelling unit is another term you hear sometimes too. 12% of the home sold. Well, that's a pretty big, pretty big move in there saying the spring of, of it hit it, it hit even higher. So yeah, Tracy: You know what I find interesting looking at this visual that you pulled up that I hadn't seen before is the most common age range of these buyers for these homes that have, that is 41 to 55. Now that's young. These are people who are being [inaudible], but and the second age bracket is 75 to 95 years old. So they're buying it and having a space for them and moving in one of their child, children or something. But it's interesting. Cause 41 to 55 is pretty young right together. It's really young and they're buying these houses with a Caseta or an in-law suite or an extra living area that is available. So Tego: Did you want to hit on the benefits that people are saying from it was that where you were going? Tracy: I wanted to just say, you know several years ago Dr. Horton and Pulte started adding that option into their floor plans and they had spectacular, they have spectacular floor plans that have that in, you know, the in-laws suite, isn't just a bedroom with a bathroom, right. It's typically on a main floor if the whole house isn't main one, one level. But it also has some sort of an extra living space. So you've got a little living room in addition to a bedroom and then a small little kitchenette in addition to the bathroom, separate entrance sometimes. So we've seen that lately in Abrazo homes where they're building in the new neighborhood in the parade, Tego: You know, what can we just sidebar here for a second? Because we, we, we overlooked it. And we were talking about the parade of homes this weekend and that Abrazo homes, which is a local locally owned home builder here. They have a neighborhood right by the balloon park. Just what would it be? Just West, North, Tego: South and West of the balloon park, if you can envision that and Tracy: Behind the big horizon business building,
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Albuquerque Real Estate News: 3 Things to Keep in mind
(Transcript Snippet): "Tracy: So switching gears along the same vein, right? You were sharing with me a CNBC story saying Google is reporting that the hottest trends, some of the hottest trending searches right now regarding homes is when is the housing market going to crash? Tego: So get this Tracy that search has spiked 2450% in the past month. And it it's interesting right Tracy: Along with other phrases that are similar, like why is the market so hot and how much over asking price should I offer on my home in 2021? So it's interesting. Those are the spikes on Google searches, which you know, I completely understand. Yeah, Tego: Yeah. You know, it there, one of the things that, that happens and I know listeners to Kiva get this is that NEWS media will take something. It's a very none, well, no, no. Yeah. The non, but, but it's, it can be a trigger for people, a very emotional, you know, the housing thing, a lot of kids that are not kids now lived through the crash of 2008. Right. And so now they're millennials right now, they're getting into that, you know, maybe buying a home or maybe, you know, thinking about buying a home, they lived through that. They watched their parents go through that in 2008. So, you know, I understand that the angst that is out there, but what I was saying is, is Kiva listeners understand that news media will take something and, and try to create a story where maybe there isn't a story, but obviously there's a story there because people are curious. Tego: It's like, how, how can this market be so hot? And when is it going to stop? We know it's going to stop the question is, is it going to be just a slow coast to a stop or is it going to be a screeching halt? And, and my feeling right now is it's, it's going to continue at this pace for a while. Cause there's no signs of anything, anything changing Tracy and, and a couple things just to talk about. So there's three things that we want to keep in mind. And if you don't see these in the stories that are talking about how there's a, a home bubble building and it thought market's going to crash, then they're not telling you the whole story. And there's one other thing too, that I'll throw in here. But, but the first one is home price appreciation leading up to 2007, Tracy, it was like 10% average over the four years leading up to 2007, eight in the last four years now, today it's been closer to 6%. So we haven't had quite the acceleration in home price appreciation that did back then. The other one, Tracy, you could speak to this. I know, you know, this really well is, is the way lending standards have been now in the last, well, literally 10, 12 years versus the way they were back
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Parade of Homes - HBACNM's Twice-a-year event for builders
(Transcript Snippet): "Tego: Okay. Tego: Let's see. Parade of homes, Tracy, Tego: Big weekend for the home builders twice a year, the New Mexico, central New Mexico home. What is it? Home builders association, HBA is just what I always call them. They do their big parade of homes where they, they put homes out for open they're open houses to show off the, the latest products and what the builders are. Tracy: Yep. And it's Friday, Saturday, Sunday. So yesterday, today, Friday, Saturday, Sunday, and next Friday, Saturday, Sunday from 11 to 5. There's 21 homes in the spring parade of homes. The the featured builder this year is Pulte homes at inspiration, which is in the petroglyph area. Just North of I-40 and West West of the river inspiration, the homes, the lots, there can be just some phenomenal views because it's sort of below the petroglyphs. And if you haven't been out that way and you're thinking of new construction, give us a call. We'd love to show you that neighborhood as well as the others that are available, but that neighborhood is quick to everywhere. There's some new cluster schools over there. There's some new, big fields. Like if your kids play soccer, you probably know that part of town. But it's, it's a great neighborhood, but in addition, lots of other homes to tour to go, do you happen to know how people are touring them in the days of COVID? Tego: Well, I don't, Tracy: I was thinking I didn't find that out either because Eddie said that we'll tell you how to get inside of them. There's the safety protocol. So the homes vary right from Corales to the West side I'm sure there's a map. So if you go to just Google homes of enchantment, but it's the websites, homes of enchantment parade.com and it's Home Builders Association of Central New Mexico. And it's all the information is right there, but you can tour if you're thinking of building anytime in the future or remodeling, this is the way to go, right? Go hit up these homes.
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Albuquerque Home inspections and Lenders: What is their purpose?
(Transcript Snippet):
"Tego:
Corey, can I ask you about home inspections? Because that one seems to be a misconception for people. So, so what's the purpose of a home inspection?
Corey:
Well, it's so you can actually get a good feel of the home and how well it's been loved and taken care of or neglected. And so it's good to have it on paper, black and white, that you can really see exactly what's going on with the house.
Tego:
Got it. And, and what is, you know, there's this process once the inspection reports done and there's all different types of inspections, I'm going to ask you about that, Melissa, but the different types of inspection, but, but core, you get this report back from a home inspector in you sit down or, you know, miss these days on a phone call, go through it with your buyer, your client. I mean, what are you looking for?
Corey:
Well, before we even go into the house, I locked to talk to my clients about the home inspections, because now it's a sellers market. We don't get to ask for a whole bunch of stuff. If something is shown on the inspection. So I, once we get the report, then we can look at it and say, okay, this is for a safety issue. And we can ask, it's kind of like a honeydew list and we can ask it doesn't mean it's going to be taken, but we can always ask.
Tego:
Yeah, you can ask for the repair. Anyway. Okay. Okay, Melissa, we in, in generally we always get what we call a full home right inspection, but what other kind of inspections are there out there that, that people should be thinking
Melissa:
At the absolute minimum? It's a sewer and duct scope or a sewer scope of full home and a termite and dry ride. If the home has in floor ducting, you want to definitely do a duct scope as well, just to make sure the ducts don't have rust, or there's rust on the tube or everything's functioning properly. The there's
Tego:
Cause I'm thinking back to that experience, right? Cause we've had collapsed ducts. We've had, we'd had, we've had offset sewer lines, right? It's like, you know, those are the big things that if you don't know it, when you purchase, it's going to really be a headache for you later.
Melissa:
Absolutely. And at least just, you know, $500, $700 for inspections is a lot cheaper than if you didn't know about that sewer line. That was an issue down the road, the backup and the problems that comes up.
Tego:
Yeah, yeah. Yeah. Sewer lines, sewer lines are interesting because you can have one that's working fine and it's flowing fine. And they, they put the camera down there and find out that it's offset, meaning that the pipes don't line up, even though it's a draining half of the water may be draining into the ground and not actually into the pipes stuff like that's right. You're aggressive. So green. Right. What was the old book from the seventies at all? I'm going to date myself. It was, it was called the grass is always greener over the septic tank. Right? There is a, it was a book anyway. Sorry. I'm really dating myself there. So the, the Oh, local lender core. I just wanted to hit on that before we run out of time here. So you w we've you both have said multiple times, local lender, local lender. Tell me why.
Corey:
Well, mainly, they can get you to the closing table when somebody is possibly online and possibly just asking through the internet, they don't know Albuquerque market. They don't know you're saying the Northeast hikes or the Northwest and our lenders. They know, they know exactly where you're talking about. They know the neighbors over there. It's just so much
Tego:
Yeah. And you know, when you, when you nickel and dime on mortgages, you probably will not always. And I shouldn't say that because I've had people that have bought using the quote online lenders and had had fine experiences. One of the things I say, Melissa, is that the local lenders have a reputation to protect amongst obviously their clients, as well as the realtor community. Right.
Melissa:
Right. Well, and then I'd also like to say, like on Sunday, when I'm going over six different offers that I might be getting, I'm probably going to call those lenders just to make sure that they'd have talked to their clients and they are truly solid buyers. But if it isn't someone who's local, they might not work weekends. Whereas a local lender does work weekends and they are willing to answer the phone and answer those questions, giving that buyer a leg up.
Tego:
So there you go. So there's another tip. As a, as a buyer, the local lender, that's going to answer their phone. That's going to talk to the listing agent again, not give up private information, but at least reassure that the listing agent and the seller know that that yep. I've talked to this person, I've done some work on their, their file. You know, they're solid, whatever it is, again, without giving out any personal information. I mean, we know that these pre-approval letters versus pre-qualified I mean, prequalified versus pre-approved, you know, pre-qualified, if you're an a, on the seller side and you start looking at some of these letters, they basically mean that they say that I've talked to the person on the phone and based on what they told me, they should be able to qualify for a loan. Right. And that's what some of these pre-qualification letters are. And, you know, in this market as a seller that doesn't really serve you at all.
Albuquerque's Real Estate Market - How does it really feel out there?
(Transcript Snippet):
"Tego:
I want to transition to another subject here. The market. I want to ask you guys, I mean, you guys know, I look at this all the time, but you guys are the feet on the street. So, so Corey, I mean, how has it feel out there? I mean, is it frantic? Is it, is it like boots on the ground?
Corey:
It's amazing when you drive up to the house and see six realtor cars with all these kids coming out and everybody's going in and out in and out in and out, it's a lot, a lot of business cards.
Tego:
Don't tell the governor, but no, I mean, it is, it's kind of a frenzy sometime when that first day on market
Corey:
And we are wearing masks, just so
Tego:
We know, we know. So what do you think, Melissa? I mean, what are, you know, again, from out on the street, what are you hearing, seeing feeling?
Melissa:
I think Chase on our team said it the other day. It's not days on market, it's minutes on market. And when I call another realtor to say, Hey, before it was like, do you have any offers? And now it's how many offers every time. And so that's yeah.
Tego:
Yeah. I was hoping that we would see some more homes come on the market this week. And actually I'm looking at the numbers here right now. We're actually at a net loss. So we've had more go off the market than come on the market in the last seven days. And I, you know, I don't see any let up on this. Are you guys hearing people being concerned that we're building a bubbles building up in the real estate market or you hear people say that
Melissa:
I have heard that, and then I have a lot of people asking about foreclosures. Are those going to start coming? Because the bubble is getting so high and
Tego:
Yeah, I mean, we've had what, 15% appreciation over the last two years, maybe even higher than that, just depending. It depends on whose numbers you look at. I mean, some of them say about 10% in the last year. Some of them say 13% in the last year. So home prices have risen dramatically in the last the last couple last year, for sure. And, you know, there's this whole forbearance slash foreclosure overhang out there. And, and, and people are saying, well, there's all these people that are still in forbearance plans. And all of a sudden they're going to go out of those four Barron's plan and those homes are going to flood the market. One thing first off, that's interesting about that. Even if every one of those homes that are still on forbearance plans came on the market immediately nationwide, we'd still only be up at five months supply of inventory, which is still considered a quote balanced market, or maybe even still a sellers market.
Tego:
The, the, the, the lack of homes on the market is so low, right now that, you know, we could use any of those homes if they start coming on things interesting about the forbearance plans is they're kind of tiered, right? So people, you know, a lot of them, you know, are expiring in March, obviously were your, were your through this. Now, a lot of them are now this month in April, may, June, so it's kind of tiered out. And so those people either come off the forbearance plan meaning they'll just start making, you know, making their payments again, they'll do some sort of workout with their, their bank or potentially they sell their home, which most people have enough equity to just sell their home if they need to. And again, that's not going to be this flood of homes, fire sale, you know, drastically reducing prices.
Tego:
No, these are people that will sell that are equity sales, where they're selling it for enough to pay off, you know, their, their, their debt and, you know, move on to the next, the next property. And that brings up a good question that or point I want to make is that if, if you're out there and you're listening and you, you know, somebody that might be in that situation, you should reach out to us and let's talk about, you know, have a private conversation about the different options that you may have, right, Melissa, cause you can sit down with them. Go ahead, go ahead and say some, say what you're going to say.
Melissa:
No, there's we can make it very easy with our instant offer programs. We can put it on the market and then just do the, have it sold by a Sunday potentially. So it really could be just painless as possible.
What Albuquerque home buyers should be doing before looking for a home
(Transcript Snippet):
"Tego:
So tell us some of the things that that home buyer should be thinking about before they, they be, let's say even before they start going out, looking at homes what's, what are some of the top things that buyers should be doing right now? Let's, I'll, I'll throw that to you first,
Melissa:
Making sure that you're working with a local reputable lender that makes it easier to get, make sure you're pre-qualified pre-approved versus qualified. And that basically just means that the lenders taking those extra steps to check your financial qualifications in versus just saying guests, I believe what they said versus actually looking at it and verifying that it is true. It makes you a little bit of a stronger buyer. And then also having some flexibility, if a house hits the market and you can't see it for four more days, you may not make it to that house.
Tego:
If it's a good house. I mean, median days on market for March was, was four days, which means what was the stat I pulled the other day? It was 65% of the homes in our current market are selling within six days, basically immediately, as soon as they come on the market. And so, so Corey, what other things are you doing to, without giving away any?
Corey:
I know, I get nervous.
Tego:
No, we don't mind educating other realtors. We want everybody to be good, but what what other tips would you say for buyers when they're, when they're thinking about getting out there,
Corey:
Especially when they're first time home buyers, you really want to say put the seatbelt on because we're going to go for a ride because there is a lot of offers that are being put out there and you want to make sure that you're looking out for your buyer. And so when somebody comes in with, you know, 40,000 over cash and no appraisal, when everything looks so good, that may not be the best one for your buyer. So I like to definitely talk to them about the reality and just talk about how exciting it's going to be and how we're going to get there.
Tego:
Yeah. And I think, you know, preparation and setting expectations is anything. Obviously, we're kind of doing that right now. So, so what are you telling like Corey, what would you actually tell a buyer right now? Let's say you just pick up the phone and somebody, somebody, you know called, called and said, Hey, I'm interested in this house. I want to make an offer. What are the things you're going to be asking them?
Corey:
Well, I want to make sure first that they're pre-approved with the lender. Obviously we're not going to write an offer without going to look at that house, whether I'm going to be FaceTiming home in that house and going through each room and showing absolutely everything of the home, absolutely closed it. And exactly, and then making a good relationship with the listing agent is extremely important.
Tego:
Right? Right. You want to, you want to know you want the listing agent to be able to basically pass onto the seller. That's like, look, this is somebody that really wants a house they're really engaged or communicating. Well, you know, they're, they're not just fly by night, Melissa, what other little tips or tricks should, should buyers be thinking about right now
Melissa:
In this market, they need to have some skin in the game. They need to be willing to pay for inspections, appraisal, home warranty, their closing costs, and potentially even some of the seller's closing costs to make it just that much more of a competitive offer. Yeah. When it's a buyer's market, you could ask for the seller to pay some of your closing costs, but this is just not where we're at, right?
Tego:
No, definitely not the market we're in right now. And, and you know, we have earnest deposits. We also have this thing called time off market fee, or it's just, the buyer pays the seller to take the home off the market to do their due diligence inspections and so on. I want to just talk about inspections really quick because we're, we're seeing a lot of people thinking well, to make my offer more competitive, I'm just going to waive inspections. So,
Corey:
Oh no, no. You want inspections. Absolutely.
Tego:
So one thing you can do, Melissa though, is waive the basically making, asking for, for major repairs.
Melissa:
You could see, you only want repairs that are safety concerns or lender required repairs because during the appraisal process, if the praiser might call out some dry rot, then that would be, have to be something that would get repaired during that time. But you're not going to ask for the light bulbs to be replaced or whatever the
Tego:
Well, you know, cosmetic stuff or, or again, you know, we put a new hot water heater because it's end of useful life. Right. You know, whatever that means. So, so yeah, it that could be one of those things that makes your offer stand out is to say, okay, I still want inspections. Right. I want to know what the property is like, but I'm not going to be, you know, asking for, you know, $5,000 in repairs. Right. Once we get to that point.
Melissa:
And then the other thing is with as many offers as we're getting the seller could say, that's fine. You just asked me for 5,000 in repairs when another offer came in and said that they're not going to ask for any repairs. So yeah, go ahead and try to find another house.
Tego:
So Melissa, I just want to ask you about sellers because you work with a lot of sellers as well as, as buyers. And what are you telling sellers when you're, when you're listing them or meeting with them to get their home on the market? What are you telling them? What are you preparing them for?
Melissa:
Well, I just had a house that went active this weekend. We already have so many showings that they are planning to be gone for the weekend. And we're going to review the offers on Sunday. There's over 30 showings and that's just, that can get overwhelming for somebody who's living in the house. Cause you're basically home for 10 minutes and then have to leave again. And especially if there's pets or children plan a little weekend getaway or
Tego:
Yeah, well, and, and what what's happened with this market, we know, you know, certain homes and certain price ranges, certain parts of town. We know there's going to be multiple people that want to see it right away. Right. And so you can condense all those showings down into a very short period of time. Yes. Yeah. Which is nice. It makes it easier for the seller. They can just do their picnic day
Speaker 2:
For the buyers. It's wonderful when they have a few days to look at it. So it's not like, okay, I've got 15 minutes to write this offer and hope that, you know, we can get it being able to go into the house two to three times and say, yes, I love this house. And this is going to go to the finish.
Tego:
That's a really good point, Corey, because people may think, Oh, it's going to be the first one that writes the offer's going to win. It's like, no, that really, you know, we're not seeing that much, most sellers are asking, you know, for, you know, showings like one day and then they'll review any offers that come in the next day. And that's really common now it's not across the board, but just understand we're seeing most of that, but
Corey:
It's helpful for our buyers for that to happen. Well,
Tego:
The truth is it's helpful for the seller too, right? Because that way now the, they have, you know, a handful of offers to choose from. And you know, obviously the, the seller's objective is to get the highest and best that's going to close. Right. That's going to close Melissa, let's talk about that real quick. Let's go back to that whole conversation about reviewing offers. If you're on the, on the seller side.
Melissa:
Yeah. I had a friend, then she was like, Hey, my friend, didn't get a house in the wrote an offer 25,000 above list. And I was explaining that just because it's 25,000 above list, that's not always the best offer. Is it going to appraise? Probably not. If they were already pushing the value. So there's just a lot of other components to an offer than price it's are you offering the sellers to stay in a couple extra days so they can move out on the, you know, slowly and at their leisure, are you waving the repairs? Are you offering above appraised value, but bringing cash to the table? So there's a lot of components and that's where that experience comes to play versus saying, wow, we got an offer 50,000 above. Let's take it. Well, when appraisal comes, that's when there's going to be a crash, right?
Tego:
Yeah. Yeah. We won't go deep into appraisal right now, but you know, understand that if there's going to be financing involved, there's going to be an appraisal. The appraisal's job is to justify the value to the bank that they're making a safe alone. And so, you know, if they just can't justify that the value is there, even though somebody is willing to pay that price, it's going to be a challenge. It's going to be a challenge. And so, so some people are, well, Corey, you know this right there, they're making offers over list price. And you're going to say what the wave wave the appraisal contingency or up to a certain dollar up to a certain dollar amount. Yeah. So that's one of those other things that we're seeing a lot.
Considerations when buying a Rural Property near Albuquerque (Transcript Snippet): "Tracy: Let's talk about rural properties. Yes.
Tego: I've got some, I've got some great notes on that because with the way the market has been Tracy, you know, people are starting to look out a little further, maybe because of COVID people are going, you know, I need a little more elbow room. I want to move out. I want to get out of the city. And, you know, around Albuquerque, we have a lot of good options.
Tracy: And some people know that they don't have to go back to work in a building. They can work from anywhere. So we're seeing people take advantage, move out a little bit further because they don't have to do the daily commute.
Tego: The commute is not as important anymore. So first off, Tracy, what are, what are, if somebody's thinking about first off, let's talk about the areas of the Metro Albuquerque that we kind of call rural areas. What would you say?
Tracy: Well, Edgewood, Moriarty, Berlin, really all the East mountains, all of the East mountains, they're rural, you know, there's also Santa Fe area in Los Alamos area. And so, you know, to Espanola Ribeira up to Las Vegas, you know, just whatever rural properties there might be. Yeah.
Tego: It's just kind of, you just start getting out outside the Metro itself. Yeah. Some of the rural properties
Tracy: We're talking about might be in a town versus out in the country.
Tego: Well, you think about the South Valley or Valley farms as we call it, there's some great rural properties down there. There's Corolla. So there's the North Valley, which even though they're kind of in the city, you still get that rural feel. Right. And you're dealing with some of the things we're about to talk about, which are you know, w what are you looking for, right. That would be the first consideration. Right. What would it be? It'd be, you know, do you need space for the animals?
Tracy: Are you looking for barn storage, you have a hobby or collection, and you need that. Right. is it for animals? Is it for privacy? Is it just, you need a big view wide open spaces. Yep. Yeah. Sometimes we like what we grew up.
Tego: I just need to make a side note. We have a home listed for sale in a Stanley right now, which is North of mariachi Moriarty, and it's wide open spaces, but it was a 78 acres, a Homeland, 70 acres, all fenced. And yeah. So, I mean, there's, you know, and really, that's not that far you know, from Albuquerque. Right."
Lease Purchase Program, now available in the Albuquerque area (Transcript Snippet): "Tracy: Let's talk about the lease purchase program. We have a lot of people call us that are looking for rentals, or they're looking for lease purchase. They're looking for some creative deal that maybe because they're relocating here and they don't know what neighborhood they want to buy in yet. Or maybe because you haven't been in your job for two years, the same type of industry. So you can't get a regular loan yet, or for whatever reason you are, aren't in a position to do a full purchase, but you want to lock in a home, right? We have a great new program and it's basically you lease it. If you love it, you buy it. You lock in your rent rate by year for five years, you lock in the price of the home as it goes up over five years. And at any point during that five years, you can convert it to a purchase. And the price you pay for the house is predetermined upfront.
Tego: So just to make this clear, the, the, this program, that's a company that's been doing it now for many years, they will actually go buy the home.
Tracy: Yep. You pick the house, you go shopping,
Tego: You go shopping, you pick the house, they buy it with cash, you rent it from them. And once you're renting it, you're going to know what your, what your rent, your monthly rent is going to be. You're also going to, and there'll be escalations, you know for up to five years, obviously. And it's three, three and a half percent. It wasn't a big, I mean, just normal, you know, rent appreciation. But at any time during that five-year period, you can buy the home and they were calling it. Or I saw a thing that was called. It was the, the lease. It love it, buy it program. That that was interesting.
Tracy: Well, of course you get to pick the house. So you believe you're going to love it. Right? And sometimes you get in a house and you don't love it for some reason, right? It might have a neighbor with a dog that barks all night or whatever. For some reason you don't love it, but you know, you get to move in rent. It you've picked it. They buy it for you. And in this competitive market, we have some people who have been unable because maybe they've got a loan program that isn't favorable right now. And they keep getting beat out by cash buyers. So now you can put the power of them as cash buyers behind you have them buy the house, you move in, and then you can choose how you want to take it from there. So it's a great program."
How’s the market? The first look at Albuquerque's March data (Transcript Snippet): "Tego: Tracy, first off we got to talk about March,
Tracy: Of course, this data medic here. How could we not talk about March? So March is typically the kickoff to our biggest selling season, right? We start getting some warm weather. We had some snow. We also had some warm weather in March. So the warm days really get people thinking about housing. And what happens
Tego: Traditionally is the homes as home start to come on the market, usually seasonally, we see most people start listing them in March. April is usually a huge month, month for homes coming on. The market may is usually a very strong month for new listings or people, you know, saying, okay, it's time to put the home on the market. And of course last, you know, April, halfway through March and of course, April and may last year Tracy: It was a bust. We were, we were shut down pretty much. I mean, it was a big, we were all home trying to figure out what was next. Yeah.
Tego: And so what happened was there was that big pause in a number of homes coming on the market and just statistically, we've just never caught up. And so now we're down to this just ridiculously low number of homes available and anybody that's in the market or, you know, paying attention to it at all. Especially if you're a buyer, you know, it's, it's, it's tough out there cause good homes are going. I mean, literally we're not even talking days on market, right. We're talking hours on market. And in many cases, especially those really great homes that are ready to go. Right. Exactly. Why are you laughing at me?
Tracy: I'm laughing because we've been trying to buy a house ourselves. Oh. And you know, experiencing it from a buyer side. Right. You're laughing, you're laughing because every time we work, you know, I think every time we are buyers or sellers of properties, which we do we experienced the same things, our clients experience, and it's hard, it's hard to be a buyer. It's hard to be a seller. And I really appreciate that we do buy and sell houses. And even if it's a house that we're going to keep as a rental, or if it's one that we're going to have as a second home or something, it's still, it's, it's a tough process to
Tego: No, it is in, yeah. Yeah, for sure. And it, it's interesting that you get, you get to put yourself in the shoes of our clients and what they're dealing with every time. So so a couple things that really, I just want to hit on it. We're just like I was joking. I don't know if you saw my Facebook live. Of course you watched my first of course you did.
Tracy : I liked it. I don't think I know I watched it. I'm just teasing.
Tego: You knew what it said. Yeah.
Tracy: I know every day after coffee, everything that's going on in the real estate world.
Tego: Yeah. The, the thing I was joking about, I said, I, I said, well, I'm not going to do that. I looked at it on the first and I said, well, I'm not going to do this on the first cause everybody just think I'm joking. Right. April fool's joke. But then the one that really resonated or jumped out at me was percent of list price, Tracy. So this
Tracy: Last list price.
Tego: Yeah. So that's a stat that, you know, you and I, and, and anybody that's, you know, experienced in the real estate market pays attention to and what it is is, and it gives you an idea on an average, how much homes are being discounted off of the list price when they closed, when they
Tracy: Go into closed status
Tego: To final sale price. Right. Right. And it has, it's an all time high. It's not only an all time high it's over a hundred percent. Oh boy. For the first time ever, even, even if we go back to, you know, Oh five when things were kind of insane it's over a hundred percent. So, so on average homes are selling over list price across the board.
Tracy: Right. An important thing for home buyers to know. Right. If they think that they can go in and make an offer on house and get something below list price accepted, it's probably not going to happen. Well, let's be
Tego: Just fair about that because there are homes that go on the market and they're just priced too high. Right. Right. And so, yeah. I mean maybe, you know, but, but,
Tracy: But the average is that they're selling for above what they're being listed for. So important thing for buyers to know. So as they're planning their strategies with their realtor, they know what, what the market's like,
NAIOP Group Presentation - First-time buyers are discovering the Albuquerque NM area
(Transcript Snippet):
"Tracy Venturi:
So, Tego. You were on a panel this week for the national association of industrial and office properties group, which is, you know, the commercial brokers, basically
Tego Venturi:
Commercial broker, real estate commercial real estate investment folks. Yeah. Pretty, yeah, pretty good.
Tracy Venturi:
So it was a really interesting presentation and unfortunately it was on zoom, but fortunately it was on zoom because myself and many others who wouldn't normally attend their monthly get togethers, got to listen in. And I know a lot of us, residential realtors and people listened and really interesting things. If you want to give us a few bullets of some of the top, top takeaways from,
Tego Venturi:
So Steven Hamway did an article, he put it out on Thursday afternoon after the I'm sorry, in the Albuquerque journal, excuse me. Yes. Thursday afternoon. And you know, he pulled a couple snippets out of there, you know, it's really, I have to give reporters, you know, it it's difficult because we had an hour and a half worth of content there and he had to, you know, put together a short little article and he pulled out a couple of snippets. One of the things Kathy Colvin is one of our colleagues, she's this year's Southwest MLS board president. I'm on the MLS board here too. But she, she said something that he really picked up on and it's like he said, she said, we need to think and realize that Albuquerque has been discovered by a lot of the country. Would you agree with that, Tracy?
Tracy Venturi:
I would say yes. There's still so many people that don't know about New Mexico though, but you know, are we seeing more people from out of state coming to New Mexico? I don't know if it's a lot more, but yes. Yeah, yeah. And it seems like when people ask me, why, where are they coming from? And who are they? A lot of them are people who have lived here before, have relatives here and have visited or had been stationed at Kirtland air force base at some point. Right. But, you know, do we have others? Yes. Do we have somebody who works at Google in San Francisco that decided to move here? Yes. Do we have people who can work for home in flux? No. No. It's not a mass influx. And honestly, a lot of our home buyers are people who live here that are changing and want a bigger house, a smaller house, a different part of town, a new home instead of an
Tego Venturi:
Well it's it's household formation also known as first-time buyers. A lot of first-time buyers know that are, that are local. One of the quotes that got picked up that I said is that, you know, $200,000 houses are kind of becoming extinct ein our market, you know, in, in the sense that you know, whatever it was 10, 15 years ago, I guess it was probably more like 15 years ago. You know, we used to have sub $100,000 houses all over them.
Supply chains and delivery times in the Albuquerque area
(Transcript Snippet):
"Tego Venturi:
Supply chain delivery times we've been hearing it. Our clients have been feeling it. A lot of home buyers have been feeling it that used to be, it used to be, you know, you'd go and put a new home construction under contract and they say, Oh, we'll have, we'll be done in five to six months. Right. what's the real number today?
Eric Corpuz:
Yeah, that's a really good question. It does depend a little bit on the community and it does depend, like for instance, we're, we're breaking ground. We haven't, the infrastructure still is incomplete. So we're doing pre-sales so legitimately the home sites are not a hundred percent ready, but if a home site is ready, meaning all the infrastructure's available and we're ready to sell and move on it. We're still for the most part, I would say five, six, seven months.
Tracy Venturi:
That's great. So call today. You can get in that home this summer. Then if you choose a lot, that's ready to build on and you pick your own floor plan and you pick your own finishes, you could get it done quickly. Obviously you'd have to get to that design center and get to that fun stuff right away to get the home done in that timeframe, but seems reasonable.
Eric Corpuz:
And if you need to move a little bit quicker again, we have those inventory homes that, you know, like anything else it's kind of like, I always kind of envisioned inventory homes as new home resale
Eric Corpuz:
In that you can go in there and see all the finishes and all the colors, but it's brand new. No one's ever lived there before obviously, and have the opportunity and see if you like it. And because we do build them off of those models that everyone seems to rave over. Yeah, they, I think they're beautiful and I think they're well done and you know, we've had great success.
Tracy Venturi:
I concur. Awesome. Yeah.
Tego Venturi:
Great. Any other thoughts Tracy about, actually one thing that we've been talking about is there's a lot of homeowners out there they want to sell, right? And they'd like to do something different than they have. But as of today, there's 690 homes on the market and a greater Albuquerque area in RMO. MLS of course, most of those are our resale homes. And one of the, I think one of the strategies people can think about is, you know, go pick out that new home. You've always wanted pick out all, you know, do, do what you want, picked a lot, get it going. And now you have, you know, six, seven months, you know, time to plan your move, know that it's coming. And then when your, when your home is almost ready, you can deal with getting your home sold. And I will just say, I don't see, I don't see this market, you know, slowing down anytime soon in the next year. So I think that the, the home sales is, are going to stay strong through the summer, for sure.
Tracy Venturi:
Sure. So, one thing about that is a lot of the builders don't take contingent sales, right? They don't make it contingent on the sale of your, however, we at Venturi Realty group can do our guaranteed sale, where we will guarantee that your house will sell. So you can move forward confidently with Eric to buy a new house. And if your house doesn't sell in time to close on your Hakes brothers home, we will buy it. So you can move forward confidently because we will put in writing that we will buy your house and you don't have to make a sale, a contingent on the sale of your current home to move forward and buy. So it's a great program that we offer hand in hand to just help you confidently move forward with new construction.
Hakes Brothers: A local Albuquerque, NM Construction Company (Transcript Snippet): "Eric Corpuz: Well, and thank you for mentioning about, about the realtors and brokers, because we really truly feel like we are partners. And so you ever want to look for home new home construction, contact the Venturi team and let them know you're interested in new home construction. I'm sure they'll mention and bring us out to one of our communities, which right now we are building again an Albuquerque, which is actually in big news. We had started in Albuquerque and had closed out that first development, which we called Durango at the trails, but now we're back. We actually have home sites and we have started pre-sales and pretty soon those homes will start going up, but we have some spec homes that we've started to. And for those who want to move in a little quicker, and, but we still have lots left. If you want to start from scratch Tracy Venturi: And the benefit of starting from scratch, right? You get to pick your lot. You get to pick your color scheme, your finishes, your tile. Yes, that's fun. Right?
Eric Corpuz: I mean, you know, we, you know, when we we're we're production builder, but we know one of the things about customizing our homes should come from the buyer. And now you have a chance to go into a beautiful design center and meet with Deanna Mathis. An amazing, amazing designer. She'll have one-on-one with you and you can pick your colors, your backsplashes you're granted all those fun things. And I make that home actually yours. Tracy Venturi: And you know, one of the things that I know about that, and Deanna is she's not going to let you do a bad job, right? She's going to say, you know what, that tile with this countertop, isn't going to be the best, right? She's going to say, here's let me help you. What, what in general do you like, let me pull a few things and you'll be wild, right?
Eric Corpuz: Absolutely. And you know, what, what might be daunting to some folks is they're afraid that they go into a place anywhere and they overspend, or again, to that situation, you can walk in and say, you know what, Deanna, this is my budget. This is where I'd like to be. And she does an amazing job of putting together all these colored choices that work within that budget. And that's what I think is the best part of it.
Tego Venturi: Just to clarify for folks that may not understand we use, you said spec home, what does that mean?
Eric Corpuz: So it's an inventory home. It's a home that we decided to build on the lot to sell, hopefully before it's complete, but sometimes it gets to completion. We pick the four plan. We pick the elevation in the outside. Is it a contemporary, or is it going to have a pitch roof for things like that? We pick the option choices and the colors that go into the home. And, but, you know, we're not strangers to this. And we, we build these beautiful models that everyone loves to see. And we say, I'm going to put a model in the field and that's kind of our mindset.
https://welcomehomeabq.com Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888 info@welcomehomeabq.com
Home Owners Association in the Albuquerque area. What are its Pros and Cons?
(Transcript Snippet): "Tego:
Tracy, one last thing, there was this conversation that came up about homeowners association and, and you've had those clients that say, there's no way I never want to be in a neighborhood with an HOA. And then we also have people that say, Oh, I want a neighborhood with an HOA. Cause they'll keep the neighborhoo
What, you know,
Tego:
What jumps out at you about that, Tracy?
Tracy:
Well, you know, showing a lot of houses around the city over the years, you can usually tell when you're in an HOA, when, when you're in a neighborhood where there's a homeowner's associations, a lot of the newer developments have homeowners associations. They have rules about parking cars and trash cans and what you can and can't do with your property. So a lot of people don't like those rules and then there's like, you go, well, there's some look around, you don't have abandoned cars. You don't have weeds in people's front yards next to you. We feel like sometimes the homeowners association rules keep your home value higher.
Tego:
Yeah. I don't have any data to back this up. I could figure it out and look at it. But I would say that neighborhoods with homeowners association have better price appreciation and hold their values better than, than, than ones that don't. And, and, you know, the, the thing with hos is they have a governing body. And for the most part, they keep the neighborhood looking good. There's some sort of organization that's in charge in charge, and there's going to be rules that have to be followed. And, and so the flip side of that is you have people that are very frustrated because they want to park their car out in front of their house and they're not allowed.
Tracy:
It depends every, every neighborhood has different rules, right? So one of the things that comes to mind Tegois when people are parking the cars on their front lawn, right. You know, they have three teenage children each with a car and they're pulling in the driveway and they're pulling off to the right and they're parked on the road. You know, what would be a front yard? And, you know, that's the type of thing when I'm showing a house and I'm looking at the one next door with some buyers, they're going to notice that and go, huh, this is maybe not what I want. And sometimes people say, I never want to live in an HOA neighborhood. And once we start looking at houses, they change their mind. And they say, I want to live in an HOA. Going back to one of the things you just said, I think are some parts of our town are very different. Like the Valley not having an HOA in the Valley is probably not going to harm your price appreciation, right. Or North Albuquerque acres. Right. We're talking about neighborhoods. Like we were just talking about the Cabazon house. That's going to be open this week and Southern Rio Rancho, and Cabazon has an HOA for most neighborhoods within it. But this one corner, the Northwest corner of Cabazon does not have an HOA. Got it. And it was part of the main development, but there's no HOA, there is a public improvement district, but that's completely different.
Tego:
And just to wrap this conversation, Tracy, I think the thing is, is I think people need to not just do blanket. I don't want an HOA or do blanket. I must have an HOA look at the pros and cons. And each HOA has different rules, has different CCNRs, you know, covenants conditions and restrictions on, you know, what can happen there. The way it's governed, the way it's the financing is handled, all of that stuff matters. And that is a contingency in the purchase agreement.
Tracy:
Right? All of that needs to be disclosed. So you can look at what the HOA is all about and make sure you're comfortable with it. So, and HOA is around the country. Typically people think of, you know, maybe it includes a country club or a swimming pool or a gated area, but you know, those vary too.
5 major things you should NOT do when buying a home in the Albuquerque area
(Transcript Snippet): "Tego:
Tracy. I want to talk to buyers right now. And I think this is an important conversation to have because the market is so tight. There's so few choices for home buyers today that they need to not make any mistakes. If they want to get that home. And we have a list of five things you should not do or mistakes that buyers we've seen make that they need to just be aware of so that they can get that dream home, get the home. They always want it. You know, interest rates are great. You gotta lock that, that interest rate in and get that home for the longterm. And in this one, I it's going to sound very self-serving because we're real estate agents, but it says
Tracy:
Don't hire an inexperienced agent. Yeah. So the average agent, you know, across the industry sells five, 10 houses a year, not a lot, you know, to really hone the craft. I think you have to be in it day in, day out, work with people who are making lots of offers and getting a lot of homes under contract and really knowing what it takes today to write an offer that can be accepted, knowing other agents, knowing that they want to work with you. And when it's somebody who's inexperienced, doesn't really know the ins and outs of how to really structure something so that you can be the one whose offer gets accepted. It's it's hard.
Tego:
Yeah. Th th ex experience does matter. And again, it's sounds very self-serving, but you do need somebody that is your advocate on your side to get you that home, get you that home that you want. The next thing is the home inspection in this market, people may be tempted to say, you know what, I, I just want the house. I know I'm going to waive the home inspection. So my offer gets picked over any other offer that, that, that seller has, and that would be desirable to a seller, right? Seller says, Oh, well, they're not going to get a home inspection. Great. We don't have to worry about, you know, do any repairs for this person. I would never, ever recommend that somebody waive the option to do home inspections.
Tracy:
So even in our market, our purchase agreement says, you can do any inspections you want, you don't have to list them if you're paying for them as a buyer, correct. You only have to list inspections if you want the seller to pay for them. So really there's a way to structure it and make sure that you still have the opportunity. And sometimes we've seen sellers, who've done an inspection already. They see here's the inspection report. And the buyer might say, well, I don't need any more. I'll just accept that one. And even then you don't have to do that. It'd be better just to like,
Tego:
Think twice about that. You need a home inspector. That's working for you as a buyer, right? Somebody that you've contracted to do the home inspection, not that their job is to go and pick the home apart and farm find all these awful things so that you can negotiate down the price or something. The idea is that, you know what you're getting into when you're purchasing this home,
Tracy:
Right. I was going to say for resale homes, we're not talking new construction for resale homes, have the opportunity to assess, you know, the, the condition of the home and make sure you're comfortable with it. Not that you get to change it all or require that the seller do things right. It's, it's more for you to understand it. Houses are basically used, right? It's not like you can expect it to be a new house, but knowing as a buyer, what the conditions are and what major things you might have to budget for in the is really helpful.
Tego:
Yeah. The next two things here, when we're, again, we're talking about, you know, buyer mistakes and mistakes we've seen in this, then the next two kind of go together, Tracy, and we've seen it. We've definitely seen this one. I've seen people not get their dream house. Yeah. So they've, they've, they've gone, they've talked to their lender, they've got a pre-approval from a lender to do their mortgage. They've done their credit application. You know, the, the, the, the lender starts working through the whole process to get them approved for the loan. And they go, and they change jobs midway.
Tracy:
It can happen that you can still buy a house by changing jobs. But if typically, if you change career fields altogether, there's some sort of waiting period there to make sure that your new career field is, is a winner for you. And oftentimes what we've seen T goes, we're already under contract to buy a house. And the home buyer changes jobs after we've already gotten a house under contract, and that's challenging. That's when you need the best lenders in town, working for you to figure out how to still make it. So you can buy that house.
Tego:
You know, if you do anything once, especially once you received your pre-approval, if you do anything around, you know, changing your job, changing your marital status, we've seen that one, hon Tracy any of that stuff is going to affect the ability for the loan to get approved. So it's just something to keep in mind. And then the next one, along with it,
Tracy:
Right? Making some credit purchases, so opening, maybe a new line of credit. So what happens sometimes is people will get a house under contract. We're working towards the closing and they go to I'm like, who's still open, best buy. And they open a credit card with best buy to buy the new washer, dryer, fridge.
Tego:
They go, they go to the furniture store, they go to American furniture and they open a whole line of credit to get all the furniture for their new house. And, and all of a sudden, you know, their credit hit their credit. Yeah.
Tracy:
Can change their ability to buy a house. We've seen we've seen people buy new vehicles,
Tego:
Vehicles, and the biggest one we've seen, right.
Tracy:
Getting alone for a new vehicle, which all of a sudden changes their monthly available income to put towards the house. And we've seen people not be able to close on the house because they bought a vehicle
Tego:
Debt to income ratios, get, get out of whack because now they have to calculate that new payment that wasn't there before. And so, yeah, you know, once again, when you're, when you're applying for a mortgage, you want to walk very lightly,
Tracy:
Listen to your lender and really understand what you should or shouldn't do. And if you want to do something that seems like it might impact your financial status, talk to the lender first.
Tego:
Well, in another one, let me actually just throw into this. Just a side note is you get a gift from grandma and it's $10,000 and it hits your bank account. That's going to be a red flag. They're going to say, okay, you need to document where that money came from. So again, anything that affects your finances or your financial, you just want to be very cautious and talk to your lender as you're going through the process, right?
Tracy:
The last one and there's others, but this is an interesting one. And it's don't necessarily choose the cheapest homeowners insurance for your new house. And really this is one that I think is hard because you really need to understand homeowners insurance and feel like you've got great confidence in the provider that they're going to look at it and not strip out things to make it a more affordable home insurance policy that are going to be very difficult. Should you need a claim, have a claim and you find out, well, you don't have coverage.
Tego:
Yeah. It's a, it's a pretty important thing to have a good conversation with a trusted, you know, insurance person, you know, obviously their job is to sell insurance and they're gonna, you know, have they have all these different products and riders and additional things that you can add onto a homeowners policy. You just want to make sure that you're covered when, you know, again, if something bad happened, you have coverage, you understand what you're getting and what you're not getting. And I think along with that, we're talking about homeowners insurance, or, you know, fire insurance or, or hazard insurance, whatever you want to call it, not a home warranty, which is a different animal that has to do with, you know, if something breaks in the house. And again, that's another thing that you should seriously look at. It's, it's a relatively inexpensive peace of mind especially maybe if you are going to waive some of those repairs on the home or the age of the hot water heater or the age of the furnace or one of those things. Right?
Featured Community: Volterra, Albuquerque, NM
(Transcript Snippet):
" Tracy:
So much as usual. You know, let's start with Volterra. So for those of you who don't know Volterra, which a lot of people don't Tego even a lot of people in the real estate community, you know, Voltaire is probably a 15 year old community or less it's right next to Kirtland air force base sorta between the air force base and four Hills. So it's at the very South end of Juan Tabo, South of I 40, if you just dead end on one to Beau you'll end up in the Volterra neighborhood in Volterra was it was a major structural problem because there's a huge Arroyo where the land sets and it was basically an inaccessible for many years and a big bridge went in over the Arroyo and made all of that land available for development and a lot of different builders built homes in there.
Tracy:
There's Dr. Horton, Rachel Matthews, Twilight, Pulte, LGI, a variety of builders Stillbroke probably anyway. It's at the very South end of Juan Tabo next to Kirtland air force base. And they are, they are still building new homes there. So it is an opportunity if you're looking for a new construction, give us a call, we can help you source out what's available there from the different builders. What's, what's interesting. So, you know, a lot of people are moving here and they want to be close to the national labs, all of the affiliates to the air force base that Sandia national labs and all the different businesses, because there are a lot of jobs right there and they want to be close. So Voltaire has been a great option and we see quite a bit of movement there from people coming and going for the air force base.
Tracy:
What I know is there's some people who love it because there's a bike trail where you can kind of get without having to go back out to central. You can take a bike trail if you work on base that you can get there to the Gates. I did not know that that's cool. Yeah, I haven't ever seen it, but I've had clients who specifically told me that's how they get to work. So I know you still have to get to a main gate, but they probably go through an Arroyo or something to get over. That way
Tego:
Is the bigger Royal that comes down, you know, between four Hills and this community and like the, the interstate, right. And or central you will. And that's a huge Royal. So there's a bunch of open space over there as well for people to go and explore and walk and do what they want to do.
Tracy:
Yeah. I'm not sure what's allowed there to go versus what people do there, but I do see some you're
Tego:
Going to couch. So I don't, I don't say something, it gets us in trouble. The guys on the radio said, we Well, you know, it's interesting, you say that that $200,000 price point, I was having a conversation with some people from the association today, and we were just talking about one of the big challenges in our real estate market. And there's a lot of different challenges right now, but one of them is the price point affordability, not necessarily overall affordability, but just from a price point standpoint. Right? And I looked as of today, there are 36 homes for sale in the greater Albuquerque area $200,000 and below that are available. And, and honestly, half those are not so hot in not great condition. And so it's, it's interesting that that $200,000 price point is becoming really a endangered species in our market.
Tracy:
It's sort of that purple unicorn. So once we go above that two Oh five, the next price is two 60 and there's a couple of them, and those are actually attached townhomes, not single family. The two Oh five is a single family home and it's priced that way because it's 1100 square feet, 1,135. However, I'm sure it'll sell for more. If you're interested, give us a call right away, four, four eight, eight, eight, eight, eight, and we can get you in to see it. They will be allowing showings this weekend and I'm, I'm sure it'll be off the market on Monday. The other thing that's interesting Tegois of those 23 homes. The high price is 540,000. So it's a pretty big spread in Volterra. And what we know is originally there was some estate type lots that are bigger. Custom builders picked up like Rachel Matthews did a lot of them and they had that great floor plan in there.
Tracy:
They don't have any right now that I'm aware of, but it was floor plan where they had like a separate Caseta sorta incorporated into that plan. So really nice variety of what you can get involved, Tara. Right now there are 55 homes in pending sale in Volterra. So there's 23 on the market, 55 in pending sale. The average days on market of those houses was 26 days on market. So we know some of the higher priced homes might have taken a little bit longer. Also what what's kind of skewing days on market in there is that some of them are new construction that aren't really done yet. They put them on, they're not really finished people like to wait and be able to walk through a house. So it it's skewing it from what are, yeah,
Tego:
Because they'll put it in the MLS is, you know, available in the days on market starts counting except the home really isn't finished yet. So it's, it's actually a conversation we've had at the MLS on, on how to deal with that. So, you know, overall in our market days on market right now, I think it was 21 days for February. So it's right in there where we're what we're seeing in date. You know, we know Tracy homes are selling very fast in our market, right?
Tracy:
A lot of them are. So the average sale price in the last of the houses that are in pending sale is 330, 2,600 of the 188 houses that sold in there in the last year. The average was 312,000.
Tego:
Got it. Okay. Well, it's interesting. So that was, you know, if you just joined us, we were talking about the Volterra community, which is South of well, South Antoine to bow past the Harris Arroyo and you're there. And it it, it does back up to the four Hills community, which a lot of people are familiar with
Tego (22:38):
Great. Tracy, I want to talk about tax benefits of home ownership. We talk about the benefits of home ownership in general all the time, correct Tracy. So we talk about obviously the financial issues and some of the
Tracy (22:53):
Talk about the more, you know, loving kind fun things about it, making it your own and painting your room and having your family memories there, but
Tego (23:03):
Of a community. And, and, and, and then the financial part, obviously the, the forced savings every month, you're, you know, you're paying down your principal, so that's a for savings. And then there's, you know, obviously equity gain as you know, over time as home prices. Appreciate.
Tracy (23:19):
So we're going to talk about tax benefits and we are not tax accountants. We're not tax advisors, but we know there are certain benefits, right?
Tego (23:27):
Oh, there absolutely is an in. I'll tell you what in, in, I'll tell you just, if you want to see this story, it's a realtor.com store they put out really well done. If you just search seven tax benefits of owning a home
Tracy (23:41):
And it's from February of 2021. So it's very current information. And again,
Tego (23:46):
It's, it's a realtor.com. So just look for that. I'm sure it'll come up on the first page of your searches. So the first one I think is the most obvious is, is most people recognize is the mortgage interest deduction, right? And so you can deduct most of your interest that you pay on your mortgage. And that could, that could add up to quite a bit. And you know, all of these, we've got to say, there's always some reason that maybe you don't qualify again, talk to your accountant. I don't know how many times we're going to say that, but that's the big one that, that,uis got a huge advantage for people. ,Hne that's a little bit, I don't want to say if it's not as well as lesser well-known is, is your property taxes. If you itemized, you can deduct your property taxes, but not everybody itemizes.
Tego (24:37):
So if you take a standard deduction and not an accountant here, you don't, I know I'm going to say it over and over again. Okay. Okay, fine. Private mortgage. So anyway, taxes can be deducted private mortgage mortgage insurance. So if you purchase a home Tracey and you don't put the,u20% down, you are the lenders going to want you to take out insurance on that. And so it's private mortgage insurance, a lot of different versions of it, but that also can be deductible when that could be a big one. Right. ,He n ber four on this list was energy efficient upgrades. This one's a little bit tougher and it's been getting tougher. You know, I know, New Mexico there used to be some really great advantages in, in incentives for solar and, and other, ,ergy efficient stuff, but it's not quite as great anymore. They are out there. And so look for those, if, if you have those types of things, , e's the big one, Tracy, this year, year of 2020, guess what?
Tracy (25:40):
A home office space that you use within your home as your office? Yeah. Maxim deduction of 1500, I believe. Yeah. But you know, you just have to calculate how much space of your square footage you're using for your home office and how often and how many times yeah.
Tego (25:58):
Talk to your accountant about it. Cause there may be some, some tax savings there for you that you may not even have thought of. You know, like us Tracy, we've been working in two, you know, our home office in our work office for many years. People that are self-employed are used to that, but people that are new to this in 2020 may not know. So, so look for that. This one, I had no idea even existed trace. I didn't even know it was a thing. And it's a n ber six on this list is home improvements to age in place. So if you need to do some things on the home to make it,ufor the holder, older homeowners
Tracy (26:34):
Or handicapped, not necessarily. So things like wheelchair ramps, grab bars and bathrooms, shower accommodations versus tubs, those types of things. I don't know, widening hallways widening doorways, I suppose if you're actually in a wheelchair.
Tego (26:51):
Yeah. Interesting. I didn't, I didn't know. That was one. And look at that, we learned something. Yeah. Your, your hilar interests
Tracy (26:59):
Interest on a home equity line of credit. He locked.
Tego (27:02):
Yeah. I was getting there, but yes. So your home equity. So if you take out a home equity line of credit, so that's the basically borrowing against your equity in the home. And if you use it toward a home upgrades, many times that can be deducted. So again, check with your accountant on all of these things. But I thought it was an interesting list, Tracy.
Tego (14:52):
Want to take what you were just talking about and expand on this whole idea of this market, where we have so few homes on the market. We have a lot of buyers waiting for homes. I want to give some people that are looking for homes, some tips, and some things that they should be thinking about. If they're looking for a home now, does it mean sitting on Zillow all night and refreshing your screen over and over and over again? Well, it might I will tell you though, that Zillow doesn't always get instantaneous updates. It's pretty quick though.
Tracy (15:28):
Zillow doesn't get coming soon properties though. So it's not going to show you things that are in coming soon. Right?
Tego (15:37):
Well, so what I wanted to say is let's table coming soon for a second. Cause I think that's an important conversation, but what I'm talking about is how do you know when that home comes on the market? What are you doing? What's your real estate agent doing to get you set up, to know when that home home's on the market. And so what, you know, what would you tell a buyer right now? That's saying I'm looking for a home, looking for a home. I'm just, you know,
Tracy (16:02):
Yeah, totally. I'd say commit to a great real estate agent, have that agent set up a search. So when we set up a search in the multiple listing service, Tego, we as realtors have an option to say, how often are we going to send this search? Right? Are we going to send that to them twice a week? Are we going to hold them all and send them all at the end of the day? Or are we going to send them immediately when that property comes on the market? And it's interesting because we know someone searching for a home in Arizona and search has got set up and they were set up to go on Tuesdays and Saturdays. And I laughed. And I was like, if you get a home on the market Tuesday afternoon, after you got your money, your weekly update, it's pending by Saturday, you have to get them set up. So they come immediately, right?
Tego (16:48):
It's too late. So that's an important tip. If you are searching for homes, you know, get your real estate agent to set up the search so that you are getting them immediately, you can get it, you can get an email. Sometimes it's a push notification, okay?
Tracy (16:59):
Just whatever we need to get them immediately,
Tego (17:02):
Let's talk about coming soon properties. Cause that's kind of a confusion for people. People hear, Oh, there's a home for sale. It's coming soon, but I can't find it anywhere. Explain that for everybody.
Tracy (17:16):
Of course. So coming soon is a status that we have in our multiple listing service and it means, Hey, this house is not quite ready to view yet, but we want the realtor community to know that this house is going to be coming. So if you're looking this weekend and you have to make a decision on a house that's maybe not perfect. You might also know this one is in the hopper, right? Yeah. So it's us as realtors. Once we put them in coming soon, we can see them, but they don't go out to places like Zillow. But if you set up a search and you have your agents set up a search of homes for you, you can include coming soon as one of the options so that you can get notified about them. You just won't find them on public websites.
Tego (05:01):
So Tracy just a couple of headlines real quick. Let's just run through in the real estate world. This is more national real estate news-- interest rates. If you're paying attention, you know rates have pushed up a little bit, you know, three ish. You know, we were at 2.75%-2.875%. People were getting 2.5%, But they're closer to 3%now maybe a little over 3%, you know, that always just depends on your credit, your down payment, all that stuff, right? But interest rates pushed up, which is funny, you know, interest rates are up there at 3% now, which is kind of funny. And I found this chart, Tracy, that I shows interest rates by decade. And it's pretty interesting. And you know, if you go back to the seventies average interest rate was right around 9%. And then if you go to the eighties, it around 12, almost 13
Tracy (05:59):
Is the average, but it piqued some thing like 19%, 20% than. So the average was not that high those years.
Tego (06:05):
And then in the nineties it was about 8%. It was about 6% during the two thousands.
Tracy (06:21):
The 2000 to 2010. Yeah.
Tego (06:24):
Right, right. And then in 2010 to 2019, around 4% to 5%, remember that we were like, wow, this is amazing. We'll never see this low interest rates again, well here we are, you know, and so far this decade, it's only two years, two years and three months we're right around 3%. Right. So if you look at it from a historical perspective, I mean, it's still amazing.
Tracy (06:47):
And what that does is it makes homes more affordable, even though prices are up right. The monthly payment, because interest rates are so low is keeping affordability exceptionally low.
Tego (06:59):
Yeah. One other big headline. I want to bring up Tracy and you know, you're absolutely right. And we've talked about that. The affordability is a big deal. One other headline here is FHFA, which is a kind of the group that is over Fannie Mae and Freddie Mac, which handle all the government back mortgages. Hey've now extended the eviction moratorium for foreclosures through June 30th.
Tracy (07:25):
And that's for loans through Fannie and Freddie. Correct. That's not conventional loans, not all loans. Right. So they've extended it through June 30th. Yeah.
people that haven't been able to make their payments since last year. And it seems like we're just kicking the can down the road. And I don't think that's in a bad way. I'm saying that in a sense that we're going to have time to get that work through and get those homes into the market. Somebody told me the other day, or a statistician that works in the housing world. He put some data together, if all of those homes that were in forbearance right now came on the market immediately, which of course would never happen in the US, we'd still only be at five months supply, which is still considered kind of a balanced, almost leaning toward a sellers market. So it's interesting.
Tracy (08:29):
Yeah."
Tego Venturi:
I want to talk about interest rates because it was an interesting week with interest rates. You know, we saw the biggest weekly move in interest rates in the law in a long time. You know, the thing that's funny about it. We were on with Chris Cooper from Bay equity. Who's one of our lenders that, you know, local lender here that we work with that that's excellent. He watches that interest rate stuff like nobody else. What were some of your takeaways when, when he talked to our team here the other day, Jane,
Jane Elizabeth:
I think the biggest takeaway is that even at 3%, which is pretty amazing, we're still in absolutely Epic, low interest rates and the affordability.
Tego Venturi:
Well, it was funny. We were joking. They went from 275 to 3 for a lot of people. It's like, Oh my gosh. Yeah.
Jane Elizabeth:
I think just that they went up was a little bit nerve wracking because we watched gas prices go up and now interest rates are going up and wondering if it's an overall trend, we can't help but ask that. But yeah, interest rates
Tego Venturi:
The one thing he said, and I think people need to think about that as if they've gotten a pre-approval
Speaker 2:
That's right. Yeah. That if someone got pre-approved for a loan last week, that they need to check back in, because if they got pre-approved at the real top end of their ability to qualify, they may not qualify even with a quarter percent increase in the interest rate.
Tego Venturi:
And we're not talking about qualifying overall, we're talking about for a certain price point. Right. Cause now they're what they can afford. Might have gone down a little bit, right. Again, talking a quarter point here, but it's, it's amazing. One of the things that I looked at this this week, Jane was predictions about interest rates, all the experts, all the housing economists, all that stuff. And
Jane Elizabeth:
What are they saying? The million dollar question
Tego Venturi:
Experts with air quotes, right? Because I think 2020 was a year of not believing the experts anymore, but sorry, I'm not going to get political here, but anyway,
Jane Elizabeth:
Everyone's got a motive behind their opinion,
Tego Venturi:
But you know, basically what we, what we looked at, the, the group I work with that pulls this data together is we looked at what Freddie Mac said, Fannie May said, which home home, not home builders, mortgage bankers association, and the national association of realtors and, and, and all of them, if you were to just take all of them and look at them, they're saying probably by the end of the year, we're going to be a little bit over 3. Right. And that's, that's it. Now another group that I followed John Burns consulting there, they looked out to 2024 and they're putting a 3.6 on 2024 interest rates point is nobody's expecting a huge change in interest rates. And we there's good chance. I saw some economists talking, there's a good chance. We'll never see six, 7% interest rates again, which, you know, it's again, it's that whole new normal thing. Right. And that could be interesting because as you know, it's effect affected or affordability, even though home prices have gone up, correct? Jane and we only had a couple of minutes left. Cause we, we talked about,uHB one 11, which was super important. I want to just talk about pre-inspections and what's your, your feeling. If you're getting ready to sell your home and somebody says, Hey, should I get a pre-inspection? What do you, what do you say?
Jane Elizabeth:
I say, it's a great idea for a lot of reasons. One of the reasons is when things are going so fast and we're asking buyers to make quick decisions, it's so wonderful for the buyers to have an inspection that they can look over. And it's really like a seal of approval for the sellers too. And it says we don't have anything to hide. This is what we've got. And it also helps the seller not be negotiating in a black hole. Roofs are the, probably the number one reason that deals fall out of contract. And a lot of people, they don't even look at their roof. They might've moved here from another market and they don't know that even a tile roof needs to be sealed, you know, every couple years. And so to find out after you're already under contract two weeks, that maybe you need to put a new roof on the house. That's a hard pill to swallow when you're already under contract at a certain price. So don't negotiate in a black hole when you consider the value of your home versus a 350,000, sorry, $350 inspection. It's well worth it.
Tego Venturi:
A hundred percent, and again, I think in this market, even even more so, because you've got a great home, it looks good. It shows, well, it markets, well, we do great photography. We do all this stuff. We do, we get it out there and you've got 20 offers or 10 offers. Let's say, let's be a little more realistic. You wanna, you know, if you have that done, it just puts you in a much stronger position
Jane Elizabeth:
It sure does. And one of the things that, that, that is common in such a fast market, I mean, buyers are making, again such quick decisions and there's this, you know, the next morning they wake up and say, Oh my gosh, did I do the right thing?
Tego Venturi:
Yeah. You get in that auction mindset, right. And then you have remorse.
Jane Elizabeth:
We have buyer's regret. And so if you find out that the roof is bad, you think, Oh, it was a bad decision. It just confirms that you may be decided too quickly. And so we do everything we can to minimize that follow-up rate in how we market and how we accept offers.
Tego Venturi:
Yeah. Yeah. The other thing is the little known thing that, that we do offer is, or at least have available for sellers is warranty a warranty during the listing period. Do you want to speak to that?
Jane Elizabeth:
Yeah, absolutely. It's something that maybe it's a tool that we're just starting to harness and for our sellers, but anytime, while they're listed, which isn't usually very long with the average house selling across the board in less than five days. And, and then that, that warranty also covers the whole pending period. So if the dishwasher goes out, thank goodness, they've got a, they've got a small co-pay and they can get a new dishwasher for at $75. I believe
Tego Venturi:
Seventy-Five dollars. It's such again, it's one of those peace of mind things. That's very little investment for a whole lot of peace of mind.
Jane Elizabeth:
We need to do that for all our properties.
Tego Venturi:
And I just want to hear some, some stories, Jane, you've got some stories about what buyers and sellers are going through these days. Can you share something with us that you're experiencing? Thank you. Hold on. I got to cue it up. I always do that to Tracy. That's like, I go, I go, okay, wait, wait, but let me queue it up. If you don't know, our market is like, unlike any market we've ever seen super low number of homes on the market and a lot of buyers, high buyer demand by low seller supply. That's kind of what we're dealing with, right?
Jane Elizabeth:
Yeah, absolutely. It's a really fun market. Very fun unprecedented. The stories I helped buyers and sellers and the thing that is most noteworthy to me is I talk with people who want to sell. Usually the first time I sit down and meet with them, their jaw dropped. When I tell them it's not a matter of, if your house is going to sell, it's a matter of when and how much, how much we're going to get for it. And that's amazing. And it's crazy to be talking like that because I started in 2008, 2009, and we all know what that was like. So that's been really amazing to be able to help sellers finally get what their houses, maybe they paid for them back in 2006 and maybe even a little bit more just to
Tego Venturi:
Way more. I mean, in, unless they just let it go away, then they definitely are getting more than, than even the top of the market in, in Oh six. And so what are you doing? Like you're, you're S you're listing a home and you're getting multiple offers, right?
Jane Elizabeth:
We can't give away all our secrets. But we're very, very thoughtful. Again, it's going to sell, you know, you have to really have a a really bad property for it not to sell right now. It's gonna sell. But we're doing very strategic things. I always say that we get this, I won't give away. We get Cinderella ready for the ball. Right? If Cinderella went to the ball with ashes and sack cloth or whatever she wouldn't have gotten picked by the Prince. You know, she might've gotten picked by the housekeeping staff.
Tego Venturi:
She might've gotten picked, but you probably wouldn't got top dollar. I know analogy gets a
Tego Venturi:
Little weird analogy, but anyway
Jane Elizabeth:
Because you can, you can throw anything at the market. But it's really important to be very intentional about how, how you prepare the house and then how we market it. We've got a lot of things that we do that really help everyone have an equal advantage of bidding on the property. It's the market
Tego Venturi:
Talk about the buyer, but Damon, I want to hear about property management, what you guys are seeing again, you know, I know I rented one of the homes we own here a month or so ago. And I mean, it was, my phone just blew up, rented it out. I mean, like it, like people that wanted to rent it, I had literally people on the phone crying, begging me to rent them the home. They couldn't find anything. Are you seeing the same thing? We are seeing the exact same thing we're seeing, you know, you know, our, our nicer properties are, you know, rents are increasing and we're getting, you know, multiple phone calls that, you know, within minutes of the time we S we post them before they're even, you know, vacated yet. You know, lot of people, you know, renting site and seam you know, last year we were, we were kind of at the beginning of the shutdown, we were thinking that we had this inventory that was going to sit for awhile.
Damon Maddox:
People realizing they can, you know, co you know, telecommute and work from home. You know, they can come to our beautiful city, you know, cost of living is so much cheaper, you know, they're willing to spend, you know, that extra money for, you know, a four bedroom. So they have one designated office space and they really only needed two or three bedrooms and, and all of that yard space. So we're seeing those homes go super quickly. Yep. What about, what about on the, you know, I know you do have some older apartment buildings and stuff that you guys have a little, little lower price point. I mean, what do you seen in that market? Well, you even, those were, they they've the, the, the pricing has creeped up, but we do a lot of stuff around the university area. Yeah. Those kind of, that, you know, first semester of, of the shutdown, those kind of sat vacant for awhile. Um, but you know, then, you know, students started coming back, um, and, and, you know, they're, they're all pretty full now where we are seeing the same issue that you guys have on the sales side, where low inventory. Um, and so people are jumping on, on what they, you know, what they see as soon as it gets online.
Tego Venturi:
Yeah. Yeah. How many, just curious, how many properties do you have in your portfolio that you, that you help people with? We manage 788 doors. Yep. Roughly 500 properties. We do everything from single family homes up to up to 20 unit complexes. We don't do any of the, you know, those giant, you know, 80, 160 units, you know, monstrosities, that's a little out of my wheelhouse and that's, that's a whole different niche. Right? You've got your niche. And I mean, obviously you guys have built a reputation in town for years and years. You know, like you said, your family has been in the business 45 years, you said 45 years scenario of the year I was born your dad, your dad is a amazing guy. And with the stuff he's done for our industry, and I think most people will just never know what he's done, so we appreciate it.
Tego Venturi:
Well, there's two bills right now that are working or we're trying to work their way through. Oh, there's Damon. So perfect timing. Let me talk about HB-19 first. So HB-19 was a, or in Damon, correct me if I'm wrong, but HB-19 got postponed. Correct. Is what I understand. Yeah. And I'll introduce you in a minute, Damon, but so HB 19 was they were trying to put a transfer tax on real estate sales. So basically wanted to tax you when you sell or buy a property. And at this point that one has been shot down. So thank goodness for that. But anyway, Damon, Maddox, medics management, if you've been around Albuquerque Ben and you know, around the city, you've probably seen Maddox manage it. Mint signs. I mean, God's statement. How long has your family been in the real estate business?
Damon Maddox:
45 years.
Tego Venturi:
Yeah. There you go. So you guys are kind of legendary in Albuquerque and especially on the property management side. But your, your father has done so much in yourself so much for the real estate world and real estate industry. So thank you for that. But the reason I got you on Damon is we want to talk about HB 1-11 which is, which is out there right now. And so first off, Damon, if somebody wants to reach out to you talk about private property management, how do they get ahold of you?
Damon Maddox:
They give us a call here Maddox management, (505) 242-0989. Or visit our website MaddoxMGMT.com.
Tego Venturi:
Awesome. Tell us about HB 1-11.
Damon Maddox:
So HB 1-11 it's revamping the uniform owner resident relations act which is, you know, the landlord tenant laws for the state of New Mexico. It's definitely something that needs to be looked at from time to time. You know, we, we, last time it was revised was almost 20 years ago. So when we heard that, you know, something was coming along, we, you know, we weren't you know, it was, it didn't catch us off guard, but when we finally saw the actual bill that they're proposing the changes they're proposing there's a lot of unintended consequences.
Tego Venturi:
That was one of my takeaways when I saw it, I started going through it going, Oh my gosh, this is going to backfire especially on, you know, what I would consider some of the, you know, the, the people on the margins, both as property owners, as well as potential tenants and, and stuff. I don't know, is that, was that your take?
Damon Maddox:
That was definitely my take, you know their, their intent is to help grow the workforce housing help us you know, the industry combat the, you know you know, homeless issue that we have in our state in particular, in our bigger cities, but the way they're trying to go about it is, is just, it's, it's going to cause much bigger problems than, than it's not going to fix what they're trying to fix. Yeah.
Tego Venturi:
So, give us just a, some of the proposals that are out there that, that concern the property management community and landlord,
Damon Maddox:
The big concerns that we're having with, with the, these changes is the amount of time for, for an eviction both for nonpayment of rent and, and for lease violations right now start to finish, you know, it can take about 28 days to, to go through that whole process from the time you serve that, that first notice if this passes it's, you know, 56 days for you know, for an eviction process for, for, you know, somebody that's been destroying the property, you know violation other than non-payment of rent. They're, they're taking that initial seven day notice and making it a 14 day notice, and you've got to do that twice before you can even, you know, file with the courts. Wow. the other, you know notable things that they want is they they're, they're adding they want to add a source of income as a protected class. Which, you know, it in and of itself is not a bad thing. Right.
Tego Venturi:
Sounds good. On the surface. Yeah.
Damon Maddox:
When, when you're, when you're forcing when Lords to, to take the, a section eight vouchers you're essentially, you know, stifling the, the amount of rent that they can collect and, you know, it's more, almost like a rent freeze for them.
Tego Venturi:
So wait, wait, wait. So this bill proposes that landlords, if somebody comes with a section eight voucher, which if anybody in the world, you know, they know what that is. So that's somebody low income, they get a voucher to help supplement their, their rent. Correct. But they're saying that landlords can't deny somebody because they're on a voucher plan. That is correct. Interesting.
Damon Maddox:
You know, so provided they meet all the other criteria. They, they, they have to accept the voucher as a company we work with these voucher programs and in this, the city run, the government run programs are, you know, wonderful to work with of the issue that we have sometimes is with the the nonprofits that are, you know, offering these vouchers. They don't train their, their, their, their clients, their tenants, the whole process. They, they don't you know, follow up on inspections like the government run wants to do. So I have some owners that do not want to take vouchers, you know, for that reason. Well, you know, you have great programs, you know, Bernalillo County housing. They inspect their properties, you know, and their clients they help us as, as property managers, make sure that, you know, the, the tenants not destroying the place that they're, you know, doing what they have to do to stay in their program. And same thing with the city of Albuquerque housing. But some of the nonprofit ones do not, some of them are great and some of them are not. And to have to force an owner to accept all of them would, would be a detriment. I think, let me ask this, what's the status. I mean,
Tego Venturi:
You and I talked to here earlier, but what's the status of the bill right now?
Damon Maddox:
So the bill was in the judiciary committee last week. It was a sense back to, to have some revisions done to the bill. Some of the things that you know, we're asked for that we, you know, we, we asked some changes to be made and they just released yesterday a new version of the bill, but it's pretty close to the first version. Got it. So, we'll see what it does in, in the dish judiciary committee, when it goes back to, for a vote,
Tego Venturi:
What is the property management community asking from the legislature?
Damon Maddox:
Well, first we were asking for a seat at this table you know, we were not invited to help work on this legislation really, if they simply asked us to, you know, we could point out, you know, the, the things that, where they're trying to get something to work correctly, we let them know exactly, you know, where that needs to change. And we we'd love for it to be a two-way street. Yeah. Eddie, do you have any questions on this?
Eddie Aragon:
No, I don't. I think it's pretty straightforward and he's pretty much staying on top of it. So it's very interesting how bad this will impact. I think all of the real estate industry, I think it totally, it takes away any and all investment in real estate going forward, which I think is really concerning for, for everybody. You know, I think the biggest problem that comes in as being a former practitioner of, of real estate is this literally gets rid of those LLCs of people who were investing in properties were reshaping properties and doing all that type of thing. So, you know, for a company, and this is what's really stressing me out is getting the Maddox company whose names are basically number one, when it comes to a residential property management, you know, this sort of puts them out of business and they've got to now increase their cashflow probably two to three months just to accommodate the new rules because managing on the side of the tenants and, you know, that's not unfortunate, that's in my opinion, that's criminal and it's, I think it's it's just really bad to go.
Tego Venturi:
Hey, Damon, tell Eddie what you told me earlier about the investors coming into New Mexico and what your, one of your concerns.
Damon Maddox:
Well, so yeah, my that's exactly right. My biggest concern, what I see right now, we have lots of investors coming in from California, from New York, and they're investing in our communities and, and buying up some properties and turning them around. And they always tell me that they're coming to New Mexico because our laws aren't as strict as, as California or New York. And these changes put us in line with California in New York. So you're going to see less people wanting to come in at best.
Tego Venturi:
Obviously we want to make it clear, like, we're we, we want, you know, a tenant. I mean, th the reality is right now, if tenants don't do what they're supposed to do, I mean, it's still a long process to, to make the landlord whole correct. Or sometimes the landlord never gets made whole.
Speaker 2:
That is correct. It, it is. And, and I completely agree with you. If you go, we have an issue with workforce housing that you to solve, and everybody deserves to live somewhere and have a good you know, place to live, but not at the expense of you know, of these investors or these people that are putting their hard earned money in, into, into our communities.
Eddie Aragon:
Well, one of the things that occurred to me is that everyone has their stories. Everyone has their ideas about, Oh, you know, I've been impacted by COVID, but one of the things that happens ultimately, and Ben knows is probably a better than our Damon knows this better than anybody. And that's the fact that, yeah, you know, stories will keep turning into more stories, into more stories. And ultimately if you're having to pick up the phone to call a Constable, just to kind of evict your tenant there's going to be significant damage inside. And not only is there no respect between tenant and landlord, which all of the laws now are really weighted towards, especially if this passes towards the towards the tenant. But I mean, you're going to be dealing with real, huge repairs and remodeling every single time you have a tenant.
Eddie Aragon:
And, you know, could we do a minimum of three years on a, on a lease with no going out first month, last month, and a first two months in, I mean, I think the landlords are going to be forced to turn this into something that's not even marketable because it's going to be cheaper to get into a house to purchase than it is going to be able to rent. And, you know, our escalations have been tremendous here in this market. And on the landlord side, I'd say, that's good, but you've had rent escalators somewhere between seven to 10% to go into amen. And that makes it really healthy for the investors from outside the market to say, Hey, you know what? This is a very affordable place to live. We can get in at a good rate and there's still lots of room housing affordability is at an all time high, but these people just want to rent for whatever reason. And that's just going to completely wipe out. And then I do mean wipe out an estimate. I think the rental market, and it'll happen over a trickle-down effect over the next three to five years where people are just making the determination that, Hey, unless we have your first, last month and next of kin sign on the dotted line, you ain't renting from us. And then no one's going to rent. I think
Tego Venturi:
You just, you just nailed it, Eddie. And that's the thing is this type of bill it's going to hurt the people on the margins of most. So you think about obviously the, the, the renter, that's got a low credit score that's maybe on a voucher or whatever it is they're going to get looked at even more. They're going to be scrutinized even more. But then the other, the other side is Damon. What was the number? How many people in New Mexico that are landlords are just small mom and pop own a couple properties, right? Those are the people that are going to get hurt. It's not the big, huge corporate, you know apartment owners, right. They got deep pockets. They can absorb it, but you know, that little mom and pop guy that owns a couple of rental properties and they can't get rent for two or three months that that's the people that's going to hurt. Yeah. They're already being hurt. Yeah. And they're already,
Damon Maddox:
And a majority of, of, of our clients, I'd say, you know, I, I don't know about the entire state, but I'd say, you know, 80% of our clients are mom and pop, you know, single investors, some of them, you know, they've, they've inherited property. You know, I've, I've got several widows. This is their, their retirement income, you know, they, they invested with their husbands. And you know, now that this is their retirement. So when they can't get rent for two or three months, I mean, that's, that's their monthly income that they're hoping to pay their own bills with.
Tego Venturi:
That's a great point. That's a great point.
Tracy Venturi:
Let's talk about forebearance. I want to get to that topic. So that's been a big topic.
Tego Venturi:
It's a hard topic. Okay. It's funny. I've, I've gone to the chiropractor. I went to the eye doctor in every time I end up just in the last few weeks and every time I end up talking about real estate, right. Oh, tell me about this and tell me once they hear my name.
Tracy Venturi:
I think it's going to be this big deal. So if somebody is coming out of forbearance Tego,
Tego Venturi:
I wanna just talk about some stats, if I may I find me well, yeah. Picking up on your sarcasm.
Tracy Venturi:
No, no, I love it. That you would know stats.
Tego Venturi:
Well, one of the things that's, that's been, um, going on is, yeah. I mean, back at the beginning of the pandemic, there were over 5 million people that took a forbearance plan. And so what that means is they, they went to their lender and said, Hey, can't make my payment because of COVID. And I need to just put a pause on my mortgage payment. So there was over 5 million. Well now we're down to about 2.7 million. Again, we're talking nationwide obviously. And that's good. The thing is interesting is of those people that have come off of that program over 3 million, 52% of them just basically they're paid up, right? They either started making payments or they refinanced, or they sold their home.
Tracy Venturi:
Or they continue to make payments while they filed for forbearance, because they weren't sure if they were going to be able to keep paying their payment, but they were able to.
Tego Venturi:
You know, a lot of those people were probably people that took the forbearance plan thinking, eh, you know, we'll just do it just in case, you know, it's kind of, there was obviously, there was a lot of, um, a lot of mystery back in March and April of last year. And so people just did it. So, and the rest of those, not the rest, but a third of those, um, they basically just said, well, we're going to work something out. So they're actually working out something with the bank, a repayment plan. Yep.
Tracy Venturi:
That could be that whatever they didn't pay, if they actually did skip some payments that they tacked it onto the end of their loan, or they've done sort of some sort of repayment plan that they can afford temporarily or, you know. So that's upon exiting the forbearance plan. Another 33% have a repayment plan. 52% of them are paid in full. What about the other 15%?
Tego Venturi:
The other 15% are in, are in trouble. Right. They're in some sort of loss mitigation plan. So either they're basically not making their payments so they could either just sell their home if they got the equity or if they don't have the equity, then you know, the very last thing would be, it would go into foreclosure.
Tracy Venturi:
Well, they could go to short sale first and sell their home. Right? So we, we negotiate with lenders on behalf of sellers that, ask them if they can't afford to sell their home, because it's not worth enough to pay off the underlying mortgage. We work with the sellers to negotiate, to have the lender take short, what they're owed so that we can get the home sold versus going into foreclosure.
Tego Venturi:
I kind of erased short-sale from my mind, because back in 2009, 2010, we did a fair amount of them. And they were really difficult back then because the bank, there were so many of those properties, the banks weren't geared up for it. Now it's actually a, it's a much easier process. So that's, again, that's one of those options for people that do find themselves, you know, in that, that group of people. I want to just one more comment I want to make, I think it's important. The narrative out there has been that if you're in all those people, the 2.7 million people that are still in forbearance, those are automatically going to be foreclosures and get dumped on the market. And we're going to have this mass flow of homes coming on the market. And that is just not, what's going to happen. Come March, April we'll know because a lot of those plans will expire. And again, so people could, you know, they could just, if they're financially able, they'll just start making their payments and just move on. They'll work it out with the bank.
Tracy Venturi:
Can I just add in there that, you know, New Mexico is behind the curve on people getting back to work because our restaurants just opened indoors at 25%. Right. But a lot of the country have gotten back to work compared to New Mexico. So we kind of think about New Mexico and how many people are still out of work because of our climate here. But you know, much of the country is back to work so that 15% will change. But go ahead.
Tego Venturi:
Well, and I just wanted to bring you into this conversation, but let me just, just follow up on that. So these people that are still going to be coming out, or if you're one of them coming out of this forbearance plan, you're not sure what to do. There's, you know, there's options. And so again, just assuming that just because somebody is in forebearance, it's going to end up in foreclosure and be a bank sale, that's just not true. There's going to be people that have equity and can just sell or take the short sale option or you know, whatever it is. And so
Tracy Venturi:
I would say really have a private conversation with us to talk about the options, right?
Tego Venturi:
That's exactly what I was getting to. So Tracy, you know, if somebody is in a forbearance situation, they want to know what their options are outside of what the bank is offering them,
Tracy Venturi:
Call us, let's sit down, let's have a private conversation, look at your situation and see how we can best help you with whatever direction you need to go.
Tego Venturi:
Tracy, I want to talk about affordability.
Tracy Venturi:
Changing the topic quickly.
Tego Venturi:
I'm changing the topic quickly.
Tego Venturi:
It's interesting, cause there's been a lot of stories out there talking about affordable housing and that is a conversation that needs to be,
Tracy Venturi:
That's very different from affordability.
Tego Venturi:
Correct. Affordability, you know, when we're talking about homes and in specifically compared to historically, so Tracy, there was a story that came out and a lot of people are seeing these headlines, Oh, there's no affordable housing. And so all of a sudden they think, well, homes are not affordable. The reality is that homes are actually comparatively very affordable historically.
Tracy Venturi:
Totally. When you think about how much of somebody's typical income needs to go towards housing these days, it's very low compared to historical, you know, your percentage of how much you earn that goes towards housing has become much better.
Tego Venturi:
I got a stat for that. So there's a couple of different things you can look at. So there's, there's this, National Association of Realtor does a whole housing affordability index. They've been doing it for a long time. If you go back to 1990 is the chart I have. And what they look at is, you know, the whole package, they're not looking at just prices of home. They're looking at they're accounting for mortgage rates, they're accounting for income. So they're looking at median income versus what homes costs versus what the payments are, including insurances and taxes and everything. And the thing that's fascinating is 2020 was let's see one back to 1990. It is the fourth or fifth most affordable, year, the only years where it was more affordable where the, the post recession. So, you know, 2009, 2010, 2011, 2012, right? Those were the good years, right? We should have all bought more homes back then, right? Just like we all should have bought Bitcoin five years ago, but don't get me started.
Tracy Venturi:
Hopefully when we used to talk about it a lot, some of the people that we mentioned it to did buy it and still hold it because.
Tego Venturi:
When we were doing the show, remember Tracy? We were doing the show back in, when did we start the show? Was it 2010? I don't remember.
Tracy Venturi:
It's been seven plus years. So 13, 14,
Tego Venturi:
And at the time we were saying, it's the buyer's market. It's time to buy it's time to buy.
Tracy Venturi:
That was a tough time to buy though because there wasn't lending programs, right? The lending was very difficult because a lot of the mortgage programs had gone away.
Tego Venturi:
I'm gonna push back on that, the easy lending had gone away. But the people that could actually pay had no problem qualifying, right? It was just that the easy program went away.
Tracy Venturi:
All of the unique programs that catered to different scenarios were not in place. So,
Tego Venturi:
And the reality is those programs for the most part have not come back. A lot of those programs, you know, helps create the housing bubble back in 2008. So anyway, we're getting way off track here, affordability. So the reality is, you know, right now affordability is at a very historic low. And also if you look at another piece of data, it's a percentage of income needed for a mortgage payment. It decreased drastically in 2020. So historic norm is about 21%, 22% of your income toward your housing. And that could be rent. That could be, you know, a mortgage, however, so 21% as of right now, we're at 14.9, 15%. So it's a huge decrease in the affordability, even though home prices have come up.
Tracy Venturi:
So what's helping that Tego is that interest rates are so low, you can afford more house. So because home prices are up, you can still afford them because of the lower interest rates.
Tego Venturi:
Yeah, absolutely. And so I just want to talk about that and just one other chart to talk about as the typical mortgage payment in, in 2020, they were saying it was $826. That's just adjusted principal interest. And that's, you know, for a very average home, right. In 2006, it was $1,300, right? So it's substantial difference, right?
Tracy Venturi:
Interest rates were about seven and a half percent then because when I was a newly licensed realtor in 2002, we were typically in that seven and a half percent range. And then a few years later when we got better, it was seven. So, you know, sometimes we'd be in that seven, seven and a half range through 2006 as my recollection.
Tego Venturi:
So the takeaway is don't make a decision based on a headline that says home prices are going up and, you know, they're up this much from last year or whatever, right. Or you see a headline that said, there's no of affordable housing on the market. Again, affordable housing is an issue. You know, we look at the Albuquerque market right now. I mean, how many homes in Albuquerque right now, Tracy you're in the MLS are on the market under 200,000. It's gotta be less than, it's gotta be a few hundred, right? And so, you know, that is a challenge. There are less lower price homes on the market without a doubt.
Tracy Venturi:
Let's talk about falling in love with your house, or maybe you have fallen out of love with your house. You know, we've been spending a lot more time home this past year and like Eddie just said, maybe we get to spend a little less time in our home, but we now know what it's like to be home a lot.
Tego Venturi:
Well, it's interesting because like Eddie said in the opening, there is, you know, 20, 20 redefined the meaning of home. And what does home mean? You know, it's not just a house, it's not just a piece of real estate, although many times in our business. And unfortunately it can get kind of mechanical like that, but it isn't, I mean, a home has a lot behind it, right?
Tracy Venturi:
You know, it really does. And there's a lot of satisfaction in home ownership and, and part of why it's easy to fall in love with home ownership. Okay. So we can talk about all of the financial reasons to love being a homeowner. Right. We know it's the single most important way people build wealth.
Tego Venturi:
Let's see, I had to get the right side. That's the left brain. Right? So it's it's yeah. It's the left brain, right? It's the, it's the logical. It's the engineer, the engineer brain. Let's put it that way, right?
Tracy Venturi:
There's a lot of, yeah. Solid sound reasons. Financial reasons. Why to be a homeowner. When, when we talk to people who have owned a home for a few years and they realize how much equity they've built wealth built into their family's financial picture, it's huge. But there's other things about being a homeowner, right? So it's the security comfort stability of being a homeowner, right? You know where you're going to be. You don't have that. Will the landlord decide to sell the house or will the apartment complex be raising my rent?
Tego Venturi:
Well, if I want to paint my bedroom's purple, can I just do that?
Tracy Venturi:
The other thing is the house is uniquely yours. Like you said, if you want to paint your room purple, go find your own house to live in Tego. But you know, you still have to deal with that. The house is uniquely yours and you can decorate it, how you want. You can change it. You can remove walls, you can remodel. You can do different things in your yard and your fencing and it's yours.
Tego Venturi:
Well, and I know so many people and will, will resonate with this is I, you know, there's certain projects that we do around the house that are just kind of like this meditative zen kind of thing, right? Mowing the lawn, doing yard work. I know, I know people go, well, that's work. It's like, well, no, it didn't. It depends what type of work you do. But sometimes just doing some physical work is, is great. And it's therapeutic. And I like it. I know that's, I'm doing all left. I'm left brain, your right brain
Tracy Venturi:
Sort of ironic that you would say that yesterday afternoon I was cleaning the yard from all of our dogs and it was like beautiful. It was like 64.
Tego Venturi:
Like they didn't, they didn't mow the lawn. Is that what you're talking about?
Tracy Venturi:
No. I was picking up after our three dogs and something you wouldn't know anything about. I can't relate at all. I find it sort of cathartic. Like you said, the dogs are outside, they like that I'm outside. It was a beautiful day. It felt very rewarding for me. But anyway, and today was trash day, so it's all gone
Tego Venturi:
And you're already wearing a mask. So it was all good. No masks, no mask in the yard. Yeah. Got it. Yeah.
Tracy Venturi:
So so anyway, then there's the whole wealth building thing. But the other thing that I think we haven't talked about much Tego when it comes to being a homeowner is your sense of community, right? That you're a part of something. You have some vested interest in knowing your neighbors. And when you go to the park meeting people, when you're out on walks, it's, it's your community, you're paying attention. You're more security aware for your neighbors and things and, and maintaining it. And then it's something to be proud of. Right? Home ownership is definitely something it's a big accomplishment and something to be proud of. And I love it. We had this meeting this morning with our team and we had some conversations about some, some feedback we'd gotten from recent home buyers. Right. And some of the testimonials that came through this week, we read out loud and it was, you know, those awesome heartwarming stories about how they've dreamed about being in a home. And it's like, I can't believe this happened. And you were a part of it. And we, we never thought we could own a home. And with all the hand-holding from the lender and you as my realtor, it was sort of our love story meeting, right? So we were, we were reading some of the love stories back to us for being a part of this important part of their lives. And it was really touching.
Tego Venturi:
Yeah. And sometimes, you know, the first time home buyers can be really satisfying too, because again, it's people that maybe never thought they would be a homeowner are now a homeowner. And, and we were talking about this whole idea, you know, we get, we get a lot of calls Tracy from people looking for rental properties. And, you know, we don't deal in rental properties and just, just the way the market is, it just doesn't work that way for us. But there are companies that specialize in property management. Right. Right.
Tracy Venturi:
I was going to say, we often give them resources to help them find rentals. And sometimes we do know about rentals that might be available, but it's not our specialty.
Tego Venturi:
And of course when those people call in, we always say, you know, have you thought about owning a home? And you know, I mean, that's what we do. Right. And, you know, educate people. And many times people say, well, no, I can't afford it. Or my credit's no good or yeah, this and that. And I think there's perceptions out there about what it could take for some of those people, you know, there's programs out there right now, if somebody has a 580 credit score, they may, may be able to qualify to purchase a home right now, finding a home. That's a different conversation. And that's, that's just in the market we're in right now, but I'm talking big picture. There are programs. And then even people with bad credit scores, right? There's help
Tracy Venturi:
There is we know of a, a really great program.
Tego Venturi:
And of course, Michael Trujillo comes on after us. And that's what he does. Right. It's helped people with the credit score,
Tracy Venturi:
There's ways to get your credit scores up and get you in a home. And we know of a new home builder who will sign a contract with you to buy a house that might be under construction and still be three to six months from being built or completed the build. And they will still go under contract with you. If they look at your credit score and can see that you're going to be able to get it raised up in time, to close on that new construction. So some awesome things and, you know, lots of reasons to talk to us and find out if there's a way for you to become a homeowner. So give us a ring. As you know, we have a team, a lot of great realtors that work with us to help you with either home buying or home selling u448-8888 is our number. We try to answer it every day of the week. So depends on when you're listening, but we're, we really are. Our goal is to answer it, even if it's six o'clock on a Friday night. So
Tego Venturi:
Fall in love with your home, you know just one last comment on this whole concept of falling in love with your home. How many times Tracy, have we seen people that are just like frustrated with their home? It's not working for them quite right and they decide to sell it. And then they start doing a bunch of work to get it ready to sell, or they may be bringing a interior designer stager to help them kind of rearrange their furniture, maybe get some new furniture. And then all of a sudden, they go, Oh my gosh, I really love this house. I should own this house. And so I just, you know, obviously we'd love to help people sell homes, but I mean, think about that. Right? So that
Tracy Venturi:
TV show, Love it or list it
Tego Venturi:
That's the concept, right?
Tracy Venturi:
Oh. And the, the one person goes in and helps them redo their current home so that they will love it. Right. but when you have fallen out of love with your home and this past year, I know a lot of people have fallen out of love with their home. It's not meeting their needs for how they live now. You know, it's the best time to call us, talk about putting a strategy together to get your home sold and get you top dollar, because the way we market it is, you know, really top-notch, we're not going to just do it halfway, right? So anyway, it's a, it's a great time. We're in well, February, but it's going to be a kind of crummy weekend. I bet a lot of people will stay home.
Tego Venturi:
Light the fire fire that you've never used in New Mexico Valentine's party at home. Little candlelight dinner Tego. Yeah. There you go.
Tego Venturi: I've heard this and I don't know why this keeps coming up, but why people think you need 20% down to buy a home?
Tracy Venturi: You know, I heard people this week, somebody on our team asked the rest of them, said, how do I tell somebody, no, you don't need 20% down to buy a home. And I'm like, really people still think that, and this was millennial, this was millennials that felt like you couldn't buy without 20% down. And it wasn't wise, even if you could buy with less than 20% down,
Tego Venturi: If you're a fan of Dave Ramsey. And obviously the financial guy, I mean, he, I mean, that's his thing, right? He says, put 20% down and do a 15 year mortgage. Now, I don't know if he still believes that with a 3% interest rate, the money is so cheap. I mean,
Tracy Venturi: Yeah. He doesn't believe in debt. He doesn't, he doesn't believe in debt or credit cards. Right. So it depends on who you're listening to.
Tego Venturi: Part of his thinking is he deals with so many people that get themselves in trouble with debt. That may be that's part of his paradigm.
Tracy Venturi: I think he realizes there are a lot of people who can't manage a credit card or finances. And so they just have to like, not, it's just cut it, cut it all off and pay it all down. And don't open up credit cards again or have debt, however, with interest rates at 3% and sometimes below I don't know, locking in a, a monthly mortgage rate right now, even if prices are up is still a great time to be a buyer.
Tego Venturi: I think so. And, and I, you know, had this conversation with another realtor that was saying, well, what do I do? You know, I don't know how to tell my buyers because I'm afraid they're going to overpay. And then I'm going to have to sell the home for them last year. And I'm like, well, hold on a second. Do they need a place to live? Is this is what homes are selling for right now. Okay. Do we know what's going to happen in the future? You know, so I mean, it's like, it's tough. Cause Tracy, we went through 2009, 2010, 2011, when people were having to sell their homes for $50,000 less than they paid for them. Right. I mean, we saw some of that. I just do not see that in the card anytime in the next few years, I just don't. I mean, we're going to have a slowdown. Absolutely. I just don't see a big decrease in home prices anytime soon.
Tracy Venturi: Right. So it's a big myth, 20% down for buying a home is a big one.
Tego Venturi: I really took that off track time. Yeah. Yeah. Getting back to where we were getting back to what we were actually talking about. So this study, Tracy want to talk about that it was a profile of home buyers and sellers that the national association does. And they said, you know what, actually people really put down
Tracy Venturi: And what they really put down first time, home buyers, about 7%, which is interesting because three and a half percent down is an FHA borrower loan minimum. And a lot of first-time home buyers are FHA borrowers with 3.5% down. But that means there's a bunch of them that are putting 10% or more down, which is great. And hopefully, hopefully families are helping them if they don't have more than three and a half percent down and they're gifting them that money so that they can have more equity in their homes. Because yeah, I'm saying if you're in a position to give to what a better gift you can give your child than to build wealth through you know, through real estate all home buyers though, it's a average of 12% down, down payment. So the 20% hasn't come in yet 20% doesn't even come in with repeat buyers they're at 16%.
Tego Venturi: Yeah. So it's interesting. And you know, the reason and just to clarify, why somebody would want to put 20% down is because of mortgage insurance, right.
Tracy Venturi: For some loan programs. So mortgage insurance is something that's insurance, that's money that's paid. Every time you pay your payment, that's given to a company that's insuring to your lender, that if you default and stop paying there, they're responsible, not the bank or the lender.
Tego Venturi: Right. Right. And so, you know, that financially, that does make sense. Because you, now, you're not having to pay that if you have the wherewithal to come up with the 20% down payment.
Tracy Venturi: Right. But there's the great VA loan, right? The, the VA loan is the best loan out there. And there is no mortgage insurance on that. And that, and there shouldn't be no, it's a benefit to our veterans that qualify for a VA loan. There is no down payment required and no mortgage insurance. So it's a great loan. Great, great. Yeah.
Tego Venturi: That, that is by far the best program out there and not everyone qualified, not everyone qualified to do your time side note, Tracy, what other, I'm going to do this as a, as a, as a, as a jeopardy question test. What other program in New Mexico is available for zero down payment and they are out there.
Tracy Venturi: I know the answer, it's the USDA for rural areas in some rural areas are in Sandoval County are in Valencia County are in Torrance County. Yep. I don't know that there's any in Burnham,
Tego Venturi:
Bernalillo County, but Santa Fe County. So you get out to Edgewood. If you go to the East mountains, Moriarty you know, down South, like you said, there's, there's areas where you can get those USDA programs in there
Tracy Venturi: Might be better to do the FHA though, versus that, you know, it just kind of depends, but getting a great lender to help, you know, the difference and pick, help you pick which loan program, you know, a lot of times buyer buyers have no idea, you know, that there's all these different loan programs and it takes a really good lender to talk with them, to find out what product is going to be right for them.
Tracy Venturi: Housing stats. Tego
Tego Venturi: I know. Well, it's the first week of February, 2021. And here we are. And, and I'll go through a couple of things. I know it's a little more difficult on radio. You guys can't see this, but let me just give you a couple things, Tracy. So the number of homes sold in January this year is up 14% versus January last year.
Tracy Venturi: Incredible. Isn't it? Considering that if we had more houses on the market, think how far up it would be?
Tego Venturi: Well, that, that goes right into what I was going say next, which is the number of homes for sale. So again, set that in your mind, 14% increase in sales in January, that was with a 64% decrease in the number of homes on the market versus last January. So give me an idea. Last January, you had 1,752 homes on the market. This January 630, you know, that was just for the Metro Albuquerque. Currently there's about 850 or so in Metro Albuquerque single family homes for sale. And as I keep saying, you know, we could easily have three, four, 5,000 homes in the market and still be in a quote balanced market, you know, with the, with the current demand that we're seeing in, in the market. And I, I know there's a lot of people talking and I was on a training where I was talking to some other realtors about, you know, what's going on, doing what I do here, which is talking about the market. And some people are concerned that the prices are gonna tank and 21. And I I'll just say I'll put my, you know, I'll put my name on it, that I don't see it. I just don't see it in,
Tracy Venturi: I don't either prices can't tank that fast. It moves slow. So I'm sure you have some other stats for us from January before.
Tego Venturi: The one thing I wanted to talk about was the the, yeah, let me go back to that one. Sorry about that is the luxury market Tracy, because that's one place where we've really seen a huge move in the last year. And just to give you an idea homes over 600,000, if we look at closed sales,
Tracy Venturi: So did you increase that from 500,000? We always talk about homes over 500,000,
Tego Venturi: The stat I've got it set up as 600 and above, but just to give you an idea, there was a 45% increase in the number of homes over 600,000 that closed in the last 12 months. Okay. If you look at it just for January, there was, Oh, I'm on the wrong chart. We get this in January of 2020 homes. Over 600,000, we had 18, or excuse me, had 18 sales this year, 41 sales in January over 600,000. That's 128% increase. Yup. So that market's really strong. Yeah, I mean, we don't need to beat this to death. The reality is it's, you know, the market is very strong. It's a very strong seller market in all segments of the market, all parts of town. And, and I don't I don't see that changing anytime real soon.
Tego Venturi: I want to talk about this whole idea of selling and selling in this market. And are you leaving money on the table as a, as a home seller? The reality is this is the strongest seller's market that I think we've ever seen in the Albuquerque area. And it's not just Albuquerque it's across the country. I mean, there's a select few markets that aren't that way, but it is a strong seller's market, which means you put a home on the market it's most likely going to sell. Right? Obviously price matters. But you know, you could get a let's say a lower price point home that's in fair condition, take some cell phone photos, throw it in the MLS and you'd get some offers right away. The question is, are you leaving money on the table? Are you leaving money behind when you do that? So just Tracy, can you talk to folks that are thinking of selling of the things they need to be thinking about?
Tracy Venturi: So, you know, we know from years and years of doing this, that our website gets people from all over the world, right? We're seeing people buying houses here that haven't stepped foot here to buy that house. We're seeing people from all over the United States, we're seeing people from actually in the last month or so we've had several that are international. They might be PCs'ing coming back to Kirtland air force base, or for some other reason or out of the country and coming back.
Tego Venturi:
And you said it real quick, you guys say with PCS'ing and if people don't know, I mean, anybody in the military knows what that means.
Tracy Venturi: PCS'ing is a permanent change of station. So military people, when they get assigned to a new base, they PCs permanent change of station to the new one. Yeah. So that happens. But we know that there's a lot of people online, shopping and choosing what houses they're interested in. And even though it's a great time to be a home seller, we feel like it's a disservice to our sellers to not present it as professionally and high quality as possible. We've seen some houses that are getting cell phone photos or really crooked, you know, they're not good. And you know, we feel like perhaps money is being left on the table sometimes. Plus the negotiating skills.
Tego Venturi:
Yeah. Well, that's what I wanted to ask you because obviously presenting the property, merchandising it, making it show, well, you know, be the model home. That's going to get you the most from the presentation side. But what about, you know, you get multiple offers, what's important there and what should your agent be talking to you about your real estate agent that's helping you?
Tracy Venturi: Right. So multiple offers it's lovely, right? From a seller's perspective, being able to choose among a few of three or four or five offers. But the highest priced offer is not always the best offer. And you know, just this past week with our team, I can think of at least two instances where there were multiple offers and the highest priced offer was not the one selected. So all the other terms are very important. Closing timeframes, inspection deadlines, the quality of the financing or the cash, even sometimes cash without any documentation to prove that your buyer has the cash available or ready cash. So to speak something that can be converted into cash quickly might mean that there's not faith, that, that cash exists.
Tego Venturi: And we know, you know, I'm going to say, we know all the tricks right on, you know, when we're representing a seller, we're looking at more than just the bottom line price, because there's so much more to it. You know, the pre-qualification, you know, have they actually been pre-approved or that a lender just kind of take a phone call and get some basic information said, Oh yeah, it looks like you qualify. Or they actually approved for the loan. They're ready to go.
Tracy Venturi: So that's a really good sidebar. Right? So there's pre-approval and pre-qualified. So a lone letter that comes to us along with the buyer's offer that says they're pre pre qualified. So a lot of times the language in those letters says based on the information you've given and given us, you appear to qualify. However, we have not checked your credit, we have not verified your employment. We haven't checked your taxes. This does not mean we will lend you that money. So you're going, what's the point, right? Why would we give much credibility to that type of letter when it says it's only based on what you told us, you haven't even filled out a loan application to give us all your data. We haven't even pulled your credit yet, versus pre-qualified where somebody actually has already pulled their credit and done some of the due diligence to verify some of the information.
Tego Venturi: And I want to just make something clear here. We're not, we're not throwing lenders under the bus. You know, what happens is the buyers call up and say, well, I don't want to do all that. Now just give me my prequalification. Well, the buyers are doing themselves a disservice by doing that. I assure you that lenders want to do the due diligence and give you as a buyer, a very strong pre-approved, you know, qualification letter that you submit with your offer. And so buyers need to not try to shortcut that step because it's going to make a big difference in them winning or losing when they make, make offers right now, when you get multiple offers. Right?
Tracy Venturi: Right. So the other part of that is, you know, having an experienced agent that does a lot of transactions in this market right now that really knows the ins and outs of how to look at one offer over another for a seller is pretty important, to really give good advice and help the seller make a good decision based on what we, what we have and the relationships we might have with other realtors and with local lenders, because obviously with a local lender is preferred in our market over out of area lenders.
Tego Venturi: You know, we we've talked about this many times, but I'm going to say it again, local lenders that have an office that have a reputation to protect in town. They want to make sure that they're keeping that reputation strong and doing the right thing. And unfortunately, we've seen it. And I, again, I'm not trying to like slam anybody here. I'm just saying we've seen it when you have these kind of out-of-state online lenders. They just don't have quite as much skin in the game to make sure that everything's good to go. And that the the buyers are taken care of.
Tracy Venturi: Well, and that's oftentimes the out of area lenders don't know about some special programs that might be available here. They don't have a down payment assistance program for first-time home buyers, right? Yeah. They're just more limited on the products that they can offer to home buyers. So that's, that's things to consider when I'm wondering if you're leaving money on the table. So who you choose to sell your home with you does matter
Tego Venturi: Again, it's not just about price. It's about, you know, working those offers and negotiating the best deal for you
Tracy Venturi: And preterm and presenting the proper property in the best light possible.
Tracy Venturi: What's the difference between an appraisal and home inspection?
Tego Venturi: So, an appraisal something that happens after a home goes under contract while, buyers want to buy this home to pay this much money for it. And so the bank hires an appraiser to come out. Look at the property and compare it to other homes that have sold for comparison methods. You look backwards. Okay, is the bank, making a good investment by loaning this person, this much money, for this property? So it's not really. People always get mixed up. Does it, establish value and justifies the value that the buyers are willing to pay.
Tracy Venturi: So basically the appraiser is being the eyes and ears of the bank who doesn't go out to the house to make sure, yes this is the house it's the quality that we want to lend this much money on. So the appraiser is really just making sure for the bank that they're making a good loan.
Tego Venturi: Something that confuses people a lot, a lot of times you'll hear lenders, or people in lending side of the business say yes, the appraisal inspection is on Tuesday, well, they call it an inspection but it's not true like home inspection which I'm gonna ask you about in a second, it means that the appraisers coming out they're gonna look at them. Now they are checking the basics are there right you've got hot and cold running water, you've got heat.
Tracy Venturi: You got the stove, you don't have to have cooling.
Tego Venturi: It's got a roof that doesn't leak. You want to make sure that the general condition of a home is good. Doesn't get to be perfect, but different lenders and standards have different things so like a VA loan is much more strict on the condition of the property. Let's say the convention, so that that's the appraiser. So, Tracy. What is a inspection in the sense that we've talked about inspection?
Tracy Venturi: Right, so home inspection is an inspector who comes in and turns on every faucet turns on the checks all the electrical outlets open and closes windows checks the roof, checks the foundation, kind of walks around your room and checks, everything from nuts to bolts, right from roof to foundation to drainage, and they provide a written report that that's, you know, very different than what an appraiser does an appraiser doesn't check everything to make sure it works they just to have a few bullet points.
Tego Venturi: Because I've heard this term, you get a full home inspection. Is there like a pass fail?
Tracy Venturi: There is not there is no pass fail. So once you get the home inspection, typically in our market, you have the opportunity to ask the seller to make some repairs and that's your second negotiation, right? The first negotiation is getting the house under contract. The second negotiation might be repairs. And typically, it's mechanical, structural, danger safety kind of thing.
Tego Venturi: Warrantable, that's what I use a lot it's like you know, is it something in the home that can a warrantable buyer ask a seller to fix down this market. You know, they may have to waive that to get the home because it's so competitive there's buyers out there willing to waive. Do we need the inspection repairs.
Tracy Venturi: So, we might be willing to get their offer accepted waive any repair requests down the road.
Tego Venturi: And I want to make a caveat to that, I would never, ever recommend somebody get a waiver home inspection, you can always get the home inspection, that's a part of our contracts. You never want to say, Well, you know, I want to get the home so I'm going to waive home inspections, No, get the home inspections, just make it clear that you're not going to be picky about the repairs.
Tracy Venturi: You know there's a lot of really handy people out there. And when we work with them and they say, "I can fix anything, I can fix that" or "I have the money. If something comes up on the Home Inspection, I can take care of it." But then there are people who don't save every penny they have they're going to be putting in their downpayment, getting in that house. And for them you know getting a home warranty on top of their purchase or, you know, having the ability to ask for the repairs for the major things can be pretty important.
Tracy Venturi: So the topic that you wanted to talk about how to be a ready buyer in this market. Right?
Tego Venturi: Really, really critical and we've been talking with our team, other agents but mainly with their team, making sure that buyers have the expectation of what this current market is like, because it's really, unlike any other market we've seen in the sense that super competitive. When homes come on the market, and are fit for a lot of people. Not everyone with some, you know, still gotta be priced properly
Tracy Venturi: For the condition and location. It's got to be priced right.
Tego Venturi: And what happens is you know if it's a good moment a good area with, You know what it's priced to the market. What are buyers need to be ready to go that their offer's competitive because you know we've had some that had 20 offers in the first day in the market.
Tracy Venturi: Well we put one on the market today I think it's had 20 showings already, you know, 200,000
Tego Venturi: Offers. What,
Tracy Venturi: What's gonna set aside, it's gonna be the one selected by the seller to buy that.
Tego Venturi: Yeah, that's the question you know what you know how, what is the buyer need to have in place to make sure, other than having a real estate agent, and this is critical. And it's helping them. Put that offer together, and understand what this market is like I've heard some stories recently of offers that come in near going. When offering you right in this market. Right. I'm sorry I'm I keep talking and keep asking you questions. But I gotta tell you the story: I heard him I heard this super competitive. Somebody received an offer on a property right it was one of those you know 200,250 you know real competitive knew there was going to be multiple offers or actually this agent knew there are going to be multiple offers. They wrote this offer like they were writing in 2010, when it was a buyer's market, not a seller's market right and you know they put all these expenses on the seller, that you didn't visit this is just weird it's like Hold on, you're, you know the real estate agents should know that are doing business in this market they gotta talk to their buyers about this if they want to be competitive.
Tracy Venturi: For sure, and also we do what our buyers want so we can educate them and then. Then we sometimes write things that we know are not how you're going to be the person that gets to purchase that home right. But, but I think you know having a realtor who is familiar with what's going to be important to the seller and honestly one of the most important things that we find and what we tend to train the team is have a lot of communication with the other realtor because we need to find out what's important to the seller, right? If I have a buyer who can do a different closing date they don't have to have the house by a certain date, right? If I don't call the other realtor and find out what what the seller prefers When, when, would they like to close when do they need to move. I might pick a date that puts me out of the running, right? So that communication with the realtor representing the seller is exceptionally important, but there's lots of different things you know that we do to write a compelling offer, but we do need the buyer to be ready.
Tego Venturi: So what are those things that buyer needs to do.
Tracy Venturi: So they need to be working with a good local lender, you know, these days, you know, online lenders are so good these days but online lender is not going to wow the seller or the seller's realtor. Right? They want somebody that lives here has a reputation. And if they mess up the loan. Other realtors know about it. You know they have a reputation, right? So a good local lender, and then a lender letter that goes with their offer that shows that their credit has already been pulled, their verification of employment, their property their taxes have already been submitted they've already done all the legwork on the loan to make sure that this person really qualifies.
Tego Venturi: And to make a side note on that because there's, the pre qualification letter or the pre approved letter, right in.
Tracy Venturi: Pre qualification means they told me these things. And if they're all true they probably qualify for that house.
Tego Venturi: Right, pre approved, and that's not always true. I've seen letters that say pre approved and then you read the detail and it's while we haven't slipped their credit yet we haven't looked at their employment history and this and that right so. So you want to get again one of those letters where, if you're the buyer you're actually made the application. You've already submitted some of the very basic documentation like your income, your proof of income that type of stuff job insecurity and so on. Right?
Tracy Venturi: Right. So, getting pre approved versus pre qualified is pretty important. and then obviously the type of loan is very important. If you need downpayment assistance, and somebody else doesn't, they're probably going to choose to somebody else, right? All the time it takes you to get your loan so some loans notoriously take 45 to 60 days, whereas some others could close the 30 days. Again, it just kind of depends on what the seller is interested in, and how that works.
Tego Venturi: So give us just like maybe one or two of those little tricks to share all our secrets but give us a couple tricks. It may be a buyer could offer to the seller, getting their offers. In other than the price range,
Tracy Venturi: Other than price. Yeah, so an escalation clause on the price so if you're willing to pay more for it, make sure you put that down, Right? Make sure you put it out there because if the other seller, or this seller's agent doesn't know that you're willing to compete, a price higher than you offer you may not be given the opportunity. You know, some of the things just who pays for what is typical in our market, you know, kind of who pays or what, there's titled cheat sheets that show who typically pays so sometimes offering to pay some of the things that a seller might honestly I think you get more bang for your buck by giving a higher price and keeping the who pays for what the same because the customer is, you know, the psychological of the value and what you're offering as a higher price I think gets the attention of people more than, what the net might be sometimes. And then, lots of other things but just making sure
Tego Venturi: That you know that we've deployed over the years and
Tracy Venturi: We talk about it regularly, what are we seeing we're asking our lenders What are you seeing come through on contracts that you think, made the difference, right? Again, I think a lot of it is just communication with the other agent and making sure that they want to work with you and that they that they know that you have a good reputation.
Tego Venturi: Let's talk about this whole thing real estate versus the housing market.
Tracy Venturi: So this week. Many of you have probably seen the headlines with the whole issue in the stock market where GameStop and other a few other stocks were manipulated to harm some hedge funds and people with short options in short stocks, very very big hedge funds and some big investors, and you know it's interesting to me because I'm watching that going, I really know real estate. I know the value of real estate and I know people need to live somewhere.
I know the stock market a bit, I know how options work and I follow when I invest in the market, but it just really hit me how volatile it can be when you're investing in the stock market, versus, real estate, you know, what an opportunity people go well you know the markets gone up X percent in the last year, do I really want to be a home buyer, they're like well. But if you look at the historical 30 years back 50 years back, housing is very stable compared to the stock market.
Tego Venturi: Even when you're taking into account the period from 2008, you actually take the light out. It's still 3% a year three 4% a year. And that was, if you look at like the chart for the stock or the S & P, right. All these ups and all these ups and downs through, through the years, obviously again over time. But the housing market is much more steady, except for that anomally, which I don't, I don't see ever happening again. A lot of things, correct things cause back. Never say never.
Tracy Venturi: The thing is, you know, we watch CNBC in the morning we see they always have some analysts from some big company right say "hey we're upgrading this stock" although they don't do that so much there, but they say, you know, so and so the stock got upgraded today by somebody. And we know that a lot of the across the country, people are calling people saying "hey this stocks been upgraded you should get in." Right? And we know that it's all can be manipulated very quickly. The housing market really isn't similar to that it just seemed like such a pressing story this week with the whole Reddit thing GameStop and what happened. It just made me go "why I sure am glad I've got a lot of things invested in real estate." You know we're real estate investors as well as we own a home and we live in a home. And it's done well for wealth building over time
Tego Venturi: As we all say Tracy it's diversified right, you know, if you're in the stock market. Obviously, bonds, stocks and mutual funds, right but again it's it's, I think part of a good long term strategies is diversifying into other types of assets, right, real estate, like gold, so many other things but, you know, educate yourself.
Tracy:
So new topic. Well,
Tego:
It kind of ties into, you know, the trend, right. Tracy and into this. So we were talking about the cloth office, but some of the things that have kind of come out of 2020, and now going into 2021, what are some of the challenges that our market, the real estate market as a whole is going to have? So realtor magazine did, did some surveys of realtors from around the country. And so they come up with seven things and we can just talk about this really quick, Tracy clearly inventory shortage. We've already hammered that in today's show. You know, again, it's, it's everywhere. The number of homes in the market is, is much lower than, than what we would, we would like to see. W do you want to go through
Tracy:
Widely distributed vaccines to boost confidence of the population,
Tego:
Right. There, there are definitely people that have not put their home on the market because they're just, they don't want to live. They don't want to move around. They don't want people in their house. So, yep.
Tracy:
Interesting though, I think in New Mexico, we're, you know, we're on a, a couple of different Facebook groups with top agents across the country that are from all brokerage at bulk brokerages, not just Keller Williams Realty, as well as the top realtors around the country and world with Keller Williams. And it seems like here in New Mexico, a lot of people are getting vaccinations. And in other States they don't even have a registry yet. They don't even have a place to get in line. Whereas we do it, it sort of feels like we have, we know a lot of people around us that have already had their first shot and some their second this week. So maybe we're ahead of the curve on getting those.
Tego:
Yeah. It does seem that way. Just based on the, the, the, a little bit of evidence we have, but that is true.
Tracy:
Yeah. It isn't a lot of evidence. Yeah.
Tego:
Let me speak to this one, obviously it's right up. My alley is, you know, the third thing they're saying is that the homes will be lost to foreclosure. Obviously, you know, there's still 5.3% or 5%. I don't remember exact number. It's like five, 5.2% of homeowners are delinquent, right? But most of those people are in a forbearance plan. Some people are going to come out of the forbearance plan and just start making their payments. But some people will have to sell their home. The good news is delinquency does not equal foreclosure. Thank you. Yes. Delinquency does not equal foreclosure delinquency means that you can't make your payment and you either have to sell your home. Or if you can't sell the home and pay off the bank, then the bank ends up taking it back. The reality is though that the people are in such a super strong equity position, especially when you compare it to 2008 back in,
Tracy:
They can sell the home and pay off the loan and probably still walk away with some cash in their pocket. Whereas in 2008, they couldn't sell the home for a price high enough to pay off the loan, which is why there was so many foreclosures. Yeah. We're not in that position right now.
Tego:
The fourth thing that people are talking about are interest rates. We talked about that briefly. There's no indication that interest rates are going to get pushed up any substance,
Tracy:
Even if they went up a point, right? It wouldn't make a difference in buyer's ability to buy, but there's still, still exceptionally low. When you look at the history of 50 years of interest rates for residential real estate,
Tego:
You hit that one, Tracy number five,
Tracy:
Permanent shift to remote work could encourage more moves. So we, we know about this very firsthand, right? We know several people who are working remotely and they don't have to stay where they're living and they can move to where they want to. So they're living in another state, they're from Albuquerque. They might want to move home and continue to work at that developer job or that, you know, graphic design job that they used to have to go into their office for. But their company has now said, we have a permanent ability for you to work remotely. They don't want you back at work right there. They're downsizing their offices and going, Hey, this kind of is nice. We're getting good productivity and we're not paying for office space or all of that. So we're seeing a lot more of that.
Tego:
Yeah. And, and, and there's no doubt that's going to continue. There's definitely going to be a shift in the work from home idea. So the sixth one on this list here, and again, we're going through the list of some, you know, survey of real estate agents, some of the biggest housing issues, seven of the biggest housing issues. So number six was, is that, that, you know, surges in the virus. If we see surges and the virus, again, that for the most part, let me say it this way, people are over it, and it's not going to panic people as much, obviously, as it did back, you know, at the beginning of, of, of last year,
Tracy:
I've gotten more accustomed to, Oh, they've surged this week.
Tego:
Yeah. People have, you know, it's, it's the whole psychology of it, right? Everybody's much more used to it and not as freaked out as we used to be.
Tracy:
So the last reason where, what we believe will be concern is affordability challenges. And, and you know, that persists because house prices are going up. Although if we can keep interest rates low and you can afford more house with a lower interest rate. So,
Tego:
Well, let me, let me just say that when we talk about affordability, okay, we're talking nationally. However, if we look at Albuquerque, we are, we are much more affordable than most, any other Southwestern city, maybe El Paso is more affordable. But, but Tucson's more Phoenix areas, more Colorado Springs. I mean, all, all these cities, you know, a lot of the ma I think San Antonio is very similar. But San Antonio has much higher property taxes. So, you know, it it's, you know, our affordability here. I think we're in a good place, even though home prices went up somewhere eight to 10% is what, I'm, what it's looking like last year.
Tracy:
Let's talk about CLOFFICE. So you, you told me that word and I said, CLOFFICE, I've seen CLOFFICE. Yes. So a CLOFFICE, is an office in somebody's closet. Right. But I have seen exactly what you were mentioning where it's not like a big walk-in closet. It's just the closet with a door or the double sliding doors removed. And the desk pushed to the back of the closet and it's regular standard closets,
Tego:
Two foot deep. Right. And so standard
Tracy:
Desk about the same. And
Tego:
So I, I I saw this and then on Pinterest, they had a, you know, a bunch of different, you know, of course on Pinterest. I have a slide show in app for everything, but there's there's CLOFFICE photos showing what people have done that, you know, needed an office space. And they had a closet that maybe wasn't being used.
Tracy:
It was an extra bedroom or something, or they made their bedroom also have an office. And they use that little 24 foot deep closet to put a desk and make some shelves and get set up whether it's for school as a child or a college student or,or working from home. So, pretty interesting. So if you think you're, you don't have office space, you might in, in a bedroom with a closet or a hall closet. I actually showed a house a couple of weeks ago where they had made sort of a entry closet into their office. So lots of creative, there's one under stairs. So look at Pinterest, if you want to get some inspiration on that one. So
Tego:
Good. It's a really good efficient use of space. And obviously in the, you know, we're where people are now working for home. They're trying to figure out a way to have a space and maybe a little private too.
Tracy:
I think by now, most people have figured it out. You know, it just dawned on me today, Tego that we're almost at a year of being in this COVID situation. You know, most people have already figured out how to do school, how to do homework, how to work from home, how to get their dogs not to bark. Oh, we haven't figured that one out yet. When, when I work from home, very often, one of our three dogs will start barking because they see something outside and have to bark.
Tego:
Well, I think it's funny how people are. Oh, my I apologize. I'm sorry. It's like, no, we're, we're past that. Yeah. You don't have to apologize for your dog barking.
Tego Venturi: Let's transition over to your a, your homeowner. And just some things to think about when you haven't, you know, your home and just, you know, I think a lot of people, they move into their home, they get their insurance. And that gets paid on their escrow through the mortgage, they never think about it again, rack. So what should they be thinking about?
William Tobin: Really changes it. If they put a new roof on, there could be a significant discount. If they add to their home, you know, a lot of people will add on a lot of people will improve their home. So I would say, you know, the industry says check every year. I'm probably guilty of not doing that myself. Because I know unless I make a big change, who cares? Yeah. But anytime, any type of change that would affect the value of your home, you add a pool, etc.
Tego Venturi: Add a garage trampoline.
William Tobin: Buy a trampoline,
Tego Venturi: A pit bull.
William Tobin: Yeah, yeah. buy a lot of pitbulls on trampolines into pools? Yeah. Yeah, don't call me. Don't call me if you do that. But those type of things. You know, you you want to make sure your liabilities high enough, especially on pools. And if you add on to your home, you may have an under insured.
Tego Venturi: Yeah. And that's, that's one thing is interesting. So so one of the you know, types of coverage you get on every homeowner's policy is replacement costs. Yes, the house burns down.
William Tobin: The good ones all have replacement.
Tego Venturi: Yeah. But okay, we're in this market right now, here in Albuquerque with real estate market where homes, you know, a lot of homes went up 10% in value in the last year? Yes. So how do you know, do they? Is there anything automatic about that? Or does the homeowner need to reach out to you and say, hey, let's get our value?
William Tobin: That's a good question. Our policies have inflation guard built in, you know, kind of trying to make it idiot proof. But personally, I always add, literally, almost almost to every policy, something called extended replacement cost.
Tego Venturi: I pulled out my policy before we got on here today, I wonder and I looked at and it says extended. I'm like, what does that mean? 125% or something like that.
William Tobin: I saw that we'll cover in case the cost of construction goes up.
Tego Venturi: Did I see it? It went away? But it was I saw it before it says replacement costs? And it said 125%. Right? Is that what that means?
William Tobin: Yes, it means that let's say your home's insured for a million dollars. Okay. And construction costs go up significantly, which they have in the last year. Exactly, significantly significantly. So now the company will pay 1,250,000
Tego Venturi: Got it. Yeah, construction cost just on the side, no construction cost and the cost to build and new homes have gone up way faster than existing homes.
William Tobin: And that's also been one of the things that have driven the price of homeowners insurance up.
Tego Venturi: Yeah. In what one other and that's something I want to talk about is cost. So you've got your home, and something happens. And and we talked I just wanted to hit on this real quick. So I promised I would was you know hazard insurance versus on warranties, right? And so has an insurance again, you told me something one time years ago, and you said sudden catastrophic and that stuck with me. That's what that's what hazard insurance is for?
William Tobin: Yeah, that's actually a great thumbnail description. Yeah. Home warranties and I you know, it's mostly what I don't usually I don't sell them. However, those are things that wear out wear and tear one of the big exclusions on all homeowners policies, they do not want to cover wear and tear items. They want to cover stuff like lightning strikes, like you said, you know, sudden pipe burst fires, theft, stuff like that. Yeah, they don't want to cover when your washing machine wears out. And so I think the home warranty is is for that fit.
Tego Venturi: Yeah, I think it's simple example be like the furnace right? If the furnace stops that's not that's not a that's not a homeowners insurance claim that is a home warranty claim or you're just writing a check to TLC, you know, to get a new furnace right or Oh, I shouldn't say axiom call axiom Home Services. Sorry, not TLC. axiom is Mario axiom. He's the he's the man. Anyway, I digress. So So that's kind of just so people can understand the difference and we usually have to have that conversation with with homebuyers. When they're looking at a home warranty. And they're saying, Well, I'm getting insurance. So it's like no two different two different animals here.
William Tobin: Yes. Okay. And the home warranties also tigo a lot of times have limits. Oh, they do where you know, the average home I think now is what about 260,000?
Tego Venturi: Yeah, very good. You must be paying attention My update
William Tobin: I do i listen.
Tego Venturi: Well, actually, is that median about 250? Right now? Yeah, average is like 260.
William Tobin: Right 270. And then you consider this stuff in somebody's home. Yeah. And then you can add probably another 100,000. And also, we also have to pay if your home does burn down, we not only have to pay for the home, the stuff in the home, we also have to put you up and in and buy food and other stuff. So the home claim a lot of times is far more than just what the homes insured for.
Tego Venturi: Yeah, yeah, that that makes perfect sense. So when should a homeowner that has a problem, something comes up? When should they not file a claim? And you may want to plead the fifth, but I'm gonna put you on the spot anyway.
William Tobin: That that's a question that I know the company hates us to answer. They always say always file a claim. On a personal level, I don't believe that. There's a lot of little things that happen. And we remember clew report. Yeah, I don't want to see a clue report this as long as your arm. So there are a lot of little things that happen that may be covered under a home.
Tego Venturi: Yeah. So if you're a frequent, frequent filer, that affect your future caught on
William Tobin: And you may not even be able to get insurance. Really, yeah, you might have to go through what's called the New Mexico pool. And it is not near as good as a home policy from either me or my competitors. Yeah. So yeah, when you have a whole lot of clients to you go a is the thing for sure is your cost is going to be astronomical. And you may be uninsurable through normal markets, which means again, you have to go through the pool. You don't want to be in that position.
Tego Venturi: Yeah, you know, I got to make good decisions. And, and I think, I think most insurance agents in town, and I think, you know, obviously, you I've actually called you on stuff and I went, Wow, should I file this or not? You're like, yeah, you didn't give me advice, but you just talk to me. How's that?
William Tobin: Yeah, you didn't tell me what to do. But you just talked, we are we're really not allowed to say, I know, you don't file a claim. But I can tell you even myself. There's a lot of little things both on my home in my car that, you know, it's just as life.
Tego Venturi: Yeah, yeah. Yeah, of course and in. And so just something to think about. It's it's not like a bank account. Your insurance policy. It's really for the big stuff where, yeah, because it could affect your costs. Yeah, yeah.
William Tobin: Well, if you have hail damage a $20,000. roof, I'd say absolutely. Call me.
Tego Venturi: Yeah, yeah. Anyway, Bill, thank you so much. Bill Tobin, Farmers Insurance Agent, Albuquerque, New Mexico. What's your number bill? How can somebody get ahold of you guys?
William Tobin: 899 9000
Tego Venturi: Awesome. Thanks, Bill.
Tracy:
So many things we want to talk about today, I'm not sure we're going to get to them all. So let's start with the hottest one,
Tego:
Which is please list your home for sale. How about that? We're not too proud to beg, not too proud to beg here. It is. I mean, I'm seeing it and we're all hearing it from other realtors in the Albuquerque area. How many buyers would you say Tracy, do we have just in our team that are waiting for the right home to come on the market, they're approved, they're ready to go
Tracy:
Probably over 40. You know, when I think about everybody and how many they've been talking about and yeah, we have a lot, especially looking under 250,000, a lot of first time buyers that are so smart to take advantage of the interest rates right now and lock in their monthly housing costs for 30 years and pay their own mortgage and wealth build through home ownership. So especially that. So if you're thinking of getting a bigger house and moving up your house is in demand right now and there are more homes for sale in the higher prices, If you're gonna upsize what you're doing right now,
Tego:
Let me, let me put some stats on that. So right now I know, you know, I got toTalk about, well, it's, it's really extraordinary, i hate words Like it's a crisis and stuff like that. I will say, though, right now we have just under 900 homes are right at 900 homes on the market and the Albuquerque area right now. And that is extraordinary. We really in a healthy or balanced market, we could have somewhere, as many as three, four, 5,000 homes on the market, by the way, somebody quoted my stat on that. And, but that's true, you know, in the, in the paper the other day,but it is, I mean, really we have so few homes on the market and there's so many buyers out there looking and, and I think we have this kind of a catch 22 problem Tracy, and correct me if I'm wrong, where you have people they want to sell, they'd like to sell, but they're in the same boat. They need a home. They can't find what they're looking for. Right. And so it's like the chicken or egg thing, right?
Tracy:
However, those people that need to sell to buy, we just need to meet and put this strategy together because we have buyers who are willing to wait, willing to lease back that house to you until you find the house you want. So you can be a ready buyer versus having to make a purchase contingent on the sale of your home. But we can do it contingent on the sale of your home too. So meeting with us, putting a strategy in place and getting you in the right home, you know, that's the best way
Tego:
There are. And there's some great strategies. You know, the lease back is a great one. There's different ways. So you can, you close and have the money in the bank as a seller and then, have time to find or wait for that next home to come on the market. There were, there are buyers out that are willing to take that deal right now because they can't find anything. One last thing I want to talk about with this whole inventory shortage number of homes on the market so low is we do know that that homes are going to sell in this market if they're they're priced to the market. However, just because it's going to sell don't, don't make the mistake and leave money on the table. Because if you do a poor job, getting the home ready for sale, if you do a poor job with photography and then what the realtor does, all the marketing stuff, putting the word out, the virtual tours, that's going to make a difference on how much you end up netting on the home. And just because it's going to sell doesn't mean that you're putting as much money as possible in your pocket. So think about that when in, if you're going to be listing your home,
Tracy:
Right. And, and you know, what we've seen is sometimes people decide to do a, for sale by owner. But what they typically do is they reduce their price by the amount they would pay an expert to market and sell their house and handle all the negotiations and handle all the repair requests and things. So, you know, we believe that we can net you the same amount by having us represent you.
Tego:
Let me just give one more stat on that. And we can go onto our, our, the, the news of the week. I've got a couple of headlines I want to hit, but it's, there's been a lot of studies recently. And since 2006, when really the internet kicked in as a place for people to shop for homes, you know, before that it was much more traditional, you call your realtor and you drive around. Right? Right. So, so since 2006, but what actually has happened. And at the beginning of that, people were thinking, well, w you know, w th the realtor won't be as important, we can do this all online. Well, what's happened is it's actually the number of people using a realtor or a real estate professional to help help them has actually increased since 2006. And so it's, it's kind of interesting.
Tracy:
A lot of the reason for that is it's complicated, and there's a lot of money at stake and, you know, not, not leaving money on the table.
Tego Venturi: Let's just talk about hazard insurance versus liability insurance and that you always see those on every policy. So what's the difference? What are those covers?
William Tobin: The hazard insurance covers the structure of the home itself. liability insurance goes with your home and that covers, in case you hurt somebody, again, doesn't include vehicles or motorcycles. But if somebody slips on your property as the most common, gets hurt your pool, your dog bites them, the liability covers the other person.
Tego Venturi: Got it? What other type of let's say coverage or riders are additional first off to find what a rider is for people.
William Tobin: That's where you pay me more money for riders or
Tego Venturi: additional overcharged overcharge, is that what it is? Yeah, it's
William Tobin: an Upshot. Now, the riders The most common is when homeowners policies, almost invariably have limits on jewelry, firearms, you know, artwork, things like that. So if you want a rider, it means you're going to pay the insurance company more money to specifically insure an item that we limit. And again, jewelry i think is, you know, wedding rings all day long.
Tego Venturi: So what about personal property? Otherwise, let's say you know, you're you're ordering your homeowner's policy. Okay, so you got hazard insurance to cover this structure structure, you've got liability to cover in case somebody gets hurt and tries to sue you. Right, right.
William Tobin: What about all the other stuff? That's, those are contents. And that's the stuff that you keep in your home. So the way when I teach a class, I'll explain it, if you turn your home upside down and shake it was thought like that? Yeah, it's easy for me to understand.
Tego Venturi: So wrap your brain around that. Yeah,
Tego Venturi: let me just before we go ahead, go ahead. We say that in the real estate business, too, because we have you know, the the real property right, which right real estate, the building and the land and everything, and then you have personal property, right. And we say the same thing, same thing, if you turn the house upside down and shake it, that's personal property, right? And the homeowner's
William Tobin: policy will also cover that
Tego Venturi: got it. But you can have different limits on that. So you know, let's say you have all this expensive, whatever, right? You right, you can do that. In that brings up another question that that I we always recommend and people should always do this is documenting the contents of your home. How do you recommend people do that? Easy on it's really funny. We all know how many couches and TV sets we have. But when whenever there's a loss by fire, and there were some in California were literally in Los Alamos as well. Right. It was brutal,
William Tobin: it leveled the house, there was nothing but ashes. It's our clothing, our socks, our silverware stuff that we accumulate, nobody goes to target and buys $100,000 and outfits, their kids there, right. It's done over time. Yeah. And so I recommend a video of those open all your drawers, you know, shoot all your socks, your clothes, your you know, things that we don't think about. And for God's sakes, don't keep that in the kitchen cabinet above the stove. Yeah, right. Right. Keep
Tego Venturi: it Well, yeah. in the cloud, do it. Well do it in your phone. Right and keep it in the cloud. Exactly. I gotta tell you a story on that. So when I first house I owned up here in Rio Rancho. I did it. I did it with one of those big old VHS rigs. Yes, yes. Yeah. I
William Tobin: mean, that's we're dating ourselves.
Tego Venturi: But yeah, I mean, some people probably don't even know what that is. Now. I think most of the listeners here know what that is. But yeah, I mean, now we just carry around. Yeah, use your iPhone. Yeah, you put it out in the cloud. And it's there. So that's good. So So documenting is good, smart. It's something that that as of 2020, I think is obviously become to the forefront is working at home. Yes. And so a lot of people are working from home, maybe, you know, have built out a home office now. Maybe they're doing kind of CO working spaces, you know, they've still got their office space, but they also have a home working space, which I have. How, what would you recommend to somebody that has that situation?
William Tobin: That's an unbelievably appropriate question right. Now,
Tego Venturi: of course,
William Tobin: I know. Yeah, sure. But it is especially during COVID. Every homeowner's policy will have limits on business properties, stuff you use for business. Okay, so to get back to your writers, you can get there really inexpensive, you know, you can get a rider for that to cover, quote, business property, because one of the things that homeowners policies exclude, are, quote, business properties, most of them will give you a little bit to ego. They'll give you 1000 or $2,000. Some of the really good ones may give you 5000. That may or may not be enough.
Tego Venturi: So if you have, you know, I know a lot of people will now that when they itemize on their taxes, they'll pull out all their office equipment and services. expense, right? I mean, obviously, in the real estate business, we all we've all been doing that for years. But a lot of my people that haven't ever, you know, work the way realtors do are now experiencing this. And so now they're, they're pulling out their computer, they're pulling out their printer, their desks, their furniture, their whatever they're using as their office equipment, right? Yep. In claiming it as a business expense. So that means if they've done that, they probably won't get covered on that
William Tobin: They will have limited coverage unless they add. We call it you know, business property on and off premises. A lot of times you're especially as a realtor. Yeah, some of y'all live out of your cars from the best I can tell.
Tego Venturi: You may not it didn't even I didn't even see that bus coming. Hey, you work with a lot of realtors and lenders here in Albuquerque. So be careful there. No, I do. Yeah. And that brings up really, let's I want to transition to this other conversation is around when somebody's buying a home, there's this piece where we have a contingency, right? Home goes under contract, they have this period to do all their due diligence, right? One of the things that that homebuyers have the option to do and need to do is check into insurance and they have an option to you know, get quotes, figure out what it's going to cost, all that stuff and actually have, the buyer actually has the opportunity to either back out of the deal if they feel like something comes up. So when somebody is gone under contract on a home and they want to get, you know, quotes and figure it out, should they just start calling around and get a couple different quotes? I mean, I know that you want them to just call well Thoma dad for farmers and Sharon to Albuquerque, but yes,
William Tobin: but I think honestly, it is, you know, wouldn't be honest, if I didn't say get a couple quotes. Yeah. I mean, if you're gonna have a contract or you know, do a job for you, normally, you'll get a couple bids. Yeah. I we hear this all the time to keep them honest. Yeah. My philosophy is given the best bid you can right out of the box. And that's my best. But yeah, I think it's prudent. Yeah. And it's not just price to ego. It's also coverage. Some companies will have coverages that, that you may want, and they may not offer it. And so okay, the policies, even though they're all close, there's some nuances that can be pretty serious.
Tego Venturi: If somebody just calls in and says, I need an insurance policy, or homeowner's policy, or we call it we call it hazard insurance, or we call it homeowner's policy. It's kind of all the same, but
William Tobin: I think the mortgage companies like to call it hazard and yeah,
Tego Venturi: We call it homeowners homeowners policy, because that includes the liability. Yes. But every mortgage company if something has some limitations, or some requirements on what they what coverage you need to get, right,
William Tobin: Yes, they usually want the, the amount of the loan covered, or is not unusual. Yeah. They don't require much more sometimes they require flood insurance, which is expensive in New Mexico.
Tego Venturi: Let's go down that road, actually. Yeah, if you got a second I do. So you know, people might not think about it that you know, New Mexico, there's places where we need flood insurance.
William Tobin: Yes, it's the flat it's unlike in the Midwest, where the rivers, you know, overflow. We'd love some more water in the Rio Grande. Why but why hotter? Yeah, but it is flash flooding, which happens in Albuquerque, Phoenix and the desert Vegas, the desert communities. If the mortgage company requires flood. It's usually not cheap. Yep. And that is required. And that would be because homeowners don't cover flood. That's the problem. We cover if a pipe You know, we've had cold weather. Yeah, so pipe burst, sudden and accidental pipe burst, covered one this morning. Yeah. Those are fine. most homeowners policies are going to cover that for you. None of them cover flood.
Tego Venturi: And I want to go down that road the difference between what homeowners covers versus what home warranties cover because that question comes up a lot. But But on this whole thing of flood insurance. That's one of the reasons we have this whole contingency period, because as a homebuyer, you want to know that. And sometimes, maybe the seller doesn't know or maybe, you know, they haven't looked at the FEMA map in 10 years, and they don't know change. And the FEMA maps changed. So the FEMA maps or the maps was explained what the FEMA map is
William Tobin: Basically, that's what the mortgage companies use. You know, that's the Federal Emergency Management. And the FEMA maps define whether you're in a flood zone and the type of flood zone so flood insurance is not the same. You can be it's interesting to you go you can be on I've seen this in Albuquerque acres, were part of your properties in a flood zone, but the house isn't. Yeah, and sometimes that's An interesting argument with a mortgage company. Yeah, there's other ones were very common where one house on the block is in a flood zone and down the street. They're not.
Tego Venturi: So we've those maps are very, we've seen some in the middle of the North East heights that North Albuquerque acres, but in the middle of the Northeast heights in a subdivision, yep. with, you know, we would consider, you know, track type homes production homes, and it's in a flood zone and go, where did this come from? Right. Yeah. So So it's one of those things that, you know, just because you're not near the Rio Grande, or you're not near any, you know, kind of bigger Royals, you still got to make sure. And of course, the most prominent places in the metro is South Los Lunas. South Valley. Is that true? Yes. Yes, Los Lunas below and they'll have some, a lot of times they require flood insurance in Valencia County.
William Tobin: The interesting thing is farmers Now, a lot of folks don't know this. We didn't have a lot of choices before we would have to go through the National Flood plan. Yeah. Now, there's flood insurance offered. It's it's more private. Yeah. And if you qualify for it's literally a third of the price. Oh, interesting. Yeah. I mean, you know, you we did one the other day where the National Flood plan was, I think $2,000 they qualified for this modification. And it came in, I want to say it six or $700. The difference was they were able to make the deal because they didn't the mortgage company didn't have to.
Tego Venturi: So that was something you were able to add. We were a writer.
William Tobin: Yeah, we were able to give them a different flood policy. Yeah, got it. So there's also something really quick called an elevation certificate where you get a surveyor. If you're somebody feet above the base floodplain. Again, it is significantly cheaper. So with a good realtor and a good insurance company, there's a lot of value that y'all add to a homeowner.
Tego Venturi: We see that out in Baskin contado in that neighborhood, because it's right by the Rio Grande. But the homes have the pad sites that have been raised up quite a bit. Yeah.
William Tobin: And it moves you into you don't even need flood. Yeah. Or it goes into a zone that it's so cheap. But that's the advantage to me. of using professionals.
Tego Venturi: Yeah, got it. Just one last thing on this whole insurance, doing your due diligence on it. Let's talk about the CLU report.
William Tobin: Oh, god Okay,
Tego Venturi: The infamous CLU report. So what is it? What is CLU stand for? If it's if you ever start doing any insurance, shopping and stuff? You'll hear that term? What does it mean?
William Tobin: It means they kind of look into Yeah, it's comprehensive and extensive Atlanta Comprehensive Loss Underwriting. Yeah. And they do two things. They see if you, the person, the buyer have had any homeowners type claims anywhere in the country. They also look and see if the home has had claims.
Tego Venturi: So it's kind of like a credit report for you and that Yeah, and the home for insurance.
William Tobin: Yes. Yeah. And it affects the thought it affects the pricing Tego.
Tego Venturi: Oh, I know. I've seen it. Yeah, I've seen it. Yeah. You know, generally an average house, you say, Oh, yeah, it'll probably be you know, anywhere six to $900 for policy insurance, and you see a $2,000 quote, and you're like, Whoa, what's going on here for a year?
William Tobin: Yeah, yeah. And listen, I bought houses before and I, at one time had a condo in Florida that got hit by a hurricane, right. And it messed up my clue report, because I put in a claim. And so I actually had to pay more money myself. So again, because you know about those type of things, right? A good realtor will know that you should do a clue. And so should the insurance agent, they should do a clue on both the home and the buyer so that the quotes accurate.
Tego Venturi: What happens if they don't do that? Does that mean they all of a sudden after they do the quote, you come back and say oh, by the way, that price we quoted you is no good. Exactly.
William Tobin: Yeah. Yeah. And and that's something that I'm not interested in doing. Yeah. Don't give them bad news ahead of time. Yeah.
Tego Venturi: What do you can the public go and get a CLU reporter Is that something only available through insurance?
William Tobin: I actually, I don't think I've been a member of the public. Yes, I actually don't know.
Tego Venturi: Yeah, that's a good question, too. I don't know. I mean, I don't know why you'd want to because you might as well work with the insurance agent anyways, you know, right through it.
William Tobin: I know to go with you. If you call my office and ask for a CLU report out, you know, now they do charge us but again, you know, any insurance agent that's working with a realtor? Yeah, they should do it for free for them as a courtesy.
Tego Venturi: Well, there's a lot of companies out there now providing these like, home fax, there's one out there. I think it's called home fax. It's kind of like Carfax for some companies out there doing stuff like that. And I'm sure they're pulling stuff like that from databases if there's been any claims on home.
Tego Venturi: Okay, let's talk insurance. I've got a couple different ways I want to take this Bill. And first off, let's just talk about we're specifically homeowners insurance. I know you know everything about insurance and everything, but we're going to talk about homeowners because that's what we do here. Sure. And the return when somebody purchases home, right, they're getting a mortgage. they're required to get insurance, right? Correct. Yeah. Now, what if they own it free and clear? Do they have to have insurance?
William Tobin: Interesting, they do not. But that's when you really want to have insurance. Because if you lose the home and you have a mortgage, most of the money is is mortgaged, you don't have a lot of equity. Right? When you own a home free and clear that home is you know, whether it's worth 100 or 500,000 or a million. That's, that's, that's actually money. That's cash. Right. And so to me, I'm more interested in homeowners insurance if I didn't have a mortgage, but it is not required.
Tego Venturi: Yeah. I can't imagine somebody's not but you know, I'm sure I'm sure it happens
William Tobin: When you see them on TV. If something burns down a lot of times and they're asking for money, because they didn't have homeowners insurance. They own the home and yeah, there's a GoFundMe page.
Tego Venturi: Yeah, yeah, exactly. Yeah, right. Right.
Tego Venturi: Home equity, I just want to hit real quick. Eddie, if we’ve, we’ve got a couple more minutes. There was J J the third quarter home equity numbers came out nationally and it was a record in new in New Mexico. Well, nationally what they’re saying is over, it was a Q3 19 Q3, 20 17% or $17,000 in home equity gain. And so home equity that, you know, actually money in the bank literally, or the house bank, if you will in New Mexico is actually 20,000. So it’s actually higher than the national average.
Tracy Venturi: So what we always say Tego is homeownership is for savings, right? Right. You’re, you’re saving your, for your own future by owning a home because you’re paying yourself and the home values typically go up. Yes. Some years they’ve pulled back, but that’s not the norm. If you look over a 30 or 40 year chart home ownership is the number one wealth builder for most Americans.
Tego Venturi: And, and I’ve got just one quote here. I just want to, I want to hit this guys with a Realty track, which is one of the companies that do kind of like foreclosure processing, if you will. Yeah, yeah, yeah. Realty track. And, and, and what he said was all this equity is one of the things, one of the things, and there’s a few other that will, that should prevent a huge wave of foreclosures once the government memoranda on and the cares act for Barron’s programs expire. And so what they’re saying is we’ve had this huge build in equity. Now, this is nothing like 2008, where everybody was, had squeezed the equity they could out of their home, and then prices started going down. So it’s a, it’s a good thing, at least for the housing economy. And it looks good going into the future.
Tracy Venturi: So there’s our start to 2021.
Tego Venturi: Yes.
Tracy Venturi: So Tego my topic. You have time for it.
Tego Venturi: Let’s go. I want to talk about equity. So we got, we got time. Yeah.
Tracy Venturi: I’m wanting to talk about what homeowners want in homes in 2021. That’s unexpected. What are we seeing? That’s not usual. We know people are looking at, you know, we’ve heard over and over for a few months, the home office for kids home homeschooling. Right. We know that, but you know, there’s a few things that have come up that are unexpected and one of them is swimming pools. So if you talk to any swimming pool, contractors in our area, right now, get them on the phone. If you can get them on the phone, they are booked out a year or more.
Tego Venturi: I, I heard two years from, from somebody,
Tracy Venturi: Right. And that’s because people couldn’t go to the swimming pools this summer. Right. And they were like, this is not okay. And they’re spending time at home and they’re going, okay, this is the time for us to add that pool. Other things we saw, we saw a tennis court being added. You know, another thing that’s sort of unexpected. It’s not too common here. And it’s, you know, you see them occasionally in people’s yards, but not very often. A few other things, new furniture, which is not unusual, right. You know, they’re, they’re spending more time at home. The other thing is multipurpose rooms. So they might be taking the living room and not just making it a home office or their homeschool, but they might be making a gaming area or they might be making a library, reading nook, or they, you know, a family game table. We’re seeing a lot more people playing family games, board games and things, or online gaming together when they’re in different stuff.
Tego Venturi: Hey, I just got to give a shout out for, for Jackbox games. If you guys haven’t checked out Jackbox games for, you know, playing and you can play them online via zoom. And we do that with our kids that live in Arizona and friends and family around the country. So, sorry, side note. I want to, I want to ask you something. I mean, obviously I know the answer, but I want you to answer it, which is swimming pools, tennis courts sport courts, you know, another version of like a tennis court how much value or what value do those add tools?
Tracy Venturi: It’s a really hard question.
Tego Venturi: Exactly. I want you, I want, I want you to answer that one.
Tracy Venturi: Well, the statistics come out every year. How much does value does a swimming pool adds? So, you know, a swimming pool is probably 40, 50,000 a minimum today in Albuquerque. Right. We don’t have
Tego Venturi: In ground gunnite pool. Yeah. You’re going to be
Tracy Venturi: And a little slide. Yeah. So we’re not Phoenix. We don’t have a lot of pool contractors, first of all, competing for our work. Right. They’re all booked out. Like you said, two years. So how much is it going to be worth? It’s going to add some value to your house, to the right person, somebody who really wants a pool, the way you do the whole scape around the pool. What all the rest of the outdoor living is makes a difference. Right? But it’s not going to make it equal to what you put in.
Tego Venturi: It’s not going to be a one to one return on investment from a pure economic dollars and some standpoint, but it
Tracy Venturi: Think about the family memories, the experiences, the time spent, you know, if you have family, friends that enjoy it with you, you’re making amazing memories. So you have to realize that that’s the trade-off and you know what, depending on what time of year you sell your home, a pool can actually add a little bit more value if you sell it spring time or early summer or summer, kind of it wanes as you get closer to cold weather, but the pool open with beautiful photos of it when we’re marketing your house is definitely going to help. We’ve. We’ve had winter time photos of, of pools where the grounds don’t look very well kept and the pool is covered and there’s equipment laying around. That’s not going to help you too much, but if you take the time to have the pool looking great, if it’s off season, it still helps. So yeah. So I didn’t give you an exact number Tego cause
Tego Venturi: I can’t, but one that’s that’s the reality. There, there is not one, obviously it adds value. It makes the home more sellable. But also on the flip side of that is there are certain people that will absolutely not buy a home that has a swimming pool. So you have to take that into account too, when you’re going to sell. Right.
Tracy Venturi: We don’t see that too often though. Tego Venturi: Yeah. [inaudible] those were great. Was there anything else on that, Tracy? I’m sorry. I,
Tracy Venturi: You know, making, maybe making your home more comfortable changing around maybe colors and putting in those colors on the walls that make you happy things that you, might’ve not done previously, but you’re like, okay, we’re here, we’re hunkered down. I’m going to, I’m going to make it how I want it.
Tego Venturi: Yeah. Let’s, let’s hope that the hunkering slows down here real soon and hopefully we’re, we’re getting there.
Tracy Venturi: So the topics for today, yes.
Tego Venturi: Should this be the year that somebody sells their home? Tracy, that’s the topic. That’s one of them.
Tracy Venturi: So should it be, well, obviously what we always say, the first thing is, is it time for you to sell your house? Yeah. Right. I mean, the, the approach we’re taking is does the market support, is this the year you should sell your house, right? Not, you know, if you don’t need to sell your house, you don’t have a reason to sell your house. Should you sell your house? So let’s say you need to move in the next couple of years. Is it the year that you should sell your house? Well, what do you think?
Tego Venturi: I think if, if you let’s look at it from a timing, the market standpoint, right. If you’ve been waiting for home prices to be high or higher, then yeah. It’s a great time to sell. I mean, like just talked about home prices up nine, 10% versus last year. Right. however, if you’re just moving to somewhere else in town, you’re going to be paying, you know, 9%, 10% more than you did last year. So, you know, you have to balance that as part of it. When you look into the whole timing issue, now I will say this and we’ve said it before, and I’ll say it again is, you know, if you’re moving from a, let’s say sub median price, median prices around two 50 right now, if you’re selling a home in a lower price point, and you’re moving up into a higher price point, you know, lower price homes definitely went up higher in price last year, higher price homes, man. That was tough.
Tracy Venturi: So from that perspective, if you’re going to be a move up, buyer is what we call it. Yeah. It’s a great time. Yes. Right. Great time. Because you’re going to be in a great position when you sell and you’re going to be buying at a price point that hasn’t appreciated as much and taking advantage of the interest rates and rock, you know, assuming you use the loan locking in phenomenal interest rates and monthly payment for the next 30 years. Now, a lot of us say, I’m not going to be in my house for 30 years, but the analogy is you’re going to be paying to live somewhere in most cases, unless you’re moving in with mom or your children or a friend. Right. So if you’re going to have a monthly housing cost, you might as well be paying yourself instead of a landlord. So sidebar there,
Tego Venturi: I think it’s good. W why do you think Tracy, what would be another reason somebody should be thinking about selling this year? If it’s kind of been on their radar and now they’re going, you know, maybe this is a year,
Tracy Venturi: You know, I’m, I’m thinking shorter term when I answer this question. So yes, 20, 21 good time to be a seller for sure. But let’s talk about today, next week. Isn’t it right now, a good time to sell seven,
Tego Venturi: 9:00 PM.
Tracy Venturi: We put a home on the market. Today’s we put a home on the market two afternoons ago. And by that night, okay. This house is on the West side, 519,000. And by that evening, they’d already had two showings. You know, it’s the early January, not when you typically think of putting a $500,000 plus house on the market. Right. It’s not what people typically do, but there’s a lot of activity on that property. And next time we’re on the radio. We’ll probably be saying that house sold, right? Yeah. So right now is a good time because the springtime come March, April, may, there will be more homes on the market. We still won’t have enough on the market, but there will be more homes on the market competing for your buyer. So getting it on right away before the market gets hotter, I think is advantageous to sellers right now.
Tego Venturi: So if somebody’s going to sell this year, Tracy, what do you think? I mean, what are the, like, let’s say give three things that they should be thinking about. If they’re going to be selling their home this year,
Tracy Venturi: One of them would be to present it like a model home has best. You can get our advice, help us, let us get you staging somebody to give you advice. If you need it on how to present your home so that you get top dollar and then pricing your home, right. Would be number two, pricing your home, right? Even in this market is critical. We have seen it over and over the last couple of months, Tego where somebody says the market’s hot. I think I can get more than what, what the statistics are showing. And what we’ve seen most times is they end up price, reducing, chasing the market downward. And then their house has been on the market for a month. And buyers are like, what’s wrong with this house? It’s not sold,
Tego Venturi: But having sold in five days, there must be something wrong with it. Yeah. So they’re, they’re getting ahead of market appreciation. And so you want to be careful about that. And, and it, it’s actually not hard to do that because you can just look at the data at what homes are selling for. So you know that the data we have the data, right. That’s what we do is, is help you come up with that. You know how you’re going to position your home by price in, in the current market. Right?
Tracy Venturi: The other thing I would say is remember that your home is going to be a product now, and we need to think like a consumer, how will buyers feel coming into your home? What will attract them? What might turn them off, whether it smells clean, windows, pets, whatever it might be. You know, sometimes you have your beautiful paints that you’ve painted walls and, you know, we need to make the house more of a product.
Tego Venturi: Well in its presentation, right? Presentation matters, merchandising matters. And the marketing matters just because somebody can go out and snap, a bunch of cell photos of the home, put it in the MLS and have it sold in a few days, you got to ask yourself, are you leaving money on the table if you’re doing that right. So we’re still doing the premium marketing on our homes. We’re making sure it gets presented properly so that we’re getting the clients the most money.
Tracy Venturi: Right. And I would say there’s a number four in there. You know, if we put your home,
Tego Venturi: I don’t know. I lost track. Are we on three or four? We’re on four.
Tracy Venturi: Okay. So, so the w we might get an above price buff above list price offer on the home. When you put it on the market, we need to remember as sellers that the house most clear in most cases still needs to appraise. And so we need to temper what price somebody is offering along with the rest of the criteria of their offer. What, what type of loan, what’s their closing date? How long is, you know, how long will it be to closing who’s their lender because who their lender is matters, especially in this market. Are there other things in their offer that we need to be considering, right. So not, not re just remembering that if we get an above price offer, that it may not be the best offer because it may not appraise. Yeah. Yeah. So I have another topic.
Tego Venturi: Well, I want to, I just want to tell one story. So we have a property that we just rented. We remodeled it here in Rio Rancho, and just put it up for rent. And if you’re looking for a rental, you know, there was a lot of demand, a lot of people looking for rentals right now. So not only do we have a shortage for homes for sale, we have a shortage for homes for rent.
Tracy Venturi: Well, so let’s give a warning to all those renters real quick and tell them what happened. Tell them the story. This is way too common
Tego Venturi: Is very common. So the home I put it on the normal services that we use to list homes for, for sale, but also in this case, it’s worth for rant. I put her on our MLS ends up on Zillow and you know, all the other places it goes, well, somebody took our home for rent and put it on Craigslist for rent, much cheaper, much cheaper, you know, stole our photos off the listing. And they put their contact, put their contact info. Luckily multiple people, they were able to just Google the address and find it on Zillow and called me direct and said, something’s not right here. And the, the reality is if you’re looking for a rental and tell everybody, you know, I might be looking for a rental, be extremely careful for listings. You see on services like Craigslist, where there’s really no policing in making sure that the person that’s posting it is actually owner of the property.
Tracy Venturi: So what happens? And we don’t know of anybody doing this for this particular rental, but in past years, we do know of people who have put down a month’s deposit. And the first month’s rent to somebody, who’s not the owner that you never hear from again. And that’s really tragic because oftentimes when you’re moving from one rental to another, you know, money is scarce. You don’t want to lose two months worth of, of of the money that you needed for housing. So be careful with who you’re renting from. And there’s great property managers in Albuquerque. If you need the name of a great property manager, you can call us or Google property managers, Albuquerque and column individually.
Tego Venturi: I think it comes down to the basic rule was if it looks too good, it probably is not right. It’s probably not real,
Tracy Venturi: But the next scam could be, it doesn’t look too good. And they say, we’ll meet you and give you keys as soon as you pay us on PayPal.
Tego Venturi: Exactly. So just be again, tell all your friends, if they’re looking for rentals, be really careful. And it’s unfortunately, like I say, there’s, there’s very little policing on it. And the problem is when somebody does that, there’s, you know, what are you going to do? Especially if they’re overseas somewhere, right?
Tracy Venturi: So this is Tracy and Tego, Venturi, Albuquerque real estate talk. We’ve been coming to you here on the rock of talk for over over seven years. You can reach us. Our real estate office is at 448-8888. And we’re all standing Vida help you with your real estate needs for the year. If you have any specific questions or topics, you’d like to see us cover on the radio let us know.
Let’s let’s talk about what we were just covering building. So we were talking about land and there’s a lot of information out there, new home construction, right? Of course we work with builders. Of course, we work with new home builders like Abrazo and bolt D and VR, Horton, and Twilight, and all the other local and national builders. And what we know is land’s hard to find. Albuquerque is landlocked. We have Indian reservations on two sides. We have a mountain on the other side going West, the only direction we still have a lot of land. We’ve got issues there as well. I mean, we can go a ways, but we’ve got volcanic land. We’ve got a scarp mints. We have individual ownership. So assembling a parcel, large enough can be difficult. We have Rio Rancho, which we a lot of land, but again, unless it’s, Amref, that’s still owns a big parcel. It’s individual owners that are all over the world that people bought the land in the 1950s and 1960s. And they’ve passed it down. So now six grandchildren, or great-grandchildren own one lot. And the lots of joining that lot are owned by other grandchildren from all over the world. Right? So putting together a big enough parcel for like a Dr. Horton or a Pulte or a big builder to do a neighborhood.
Well, and let me just add onto that. It’s not even the big builders. It’s like, if you own, let’s use rear Rancho, for example, because a lot of people own a lot in Rio Rancho, right there they’re half acres, there’s 88, 80 some thousand of them, right?
Some of them are buildable. Some of them have utilities or utilities near
The key is some of them. And so the reality is that the is not the problem.
The problem is the infrastructure, right. Is, you know, gas, electric, water, sewer roads. Yeah.
They scraped roads back in the fifties. 1950S is now like 70 years ago. But most of those grape roads, you can still see where they scraped.
Yeah. So, so that’s, that’s the challenge. And so a good buildable, I say, good, good in the sense that it has utilities it’s ready to build on, you know, or that utilities may be not be a big challenge. Like let’s say, take North Albuquerque acres. For example, too, we were just talking about, you know, those are our eight, they call them acre, but they’re 0.8, nine. And they generally have your, your electric, your gas, not always. And not always a lot of them are on propane, but then you’ve, but you know, water can be a challenge and sewer can be a challenge. A lot of those are on septic systems. There’s, septics, you know, doing a septic system, as long as you have enough land, it’s not a big deal, but it’s going to be an eight to $15,000 expense to put her in a subject
Depending on the soils and the drainage and all that. Yep. Yep.
So, so, you know, it’s, we’re we keep hearing are I keep seeing all these national stories and we’re now locally, there was a story in the journalist week about the lack of number of home from the market. And then people just go, well, let’s build some more, let’s build more. Well, it’s just not that easy, just like we were talking about it’s a two year process, if you’re going to do a subdivision, for example. Right,
Right. So let’s talk about how 2020 changed things as well. So 2020, we have all these builders that are working on subdivisions, buying the parcels, getting them zone, getting them subdivided, thinking about how they’re going to put in streets and an engineering of it. And the utilities and along comes March. And what we know is March, lot of people like us and other businesses just stopped. We didn’t know what the implications of COVID where we cut back everywhere we could, which is what builders did. We didn’t know if people were going to buy homes. So by the end of March, a lot of the developments that were coming stopped. And once the builders started to feel confident, again, that there was still demand for new homes. A lot of the government agencies were also trying to figure out how they work from home, how they set up people to have secure computers at home, how they were having their phones from office ringing to people at home. So a lot of the public was, or a lot of the employees needed to do permitting or to do the community. Sinuses of development were also not available. So we see, I saw a graph about, about it and it just dropped, right. It took a couple months for people in the building industry to have that confidence that they needed to keep going on, developing those lots and those neighborhoods. And then there was also the extra delays of the government entity.
We went from the standard build time for a new home from six months to now, we’re seeing eight, nine months.
And across the nation, not just locally builders are limiting the number of homes. They will even sell a month because of their demands. They’ve got contractors who are not available. The industry is very busy, but then they have to deal with just like the NFL. They have to deal with people getting COVID here and there, and a contractor’s not available and it causes another delay. And so it’s, it’s right down the line, how COVID has impacted new homes.
Yeah. And, and I think, I think you, you bring up a really good point in, in, let me, let me package it this way is with COVID with everything that’s happened this year, the demand for housing increased. I think there’s no doubt about that. Right. I mean, you can’t, you can’t argue. I mean, there absolutely demand increased and there’s, there’s a bunch of reasons about that. It’s not just interest rates.
No, no. And you know, let’s talk about that. So thinking about the demand, sorry. Right. By the mic here, the demand, people who are home more, right. And they’re going, I’ve got my kids at home, I’m doing school from home. I’m working from home. This seems like it’s going to last a while. I need a home to accommodate this and now’s the time. So there has been all of that demand in addition to a lot of people getting older and having more stable globs that, you know, the millennials. Yeah.
Well, well, th that’s what’s happened and there has been some, some analysis and talk about, okay, are we spelling first-time home buyer from the future? And I think the reality is, yes, we have stole some first-time home buyers from the future. But this demographic with this cohort of what the millennials that are, you know, moving into this late twenties, early 30 age group and starting families and settling down, that’s going to continue now for the next four or five years. So we’re, you know, even though yes, we’re still stealing some buyers from the future. Overall, the demand is going to continue. I want to get the supply side, but go ahead and talk about that. Yeah.
I also think we’re stealing first-time buyers from the past. A lot of people who should have been buying the last
Few years, you know,
They, they realize now, Hey, what am I doing renting in? And now I’m home more. And, you know, being in an apartment or having roommates and things, it’s just not working very well when you’re stuck at home with COVID. Right.
So they they’re, yeah. They’re there in the apartment. They went and did the math and said, let’s see for $1,200 a month that I’m paying in rent. Let’s see what can I can own at three, three and a half percent interest rates. All of a sudden you went, Oh, wow, look at that.
So I think all those people who should have been buying for the last five to 10 years are, might, might be moving forward and actually buying in. And we see that, you know, I don’t have to look at a national story to know that we talked to those buyers every day. Right. And by the way, Tracy and Tito Venturi, Venturi Realty, group of Keller Williams Realty, we’re so honored to be here seven, almost more than seven years strong now. And coming to you here at the end of 20, 20, another great year on the radio
Near the end of 2020. Yay. Yeah, no. W we’ll see. So 20, 21 in, well, let’s, let’s finish this conversation about the supply side in housing and what happened in 2021 and 2020. Yeah. I’ll get it straight. What happened? Not what’s going to happen, even though I got some ideas there, but in 2020, what happened was when, when everything hit in March, you know, obviously a lot of people put the brake on putting their home on the market. Right. And, and so there was quite a drop in the number of homes coming on the market as to be expected. Now, the reality is though, in February, even we were already seeing that we were going to have a shortage of choices for homes for sale in 2020. It was, it was already, it was already in the cards, right. It wasn’t like, Oh, that was the only, no, it was already there. This just enhanced it. And then what also a couple other things will happen. Obviously you talked, we’ve talked about the builders we talked about, the builders are, are also, builders are much more conservative, you know, especially the ones that went through Oh six Oh seven Oh eight Oh nine. Right. They’re very connected.
They don’t want to get stuck with land that doesn’t have income. Yup.
So everybody kind of put the brakes on. I think we, everybody put the brakes on in March and April. Right. And so that, that has something to do with, but another phenomenon that happened is, think about this. How many people you think move their elderly parents from the family home into a healthcare or long-term care facility this year.
I’ve seen a lot of news about that. And a lot of people did that right away thinking that was the safe place for them. Unfortunately, I think reality hit was not the safe place for them. They should have either stayed in their home or move in with their family.
So that’s what happened is these, these family homes, these, you know, the homes of the elderly folks that are not now moving in there, you know, I, I saw an article talking about the boom in in-home healthcare. In-Home health care is just gone crazy this year, as you can imagine for the elderly, because they, you know, people don’t want to go to those, those places right now. And so again, that’s also drew in the lack of, of people listing their homes for sale. And so that’s, I think the big thing then going into 21 is just the, the low level of number of homes to choose from lack of inventory as we call it. And I don’t see anything that’s going to alleviate that unless for some crazy reason. And I don’t know what it is that the demand drops off suspense substantially, but right now it’s steady as it goes.
She doesn’t make sense if it’s not going to drop off
just the demographics alone. And the fact that interest rates are look like they’re not going to change at all.
It would take something catastrophic beyond a pandemic that we don’t know about. Right. And so we can say, it’s not going to happen.
It is new year’s Eve or new year’s after new year’s day. If you’re listening to us, though right here on the radio is of course to go on Tracy, joining us every Saturday morning, right here on the Kiva, the Albuquerque real estate group, but you can find them to find them directly at welcomehomeabq.com. That’s welcome home, maybe Q a.com or why not pick up the phone and dial them directly this morning. They’re waiting for you. Four four eight 88 88. That’s four, four eight 88, 88, or yet one more time. The number one real estate website in the state of my spiel. Welcome home. Abq.Com. Happy new years guys, or Hey, new year. Yes. Happy new year. Happy new year
To be here on this happy new year for
All the folks that are our regulars, listening to the show and usually see us in our studio, in our office where you’re not in the office today, but this seems to be working Eddie. Are you hearing us okay. On this and clear getting microphone and you’ll look amazing too. I love the studio lighting there in the back. Absolutely amazing. Yeah. So Eddie you know, th this week we wanted to talk about, you know, what we’ve gone through this year in real estate and Albuquerque and what we see coming down the pike. I do see some, some challenges as well as some opportunities in the real estate market in Albuquerque.
Yeah. You know, obviously end of year, we always do kind of a recap and we’ll have more of that into January, but we’re also talking a little bit about what, what we expect for 2021, mostly the opportunities
There, there is. There’s like I said, some challenges, but the biggest challenge is, you know, is, is the lack of choices for, for home buyers right now, and the lack of number of homes on the market. And I want to bring you in on this conversation that he go ahead,
Which leads to one of our topics today, which is homebuilders and the lack of land for them, and what has happened, impact that even further in 2020,
There was an article in the New York not the New York times, the wall street journal, the, the better New York times the, the wall street journal about, you know, the challenge that homebuilders have, not just locally here in Albuquerque, but around the country, finding ready to build blocks. First tale, there’s a shortage. It’s not like they don’t want to build homes if they just can’t because they don’t have enough dirt to build that. Now at a, you know, the story of the local builder that then kind of fighting to get development out of the ground, you know, on the West side. And they’ve been, I don’t know, it’s been two, three years, I think, and they’ve got multi-million dollars into it and they still can’t get it done because not because the neighborhood or the community or the piece of dirt isn’t zoned for use for residential, it’s still has to go through planning and zoning to do the subdivision, all that stuff. It’s been at least two years, but I think it’s been long. I think London generally take for most people, Tracy, to get through the whole process. If you were taking a sum them on through the approval process on their own, a piece of land, how long would that generally take?
Yeah, it would take a while anyway, you know, a year, maybe more or less.
So it’s different things that he, so, so let’s say you have a piece of you have one of those 0.8, nine acre, lots in North Albuquerque acres, right? You can break ground tomorrow. Right? You can start, that’s already zoned. It’s already subdivided. It’s already to go for that. But if you are a, a land developer or a builder that is developing land for builders, and I say that wrong, no, I did say you get my point. Yeah. So if you’re either developing land to sell or developing land as the builder, you’re looking at a two year process. So, you know, you go and find you know, let’s say a five acre parcel probably on the West side. That’s basically where it is maybe Rio Rancho. You’re looking at a couple of years of, of before you’re ready to actually start building. You got to do the financing, you’ve got to put the whole deal together.
You gotta figure out utilities. You got to do all the the studies, environmental studies to get your roads and brewer and everything in place. And it’s just a long process. And at the end of that, you know, a finished lot that a builder is going to buy from somebody that’s, you know, put all his time and energy into the lot. They’re going to be spending $70,000 for just a residential lot on the work side right now. I mean, think about that. I mean, you know, the, the challenge we’re going to be, I think we’re going to see is just affordability dropping for us because there, you know, builders can’t build a home for under $250,000. If they’re paying 70 or $80,000 for the lot, it’s just not going to happen. Right.
Cost of money and holding that land and the time to get it developed, all of that plays into that cost. Right.
And, and so, yeah, it’s, it’s a long process. And you know, you think about that. If you’re in a, if you’re a developer and you’ve got two, $3 million to invest to build out a neighborhood or take that money and put it somewhere else, you know, the, the, the problem is you’re making an investment for something that’s going to happen two or three years from now. So it’s, it’s a risky proposition and not a lot of people are doing it right. And it be, people got burned back in Oh seven Oh eight when all these lots were developed and then boom, the market fell away. Right. And the other thing that I see Tracy and Antigo is coming into this. They could be holding them through the cycle. The is now,
Right. I think there’s a shortage of property that’s available in the market. It’s a great opportunity. Especially we have a land that’s ready to build. They do, but the site, but they’ve been held up. I mean, I think there’s a claim. I hate to say it like this, but given the type of product that it’s trying to turn out, which I think is between 250 and 300, I’m just guessing, is that what you know right now in Albuquerque proper construction for under 300? No, no, no. This, this new, this particular, I mean, they’re, they’re targeted probably two 50 to three 50, but they actually have a claim because those products were fly right off the shelf. They would literally be sold. Every one of those things would be an escrow tomorrow. I would imagine maybe even just with your buyers, I think it really is that, and they’ll have that type of claim and the city of Albuquerque isn’t doing itself any favors by not getting this thing done.
Well, it’s interesting. So there was this thread that, that McKinsey put out there, you know, McKinsey from Abrazo homes and, you know, just talking about this wall street journal article, that’s where I first saw it in that, you know, he basically said, what did he say? He said that the battle is real or something that, you know, they just can’t get enough, lots to the build on fast enough. And in the, in the chow and somebody made the comment along the lines of, well, they shouldn’t be doing infill. Well, you go talk to a builder. That’s ever tried to do an infill project in Albuquerque. And you asked them how easy that went. I’m just telling you infill sounds good. And it sounds good if you’re, you know, talking, you know, policy-wise and it sounds great. And there’s a good talking point in campaigns. This is about as political as I’m going to get, because it’s the thing I do every day is they talk about infill, Oh, we want infill. We don’t want sprawl. We don’t want this. Well then actually don’t just talk. It actually have the policies and make it possible for these guys to do I say guys, but guys and girls to do infill
This project is sort of infill it’s right. Between Oxbow. It’s like by St. Pius there in the bluff, down by the river between Bosky school Lulu’s or Lulu’s in Oxbow, one of the two right in there. And, and it’s infill, but it it’s really being held up because the neighbors keep protesting it. But that’s the, the thing about infill, if it’s a lot here or there, or a small thing, the neighbors already use it to walk their dogs there. They don’t want somebody next to you.
Well, the, the, the, the term is NIMBY, right? It’s not in my backyard. It’s like, don’t do it in my backyard. And I’ll just finish this off with this, because I know the area that you’re now speaking of. And I grew up that’s right. Taylor ranch. So right above the Hill, that’s right there. And as you see, Taylor ranch looking down LA Luce was actually the first one of the first communities that was ever there. It goes back to the mid seventies. So Taylor ranch was built on something called college Heights right there. And you can see the first house that’s right there. And then Delaine that goes right up that road, and then looses at the bottom of that. And it overlooks. And many of those people, if you go in and I doubt many people have actually traded away from their homes from there because they’ve owned those houses free and clear, and they own the real grant amazing development.
So I can understand the pushback, but, you know, given, you know what in Brian, I know he knows it. Well, I know Brian very well. He grew up in that area just on the other side of St. Pius high school. So he knows the value of that property. And I, I can only imagine there will be a time where there’ll be, there’ll be some give, and I hope that that is soon, but we need more product out on the market. We should definitely talk about that. This is the best time in the world as Albuquerque. The merchandise should property. We of course have our homes of the week some open houses that could be virtual open houses, and we’ll let Tego and Tracy take it away. Thank you both for, including me in that conversation. And we’ll keep what’s happening over there. Thank you. Thank you. So here we are here. Yep.
Merry Christmas to everybody. And I know we do have a loyal following here, and we sure appreciate you listening as always.
Tego: One of the questions we get a lot, and I get a lot is, are we seeing 2008 all over again? Are we going to see a housing crash again? And the, and I would say the the answer is a, is a very strong, no, it’s, it’s not the same. And you said something that, that was, it was a great example of how this is different, or just one of the many examples, how this is different back in 2008, 09, 10, when we were, we’re dealing with all those short sales meaning people that had to, uh, get their home sold and have the bank take short with the, with the lender was owed on the home, the lenders weren’t in a really well working with people, they were just saying, sorry, you didn’t pay your mortgage. You know, foreclosure this time. It’s very different. There’s these forbearance programs that are available. You know, if you’re in a mortgage and you have an issue, and you’re not able to make your mortgages for financial reasons, you need to reach out to your loan servicer, and your loan servicer is basically the person you’re paying your mortgage to. Right. Right. And there’s a bunch of freedom mortgage bank of, you know, all the banks and everything and, and just reach out to them and say, Hey, I need some help here. I’ve found, you know, going on the different websites, every one of those, you know, big national mortgage servicers, they have something right on their home page or their website need help reach out here. That is very different than what was happening in 2008 and nine. So there’s a lot of workout options as they call it for people that, that, uh, aren’t able to continue in making their mortgage. Right. So, so just remember, help us available and the other thing, Tracy is we’re so different than 2008, 09, 10, because people have equity in their homes this time around way more equity in their homes. And so there’s that other option, which is sell the home, but not as a distress sale, not as a foreclosure where you give it back to the bank and have that on your credit history, ruining your credit. Um, you know, I read something the other day I was reading some stats on, you know, what’s been happening with the forbearance programs since the beginning of the pandemic. And there was a bunch back in March, April, um, right now about 50% of the people that entered those programs are now off that those programs either they’ve exited the programs, meaning they’ve started to make up their payments, they’ve refinanced and started making their payments, or they paid off the loan, which means they probably sold the home. So, you know, a good 50% of the people are in those programs have come out of those programs. So that’s a good sign going forward. The reality is we still have about, I think the, uh, and, and I, I apologize. I think the number is about 3,000,000 people in the country that are still in some form of delinquency on their mortgage. Uh, and just remember, I’m say this again is delinquency does not equal foreclosure delinquency just means people are not making their payments. That doesn’t mean it automatically equates to the home going into foreclosure. Right. Right. And, and I keep seeing that being reported as the, that one equals the other. And it just, it’s just not the case because there are so many options for, for people.
Tracy: Perfect. So new topic. Yes. So, um, we, we were talking, you know, with Eddie a while ago about what our year has been like in real estate here locally. We want to talk about trends for 2021, but let’s talk locally. We have a hard time talking about our team ourselves, right. It’s always nice when someone else gives you kudos and says, Hey, good job, guys. Um, we, during these difficult times, and it has been a difficult year for our industry and every other industry and people everywhere with the COVID situation, but we’ve been able to serve over 500 people with home buying, home selling, or investing in real estate. And we have seen quite a few investors this year. Um, so we’ve helped over 500 families this year, which is just really awesome. I don’t know that anyone, any real estate team in New Mexico, has done that before. And that’s with the COVID, um, issues that we’ve had and how difficult it’s been. And, you know, we really want to congratulate all our buyers and sellers who have moved forward and taken care of their housing needs, despite the situation right.
Tego: Taken advantage of this kind of historic time and in real estate right now with the ultra low interest rates, the strong, you know, buyer demand, meaning sellers, market, and people, you know, with the ability to lock in these low interest rates in their housing costs for a lot, a lot of time. One of the things we’ve seen that, that I think some people were predicting it back in March, but the demand for a home in having, you know, a home has really gone up this this year, because people are recognizing how important it is to have that place, to have that place. And, you know, we’re so thrilled that we’ve been able to help people do that.
Tracy: Right. So one of the things I really want to say too, is how proud I am of all of our team members who have gone above and beyond, and really, you know, gone out used precautions, but gone out and helped people buy and sell homes. When, you know, we were deemed essential and we were out there before we really even knew how they were treating COVID and how people were recovering from COVID. And, and, you know, they’ve, they’ve done their part because they care and they’re, they’re helping people, um, you know, really of our team for that. It’s awesome
Tego: And it’s been, it’s been different, not, you know, in the office, not in the office, not in the office, working from home, you know, everybody’s been dealing with it just like we have. I mean, we’re, we’re, we are, you know, one of the, one of the lucky industries, in fact, we’re probably, you know, one of the luckiest industries right now, the real estate residential real estate, because it’s been the strongest sector of the economy. And so we’re, we’re blessed to be, to be part of it. And I know a lot of industries are really suffering and, um,
Tracy: Well, think about what we talk about regularly, every once in a while on this show about how our industry supports so many other people, right? So our industry has supported the, the movers in town. You know, we’ve got Max over at relonm and I’m right with, uh, Bekins. We’ve got, um, all the, all of our inspectors, whether it’s septic or sewer lines or home inspections or roof inspections, we’ve got all those contractors that do work for people to get their home ready for sale or sold or repairs. Right. Just, I mean, it goes so deep, our lenders, our Title people it’s, um, it’s really important for our economy, the housing industry. So it’s a, it’s an important thing. Um, so talking about 20, 21 trends in real estate in 2021, Tego, you and I have had a lot of discussion about this this past couple of weeks,
Tego: Of course. So trends, let me let me kind of cue this up. So trends that we’ve been seeing coming now and, and going into 2021, obviously there’s been some big changes in real estate world, how people use their homes and some of the things that have been going on, you know, you can kind of, I think a lot of people realize that you can throw the rule book out on so many things this year, and that’s true in a residential real estate market. And so I wanted to go through some of the things that have that, that are, that have happened and, and look to continue to happen. And one of them is the remodel, boom, right? We were just talking about this, this whole idea, how the real estate economy, the residential real estate world, when, when homes sell, there’s either the fix up before sale or the fix up after the sale or the, you know, the people deciding that they’re going to stay in their home and getting it ready for them to, you know, be more work at home. And I’m going to get into that, that stat in a moment.
Tracy: Think about us Tego we were home. We went, well, the office is closed. We’re home, let’s remodel the kitchen. Right. We did a big remodel in our kitchen and then our office was closed. So we took advantage of nobody being here. And we did a big remodel on our office as well. And we know so many others have done the same thing. It’s like, okay, I’m here more, I’m homeschooling kids. I’m working from home. I need to recreate my space and how I live. And, and we’ve seen it.
Tego: One of the big things that’s going to affect the real estate market in 2021 is the number of homes on the market or lack thereof. I mean, that’s, that’s the challenge right now is we have historically low, like, I mean, like all time, low number of homes on the market. And, you know, there’s this expression out there in the real estate economy or real estate economists who it’s called the lost decade. And that was from about eight, nine, the homeless in 2008, 2009, the home had just stopped a building. And I mean, I say stopped, you know what I mean? It, it, it went from a thousand to, you know, 10, right? And, and what’s happened now is we haven’t had a lot of new homes coming out in the market. However, the household formation the population, the number of people that want a home own homes has continued on. And what’s happened with the Corona virus thing in these low mortgage rates is people that are maybe first time home buyers have jumped up, right? We’ve, we’ve pulled some of those future home buyers into the market this year. And that’s part of, of the, the reason that the supply is so low. Another reason is the older generation, the boomers just saying, yeah, we can say, we can say, okay, boomers, that’s us. Um, they’re not, I mean, when we’re talking to older boomers, but they’re not moving. I mean, think about who, who is anybody know anybody that’s moved into an assisted care facility in the last six months.
Tracy: Yeah. It’s a tough time to be moving into an assisted living type place. But, you know, there are some that are moving into the active adult places.
Tego: That’s true, but that’s different. Right. I’m talking in, in one of the stats that I read is that the home in-home care services, that business is booming right now,
Tracy: Right. People are choosing in-home care over moving to an assisted living place where you’re piled in together. Right.
Tego: Well, and what that means is those homes are not coming on the market. Right. And they, in, in normal times, those homes would have been coming on the market. Right.
Tracy: We’re missing all those homes for people that haven’t moved to assisted living.
Tego: Yeah. The couple other kind of buzz words that have come out this year, one of them is called zoom towns. And Tracy, you have, we talked about that zoom tacks, zoom towns, and that’s, uh, a good example would be Boise, Idaho, or, or, you know, or some of those towns. Um, what was the other one? Um, anyway, yeah, it’s Spokane w where people that are in these really expensive markets, Silicon Valley, Seattle, Portland, you know, um, San Francisco, the, the expense of, you know, Los Angeles, really high price markets. They can now basically work from anywhere in zoom, into their businesses, zoom into their meetings. So they’re calling them zoom towns. So, so people are selling the expensive home, or they’re keeping the expensive condo in San Francisco and buying a home in, and again, Boise and our Tahoe. And now they’re now it’s the other term, which is called primary co co or coal primary home. Yeah. Yeah.
Tracy: Oh, primary home. So they’ve got two primary residences. It’s not a vacation or second home now that they get to occasionally, it’s two primary homes. And you know, what we’re seeing Tego is they’re saying
Tego: That doesn’t help the inventory situation either.
Tracy: They’re taking up two homes instead of one. Um, but one of the things we’re seeing with that is they’re set up to work from home at both locations, they have the full desktop, double screens at their co-primary home. And then in addition to their primary residence that they had before, right. So it’s people who may not have even had second homes before or vacation homes, but now they have two primary residences.
Tego: Yeah. Yeah. Cool. Primary residence is zoom town. Yeah. Yeah. So work from home, needless to say, work from home is a thing. Um, we went from, let me get the stat here is in 2019, they said about 6% of the people worked at home in 2020. They’re saying it’s going to be about 21% of people working from home. And I bet it’s higher than, yeah. And I think this, I think this is full-time unlike people like us that are kind of, you know, back and forth, back and forth,
Tracy: But there’s a lot of people who are still working.
Tego: Co-primary offices. I think that’s the thing, a lot of people, right. You know, they have their work office and they have their home office and they can bounce back and forth with the technology pretty easily
Tracy: Is what we’ve done. Um, as we’re able, we’ll have maybe two or three or four people that are in the office, but, um, you know, we’re less than 25% for sure.
Tego: So the experts are predicting it in 2021. I really disliked that term, the experts, because I think we’ve all lost faith in the experts in 2020, but that’s a different conversation. Uh, however, you know, the, the, the, the people that actually really dig deep and look at this stuff, they’re saying that in 2021, we’re going to pull back a little bit, but it’ll still be 18% of people working from home. And in 2022, we’ll say 12% of people’s working from home. So that’s double right.
Tracy: Double 2019. And so we’re assuming by 2022, we won’t be in the middle of this pandemic anymore. People will be able to be back at work as normal.
Tego: And the point is, there’s obviously a shift where work at home is going to be a much more common practice, uh, going forward.
Tracy: And we know that a lot of major companies, huge employers are saying, we’re not ever going to have the same look to what we had before.
Tego: Talk about the builders and what the builders are building right now that the builders that, you know, the companies that build and design homes, they are designing homes now for that trend,
Tracy: They do. But think about the, GoDaddys the Googles, the Amazons, the, you know, the big, big companies out there, you know, our son works for GoDaddy and they’re telling him, you know, probably he can work from home from ever forever, which his company always had before, but people like to go into the office and be a part of, uh, of a community. Right. Um, but they’re already saying you’re going to be working from home a hundred percent way into next year. And you know, it, it, that 6% to 12% I’m sure is at least accurate, if not,
Tego: No, I, I agree. And, and so, um, just before I know we’re rapidly running out of time as usual, um, affordability, homophobia ability that is going to be something that’s going to be, you’re going to see a lot of headlines about housing affordability and affordability crisis. And, and, and that’s the thing. It, it definitely is that the reality is right now, even though prices have gone up anywhere from eight to 10% over the last year for, for homes, the, the actual affordability indexes either stayed the same, or actually gone down because of the low interest rates. And so, you know, watch for interest rates going up, which again, all the experts, nobody is predicting interest rates to have any big spikes, even, you know, all the way through next year, 2021. Um, but the, this lack of inventory is going to be driving a lot of the trends. And one of them is this accessory dwelling unit, uh, phenomenon, which, which,
Tracy: Wait, you said that so fast accessory dwelling unit
Tego: ADU Is kind of the term that’s being thrown around out there. And it’s, it’s the granny flat. That’s a term, the, the, the, uh, the co Multi-generational House, it’s, it’s basically taking an existing home and giving it an additional, uh, apartment residents, uh, usually for a family member. But that doesn’t necessarily mean true that the challenge with that one is, is owning obviously that, that so much zoning. And I know in Albuquerque, we’ve, we’ve recently totally redone, you know, the zoning. And so that can be, uh, a way to alleviate some of this, this, uh, inventory shortage, as well as, uh, costs of, of housing issues going forward. So that’s the thing, it’s one thing to, to watch for Tracy.
Tracy: Yeah. You know, uh, the Minneapolis area changed their zoning and they’re allowing accessory dwelling units on almost every property in the Minneapolis area. And that was their way. Um, they, they basically abolished single family home zoning. So they’re allowing duplexes triplexes to be built anywhere in the city. Um, you know, it’s a huge, huge change.
Tego: Well, and it’s one of those things where, you know, talk about opening up, uh, a lot of, you know, you, you buy a home. I mean, it’s one of the things that you could probably sit here and debate for a full day about, you know, the, the pros and cons of it because people buy, you know, in a neighborhood because the zoning says that this is the only type of home that’s going to be built in a neighborhood. All of a sudden they come in and change it. And so it is something to watch. That’s all we’re saying here.
Tracy: Yeah, it is. You know, you think about, I mean, I happen to know the Minneapolis area pretty well. Having grown up in a now suburb of Minneapolis, and there are some neighborhoods where, you know, people have big, beautiful stately properties near lakes. And, um, you know, if you think about somebody putting a triplex next door, um, it it’ll be interesting to watch, but really with the lack of land in a lot of areas, it will be interesting to see. I don’t expect big changes in 2021 though. So next topic,
Tego: The last thing I just want to wrap up this conversation is the construction boom that is happening. And it’s going to continue to happen. Single-family home construction is going to continue. We talked about earlier about the last decade of construction. There’s plenty of room for building, that there’s there’s need for it, especially in the lower price point. Unfortunately, we’re not seeing a lot of that in the Albuquerque market, as in affordability. I mean, under, under, under 300,000 new construction is, is a rare, rare thing in the Albuquerque area. Um, and so those are, those are some of the big things Tracy, I did want to hit on one thing before we finish up for the day. I have a stat for the day. I have a stat for the week. I did a quick look at the first 15 days, the first half of December, comparing it to last year and just in there, or we’re looking at the Albuquerque Metro Albuquerque area of Bernalillo County, Sandoval County in Valencia County. And we’re seeing 38% less homes on the market this year. Then last year we’ve seen, uh, we’ve seen a small increase in the number of homes coming on the market. So that’s a good sign cause we need that. We’ve seen a 40% increase in the number of homes that have come off the market as a pending sale. So the the sales are strong in December. It’s, you know, there’s no doubt that 2020 is going to be what we’ve already surpassed it. 2020 Is going to be the strongest sales here for real estate and Albuquerque ever from a number of units standpoint and dollar standpoint without, without a doubt. And it looks like December is going to be strong just based on some of these preliminary reads that, that I’m seeing right now.
Tego: you know, top of everybody’s mind, I think is obviously the pandemic, right? Or maybe most of us are, are so fatigued by the pandemic and talking about it. But in the housing world, we continue to talk about the number of people that are delinquent on their mortgages, the number of people that are renters, that aren’t able to make their rent. And so Tracy, you wanted to share some of the the help that’s available for people. And I think, I don’t think people need to be, what’s the right word, ashamed to reach out for help. I mean, there’s great help available, and I can speak to the forbearance thing, but Tracy, what what’s New Mexico doing or MFA doing right now?
Tracy: So really great topic for a lot of people to go, because we do know there are people who need help with rent or mortgage payment right now, and there is, uh, options for them. And so, you know, don’t, don’t just ignore and feel bad, go get some help. So, you know, you can Google it. There’s lots of ways to find the sides, but the New Mexico mortgage finance authority has housing cost assistance for specifically COVID-19 problem. If you are impacted and are unable to pay your rent or pay your mortgage because of COVID-19, they have money available. The thing that’s hard about that. And I always wish we could change rules, but I guess we are, we can’t. But the, the thing that’s hard about it is you have to already be in a rears. You’ll have to already be not paying to be able to qualify just like the old days when we had short sales, a bank would not work with you unless you were behind on your payments. So this is the same. So more New Mexico, New Mexico mortgage finance authority, just Google it. Um, housingnm.org, I believe is their website. They have a COVID-19 housing cost assistance program for renters and owners of homes. And obviously you need to qualify it’s based on your, um, family income based on how many people are in your home. And it’s an application you have to prove that you’re unable to pay, and they can pay up to three months of back rent or back mortgage for you. So that’s one, we know the city of Albuquerque. We know the city of Santa Fe that there are other programs, even Rio Rancho. So if you need that help reach out. And if you want more information on that, you’re always welcome to call us. We’re at 448-8888, welcomehomeabq.com Venturi Realty Group with Keller Williams Realty.
Tracy Venturi: Next topic, foreclosures and forbearance.
Tego Venturi: If you see a headline that talks about, you know, delinquencies and foreclosures and forbearance, remember that there are so many layers to that onion, that whatever you're reading, probably isn't telling you the entire story on that in, and I don't, you know, it's one of those topics that you just don't even want to get into. Cause there's so many levels to it. I'll just give some, some, some kind of some high level stuff on that, Tracy, which is that the,
Tego Venturi: All the experts, again, all the experts, nobody is saying that we're going to have a foreclosure crisis or a flood of foreclosures that drive down home prices in 2021. Nobody is saying that, that that's kind of the headline. And these are, these are the economist. These are not political people. They're just economist. They're just looking at the data. Right? And these, these are also people that, that did get it right back in 2006, seven, when you know, they were projected, predicting it, you know, we're going to have, we got up, we got a problem coming. Right. Which, which we ended up, we did didn't believe. Yeah. Yeah. Let's, let's not go there. Just a couple high level reasons. Why is home equity embedded home equity is at just historic all time highs, which means if people are forced to sell there, they're not necessarily going to be underwater, meaning they're going to just sell. They're not going to just give it back to the bank. And that's what happened in 2008, nine, 10 is so many people were upside down on their mortgages that they couldn't afford to sell. So they just handed back the keys and said, I'm done.
Tracy Venturi: So that was so smart. You, you embedded home equity, how is like sitting here
Tego Venturi: And am I recording this? What you said, I'm really smart. I'm going to,
Tracy Venturi: That sounded so good. So, so you know the analogy, you know, you buy a new car and a few years later you're still paying on it and you go and you want to sell it. Sometimes what you owe on it is higher than what you owe, right? Yeah. That's kind of the situation that we were in back in 2008, 2009, 2010, people didn't have, you know, money equity in their home. Right. They couldn't sell it, couldn't sell it and get a price that would pay off the under underlying loan. Now people have a lot of equity and they can sell and walk away with money in their pocket.
Tego Venturi: I was listening to Lawrence Hune, who's the chief economist at the national association of realtors. And they are, yeah, he's, he's like spreadsheets and
Tracy Venturi: Things too.
Tego Venturi: God idols. But he, you know, he made a good point or this is his quote. Actually it says any foreclosure increases will likely be quickly absorbed by the market. We will, we, excuse me, it will not lead to any price declines. So even if we have some foreclosures where people, you know, walk away from their home, we are at such a critical, low number of homes on the market that it would take.
Tracy Venturi: It would take a huge chain. It would
Tego Venturi: Take a huge change in demand, which could probably demand would only change if interest rates spike up a lot. Which again, we just talked about that, that doesn't look likely. So any, any foreclosure activity we see is most likely just going to be absorbed by the market. It's not gonna, it's not going to lead to lower prices. And that's what everybody is predicting. Right? Right.
Tracy Venturi: And we've had home buyers ask us, I'm worried, should I be worried about buying? And all of a sudden there's going to be foreclosures. And the value of my house is down. We're not the foreclosure piece is not something that we feel like is going to affect the values around.
Tego Venturi: I talked to a lot of people and you know, I know a lot of invest real estate investors, Tracy. And I, you know, we do real estate and investing and I, and I keep hearing people saying stuff like, well, I'm just waiting for the deals. And I, my answer to them is, well, you're going to be waiting because it doesn't look like they're coming anytime soon.
Tego Venturi: Okay, change the subject. I want to talk about 20, 21 lots of predictions out there in, in the real estate world that I just wanted to share from the experts. And I'm going to say air quote experts, because you know, we've w I think some of us have lost a little faith in experts this year in 2020, but
Tracy Venturi: Go through just some of the topics of what the forecasters, there's just some big topics out there. Right? So one is interest rates. Two is foreclosures. Yep. Three is home prices. Yep. Four is challenges. I'm just
Tego Venturi: Going to say yes to everything you say,
Tracy Venturi: Like inventory levels. That's it.
Tego Venturi: That's, that's my advice for, for a happy marriage. Just kidding.
Tego Venturi: Okay.
Tego Venturi: So first and foremost, let's talk about mortgage interest rates, Tracy, and what the experts are saying. So we, I think in everybody knows mortgage interest rates right now, December, 2020 are at just these historically low levels last week we were joking about well, I, another headline that says all time, low mortgage rates, you know, it's like,
Tracy Venturi: We, we don't think we're going to be saying that ever again. And last week we said it again, rates are still under 3% right now for most borrowers with decent credit,
Tego Venturi: Right? Yep. Absolutely. And one just a side note on that is there, believe it or not, there are still a bunch of people out there that could benefit from refinancing that have not refinanced. That's a lot of, of just law,
Tracy Venturi: Right? If you're sitting at an interest rate of like four or above right now, and you're not planning to sell in the next two years,
Tego Venturi: Three seven, five, 3.875. Maybe, maybe you gotta run the numbers. You gotta, you gotta do the, you gotta do the math and make sure it makes sense
Tracy Venturi: To do the math is scary for a lot of us to go
Tego Venturi: Math. Math is great spreadsheets. They're my favorite. Okay. So projections, let me just go through these by the end of 2021, I'll just give you these, this is it. So Freddie Mac, obviously a big, you know, organization, they're saying 3% Fannie Mae, the other one, they're saying 2.8, a mortgage bankers association, they're saying 3.3, which is interesting national association of realtors. They're saying three points to the takeaway is they're not going to fight nobody, nobody. I mean, nobody is projecting and I'm talking the, the, the big economists Goldman Sachs that do all their projections as well. Nobody is predicting interest rates to go up substantially. What about home prices? Home prices. Let's talk about that. And that's the big, that's big one, everybody wanders in. And, you know, there's this whole thing about, you know, all these forbearance, all these people that are delinquent on their mortgage, or we're going to have this flood of homes that drive home prices down.
Tego Venturi: Well, this is what the experts are saying. Zelman and associates Ivy's element in that group. They're, they're one of the big I don't know what you'd call them real estate, real estate consulting firms. Yeah. That's kind of wonky, but yeah, Zelman and associates. They're saying over the next 12 months, remember to silence your phone before going on the radio is they're saying 5.9% home price, you know, over the next 12 months appreciation realtor.com they're saying 5.7 national association realtor, a little more conservative, 4.5%, Freddie Mac 2.3% Fannie Mae 2.1 mortgage bankers association. Interesting. They're saying 2% and they were a little bit they were kind of an outlier. Yeah. They were kind of an outlier on the interest rate as well. That, and then core logic, which is, again, one of those big data analytics companies, they they're saying 1.9. They're the lowest. This is across the whole country though. This is nationally not Albuquerque. No, this is nationally. And if in the localized stuff, I think it's going to be higher locally.
Tracy Venturi: I was going to say, okay, let's talk about what we think for us here in New Mexico.
Tego Venturi: Well, we get to do this, we got it. We got to save this retire. We got to save this recording so we can go back. And
Tracy Venturi: All those forecasters was 5.9. I would say, we're going to be above that. I agree. I agree. And we've talked about on the show many times why, I mean, in a nutshell, there is not enough homes on the market. There are not enough homes on the market and interest rates are low.
Tego Venturi: So Tracy, let me, let me introduce is, cause you're the, you're the expert on, of course you are the buying a home, selling a home at the same time, we get a lot of questions, especially now with the, the ultra low number of homes on the market. It's it's challenging. So how do we do that? I can't, you know, most people can't just go buy a home and still have another home that they own. They have to, you know, move that mortgage to another property. So what would you first off, what would you say to somebody that's thinking of selling, but they don't want to go through that. What would you tell them? What would be the first piece of advice? You'd give them
Tracy Venturi: First piece of advice. I would say let's not sugar coat. It it's tricky to do it. It, it almost always works out like we want, but it, it happens. What I've seen statistically Tego, and this is, you know, using that word statistics for you, statistically 71% of the people that are buying a house, a second house, a first house second house, right. They own a house and they're, they're having to do it simultaneously. They can't afford to get the mortgage for their other home, their new home without selling their current home. So, yeah, it's challenging.
Tego Venturi: The takeaway on that though, is it's a very common thing. Very common. Yeah. And of course we deal with it all the time. Obviously there's extra logistics involved, you know, trying to move out of one house. We'll try to get ready to move into another house. That's right. Know, th there there's all that, but what about the financing piece? I mean, obviously, you know, if you can't buy the home without selling your home, how does that work?
Tracy Venturi: So a lot of times people need the money from the one home to be able to close on the other. So that means you would need to sell your home first and be out of it right before you close on your new home and move into it. So there's that lag in the middle there. So it's
Tego Venturi: So I, I'm going to interrupt you. I know, I promise I won't interrupt you as of just about impossible, isn't it? Is I was gonna just say, talk about the simultaneous closing and how that works, where the title company is handling all that money,
Tracy Venturi: Right? So it's possible to close the same day on both properties. You go in the morning, you signed paperwork to sell your home. It gets funded and recorded by 11, 12. You're right after you signed to sell your home, you go right to title and they hope maybe the same company. Not always.
Tego Venturi: Well, I've seen it happen at the same time, at the same table with the same escrow. Okay.
Tracy Venturi: Now we're going to sign these forms, right? So the, the cell has to fund and record before the funds are available for the, but a lot of times we can get it to happen that same afternoon so that the sell happens in the morning. And by mid-afternoon late afternoon, the buy happens. Now. Most people, you know, that's pretty stressful. Think about I'm all packed up. I've got the kids in the dogs, in the car and I'm waiting to get the keys to my new home. And the moving truck is waiting and everything's going so there's ways we try to minimize, minimize the stress, right? We try to get preoccupied NC, or post-occupancy either post-occupancy at the house you're selling for a few days or preoccupied, NC at the home. You're buying for a few days. There's, you know, pods where you can have all of your things packed up. They hold them at the pod facility and until you're ready for them. So that the truck isn't literally waiting with your things. And, and lots of other strategies that work to help facilitate a buy and sell at the same time.
Tego Venturi: So what you're saying, there are obviously extra logistics,
Tracy Venturi: Right. And getting a house, right? So a lot of times people say, well, how do I get an offer accepted on a new home when I need to make it contingent upon selling my current,
Tego Venturi: Explain contingent just for, for people listening.
Tracy Venturi: So we make offers that if you have to sell, to be able to buy, we make offers with an extra addendum attached to the form that says this purchase is contingent upon my current home selling to make it simple. Right? And the, the seller, you know, preferably when we're making that offer, your house is already under contract to sell, but sometimes it's not even on the market yet. So we have in the contract in that addendum, we put together, you know, let's say your house isn't even on the market yet. And we're putting an offer in, on a new house that needs to be contingent on the sale. Right? So what we do in that addendum is we put down how many days from accepted contract. We have to get that home on the market and we usually are ready to go. We just don't want it on the market until we know you found a house, right? Because we, right now, your house is probably in a better price range. If you're moving up to luxury or even if you're going same price point, right. Different, different home. It's, it's important to, you know, know the details of how we do it so that it works for you and make sense for you because that's just one little nuance of how do you sell and buy.
Tego Venturi: Couple of things I want to address is one of the, the services we offer here at Venturi Realty is the guaranteed sale. I know we've been accused of like this whole thing. Like we're, we're putting something out there. Oh no, they can't do that. No, this is exactly what the guaranteed sale is for
Tracy Venturi: Exactly. So we, we will, I mean, we all meet, we, we can just make an offer on a house. Somebody wants to sell, but it's perfect because we can go and meet with you ahead of time and say, okay, believe your house will sell for this price. We will offer you X and you give us 59 days or whatever you want to get your home sold.
Tego Venturi:
It used to be 59 days, but in today's market, you know, with median days on market at five courses,
Tracy Venturi: Not every home though is selling like that. So we guarantee that if the house doesn't sell well, you can move forward, get another home under contract. We work, get your home sold. But if it doesn't sell while we're waiting for your other home to close, we guarantee that we'll buy it. Okay.
Tego Venturi: It's a backup offer. It's a backup option. If, if for whatever reason, it just doesn't sell or, you know, it's bad.
Tracy Venturi: And most people want to net the most and they want the highest and best. Our price is going to be a little bit below that because traditionally we just put it on the market and sell it. Yeah. So we incur all the closing costs and the holding fees and things, but it's not a one of those telephone pole I'll buy your house for 50. I know people who've called and it's like half price. They want to buy your house. So, no, it's not like that. Our goal though, is to help you get into a new home as stress-free as possible
Tego Venturi: New home a couple of times, but I want to address, you know, you're saying just a different home, but let's talk about new construction because th th this is a really common in the new construction, because especially now, unless the home is built and available that first off, there's not a lot of those available in Albuquerque right now. And, but construction times are what, six, seven, eight months right now.
Tracy Venturi: Right. I've heard right for Pulte, Dr. Horton, Abrazo Twilight Westway yep. Home. We're not talking a custom buy a piece of land and hire a builder. Those would take much longer different animal. Yeah. Right. So in Tigo, let's just tell the story. We, one of them, and we bought a couple houses this year, right. Coming up on it, and one in particular
Tego Venturi: Address. So that, that is, you know, an ideal situation for somebody. Cause now you have the time you have the time, you know, you know, you can gauge the market, talk to us about, you know, how long we think it's going to sell what it's going to sell for. So you can gauge the market and decide when to put it on the market before your, your home is ready,
Tracy Venturi: That when you're moving into ready, other option
Tego Venturi: That you want to talk about, and I'll let you tell that
Tracy Venturi: Story, because it's a great story. We, we had a situation earlier this year, the client worked with us to buy a new construction home, picked out a lot and picked out a floor plan. We've got to go to the design center and pick out the color of the cabinets and the counters and the flooring and everything so fun. But she wanted to know very solidly that our house was going to be so old because she needed to sell to buy. And just that peace of mind. So she asked us just to go ahead and buy it and rent it back to her. So that's what we did. So we bought her house and she continued to live there for eight months while her house was being built. And when her house was done, she, she gave us 30 days notice that my house was going to be done, which we knew because we were working with her. And she was so happy about that situation. It just worked so well. It was,
Tego Venturi: It's quite a win-win. Yeah. So
Tracy Venturi: Plus we gave her a little reduced rent while there is that there is that too,
Tego Venturi: More than, more than a little anyway. Well, it was a little so if you know, you're thinking about selling and you're in, you're kind of on the fence. She's like, well, where do I go? How do I find a home? And you want to know about this, this whole idea of contingent offers and selling and buying at the same time, just reach out to us. Venturi Realty, group of Keller Williams Realty
Tracy Venturi: Four, four, eight, 88, 88, nice and simple. Four, four, eight 88, 88. We should probably write a jingle about that Tego.
Tego Venturi: This comes up a lot is you're getting, we talk about merchandising a home when you're, when you're going to be putting in, in the market. But a really key part, especially today is, is having great photography, great virtual tours of the home. And so we wanted to, you wanted to talk about prepping your home for photography,
Tracy Venturi: Right? So we want to make sure the first impression counts and these days, the first impression is photography. Most home buyers are online shopping. They are looking at the photos and deciding if a home matches what they're looking for and deciding whether or not it's a home, they want to keep on the short list. So they're looking at the photos, they're looking at the virtual immersive walkthrough tours. And oftentimes that's how they're deciding, you know, Tega, we have people who've actually bought houses. Who've never put foot in the house until they're already under contract to purchase the house. So talking about photos is really critical. And one of the things that we really talk to our sellers about, because when that photographer shows up, we want the house ready. We don't want the photographer to show up and say, Hey, you need to clear everything off your kitchen counter. Now we want to tell you ahead of time and make sure that the photos shine. One of the things that's really important to go is
Tego Venturi: Analogy on that is it's like, when you're getting ready to sell your car, you have to detail your car. You have to get it ready. You got to make it look its best. And this is, this is part of that, right?
Tracy Venturi: Totally. Yep. So the, one of the things too, that's really important is if the weather is overcast, gray, snowy, the day you're supposed to have the photos taken of your house to put it on the market, we want to change that. We don't want to let the photographer go on a gloomy day. The whole aura of the house shows in those photos and they're going to feel gloomy.
Tego Venturi: Yeah, well, we live in New Mexico and one of the beauties is this beautiful crystal clear blue sky that we get, you know, 300 and whatever days a year. And you know, one out of whatever, 15 days we get one of those overcast days, don't don't do that. I see homes that are on the market that have been on the market a long time. And you go and look at the photography of those homes and it was photographed on a gloomy overcast day. And it's, you're really, you're really doing yourself a disservice if you let that happen.
Tracy Venturi: Right? So the, the following the rules rules to prepare your home for the best real estate photos. So in general, obviously you want to clean the house, right? Have it all clean, make sure the windows are clean, turn on overhead lights, turn on all the lamps before the photographer up. Make sure you replace all the burned out bulbs so that although the lights work, the brighter, the better typically right, re turn off ceiling fans, turn off computers, turn off TVs. You don't want that kind of distraction in your photos when the photographer comes and they don't want to have to tell you, Hey, you need to do all these things. Now that I'm here, they want to get the photos and make sure the photos are great. Open blinds, window treatments. That's where making sure the windows are clean, ready to go remove personal photographs. If you can, you know, one or two, probably isn't going to hurt. But in general, if you have a lot of family portraits up, you're going to want to take them down because the buyers want to see themselves there. And in photos, lots in, you know, taking photography of the house, showing all these photos can be distracting as well. Yeah. A lot of times people are zooming in to see what's on the wall.
Tego Venturi: Can I say something? I don't know, just talking about knick-knacks and clutter, something to keep in mind when you're, when you're looking at photography versus actually being in the space, it's going to look a lot more cluttered in a photo, in a photograph. Okay. Cause a two dimensional plane versus a three-dimensional space. And so, you know, maybe you go into a room and you say, well, there's a lot of stuff in here, but it doesn't, you know, there's a lot of volume and a lot of air in this room and it doesn't feel so cluttered, but in a photograph, it may look very cluttered because now all of that stuff is on a two dimension plane. So just something to think about is I would say over declutter.
Tracy Venturi: Exactly. So thinking of the kitchen, this is an example of where you would really want to do that. You want to take everything off the countertop? No knife blocks, no baking supplies, no cooking supplies. If you must leave out a coffee pot, fine, but really take everything off. Take everything off your refrigerator. Take down all the little hand towels everywhere, because what Tico just said, it looks like clutter in a photo. But when you're in person, the hand towels are gorgeous. Right?
Tego Venturi: Well, you know, I used to take our photos, right, Tracy, back back in the day. And, and the thing that I used to remember happening is you take a photo and there'd be a red towel, hating hanging on the range, for example, which is very common. You know, there's a towel on the range. And I, when I would take the photo, I wouldn't think much of it. And then I'd get back and start editing the photos, getting them ready, and I'm going, Oh my gosh, that's all I see when I look at this photograph now, is that red towel hanging on the range. So, right.
Tracy Venturi: Yeah. So to finish the kitchen, right? Put away garbage cans, put away dog dishes, dog bowls, dog beds, just remove everything you can. And you know, if you have to hide in the dishwasher for the photographer, hide it in the dishwasher, bathroom, same thing, put things away. Don't have anything out on the counter. Put the toilet seat down you know, close all the closet doors, remove any garbage cans, any dirt, dirty towels. It's best. If you can, before photos go get some fresh clean, maybe have a color for the bathroom. Yep. They do tend to enhance the bathroom. Look bedrooms. Obviously you want to make the beds, have them crisp and clean clear the nightstands of anything store away, any phone charging, tablets, things like that. Just remove all the clutter from the dresser, put away family photos, hide it under the bed. If it doesn't show there. Right.
Tego Venturi: I used to take for like the kitchen sink, for example, you know, you've got your soap and you've got your, your sponge and this and that. And I would just like put them down in the sink so they didn't show up on the photo.
Tracy Venturi: She's great. Yeah. Put them under the sink, put them in the sink somewhere so they don't show up. Yeah. And then there's the pets, which we briefly talked about, put away things for the photographer. Obviously when you're having your house shown, it's a little bit different, but if you have crates, dog beds, dog bowls, put them away, put away the dog food, get it cleared up and then we've got the outside. Right. So first impression we want to make sure that that front photo is great. We don't want any cars in the driveway. It's the
Tego Venturi: Cars in the driveway is big. No-No.
Tracy Venturi: What about if the driveway has oil stains all over it? Maybe there's a way to Photoshop them out if there's a way to just put something.
Tego Venturi: Yeah. I wouldn't, I wouldn't want to do that. Cause then you're misrepresenting. So I would say if you can clean, you know, there's way to clean oil stains, but that isn't, that is a thing for sure.
Tracy Venturi: They're so glaring when it's there. So you want to just remove empty planters, take, put away hoses, put away electric cords clean up the, you know, shrubs and bushes and have it all presented, ready to go put away any broken lawn furniture, things like that, that aren't going to show very well. And when the photographer comes, their job is to make it look great from different angles. They, their job isn't to tell you, Hey, we need to clear this counter off. Now, can you help me? Because they may not take the time to clear the clutter that is going to make your house shine. So there's the quick snippet of getting your house ready for photography.
Tego Venturi: Can I add one more thing to your list? I just, just occurred to me because I was thinking about when I used to do the Matterport photography. So Matterport is the technology that we used to do. The three-dimensional three 60 scan of the house. So the way this thing works is it's, it's on a tripod, you set it in the middle of the room and it spins around and takes the scan of the property. Sometimes when you're doing photography, you'll, you know, obviously you're framing one direction and you can move stuff out of the way while you're framing that shot and then move it back while you're framing the next shot. You can't get away with that with the three 60, the entire space, you know, all 360 degrees needs to be clear and ready for those scans. And of course today more than ever, those three 60 scans are, are, are critical in marketing property because so many people are spending so much more time online looking at the homes online versus in person before they well, before they come out and visit the home.
Tracy Venturi: So there's there it is. There it is. How to get your house ready?
Tego Venturi: Great topic, Tracy. Yeah, I think that's great.
Tego Venturi: Five reasons
Tego Venturi: To sell your home this holiday season.
Tracy Venturi: It's a great topic, very, very timely we're into the holidays and it snowed this week. It's got colder. We're having below normal temperatures this week.
Tego Venturi: We had above normal for a while there for quite a
Tracy Venturi: While. So some of the reasons, you know, a lot of times our, our market, all the buyers and sellers think it's not the right time to put your home on the market. And some of the reasons to go, well, I'll call,
Tego Venturi: I'll tell you, I'll tell you why people think that is because home sales do slow down through the winter, however, let's counteract that or contradict that and why it's why it's a good reason.
Tracy Venturi: Sure. So, you know, one of the best reasons is a lot of people have time off work and holiday days where they are available to go and look at homes for sale, and they have the opportunity to make that change. It's sort of a good transition point in their work in school schedules. This year, things are unusual, but we are seeing a lot more home sale activity this time of year. Like we just talked about on the stats versus
Tego Venturi: That was one reason it was buyers are active in the market right now. Right?
Tracy Venturi: Right. That's one, one of the five top reasons. Another thing how great many of the homes are showing during the holidays, people say, should I decorate or shouldn't I, and think how festive and happy the houses feel while they are decorated for the holiday?
Tego Venturi: For sure. No. And I think that's, that's an, I think that's an important takeaway in years past we've, we've thought about that. And, and over the years we've realized that having a nice holiday decoration just makes the home feel warm, inviting, and that's what you want when you're, when you're selling your home. Yeah. No, the reason, okay, well this, this one's mine, this one's mine. There aren't enough homes on the market. So that just goes back to our previous conversation about the, the ultra low, a number of homes on the market and Albuquerque. And then again, ties back to what you just said. The buyers are in the market right now. Buyers are still looking. There's a lot of buyers out there waiting for the right home to come on the market. And so you know, getting your home on the market is going to put you ahead come springtime,
Tracy Venturi: Which is another reason to be selling now. Right. Less competent.
Tego Venturi: Yup. Yup. And so, you know, come, you know, late winter, early, early spring, we'll start to see more homes come on the market, there'll be more competition. And so it's, it's, I th there's no downside to putting your home on the market through the holiday season. Is that fair to say?
Tracy Venturi: Sure. And the desire to own a home during the holidays is very high. Right? A lot of times people are thinking about making those memories in a home. So another reason to have your home on the market, over the holidays. Yeah. Give us a ring.
Tego Venturi: Well, it it's the desire to own a home. Doesn't go away just because it's the holidays. If anything else, maybe it's something that's more top of mind, especially this year,
Tracy Venturi: Right? Yeah. For sure. So you can reach us four, four, eight, 88, 88. This is Tracy and Tigo Venturi, Albuquerque real estate talk right here on the Kiva every Saturday morning. We'd be happy to talk with you about whatever you want to talk about as far as real estate. Yeah.
Tego Venturi: If we, if you want to talk real estate, just give us a shout. That's what we do.
Tracy Venturi: Yeah. Yeah. Four, four eight, eight, eight 80. And
Tego Venturi: We're the w and just, just to wrap that we're Venturi Realty group, we're also with Keller Williams Realty and we're, we're part of that, that family of companies and, and proud to be. Cause they're a great, great company.
Tego Venturi: As you know, I've got subscriptions to a couple of different software programs to, to, to that. I can get some data. One of the things I get, which, which I really like, and we'll talk about here is that the actual data on the homes currently on the market, not what happened last month, not what happened, you know, in the past, which obviously is important. But I want to know if, if there's any trends changing, are we seeing prices go down? Are we seeing a build in inventory? Are we seeing a lot of price reductions? Because all those things foretell the future for, for the real estate market
Tracy Venturi: Real times. Great. And you know, I'm sure you're going to get into this, but what we know is this is the time of year where we do see home prices on average, come down a little bit every month until about March, right? So, and it hasn't happened yet. We're actually behind normal cycle.
Tego Venturi: We are behind normal cycles. Normally coming into late summer, we're going to see homes, reduce our price. They went on the market, they might've pushed it a little bit for, for the price, both the realtor and the homeowner, you know, chose a price that just is maybe a little bit ahead of the market. And then we'll see some reductions. We have seen some reductions this year, not as much as we have in previous years, but the reality is there's still about 40% of the homes that are on the market have had a price reduction.
Tracy Venturi: That's a huge number. It is, but
Tego Venturi: That's actually lower than, than normally this time of year, it's going to be around 50%.
Tracy Venturi: So of all the news we hear and what we talk about every week, we hear that homes are selling very quickly if they're priced right for the condition and location. Right? So to know that 40% of the homes coming on the market are having price reductions would say that those were not priced for the market condition location.
Tego Venturi: Exactly well, and, and what's happened is we've had such a run-up in home prices. So let me, let me go through some of the data here, Tracy. So we can actually talk about this. So we've seen prices over the last year, go up somewhere around 8%, eight and a half percent overall. So that's a year over year rolling 12 month through November. There's certain segments that have gone up more. There's certain segments that are, have not gone up that much, but pretty much across the board. And when I talk about segments, I'm talking about different price ranges. We've seen more increase obviously in the lower price homes and, and less increase in the, the higher priced homes. But 8% across the board, 8.7, something like that, the, the, the one area of the market, Tracy. And I know you, you know, this is an important market to you. It's important market to everybody because it really tells a, you know, I think kind of the overall strength of the economy, maybe, maybe not so much, but it's the luxury market, right? I don't know. W what do you think, do you think that's really something that if the luxury market is strong, does that mean that it's just the rich people that are doing well or does it?
Tracy Venturi: So what we do know is the ten-year trend for homes in our market about 500,000 many more have sold this year than we normally see sell in a year.
Tego Venturi: If you look at the November through November, this is again, a rolling 12 months. So it's last December through this November, the number of, of homes that have sold over $500,000, which we consider our luxury market here in Albuquerque is almost a thousand homes. That's up 38% versus 2019. Yep.
Tracy Venturi: It's big numbers. That's 300 more homes selling than last year above 500,000,
Tego Venturi: Get the number of homes pending while here. Let's actually, let's just talk about the annualized same thing where the pending sales up 40% that, that interesting one to me, Tracy, let me go back here and find it. It was November November pending sales. This is this November, just that we passed. I just saw the number. I know, I know it's this November versus last November, so same month, same month, but a year ago, this year, we're up 86% and the number of homes going pending over 500,000. But if you look at homes over 1.3 million, which is let's call that our, our ultra luxury for the Albuquerque market, which is kind of funny, cause that's a starter home in some places Silicon Valley, but a 1.3, our ultra luxury, we've had 150% increase in the number of those homes that, that went pending in November versus last year
Tracy Venturi: Keen about 10 houses versus four houses last year. So 10 houses over 1.3 million went pending in November.
Tego Venturi: I can remember back, let's see, let's say 2008, nine, you know, when the market was, it was rough.
Tracy Venturi: I remember like,
Tego Venturi: Like in the entire year it was like over a million, it was like 20 houses or something,
Tracy Venturi: Right? Yeah. So to give numbers to that. So over a million, 13 houses went pending in November last November,
Tego Venturi: 116% increase over last November,
Tracy Venturi: Which was 613. The 1.3 and above is 10 with four last year. Yep. But the over 500,000, 112 went pending in November. So yeah. Big, big increase.
Tego Venturi: The thing that's interesting. And just to wrap up this conversation about the luxury market, anybody that's doing business in the real estate market here in Albuquerque mean there's about 4,000 realtors. And I can't say that, you know, there's, there's really a handful that really know that luxury market like we do. They know this, that the luxury market has been on fire this year. We know this. And if, if we look at the month's supply of inventory, which is the gauge of, you know, supply versus demand homes over 1 million is at seven months supply, which is the lowest I can ever remember seeing. And, and they say a balance, you know, Mark. So technically that means it's still a buyer's market right. In that price range.
Tracy Venturi: And so let's talk about that. You know, one of the reasons perhaps we're seeing so many in that over 500 is because the cost of money, you know, think about the opportunity right now to get into your dream home. You know, the houses are on the market. We have seven months supply over 500,000 and we have interest rates that are crazy low even jumbo loans where you're borrowing most of the money for a house over 500,000. Those rates are exceptionally low.
Tego Venturi: Yeah. The, the jumbo loans are available. There, there was a point there back in April where there was, it was a little bit sketchy, April may where, you know, some of the banks had pulled back on those jumbo loans, right. Which is, you know, what, five, 10 and above, by the way that number is going up, right.
Tracy Venturi: It's going and FHA limits are going up.
Tego Venturi: But yeah, so we digress now, just one last thing to just put a bow on the whole market stat. I mean, the real story of the real estate market in Albuquerque right now, December, you know, 2020 is super low supply of homes on the market. You know, right now it's, it's, it's historic level. I mean, you could go back 20 years and, and still not see this few homes on the market at any given
Tracy Venturi: Time. So this century, the
Tego Venturi: Century, this, this millennia, this this anyway. Yeah. I mean, it, it's, it's pretty interesting.
- 5 Reasons to Sell Your House This Holiday Season.
- November Market Data. https://welcomehomeabq.com/albuquerque-real-estate-trends-2/
- Historic Low number of homes on the market.
- Prices up substantially YoY (8.7%+-) but have flatted in the past month.
- The luxury market has been on fire. https://welcomehomeabq.com/albuquerque-luxury-real-estate-market-data/
- YTD Sales are now ahead of 2019… and all previous years for that matter.
- Prepping you home for photography.
https://welcomehomeabq.com/
Tego Venturi: So, so Tracy one, let's just go into this. We want to talk about all the different I'm going to call it. The players in the real estate transaction, you have, of course, the real estate agent. Who's kind of the quarterback holding this all together. You've got a lender. Who's usually, unless it's a cash purchase, you have the title person or the title, agent title, company. And that's what we're going to dig into deeper here. But then you also have insurance. You have inspectors, you have an appraiser, could be repair people. There could be other people when I'm, who am I forgetting?
Tracy Venturi: That's the bulk of them. That's the majority of the different players in the transaction.
Tego Venturi: And so there's a lot of people involved there. And in people that maybe have never owned a home, bought a home, or maybe people that have owned and bought a home here, this word title, or title insurance, or title agent, we want to go into what that is, Tracy and, and, and, you know, first off, what is, what is title, title? Yeah. What is his title?
Tracy Venturi: What does title mean? Interestingly enough, you know, we're not lawyers. So what we're talking about, isn't legal advice or anything
Tego Venturi: For informational purposes only this is not legal advice
Tracy Venturi: They're referring. When you talk about title, it's referring to the legal ownership and the legal right to use a piece of property. So we know title, you know, like home cars have title, right? And it's to keep track of ownership of the property. So titles like that. But there's quite a few things that that title does with regard to real estate. And people go, why am I paying for title insurance? What is it really doing? Right. So title insurance, you know, so it's a bigger topic, but so we're going to look for past ownership claims. They're going to make sure that you have clear ownership to the title and ownership of that property so that somebody else can't come after you pay money for it and say, that's mine.
Tego Venturi: And that's what the title insurance does. So it's, you're, you're, you're basically buying an insurance policy that is guaranteeing that when you take ownership of that property, there's no other claims of ownership against that.
Tracy Venturi: Right? So, you know, a lot of times, especially here in New Mexico a lot of times property gets passed down from generation to generation and perhaps the original owners forgotten and the paperwork wasn't done and the person who's selling the property, got it through just the generational changes of that property. And maybe there was never clear transfer and or maybe it was adverse possession. That's one of those things we learned in real estate school, right? Adverse possession, hardly ever, you know, somebody leaves and somebody moves into a property or takes over that property or lose use of part of the land.
Tego Venturi: People hear the term squatters. Right. That's kind of what they're talking about. So yeah. So the, the whole,
Tracy Venturi: Just making sure someone in the past, can't come back and take title of the property, right? Oh, it's mine, it's mine. So they're, they're insuring you to have clear title.
Tego Venturi: And so the title agent and title insurance company, they're doing all those searches. They're making sure that you quote have air quote, clear title on the property when you take ownership. And they're, they're issuing an insurance policy saying that you have clear title, and if anybody makes any claims in the future, we're ensuring that. And of course, there's exceptions. And you want to look through that when you get your, what they call title binder, do you, and just talk about what a title binder is
Tracy Venturi: After the property is either listed for sale or we're going to be listing it, or it's under contract, the title, company issues, a title binder. And they're going to go back and list all of the things they're finding with regard to that property and make it known. So some of the things that are going to be in there Tigo some of the things, the title company's doing for us is they're checking for liens, right? Is there, are there any liens against the property? So
Tego Venturi: You need somebody having some sort of financial claim or ownership claim, but generally it's a financial claim. So it could be a tax lien. It could be a debt of some other types of debt. It could be a mechanics lien, right?
Tracy Venturi: It could be for past child support and they placed a lien on the property. It could be the, that the, in addition to liens a different word the city or County or municipality may have placed some sort of extra tax on the property because of something where they improved the roads or they improved the gas lines in the street and they assessed it. Right. So they're going to look for those things also also they're going to look for easements on the property. Does somebody else have the right to use a portion of the property? And that's not that uncommon here, right?
Tego Venturi: No. And especially places like the North Valley here in Corvallis, where, where you have a road that that's a private road that cuts through, you know, people's property. That's very, that's, that's not uncommon at all,
Tracy Venturi: But most properties in New Mexico have some form of easement on them because most of them have some sort of a utility easement so that the gas and electric companies have the right to go on the property to take care of electrical or gas lines and things like that. So most of them have about a 10 foot easement just for that on the property. The other thing is they're, they're going to be working really hard to protect buyers against title defects. And we've kind of covered that. Unfortunately there are things, you know, that can come up. So doing that title search is pretty important. The other part that they do is they do all the paperwork. So they, they bring together the buyers, the sellers, paperwork, and any costs that were incurred during the process. So they get all the invoices from many companies that did inspections, repairs well, home warranties, homeowners, insurance policies, they put it all on that closing statement with the debits and credits
Tego Venturi: And they prepared the deed, which is the actual document that transfers ownership from, from one party to another. And the deed is this thing that gets get filed with the, the County records showing who's in ownership of it.
Tracy Venturi: Right, right. So that's kind of the quick high level, what the title company does in a real estate transaction.
Tego Venturi: The important part is you need it, you gotta have it. And it's a critical part of the whole process. But looking at that title binder, if you're buying a house and going through it and, and understanding what exceptions are, if there's any, any challenges or issues on that, you, you know it right away.
Tracy Venturi: And just one thing you said, you got to have it. You don't have to have it. That's true. It is not required, but it's something that,
Tego Venturi: Let me push back on that. If you've got a loan, if you're getting a loan, you got a, the lender is going to require,
Tracy Venturi: Right. You can choose it if you're, if you're paying cash, but wouldn't, you want all that extra protection.
Tego Venturi: I would never buy a property without it. I would never recommend to buy a property without it, even if it's just a piece of vacant land out in the middle of nowhere, you know, that's a hundred dollars, you know, you, you want to, you want to make, yeah. You have title of title. Tracy. Can I talk about market data? Sure.
Tracy Venturi: Yeah. Usual that you have some market data. Okay.
Tego Venturi: I, I, again, I real quick, you know, at the beginning, at the top of the show here, I just talked about November. I just want to hit on a couple of things that are happening in the market, in, in one of them is the extreme lack of number of homes on the market. So if you are thinking of selling and that's our next topic is, you know, selling your home this winter we feel like it's a good time. I mean, it's th th the whole thing about when is a good time to sell, it's a good time when you're ready to sell. Right. It's just, you know, there's always going to be buyers. Yes. There's less buyers out there right now. However, you know, home prices have, have really run up in the last six months in particular. I do think home prices have settled down here in the last month or so, but again, things have, have jumped up six to 8% since last year.
Tego Venturi: So there is an opportunity to sell if you're thinking of selling. One of the, the overhangs that's out there that keep people keep talking about is these people that are in on forbearance programs, meaning they have a mortgage, they haven't paid on their mortgage because they've entered into a forbearance program with their lender. Technically it's called the L the loan service service, who it is. And, and what that does. It just puts a pause on your payments for however long. It is, can be three months, six months up to 12 months at the very beginning of the pandemic. And when these forbearance programs came out, a lot of people jumped into them. It was a big number what's happened though, since then, a lot of people have come back off. It they're there, they're making their payments again, and they're moving on.
Tego Venturi: And, and so there was a lot of speculation that, you know, all these homes would turn into foreclosures. Well, just because delinquency levels are very high right now, meaning people aren't making their payments. That includes the people that aren't in forbearance programs, right? So they're either going to extend their program or they're going to sell their home, or they're going to just start making up their payment, or they're going to refinance and pay off that underlying loan. So there was a quote from Ivy Zelman, who is Elman and associates. There, they're one of the big trusted national real estate consulting companies that do a lot of analytics around real estate. And her quote was the likelihood of us having a foreclosure crisis again, is about zero. And there's so many factors to why that is true in all the different end information and data is pointing in that direction. So I just wanted to put that out there. Do we ever know for sure, no, but boy, the evidence sure. Shows that housing is going to stay pretty healthy, right?
Tracy Venturi: Tego, let's talk about one more step of the process of who's involved in a real estate transaction. So let's talk about insurance, home insurance. So homeowners insurance is one of the, one of the other facets of buying and selling real estate, right? So when, when you buy a new home and you need to put insurance on it, so if you have a lender it's required, right? The lender wants to make sure that that there's insurance so that if the house burns down, the lender's going to get paid off. Right. but homeowners insurance is interesting because it, it can vary quite a bit what your rate might be based on a lot of things, right? And a lot of times people might want to shop different home insurance companies because they vary a lot. Sometimes they're more motivated. Their prices are different. It's not price fixed, but when you're getting a, a new home, one of the things that's, you know, how shoot aging myself, but you know, the whole house cars can be like, lemons, lemons, a car, that's a lemon.
Tracy Venturi: You have lots of problems with it. How has this can be like that too? And insurance people will tell you that some houses just have a lot of homeowners claims, right? So when you buy or buying a new house, one of the steps is to get quotes for homeowners insurance to make sure that the rate you get is acceptable to you. And we have had a few in the last year or two where the client calls to get the rate for the homeowners insurance, whether they already have an agent or they, you know, call three, one, three different agents and get quotes or whatever where the property has had a couple of big claims. And the insurance rates are very high if they can get it at all.
Tego Venturi: Right. And so that's one of the contingencies. When you put a home under contract, as we call it or pending, basically you're doing your due diligence. One of the due diligence steps is to get an insurance quote, make sure that the home is insurable at a, at a reasonable rate. Right? One of our friends is a very prominent insurance agent here, here in Albuquerque, actually the number one agent in the S in the state. And, you know, he, he says, as a homeowner, you need to think about when you are make, when you make a claim and when you don't make a claim, because too many claims on a house could actually affect the resale value of the property, right. It's something to just keep in mind
Tracy Venturi: Or make it very difficult to get insurance, right. Which is a problem. So getting that insurance quote, and like I said, they vary the prices. What, what are charged varies a lot? And the if you have a lender involved, they require you to prepay for one full year at closing for homeowners insurance. And that's important because they want to make sure you keep it insured and it, and then if you have a lender, they are every one of your payments typically we'll be collecting. So that a year from now, after closing, where, when the homeowners insurance premium is due again for another year, that the money is there and they pay it for you because they want to make sure the house is insured. So that's, that's kind of the quick on homeowners insurance.
Tego Venturi: Well, no, that was great. And do you have any more homes with the week we need to hit before we wrap up for today?
Tracy Venturi: I don't know the homes that we were going to talk about are not available.
Tego Venturi: And, and there's still a lot of activity out there. I already looked at the first 10 days of November, of course, and activity. And we're up in the number of homes going pending versus last year, I forget what the number was, but it was like 30%. It was pretty substantial.
Tracy Venturi: So, you know, we've been so frenetic with the pace of buyers, trying to find a house. And the whole, how fast things are, are finding the right buyer to match to the home that comes up for sale. So we're, you know, we're, we're saying things are slowing down. They're still pretty frenetic though. We're still up. Things are still really busy. It's just, we're not seeing quite as much. So when people say things are slowing down, we have to go, that's sort of relative to, you know, that things are still really busy. Yeah.
Tego Venturi: Yeah. For sure. So that's the market we're in still in November. Yeah. let me give you a couple, a couple more stats just to close out the show here. Some of the things that I found interesting. If you look at average selling price October, it was $291,000. That's average in the Albuquerque area, which is it's not the all time high, but it's the second all-time high. I think it was August was the all time high. And this was October average sale price. This is average sale price, October, 2020 to October, 2019. So just just the month, only, not year over year, 13.7% increase in average sell price. Wow. Now that doesn't mean prices have gone up that much. It just means average price has gone up.
Tracy Venturi: We know is that there's just less affordable homes on the market. So it's making the average higher doesn't mean the house actually increased that much. Right.
Tego Venturi: Right. But if you look at price per square foot, which is a better indicator of that, we're seeing somewhere around eight, 9%, depending on what price range the home is in and the lower price points, it's, it's going up much faster at the higher price points. Not quite as fast, but you know, we are seeing price appreciation across the board in all price ranges in the Albuquerque area. What else do I have? Oh, the, the, the number of homes on the market right now is like 1300 or actually you could pull it up and look, yeah, it's like 1300 or 1400 homes. That's residential properties for sale in our local MLS. And just to give you an idea, I mean, a normal quote unquote normal market, we could probably, we should have some more around four or 5,000 homes in the market and we're sitting at somewhere around 1400 right now. So it's still, you know, there, there, there's, there's definitely room to have more homes come on the market for sure.
Tracy Venturi: Honestly, in our whole MLS system, which, you know, houses out of area there's yeah. There's about 1500 and on the market and that'll include, you know, out of area where people are choosing to put them in our MLS. It includes all types of homes, manufactured, ranch condos. So that's very few, not a lot to choose from.
Tego Venturi:
Here we are fall. It's beautiful. Isn't it?
Tracy Venturi:
Fall? November seems like winter to me. I don't like the whole classification, but yeah, it's like fall.
Tego Venturi:
It it's, you know, well, you know, our fall is different than the fall I grew up within in Michigan, you know, fall in Michigan starts in August, but anyway. Yeah, it's, it's beautiful. And real estate's booming. The leaves are falling off the trees. And here we are talking about real estate piles in the yard together. Yeah. So, Tracy, what do we got today?
Tracy Venturi:
Well, we're going to talk about a few things today. One is, you know, what can we expect for the real estate market over the winter? You know, there's been a lot of information about that. And the other thing is we're going to talk a little bit about all the different players involved in, in the residential real estate world and kind of dive in deep on title.
Tego Venturi:
Yeah. And I think that the thing is anybody that's been doing a certain job or in a certain career in a certain profession for so long, we, we develop our own lingo and over time we just take it for granted that everybody knows what our lingo is and what things mean. And so we felt like it was important to, to start really talking about what are the different people relating to the transaction, the, the, the, the parties, right? The players in the whole real estate transaction. So we'll go through that. Well, and I wanted to just talk about the, this, the fact, this homes coming on the market, there's a lot of interest for this home. We, we know that and I've, I've gotten a few people reach out to me. It's like, you know, what's going on with the market as it's starting to slow down as, you know, what's going on. And, and the short answer is yes, it's slowing down, but the, the there's a, but to that, which is, it always slows down this type of time of year, right. Tracy, you know, real estate activity always slows down November, December, January, well, and then February is kind of when it starts, you know, getting, getting busier again, it's not like real estate stops. So, you know, people buy and sell throughout the whole the whole year. It's just that the slower months are right now.
Tracy Venturi:
Speaking of housing. So Lawrence soon he is the chief economist for the national association association of realtors. Smartest, man, I don't know smartest, man. You'd like to know petty, well, you know, you know, Eddie, so Lauren soon, you know, we really follow him because his chief economists great stuff and it always is very insightful and feels very spot on. You know, if you look back
Tego Venturi:
Well he has, he has the pulse on what's going on in real estate, especially in the resale side of real estate, better than anybody in the country. Right. That's his job, that's his job.
Tracy Venturi:
So here's, here's what he's saying this week, this winter, he said, winter will bring a flurry of activity to the housing market, which, you know, we don't think of winter as a top selling season for home buyers and sellers. Right. but we are seeing, I know we started off with some stats that show that through the first 10 days of November, we're up like 30% still, even though people are feeling that it might be slowing a little bit, which would be typical. So he's saying it will be one of the best winter sales years ever. And we truly
Tego Venturi:
Believe that big statement, huge statement.
Tracy Venturi:
And if we had more houses on the market would be even a bigger winter, right.
Tego Venturi:
And say stuff like that, just to, to pump people up or anything, he will be negative if the data shows that that things are negative. Right.
Tracy Venturi:
You said the typical winter slowdown in the housing market is simply not on the radar. Right. And there's reasons for that. Right.
Tego Venturi:
Well, we had the great pause is what I call it back in, you know, March, April, may.
Tracy Venturi:
So we still had more homes sold off overall in 2020 than in 2019, even with the great slowdown in March, April, may. Right. So we still sold more homes than last year.
Tego Venturi:
And that's true locally here Albuquerque. Not that he's talking nationally, but that's true here locally as well.
Tracy Venturi:
Right? So some of the things he's talking about that way into having a great winter mortgage interest rates are going to remain very low through the new year, right? So the possibility of rates falling you know, more is pretty unlikely, but staying low is very low.
https://welcomehomeabq.com/albuquerquerealestate/home-inspections-why-how-what/
Tego Venturi: I get a lot of questions about home inspections. Yes. And every, every, just about every real estate transaction, when there's a purchase, you know, a buy-sell, there is some sort of inspections done. And I want to just kind of go through with you what those options are, what buyers should be thinking about more that we'll talk more about buyers and sellers, but you know what buyers are thinking about when they're wanting to buy and they're going to get an inspection done first off, what's the difference between a home inspection and an appraisal?
Tracy Venturi: An appraisal is to verify the value for the lender of the value of the home, not the condition of the home and appraiser goes through it. And if there's some obvious condition issues that they are concerned about for the lender that could come up, but they're really not there to do an inspection of the condition they're looking for value. So Tego, when we are selling homes, we have the opportunity in the purchase agreement to write down what inspections that the buyer might want. But our purchase agreement also has where we don't have to write down anything unless we want the seller to pay for it. So it's interesting because a lot of times people say, I want to make my offer stronger and not, not list that I'm going to do inspections while you don't have to list what inspections you're going to do. A buyer can do any inspections they want, even if it wasn't on the, who pays for what page of the purchase agreement. Right? So let's talk about what some of our typical inspections are.
Tego Venturi: Can I just give you one caveat that the buyer can do any inspections they want, as long as it doesn't damage the property and they're paying for it, right? Is it
Tracy Venturi: That's a good caveat? Some, some things do damage, like doing a lead paint test. You just need to get permission because they do have to scrape through a few paint layers of paint to get the chemical on there, to see if there's lead paint. So they do need to get that approval.
Tego Venturi: That's a very obscure inspection kind of, I would say, what's, what's the standard, you know what we call full home inspection? What is that?
Tracy Venturi: So typically when we sell houses, most people get a full home inspection and the full home covers everything from the exterior, the grounds, how the water slopes to towards or away from the house. It covers the roof, the exterior, and then the interior and the inspectors typically start inside the front door and they go wall to wall all the way through the property, you know, and they go from room to room to room, they check electrical windows, appliances heating, cooling roof. And they, they give a full written report usually within a day. So if they something Tego, a lot of times, they might say, Hey, the roof needs to be looked at by a licensed professional. So just because you had that inspection doesn't mean you can't then order another inspection specific.
Tego Venturi: An example of that would be, they go, they do the home inspection and they note that the water's running slow or draining slow or something like that. So they say, well, maybe you should get a licensed plumber or do a sewer scope, right. That's another type of inspection where they put a camera through the sewer line to make sure that it's clear,
Tracy Venturi: Make sure it's not broken crushed, things like that. So the typical home inspections we see in our market full home, which is kind of everything nuts to bolts. And then there's usually a pest inspection, which is typically termites and dry rot. Yep. Dry rod is a fungus, mostly on wood here. And then we, we usually see sewer line inspections, which is the camera's scope you just mentioned. So those are the main three. If it's a property that's on well and septic, of course, the well and septic
Tego Venturi: That just, just a note on that. If it is a septic that's required by state law, by the New Mexico state environment department, you have to inspect septic systems before you can transfer ownership.
Tracy Venturi: And if there's a loan on it, the lender's going to require the water test. Also, they're going to make sure there's no Cola former e-coli.
Tego Venturi: So one of the other ones we see Tracy is the radon test. You want to talk about that a little bit? And that's, that's a loaded one because I know, you know, it's like, should I get it or should I not get it?
Tracy Venturi: So retina and testing is a machine they put in the house typically for two or three days that sniffs the air, basically in the house every hour and gives you a readout. And there's a level that the government has said is acceptable.
https://welcomehomeabq.com
Tracy & Tego Venturi
Venturi Realty Group
Keller Williams
1119 Alameda Blvd NW
Albuquerque, NM 87114
(505) 448-8888
info@welcomehomeabq.com
https://welcomehomeabq.com/albuquerquerealestate/economic-impact-of-real-estate-in-albuquerque/
Tracy Venturi: This is Albuquerque real estate talk with Tego and Tracy Venturi. We are with Keller Williams Realty, the Venturi Realty group. We have a great group of licensed agents that work with us to help with buyers and sellers. Give us a call 448 88 88. We'd love to hear from you and answer any questions that you might have.
Tego Venturi: We're here to solve your real estate problem. That's right. How's that? That's good.
Tracy Venturi: So Tego, I'm sure you have some stats for us.
Tego Venturi: Well, what I want to talk about was the economic impact of real estate, because I think it's, I, I want to, you know, keep perspective here because at the beginning of this shutdown, you know, there was a lot of concern about the economy. Well, there still is right in actually, you know, in this last week, even, you know, even more than before for New Mexico in particular. The thing is in Albuquerque, there's in the last few years, we've averaged somewhere around 14,000 real estate sales home sales per year. Okay. So that's 40, that's a lot that that's just in the greater Albuquerque area. There are the Albuquerque MLS. You think about that, that's, you know, let me just run this out here. So you understand that's $3.8 billion worth of real estate per year,
Tracy Venturi: Just in the value of the buildings or yeah, not the economic. Yeah,
Tego Venturi: No, no, no, not the economic impact, but that's, I mean, 3.8 billion, which is a big number, the, but for every sale, every property that sells, there's been a bunch of studies on this, how much the economic impact that it puts into the economy and for, for a new construction home, it's somewhere around 70 to $75,000. Right. But even for a resale home, let's say we just cut that in half. Be very conservative, cut that in half, let's say it's around $36,000 for every home that sells that's money into the local economy. And, you know, Tracy, you know what that is, that's home inspectors. Oh, you did the math look at that
Tracy Venturi: 504 million,
Tego Venturi: 504 million, a half, half a billion dollars every year that flows into the Albuquerque area economy from residential real estate sales.
Tracy Venturi: And I believe that it's probably higher than that because you just took half of what they say. They say it's, you know, 72,000 for every sale. Okay.
Tego Venturi: Or new for new, for new, for new construction. Right. So new construction is more obviously cause you're you're building contractor. Yeah. Yeah, exactly. Yeah.
Tracy Venturi: So if it's 36, that's a huge, huge part of what's keeping things going
Tego Venturi: And understand we're not talking just about the real estate agent and the loan officers in the title company, the people that are very tightly connected to it. We're talking about restaurants, hotels, hotels, we're talking about moving companies, furniture companies, home, home stores, right. Remodel, remodelers, you know, tile, tile, setters, painters, roofers, blah, blah, blah. I mean, it goes on and on and on. So yeah, it's, it's a big impact on our economy and, and hopefully we can get things rolling again because there's a lot of demand for real estate right now. And let's get into that. Tracy, in, in New Mexico, in Albuquerque, we were at you know, starting this week, we were already at a record, low number of homes on the market. Right. And I've got some
Tracy Venturi: Stats. I thought you might have some stats.
Tego Venturi: So obviously, obviously Friday when we heard the news, it was kind of a, a gut punch not this Friday, but a week ago, Friday you know, that, that real estate might be getting shut down. I was like, okay, what's going to happen. Are people going to take their home off the market? Are they going to cancel? You know, and not, you know, show their home. There's a an option for people that have a homeless. And let me put this out. There is an option for people that have their home listed for sale right now, to what we call withdraw from the multiple listing service. Right. Tracy
Tracy Venturi: It's to withdraw it from available for showings. It still shows up in the multiple listing service.
Tego Venturi: Well, yeah, but it's, but it basically means that the home is still for sale, but there's no marketing and there's no showings going on. And so I was thinking that a lot of people would opt into that just this week though. It was 22 people withdrew out of 1400 homes on them.
Tracy Venturi: So it wasn't a big flood to withdraw from the market.
https://welcomehomeabq.com
Tracy & Tego Venturi
Venturi Realty Group
Keller Williams
1119 Alameda Blvd NW
Albuquerque, NM 87114
(505) 448-8888
info@welcomehomeabq.com
https://welcomehomeabq.com/podcast-2/is-new-mexico-real-estate-shut-down-2/
Tracy Venturi: So we have a few new homes on the market that we're supposed to have grand open houses this past weekend and this coming weekend. And, you know, we're not able to do those. However, the house is still can be viewed, right. And especially on our website at welcomehomeabq.com, but there are ways for you to view them in person if you're looking for something. So we do have a few new ones on the market and a few others that are coming soon. You know, there's one in Rio Rancho. I want to specifically talk about it's on Colorado mountain and a one Oh seven Colorado mountain new on the market this week. Loma Colorado or not, this street sounds like it's coast close to Unser in Abrazo. Okay. Sort of, not quite as far as Northern anyway, custom home that's extract, exceptionally energy efficient. It has trauma walls for passive solar. It's got brick floors in half of the house and the other half is a beautiful acid wash.
Tego Venturi: You, you told me about this house, lot of little customers
Tracy Venturi: And a lot of custom details. Yeah. It's a 288,000. It's a three bedroom. It's on a third of an acre, very move in, ready, really a great floor plan. So if you're looking for something like that, let us know.
Tego Venturi: Well, let's talk about the big topic of the week that we're all experiencing here in New Mexico, which is air quote being shut down. Of course, you know, we're, we're at our office here on Alameda by ourselves recording, recording our little, little studio that we've created in our office, but you know, it's funny we were prepared for this, right? We've got the studio here. We don't have to go down to Eddie station.
Tracy Venturi: We don't get to, which is a bummer, you know, it's great to be in Eddie's space and live with him,
Tego Venturi: The wine show too, you know, so usually
Tracy Venturi: Has leftovers. Yeah. So we're missing out on that, but, but, you know, we've, we've been,
Tego Venturi: I was going to say though, as you know, there's a lot of people out and about we've all seen it. Right. but I think for the most part, people are being respectful and the thing is real estate continues,
Tracy Venturi: Real estate does continue and, you know, people still need to shelter. If they need to shelter in place, they need shelter. Right. Pretty, pretty important. So we're able to continue the process for those folks who already were in the process of buying a house or selling a house. And we have lots of ways to help people who are still in the market to buy yourself. So despite, you know, the real estate shut down, we, we have a lot of strategies and a lot of ways to help people
Tego Venturi: Just to backpedal a little bit, if people don't recognize or realize what, what what's happened in, in real estate, in, you know, back in March and whenever it was the first shutdown that we had there was the list of, you know, essential services, essential companies that could remain open as long as they were following safe practices as well with the, the announcement and the directive that came out on Friday real estate was not on the list, which surprised a lot of people because really real estate and, and the, the real estate, you know, buying and selling process, it can be very contactless, right? So much of what we do now in the real estate business is digital from looking at homes online, you know, virtual tours like Eddie, just talked about you know, you, you can get on and do Google street views and walk up and down the street and the neighbor.
Tego Venturi: I mean, you can get a pretty good idea of, you know, what's going on before we actually go out and visit a property, right. Also the contract side and the, the, the actual process. I mean, we don't sit down together and go through contracts together anymore. Everything's digital, everything's electronic signatures. So there, isn't a lot of contact in the real estate world. And I'm putting that out there into New Mexico here, because hopefully that'll trickle up to the the office of the governors to, you know, understand that that real estate can be done very safely. And, you know, there's, there's ways to do showings that are very safely where we do have to meet, but, you know, I I'm, I'm hoping it can and can get back to it because of the huge economic impact that real estate has on our economy.
https://welcomehomeabq.com
Tracy & Tego Venturi Venturi Realty Group Keller Williams 1119 Alameda Blvd NW Albuquerque, NM 87114 (505) 448-8888
info@welcomehomeabq.com
Is Real Estate shutdown? What has happened with homes on the market this week? Economic Impact of Real Estate in Albuquerque. Home Inspections. Why, How, What?
https://welcomehomeabq.com
Will winter bring a flurry of real estate activity. https://bit.ly/2GVOKUZ Oct Market data. The "Players" in real estate: This week, what is Title, Escrow, and Title Insurance?
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October Homes sales stay strong. The Numbers. These Pandemic-Related Housing and Design Trends Aren't Going Away Rent prices are also up! Homes of the weeks. https://welcomehomeabq.com
ABQ Real Estate Talk #441 - Oct 31, 2020
Advice for home sellers
1st look at October Market data for Albuquerque
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Buy vs rent. Not just the numbers. Question of the week: What are escrow accounts as it relates to mortgages? Homes of the week. Mortgage Application Data. >>> Buyer demand stays strong Home price forecasts from the "Experts". https://welcomehomeabq.com
Spotlight on the far NE Heights and foothills. https://welcomehomeabq.com/albuquerque-homes-far-northeast/ Can You Dip Into Your IRA to Buy a First Home? Should You? Home Buyers / Second Homes or Investment Homes, partial ownership. Housing & homebuilder stocks. https://welcomehomeabq.com
Why do people decide its time to buy a home. What's the motivation? Other buyer trends. Home price trend in ABQ. Is it slowing down? Homes of the week.
7 Reasons to be a sell you home now.
September 2020 Home Sales data for Albuquerque
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September sales activity stays strong. Homeowners in Forbearance programs, now what? Alternative ways to buy and sell real estate. Homes of the week. https://welcomehomeabq.com/
The Custom Home Building Process
State of the Albuquerque Real Estate Market
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and more...
Is it a good time to sell? Homes of the week Demand stays strong. Home Prices vs Affordability. Is waiting for the "Deals" a good strategy? Renter Regrets. High-End Market is on fire! The data
Featured Homes of the Week
Buying New vs Existing? Pros/Cons
Buyer demand stays strong.
In the news...
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- Refinance fee.
- Q2 Home Price Index Released.
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Homes of the week. Millennials and suburban living. A different way to look at the inventory shortage. Forbearance, Delinquencies... so many unknowns. Housing Market Indicators. Word of the week for buyers and sellers, Patience.
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July market data and a look to the future. Free Money for homeowners? Land Sales boom? How Appraisals work. Homes of the week. Albuquerque Real Estate Market Data
Homes of the week. Trends and how is July looking. Getting top dollar in today's market. In the news.
- Homeownership Rate takes a dramatic jump. https://www.redfin.com/blog/homeownership-rates-hit-high-during-pandemic/?utm_source=twitter&utm_medium=earnedsocial&utm_campaign=1022998
- Home prices surging.
Who is looking at NM Homes? Where are they coming from? https://public.tableau.com/shared/ZYYGSHDTZ?:display_count=y&:origin=viz_share_link&:embed=y&:showVizHome=no
Where are we, what's up with the housing market?
- July trend data. Home sales.
- New construction
- Mortgage Rates.
- Bidding wars
- An interesting trend in the High-end market.
What's going to happen with real estate?
- Inventory shortage?
- Delinquencies, foreclosures coming?
- Fannie Mae National Housing Survey.
Why great marketing of homes matters.