Venturi Realty Group - Real Broker LLC

🚨Just Released: FHFA Home Price Index for Q2 2024
🏠 Albuquerque MSA reached a new all-time high reading

⬆️ Q1 to Q2 2024: +2.26%
⬆️ Q2 2023 to Q2 2024: +5.28%

Interactive Chart: https://www.datawrapper.de/_/4Gq8j/?v=8

This was the first time I dug into Datawrapper, I like the result.

Today’s Biggest Housing Market Myths

Have you ever heard the phrase: don’t believe everything you hear? There’s a lot of misinformation out there. And right now, making sure you have someone you can go to for trustworthy information is extra important.

1. I’ll Get a Better Deal Once Prices Crash

If you’ve heard home prices are going to come crashing down, it’s time to look at what’s actually happening. While prices vary by local market, there’s a lot of data out there from numerous sources that shows a crash is not going to happen. So, if you think waiting will score you a deal, know that data shows there’s not a crash on the horizon, and waiting isn’t going to pay off the way you’d hoped.

2. I Won’t Be Able To Find Anything To Buy

If this nagging fear about finding the right home if you move is still holding you back, you probably haven’t talked with an expert real estate agent lately. Throughout the year...

Today’s Biggest Housing Market Myths Have you ever heard the phrase: don’t believe everything you hear?

How Growing Inventory Benefits Today's Buyers

While the number of homes for sale varies by local area, nationally we’re up over 36% year-over-year, but still down almost 29% compared to what’s normal. Here’s what that means when you buy: more options for your search, more negotiation power for you, it’s more likely sellers will make select repairs, and more moderate price growth. If you want to talk more about what rising inventory means for you, let’s connect.

How Growing Inventory Benefits Today's Buyers While the number of homes for sale varies by local area, nationally we’re up over 36% year-over-year, but still down almost 29% compared to what’s normal.

This is a follow-up to yesterday's post that showed 48% of home in the ABQ Area are Free and Clear (no mortgage). I was skeptical of the number, so I dug into multiple other data sources.

This chart is based on data from Remine and shows that 39% of homes are Free & Clear. This is similar to data I pulled from PropStream, which has the number of F&C at 41%

Aside from all that, this chart illustrates that homeowners, on average, are in a great position.

Been looking at the data from BatchService and have broken down the Mortgage status of all residential properties in Greater Albuquerque. This is surprising.

Residential Properties: 312,900
Free and Clear: 150,721 (48.17%)
High Equity >20%: 143,537 (45.87%)
Low Equity < 20%: 18,648 (5.96%)

This is more Free and Clear homes than I expected and is higher than the national average. According to US Census data for 2022, 40% of US homeowners own their homes outright.

The Number One Mistake Sellers Are Making: Overpricing Their House

In today's housing market, many sellers are making a critical mistake: overpricing their houses. This common error can lead to a home sitting on the market for a long time without any offers. And when that happens, the homeowner may have to drop their asking price to try to re-ignite buyer interest.

If you’re thinking about making a move yourself, here’s what you need to know. The best way to avoid making a costly mistake is to work with a trusted real estate agent to find the right price. Here’s a look at what’s at stake if you don’t.

Not Paying Attention To Current Market Conditions

Understanding current market conditions is key to accurate pricing.

Real estate agents stay updated on market trends and how they impact the pricing strategy for your house.

Pricing It Based on What You Want To Make (Not What It’s Worth)

Another misstep is...

The Number One Mistake Sellers Are Making: Overpricing Their House In today's housing market, many sellers are making a critical mistake: overpricing their houses.

FreddieMac just published its "Housing and Mortgage Market Outlook." This chart jumped out: inflation-adjusted compound annual growth rate.

At the national level, annually since Dec 2019, the REAL average growth rate has been ~5%. In nominal terms, it's closer to 11%

New Mexico is in line with the national average.

How To Choose a Great Local Real Estate Agent

Selecting the right real estate agent can make a world of difference when buying or selling a home. But how do you find the best one? Here are some tips to help you make that big decision as you determine your partner in the process.

Check Their Reputation

Start by gathering information about agents in your area. From there, try to narrow down the list. Ask the people you trust if they have someone they’d recommend. You’ll want to find an agent with a strong online presence, plenty of positive reviews, and someone whose great reputation truly precedes them.

Look for Local Market Expertise

A great agent should have in-depth knowledge of what’s happening at the national and local level. That way they can clear up any misconceptions sparked by what you’re reading or hearing in the news.

Get a Feel for Their Communication Style and Availability

Effective...

How To Choose a Great Local Real Estate Agent Selecting the right real estate agent can make a world of difference when buying or selling a home.

Zillow One Year Home Values Forecast from July 2024 to July 2025.

Top 4 New Mexico Metros.
- Albuquerque: +2.3%
- Las Cruces: +1.6%
- Santa Fe: +0.1
- Farmington -1.0%

I can only speak to Albuquerque and this matches my observation but maybe a little higher. It appears that moderate appreciation, closer to the long-term average, will be the trend.

Did you know? You don’t always need a perfect credit score to buy a home.
Loan types and qualifications vary, so you may be closer to owning a home than you think.
If you want to explore options that might work for you, reach out to a trusted lender.

A look at how homes are purchased in greater Albuquerque. This is how it breaks down so far in 2024.

Conventional Loan: 61.46%
FHA Loan: 14.15%
Cash Sale: 14.60%
VA Loan: 8.25%
Seller Financed: 1.22%
Other: 0.31%

On a side note, "Other" includes Assumpson, and there have been 7 so far this year. There were zero in 20/21/22 and 3 in 23. No big numbers, but they are happening, makes sense if you assume a mortgage with a 3% rate.

If you’re thinking about buying a home, there are 3 reasons you may want to make your move this fall.

1) Inventory is growing, giving you more options
2) Newly built homes may be more budget-friendly than you’d expect
3) Mortgage rates have come down from their peak last October

Want to talk about what this means for your move? DM me.

The Great Wealth Transfer: A New Era of Opportunity

In recent years, there’s been a significant shift in how wealth is distributed among generations. It’s called the Great Wealth Transfer.

Basically, as more Baby Boomers retire, sell businesses, or downsize their homes, more substantial assets are being passed down to younger generations. And this creates a powerful ripple effect that’ll continue over the next few decades.

Impact on the Housing Market

One of the most immediate effects of this wealth transfer is on the housing market. Home affordability has been a concern for many aspiring buyers, especially in high-demand areas. The increase in generational wealth is expected to ease some of these challenges by providing future homeowners with greater financial resources. As assets are passed down through generations, buyers may find themselves in a better position to afford homes.

Impact on the Economy

But...

The Great Wealth Transfer: A New Era of Opportunity In recent years, there’s been a significant shift in how wealth is distributed among generations.

Is Affordability Starting To Improve?

Over the past couple of years, a lot of people have had a hard time buying a home. And while affordability is still tight, there are signs it's getting a little better and might keep improving throughout the rest of the year. Here’s a look at the latest data on the three biggest factors affecting home affordability.

1. Mortgage Rates

Mortgage rates have been volatile this year, bouncing around from the mid 6% to low 7% range. But there's some good news. Data from Freddie Mac shows rates have been trending down overall since May. When rates decline, it's easier to afford the home you want because your monthly payment will be lower. Just don’t expect them to go back down to 3%.

2. Home Prices

The second big thing to think about is home prices. Nationally, they’re still going up this year, but not as fast as they did a couple of years ago. As Odeta Kushi, Deputy Chief...

Is Affordability Starting To Improve? Over the past couple of years, a lot of people have had a hard time buying a home.

Albuquerque Home Values, as tracked by the Zillow Home Value Index (ZHVI), are up 0.34% from June to July, 3.92% year to date, and 4.19% year over year.

Slightly higher than the National trend.

Reminder, the ZHVI tracks the value of all homes in the market, not just sales.

Mortgage Rates Down a Full Percent from Recent High

Mortgage rates have been one of the hottest topics in the housing market lately because of their impact on affordability. And if you’re someone who’s looking to make a move, you’ve probably been waiting eagerly for rates to come down for that very reason. Well, if the past few weeks are any indication, you may be getting your wish.

After the latest reports on the economy, inflation, the unemployment rate, and the Federal Reserve’s recent comments, mortgage rates started dropping a bit. And according to Freddie Mac, they’re now at a level we haven’t seen since February.

Maybe you’re seeing this and wondering if you should ride the wave and see how low they’ll go. If that’s the case, here’s some important perspective. Remember, the record-low rates from the pandemic are a thing of the past. And if you wait for mortgage rates to drop further, you might find...

Mortgage Rates Down a Full Percent from Recent High Mortgage rates have been one of the hottest topics in the housing market lately because of their impact on affordability.

A big milestone for us today, we recorded our 500th episode of our Radio Show/Podcast.

Have you heard the good news?

Mortgage rates are down a full percent from their recent peak.

And if higher rates were the biggest thing keeping you on the sidelines, this may be exactly what you were waiting for.

If you’re ready to jump back into the market, DM me.

Albuquerque MSA July Closed Prices, Resale Single Family Homes.

Median Price:
Detached: $370,000* +5.7% YoY
Attached: $267,500 +9.2% YoY

Average Price:
Detached: $438,858* +6.5% YoY
Attached: $272,329 +5.5% YoY

Price Per SqFt:
Detached: $207 +3.5% YoY
Attached: $203 +5.2% YoY

*= All-time high.

Right now, over 2/3 of homeowners have at least 50% equity in their homes.

And that much equity can go a long way toward buying a new place.

Curious about how much equity you have? I can walk you through a Professional Equity Assessment Report on your house. Drop a comment below if you’re interested.

As of August 1st, Home Buyers are required to enter into a Written Agreement with a Realtor. This is what is required per the MLS Rules who is tasked with enforcing the NAR Settlement.

Nothing more is required per the rules, BTW... it's not a "law."

During the pandemic, home prices soared due to high demand coupled with low inventory and mortgage rates. But that rapid appreciation couldn’t last forever.

Now, data confirms prices are still rising, just more moderately.

This healthier pace is actually a good thing. It means home price growth is normalizing.

DM me if you want more details on prices in our area.

🚨UPDATED: Albuquerque Home Price (Per SqFt) tracker.

💲 July's price per SqFt is $212, the same as June, and a 3.9% increase from July 2023.

🔮 Based on the PENDING list prices, we may have seen the seasonal peak but should expect moderate year-over-year appreciation.

📉 BUT... we have a wild card. Mortgage rates have dropped 0.5% in the past week (to a 14-month low), and a conservative Housing Economist is hitting the buy button.

🤔 Will the mortgage rates motivate buyers on the sidelines?

This is the most important thing in housing right now, by far.

Trying to decide if you want to sell or rent out your house once you move?
There’s a lot to consider – especially when it comes to figuring out if the profit is really worth the potential pains you might come up against.
Pro tip: Talking to another landlord plus professionals (like me) can help you decide what’s best for you and your situation.

😃 Lowest in 2024!