Foreclosed home sales continue to make up a portion of all homes sold in the albuquerque area, currently about 10-12% of homes sold were bank owned. If you decide that foreclosed homes is something you want to consider in your home search here are some things to consider. You can visit our Albuquerque area Foreclosures page to search these homes for sale.
Albuquerque Real EstateTalk Radio – July 11, 2015
Eddy Aragon: AM 1600 KIVA 95.9 FM – The Real Estate Hour. We’re getting kicked off with Tego and Tracy Venturi, my two favorite people on real estate. And if you meet them, they’d be yours too. Good morning, Tego. Good morning, Tracy.
Tracy Venturi: Hey great to be here. Thanks for having us today, Eddie.
Eddy: As always love the update. Hope you had a pleasant holiday celebrating America’s Independence and two hundred and wow thirty nine years. Can you believe it?
Tego Venturi: I know. Tracy and I kind of we’re kids in the 70s and remember that bicentennial thing that was such a huge deal in ’76. I was in elementary school and that was that long ago – 39 years.
Tracy: That seems like yesterday.
Tego: Yeah, I know.
Tracy: You’re doing the whole constitution thing. That was commendable.
Eddy: Well, I think it’s important that we talk about one of the most patriotic things that we can do or the best things about our system is that people can buy real estate. You can own your own home.
Tego: That’s right.
Eddy: There’s nothing more American than that. Think about that.
Tego: Exactly and we can shoot our fireworks, “Come on,” and all my fingers are still here.
Tracy: That huge bottle rocket, I don’t know what those are called that came into our backyard.
Tego: I know we had our neighbour shooting stuff over our house. Luckily it was wide enough that I wasn’t too concerned about it.
Eddy: To put it in context, I think this is important, you guys live close to work and the place where you guys reside right there along the Rio Grande has a lot of action but that’s kind of a growing area. It’s really fantastic in your new office, I guess, coming up here in just a couple of months?
Tego: Obviously we do residential real estate. Walt’s a commercial guy but we’re generally in that cut wood corners area, 550 or 528, Alameda, Coors, that whole area. I mean, it is going crazy, they just raised a building over there so to build another strip mall because there’s not enough strip malls in there. It’s amazing.
Eddy: The traffic and the growth in the area and the place it’s really essential in Central and it’s nice to see. Also, there was a slight up taking interest rates over these holiday weekend so we’re starting to see exactly what both of you forecasted which is an increase in interest rates so now is the time to release it. We’ve been waiting for it and we’ve been talking about it for two years but literally, it’s coming up right now.
Tego: You know what’s interesting Eddy and Tracy, I was talking with the lender yesterday about the things going on and there’s a lot of programs. They keep rolling out more and more programs.
Back in 2010 it was tough, there was limited programs available for people. But now there’s more and more, there’s more options for self-employed people. If you thought you are locked out of the real estate ownership deal just because the lending standards have been so tight, you may want to look at it again.
Tracy: Absolutely, and that was like the perfect intro because one of the things we’re going to cover today is the whole rent versus buy story. We do see that interest rates have ticked up a little bit but that doesn’t mean that you can’t afford to buy a home.
Tego: Steal a bargain. Hey, by the way this is Tego Venturi and Tracy Venturi with the Venturi team of Keller Williams Realty.
If you want to get a hold of us talk about real estate, if you’re interested and get a market analysis or anything going on, if you’re looking to buy a home obviously that’s what we do – you can reach us at 933-6881 or online at welcomehomeabq.com
Tracy: So Tego, let’s tap into your vast knowledge on market data. I know you just did a half yearly update on our website for what the real estate market has done the first half of the year. What are some of the takeaways?
Tego: I did. I did a video blog that we’re going to be sending out. It’s not ready yet.
Tracy: Not online yet.
Tego: You saw me record it but it’s not produced yet. Not that it’s some big high production but I thought it would be good, we’re halfway through the year. This has been the busiest year we’ve had since 2007 so far this year. So, the market is moving in the right direction.
Tracy: When you say, “the busiest year,” what does that mean? What are you talking about?
Tego: Let me give you some of the numbers.
Tracy: Is that a house that sold? Or house prices?
Tego: Unfortunately not necessarily prices. If we look at houses sold this year, we’ve sold – when I say, “we” what I’m talking about the metro – the greater Albuquerque area.
There’s been 5,300 homes sold in the first half of this year. By comparison last year was 4,700, a year before that 4,800; 2012 – 4,100; 2011 – 3,700. If you go back to 2009 that was 3500 that was really the slowest time we substantially had versus the last 10 years.
Tracy: So 3,700 in 2010 versus 5,300 year-to-date this year?
Tego: Exactly. The other thing that’s happened the first half of this year is the supply has declined below that six months inventor. And that’s the number we always look at – month supply of inventory, number of homes available versus the number of buyers and how many month supply that we have if no other homes come on the market.
We dipped below at the beginning of this year, that six-month number. And the average for this first half of the year we’re right around five and a half months, we’re actually lower than that right now here in July.
Tracy: Great. So one of the things that kind of correlates to that is, “Where do we have really what we would see as a shortage of homes and not statistically, so to speak?”
We have several people that specialize on our team working with home buyers and they’re out every day showing houses so they really have the pulse to the market.
And when we sit down weekly and just kind of talk about the market with the team, what we’re noticing is there are certain neighbourhoods, there’s certain price plans, certain types of houses where they just can’t find them or when they come on the market they’re selling quickly.
Tego: Tracy, you deal with that more than I do. So what do you see as the hot areas and the hot type of home right now on Albuquerque?
Tracy: Sure. If you’re thinking of selling and you are in the North East anywhere near North East or whatever, you have a house that’s in nice condition around the 175,000 or below, we need that house on the market right now if you’re thinking of it.
If you’re in the far North East, you have a single-storey maybe $300,000 to $500,000 house, that’s also in-demand. We’re seeing a big shortage of that.
Tego: You said single-storey and that brings us back to this discussion we’ve been having over the last months here about the change in demographics and there does seem to be a demand for more single-storey less two-storey. Would you say that’s fair?
Tracy: It’s true and the less steps are better. I have some folks coming in to town next week that are going to be working with Anna Marie. They want not a step, they don’t want it at the front door, they don’t want to step down into a living room – nothing. And we’re seeing a lot more of that.
Tego: Tracy, let me go back to the June numbers. We kind of talked about what’s going on. And the short of it is for the first half of the year, the market is trending up. Prices have increased slightly but we’re talking about average price.
An average price could reflect the fact that more homes at a higher price point are selling than the lower priced homes and of course we know that Tracy, right?
Tracy: We do and so when you say that, what you’re really saying is the same house last year versus the same house this year could still be the exact same price or market value.
Tego: I mean there’s so many different ways to look at those numbers. I think if you go back to last year, we were tracked in somewhere around two and a half or three percent appreciation. I would say we’re probably about there right now.
Certain areas, certain homes, certain parts of town is probably better than that – certain price points the higher end. I don’t think there’s a whole lot of appreciation right now in those real expensive homes because we do still have quite a bit of supply.
We’re at the event the other day, Tracy, talking with the New Mexico Select Group which is a group of realtors that generally does higher end homes. And some of the properties that are being presented is there’s some bargains out there in that higher end.
Tracy: There really are and Gary Tonjes was there at our meeting this month.
Tego: With Albuquerque Economic Development.
Tracy: Right just this week. It was interesting because you asked him a question and it was kind of surprising.
He said when they’re talking to out-of-state companies and trying to recruit them to come to New Mexico or specifically Albuquerque in his case, they don’t tend to look at the availability of housing or the cost of housing as one of the main factors when they’re thinking about why to relocate to our area.
Tego: I found that surprising because Gary Tonjes and that whole group at AED, they do amazing work.
Eddy and I were talking about this before we came on is they worked so hard to bring businesses here. And I find it surprising that housing isn’t one of the check marks because we talk about all the check marks and like right to work. We don’t want to get into that one Eddy, do we?
Eddy: No, we don’t want to politicize anything.
Tego: We don’t want to go into the whole “right to work” thing but that group has done a great job.
Actually there’s been some great progress in the whole making New Mexico way more competitive to businesses coming here. But I found that it was interesting because in Albuquerque our housing is reasonably priced and we still have good supply unlike other markets.
Tracy: Right. He was talking about one company that we lost out to the Dallas area. Now, they’re there and their people they’re recruiting that need to move into the area because they’re relocating their world headquarters there. They cannot find houses for all the people they’re trying to relocate because of this shortage of homes.
Tego: That highlights a really good point as we get these national stories a lot of time on housing that come from the AP or whatever. They talk about the big picture, boy, real estate is so local.
And just between Dallas, in Denver, in Albuquerque – if you do the comparison, they’re totally different worlds. Both of those markets, Dallas and Denver even Phoenix in some areas – they have a shortage of homes to sell.
Tracy: Our time flies so after the break we can get back to the rental topic that we’re going to talk about, “Should I be buying or renting?” And what it costs to buy versus rent.
Also a little bit more on the market stats and then we’re going to talk a little bit about rain, I assume, because that’s on my agenda this week.
Tego: There’s a whole lot of that going on this week and it’s been great. I looked at the numbers for elephant view, it’s filling up.
Tracy: If you’d like to talk real estate with us, call our realtor on duty line 933-6881. We’d love to talk to you if you’re thinking of selling or buying.
Eddy: Elephant view – those numbers were over the top, weren’t they? It wasn’t like double, it was nearly triple when it was two years ago. You think about that.
Tracy: And they had record people there too.
Tego: We live near the Rio Grande like we talked about earlier and driving across the Alameda Bridge and you look down there go, “Holy cow that’s a lot of water flowing down that river.”
Eddy: The state overall was a huge growth in Tourism, “Hey you need to start locating some of those people from Dallas [0:12:11].
Tego: I know, I know.
Eddy: Waiting for some of those dog and pony shows.
AM 1600 KIVA 95.9 FM and 107.5 FM and worldwide in ABQ.FM back in a moment.
AM 1600 KIVA 95.9 FM Fox News ABQ – Tego and Tracy continue with the Real Estate Hour.
Tego: Eddy, we start to talk about this and now we’re going to go back to it as the June numbers. We just ended the month and it was another strong months. Lots of homes went pending, average prices are still around that $200,000 range and we’re just continuing seeing good activities.
There are some frustrations in the market though right, Tracy? Certain areas maybe Westside Rio Rancho although those markets are up. There still more supply than other parts of town, right?
Tracy: Right. Homes there aren’t selling as quickly as another parts of the city for sure. Of course it all depends on the presentation, the price, the location – all these stuff we talk about all the time.
Tego: Exactly of course. We want to talk about renting versus owning, Tracy. We’re getting a lot of calls for homes that we have listed for sale. People say, “Hey are they willing to rent it?” Because there seems to be a demand for rentals and there’s not a good place to go to find homes for rent, right?
Tracy: It is hard in our market. Some cities like Phoenix, they have a database where all the rentals go on and they compensate realtors to go show rental houses. Here we don’t have a single database where our renter can just get on and find every rental available and then find someone who will actually show it.
Here it’s a lot more difficult to actually see a rental so it’s tougher. But we’re in the businesses selling houses and so we’re going low. And if you’re having trouble finding a house to rent, why don’t you think about buying, right?
Tego: And we of course always talk about that and right now there’s always different rent versus buy calculators online.
Tracy: Totally. Just getting ready for our show today I got online and I’ve got a couple my own from some title companies and I did, “What’s this scenario if I want to rent and I’m willing to pay 1200 a month or 1300 a month? What is that equate to in a house?”
Tego: What does that equate to in a house? Let’s say rental raise or somewhere for a nice average – three bedroom, two-bed house just kind of standard home there in that 11, 12, $1300 a month rent right now.
Tracy: Unless you’re in the far North East in which case there even more.
I just look at what’s a nice house in Albuquerque like let’s say 200,000. Can I find one for 160? Yeah probably in the North East, have to search through them a little bit. Let’s say you want to get a $160,000 house – that would equate to a down payment requirement of $5600.
Tego: We’re talking about 160 right?
Tracy: Hundred and sixty thousand dollar purchase price.
Tego: And down payment is three and a half percent.
Tracy: Three and a half percent which is $5600 and that would equate to with insurance and taxes on the house so not just the house payment itself, about a thousand dollars thousand fifty a month.
Tego: Okay. And then if you figure in the tax savings on that because you can write off that interest, right? You get a little bit of bonus there.
Tracy: Right. When you do your taxes every year so you’re going to have some interest deductions for owning a house.
Tego: So why would somebody want a rent versus owned?
Tracy: Well they may have low credit or maybe they’re not planning to live in our market or in that area for more than a year or something.
Tego: And to me that seems like that’s the big one, it’s a short-term commitment. When you purchase a house it’s a little bit more long-term commitment, right?
Tracy: It is because there’s closing cost involved in selling a house. If you’re not going to be in it for very long, it doesn’t make sense to buy.
But it certainly makes sense if you’re going to be in the Albuquerque area for a couple of years or more that now is the time to buy to lock in your monthly housing expense for the next 30 years.
Tego: Thirty years.
Tracy: Let’s talk about the $200,000 house, I mean you can get a really nice house.
Tego: You can.
Tracy: Almost any part of the city whether it’s Rio Rancho Westside, North East South East Four Hills, Mesa del Sol, you can get new or resell homes. So for $200,000 house with an FHA loan which would be three and a half percent down payment that’s $7,000 down. And the monthly payment with interest I mean insurance and taxes roughly is 1300 a month.
So that’s a really nice house – you own it, you get to decorate it how you want, you get to make your kids rooms the way they want them, you can remodel, you can change walls if you want, you can do things in the backyard that are more permanent that are yours.
Tego: So I want to go through some of the advantages and disadvantages of home ownership and let’s be honest there are some disadvantages okay.
One of the things you hit on advantages-wise is it’s yours. You own it, you get to do what you want to do. You don’t have to ask a landlord if you want to paint the rooms or do some thing or get a pet or whatever.
The other thing is some privacy, it’s yours. You do have some gain privacy. And in home ownership usually is a good investment. Obviously that we had above all and that that create us some problems back 10 years ago almost now, “Wow it is almost 10 years ago.”
But then you also stabilize your housing cost so just because you bought at a peak time in the market eventually even if the pricing goes down eventually it’s going to come back and then you get the tax exempt if you can write off the interest in most cases to find your home.
Tracy: In which helps you pay a lot less in your taxes every year to the federal government.
Tego: Exactly. And you know what one of my favorite one is about home ownership is it’s forced savings in the sense that instead of spending that money and you’re paying your landlord and paying your landlord’s mortgage, you’re paying your own mortgage and you’re building equity overtime so it’s a forced savings.
Tracy: Right, which many people wouldn’t do otherwise.
Tego: Some of the disadvantages Tracy is it is a long-term commitment. I think if you’re going to only be here a year so it probably doesn’t make sense to buy.
You got to realize that you’re going to be now responsible for the maintenance and repair and that’s just part of ownership – the pride of ownership. And we’re going to talk about that with roofs, aren’t we?
Tracy: We are. We’re hoping to get to that here before we run out of time.
Tego: There’s a upfront cost; you need a down payment. But with the programs we have in the state, there are some down payment assistance programs as well as the FHA program that’s only three and a half percent.
Tracy: That’s right and you can’t get a loan for your down payment. If your parents or your siblings or somebody wants to give you the loan for that – you can’t but you can get a gift for that down payment so it’s very doable. We’re not talking about 20% down, we’re not talking about 32,000 or whatever but like in 7,000 on a $200,000 house.
Tego: I want to reiterate one thing, there are some great down payment assistance programs here in New Mexico. The New Mexico Mortgage Finance Authority has some great programs and they’ve got hero programs for teachers, fire fighters, policemen, that kind of thing. There’s military; there’s FHA; there’s the VA. VA loans are the best loans out there right now, zero down.
Tracy: And there’s [0:20:04] program as well. Just call our hotline for questions. We know the resources, we can get you connected to the right people to help you find out what program would work best for you. The number is 933-6881.
Tego: So Tracy let’s segue way into this whole maintenance thing. We’re just talking about that one of the disadvantages of home ownership is home maintenance. I think some people like myself kind of like doing maintenance.
Tracy: That’s what I was just going to say. Let’s talk real here so you like those projects around the house.
You like to have a room that needs to be painted or whatever. You like to be able to build a deck on the house which you’ve done so a lot of people do. And we get to choose to have three dogs if we want them because we own the house.
But one of the things that comes up and I kind of think of it as a good thing is every year for those people that have flat roofs and tar gravel and just most roofs.
Tego: Well any roof, you can pitch the roof.
Tracy: Everything resealed around [0:21:04], around roof penetrations, wherever there’s a vent pipe coming out of your roof – every year or two you should get up on the roof with that black tar or whatever and seal everything.
Or hire somebody, it’s like 80 bucks to have somebody to go do it for you. But I kind of like it because you always put on really old jeans that you shouldn’t have around in the closet anymore, right?
Tego: Yeah and I climb up there.
Tracy: And you climb up there.
Tego: Oh I thought you were talking about you like this in Tego up on the roof.
Tracy: Tego goes up on the roof but it’s a good reason to get some clothes out of the closet that are going to get black tar all over them and then you get to throw them away.
Tego: Obviously with all the ring we’ve had, people are discovering roof leaks that they didn’t know they had. And that just happens of course because we get these real long dry spells and certain things dry out and then when we get these heavy rains obviously it all happens at once.
Tracy: The other thing you’re noticing is all the roofers are really busy and they don’t have time to come out and handle your roof so it’s one of those things to be proactive about.
Tego: Absolutely. And that’s one of the things I’ve talked about every year is getting up on your roof if you’re comfortable doing them. I know some people are not comfortable getting up on their roof well I get that.
Just take a look at it, go around, make sure it looks good or get a roofer to come out and look at it. Because of course if you wait until it’s raining like it is now, you’re not going to be able to get a roofer out there. It’s just one of those preventative maintenance things you should be doing.
And of course in New Mexico with our semi flat or flat roofs and the tar gravel roofs, they can be a little more susceptible to it. Although it’s our gravel, as long as they’re maintained they were great obviously.
Eddy: Get a place to be a roofer.
Tego: Well at least right now.
Eddy: And April.
Tego: We can’t get them out at the moment. We got a few go-to people that do us favours but it’s a little bit tough right now to get a roofer out.
Eddy: Don’t forget always get a roof inspection before you even decide you’re going to go. That’s part of the inspection, is it not Tracy?
Tracy: It is. When you’re buying a home, the full-home inspector does look at the roof and if they’ve see things they might say, “Hey let’s get a licensed roofer to inspect it further.”
Tego: Again going back to the whole home ownership, part of home ownership is preventative maintenance. And to certain extent it give you that pride of ownership, you’re taking care of something – it makes you feel good. Eddy you know, right?
Eddie: The best way to love something is spend time with them. Not pay somebody else to do it but learn about it.
Tego: For sure. Well thanks again for having us, Eddy.
Eddie: As always.
Tego: This has been Albaquerque Real Estate talk, if you want to catch us we are at 933-6881. That’s the Venturi Team Realtors with Keller Williams Realty.
Eddy: Back again with these guys again next week. Thank you both and we’ll see you next week here on the Real Estate Hour here on AM 1600 KIVA 95.9 FM and 107.5 FM.
The Albuquerque Real Estate Talk Radio show for June 20, 2015. All about “The Carlisle”, a luxury condo project coming to Nob Hill and the changing housing demographics.
Albuquerque Real Estate Talk Radio – June 6, 2015
Eddy:Am 1600, KIVA; 95.9 FM. Brand new fox news ABQ here on 95.9 and 1600 and email@example.com and yeah, not just anybody, it’s Tego and Tracy. And this is the weekend Albuquerque Real Estate.
And Tego and Tracy have done plenty of stuff for me, in now both personally and professionally and they’re just great people and they’re doing a lot of things here in this community. I can’t thank them enough and you hear there at all the time and let’s give a warm welcome to Tego and Tracy. Good morning guys!
Tego:Wow! What an introduction there Eddy.
Eddy:Well, you guys are great! We appreciate that.
Tego:Well, we appreciate this platform and you know, real estate affects everybody so much, everything. I mean most people even if they are a renter, real estate is so important. Obviously, one of the basic needs of mankind is shelter and so… I know we’re getting pretty deep here.
Tego:Okay, I am! This Tego Venturi with the Venturi Team and Keller Williams Realty. We’re here every week with myself and Tracy Venturi whose been chiming in here. And, how is it going Tracy?
Tego:It has been busy right?
Tracy:It has been. It’s been a great week for real estate and meeting lots of new people which is always fun…
Tracy:And we love to come together to see Eddy and doer radio show. So we really appreciate the opportunity.
Eddy:I want to ask you one quick question before we get started. Last week one of the things that stood out in my mind was the fact that there had been and if you can restate that fact again because this a hot real estate market. Let’s say that, right?
It’s currently a hot real estate market; hotter than it’s been. It can always get better, right?
Tracy:Hotter than 7 years.
Tracy:In 7 years.
Eddy:Hottest in 7 years.
Tracy:We don’t need that big long description of…
Tego:Okay, come on!
Eddy:Because it totally stood out to me and I said, “There’s more houses that sold this Spring.”
Eddy: Tego as you said than have sold in…
Tego:Since 2007 basically.
Tego:The last time we’ve seen this many units or homes selling. I hate units, it sound so impersonal but that’s what it is. It’s a number of homes sold.
We just finished May. Now, we have the May statistics and we were up 10% in number of home of homes sold, this year May versus last year May.
Tego:Actually I take that back goes 11; it was actually 10% year today versus last year. And so, there’s less homes in the market. There are more buyers in the market. Obviously, there are more homes selling a good 10% bumps.
You know, there’s some increase. There’re some frustrations are too, right Tracy?
Tracy:There are! There are some neighbourhoods and some price points where we’re not seeing quite the activity. So with our hearing the news that things are really good and the market is hot and more homes are selling, however they’re not getting the numbers of showings and things and they’re not getting offers on their house. So it can be frustrating when they see the news.
Tego:Yeah. And speaking of the news; there was a journal article here this week. The headline was this was Richard Medcalf from The Journal, who is a real estate reporter over there and he does a good. He had an article here a couple of weeks ago, week so or ago and I think he does fair reporting because it’s local as oppose to sometimes they’ll pull in those national stories that don’t really to us regarding real estate.
But this one, he had some statistics from a company called Core Logic which is kind of a national real estate trend tracking. They’re saying that 3 1/2% gain in home prices which I just haven’t seen this. I don’t know how they’re coming up with that number versus last April, as the way you read it.
I mean, what I’ve seen in some other statistics or some others stores like FHA or what is it Tracy? The FHFA, who tracks. And they’re saying about 3% but I think if we say 3% gain year over year is kind of what we’re in right now, as it what it looks like.
Tracy:Yeah. Three percent is what’s healthy. If you look back 50 years in our market, 3% a year is sort of where we’ve been at.
Tracy:And it’s a nice healthy steady gain.
Tego:And of course we don’t see that month to month, because it’s a very slow appreciation. And one thing we have seen Tracy is homes are getting listed for sale. The increase in that list prices have gone up dramatically, not necessarily the sale prices.
Tracy:Right. And I think some of that is when you see headlines and you don’t read the fine print sort of. The headlines are the market’s great and people translate that into prices but maybe its home selling versus prices.
Tego:Yeah. I wanted to teach something because we’re going talk about Home Owners Association. I think there some confusions are Home Owners Association’s what they do versus Covenants, Conditions and Restrictions or what we call CC&Rs. And we’ll talk about that a little later.
Back to market data, one thing, one real bright spot is the bank properties also known as foreclosures, also known as real estate owned or REO property. Basically they’re homes that were foreclose in one way or another, came back on the market by the bank. This month or the May stat that 12% was the number of those properties on the market versus we seen as high. You know, we’re up at 30%, but this by far the lowest we seen in many, many, many years.
Tracy:Yeah. It’s great.
Tego:That’s a good sign because that also helps in stabilizing prices.
Tracy:It does and you know what we found when there were a lot of distressed homes on the market, the regular sellers had to compete.
Tego:Yeah. And there’re lots and lots and in just certain extent it’s very regionalize in certain parts of town.
Tracy:Yup. So one other thing we want to talk about besides home owners Associations, Covenants, Conditions and Restrictions or CC&Rs is appraisals. And just to cover it a little bit about what we’re seeing in the appraisal world.
Tego:So let’s go right into that one. I know we didn’t even list off our topics here. We’re just jumping right into them.
Eddy:That’s okay. We’re just following right along.
Tego:Oh, yeah sure.
Eddy:No, really. I wanted to say one thing before we start on the appraisal portion. By the way, this is Tego and Tracy Venturi, the Venturi Team. It’s Keller Williams Realty here in each every week, starting the real estate hour.
There’s a story in the Portland and they’re actually giving away pizzas now in order to try… it was kind of side story, right? And the side story was that there’s only X amount of months of inventory left because of the huge traction they’re getting.
Eddy:Four and a half months they said of all the inventory they have left in Portland, Oregon. And I thought, Portland always been a city that’s compared to Albuquerque in so many ways and I just thought that that I haven’t heard a story like that literally in years. And I’m just glad to hear some worthy country where there’s only that much inventory left in the market.
Tego:Texas manages. It’s booming in Texas. Even Denver is right up in the streets from us. They’re booming. And they just don’t have enough homes to sell. There are more buyers than homes available.
Tracy:And in Miami, those million dollar houses are flying off the shelves. Those 3 to 5 million aren’t but there’s still selling at it. Okay pace but they’re saying if it’s a million, two and under, they’re getting multiple offers.
Eddy:Wow! Looks exciting.
Tego:Yeah. And it’s interesting because I’ve looked at some of the stats, We look at like when we peaked out in Albuquerque, our market peaked out in May of 2007. That’s when we hit the highest prices we’d ever seen.
However the entire country peaked out in May of 2006. So, if you look at it that way, we’re basically a year behind the rest of the country in many ways. And we see that in a lot of things, right Eddy? I mean, not just real estate.
Tego:We see that many other things.
Tego:And nothing’s wrong with that. We’re the land of the Miñata. We’re okay with that, right?
Eddy:Yeah, we’re okay. We make it work here.
Eddy:And we can anticipate the things that are coming here too.
Tracy:We pay attention.
Tego:You know, last year a lot of the country had a lot of… you know, it’s booming like crazy. This year, we seemed to be seeing some of that as well.
Tracy, let’s talk about appraisals. This comes up all the time. Obviously, any each time a piece of property changes ownership, in most case is you’re going to have an appraisal. If there’s a loan on it, you absolutely are going to have an appraisal. If it’s a cash sale, you won’t necessarily have to have an appraisal. But, what is an appraisal? Why do we get it done?
Tracy:An appraisal is for the lender typically. So that somebody’s got the eyes and ears for the lender to say, “Yup, that’s a good loan to make.” Because the lender’s not going to go out and inspect the property themselves.
They might be underwritten in California, even if you’re doing it locally. They’ve got the appraisal process there that’s a third-party independent that goes in and says, “Yup. This house is worth what you’re buying it for.” Well, which brings up another subject.
A lot of people think it’s a shot in the dark that the lender doesn’t know how much the house is being sold for. Well, of course they know. They’re given the contract and all of their doing is saying, “Okay. This house is schedule to close for this amount. Let me look and see if that’s justified and I’ll tell the lender.
Tego:In general, they use the comparable method, correct? So they go back three months, similar homes in that neighbourhood, that area and then they make adjustments up and down based on square footage, amenities and stuff like that.
Tracy:Exactly. And the rebuild cost isn’t usually the method. We know that typically and it probably be more?
Tego:You mean what you paid for isn’t how they come up with that?
Tego:Yeah. And that’s first trade-in thing for home owners; like what you paid for it, unfortunately doesn’t matter. It wouldn’t matters for as what somebody’s willing to pay for it as well as what the appraisal can show that other people have paid for similar type properties, right?
Tracy:Yeah. What’s reasonable and what the lender would feel construable making a loan on.
Tracy:it’s good but the one thing that I wanted to bring up in addition is we have been having some appraisal problems for our home sellers.
Tego:And I put this way. You know, the appraisal generally is looking backwards. And, nothing against appraisals understands. They have a very difficult job to do.
They have very strict guidelines on what they can do. Obviously, with everything imploding in 2008. The appraisal guidelines got very strict and there’s a lot of over sight in that world. And that makes sense, right?
You know, large sums of money being loan. However, they have to look backwards and they only have to look at what things have sold. They can’t necessarily look out. Well, there’re five other homes on the market that are higher than this price but they can’t use it. They can’t use that to justify the price.
Tracy:They can’t! But I have seen sometimes where they’re putting active listings in an appraisal in situations where they aren’t enough houses within a one mile radius or whatever their criteria is. I know they can expand their criteria. They have to.
Tego:So Tracy when we come back we are going to talk about the Home Owners Associations. I know there’s kind of some pluses and minuses to Home Owners Association. We got a home on the week right?
Tego:You want to tease that right now?
Tracy:Oh, we got a great house in Ocotillo. We’re going talk about.
Tego:Ocotillo! And Ocotillo is up off Paseo Del Norte in North Albuquerque acres area.
Tego:Tune-in in here. We’re going to take a break. This is Albuquerque Real Estate Talk. We’ll be right back.
Eddy:Am 1600, KIVA; 95.9 FM. This is Albuquerque Real Estate Talk with Tego and Tracy Venturi, the Venturi Team from Keller Williams Realty.
Tego:Eddy, thank you. This is Tego Venturi with the Venturi Team. And we got right to so many topics; we didn’t talk about how to get hold of us. So if do want to get hold of us, Talk Real Estate, our realtor on duty line is in Albuquerque 505-933-6881. We also have that as a toll free number at 855-933-6881. And our website Tracy is…
Tracy:Our website which is really useful. It has great search tools is welcomehomeabq.com but what we know is most people just Google our names and they find our website.
Tego:Yes, we do. Eddy, you know all about Google Analytics and we’re tracking in all that fun stuff. Yup, yup, yup!
Eddy:Yeah. It’s not just the future. The future has arrived, it’s here.
Tego:It is here, for sure. So, yeah. We really spend a lot of time in the website to make a very useful resource for folks looking for homes, looking for market values, looking for what is the home down the street, the listed for sale for.
Tego:Tracy, we we’re talking about appraisals and valuations and valuation problems. Tell me which you meant by that.
Tracy:Sure. We are seeing some of the houses we were get an accepted offer with the buyers willing to pay and the appraisal is coming in lower than what the agreed upon sales prices.
Tego:Why does that happen?
Tracy:Well, for the reasons you said earlier, where they’re looking at past data and if the home prices are kind of edging up towards a little bit. They’re looking at past sales and that’s what they have to look at to justify the price. So it’s really hard for prices to go up quickly because the past sales are what the appraisers are looking at.
Tego:Right. And so what happens when you’re a seller or your buyer, put them on both sides in the appraisals comes in low. What happens?
Tracy:Yeah. There’re four or five things that can happen as possible outcomes so to speak. So the seller can agree to sell at the appraised price. The buyer can agree to bring money in to pay for the difference to buy at the purchase price that was previously agreed upon. Buyer and seller can meet somewhere in the middle. The deal can fall apart and people can go their own ways.
Tego:And one of the things in our contract that we use here in New Mexico, it does have standard language about that that basically, if the appraisal doesn’t match the contract price there’s basically an out option for the buyer or a new renegotiate option for all the parties involved, correct?
Tracy:Yup. We see it happening variety of ways because as the market is increasing a little bit in prices, buyers are willing to pay that new price and they are willing to pay the different between…
Tego:Right. Because when a buyer is out looking for home, they’re not looking out what stuff sold for, they’re looking out with this are for sale for. And so they are comparing to whatever else’s available for them to purchase, correct?
Tracy:Right. And they’re saying, “Hey, this was the nicest house out there and it’s worth what they’re asking or what we agree upon.” It’s interesting because we had [00:15:13:17] we put on the market in the Northeast, kind of by Trader Joe’s off for sale by the week and a half ago or less and we have three offers that we’re working at this moment on it.
That house we’ve said is hard to find. Four hundred and twenty five thousand, a very nice high-end, executive type home. But, you know right now, we’re going. There’s not a lot of camps…
Tracy:So we have to justify the price.
Tego:Sure. That’s one thing, again, that’s part of what we do as realtors; is we work through all these issues, right?
Tracy:We do. And what we know is that house that can’t find it anywhere else.
Tracy:If there were 20 of them for sale right now, we wouldn’t have three offers.
Tego:Be a different story. So, okay Tracy, let’s segway into this whole Home Owners Association. Questions came up this week. We had a client where they ask, “Hey! Is there a Home Owners Association here?” And we said, “No, there’s no Home Owners Association in this neighbourhood.”
That’s part of the disclosure process when you’re purchasing a home; if it’s a Home Owners Association neighbourhood that must be disclosed. But then, once we got under contract, you know, Tyler Company does the title search, which they normally do and they sent out the CC&Rs. And they’re like, “Well, I thought there’s no Home Owners Association.” It’s like, “Well, there is not. It’s different. CC&Rs are different things.”
The question came up; what is the difference between Covenants, Conditions and Restrictions versus a Home Owners Association?
Tracy:That’s a great question. Almost every house we sell has some sort of Covenants, Conditions and Restrictions. Just by nature of what the city code is.
Tego:Right. And so anytime a subdivision is put together in most cases the developer is going to record these CC&Rs as we call them Covenants, Conditions and Restrictions on that neighbourhood, correct?
Tracy:Right. And some of it is city codes. So it says, “Walls can’t be more than 6ft on the sidewalls or the back walls. Or the height of the two-storey can’t be more than 26ft.” And I don’t know if that’s what it’s still.
Tracy:But what it used to be that.
Tego:Yes. So you’re going to have the city zoning, right?
Tego:That’s going to dictate a lot of stuff and then you’re going to have the CC&Rs, way more specific to a neighbourhood.
Tego:And it can be stuff about chickens in your backyard, right?
Tego:And some other stuff.
Tracy:But, that’s a great example though. Chickens in your backyard versus having that Home Owners Association actually enforce it.
Tracy:Who’s going to enforce it if you have chickens and it’s in the Covenants, Conditions and Restrictions?
Tracy:You can complain to the city or the village or the township or county or wherever you are located.
Tego:What’s a Home Owners Association then? What’s their role?
Tracy:The Home Owners Association is an association to basically enforce the covenants and restrictions of the neighbourhood.
Tego:And then they offer additional amenities such as… let’s say you have a community swimming pool or you have a tennis court or you have some sort of facilities or you share in all the landscaping, the cost of all the landscaping in the neighbourhood or if you have a gate at your neighbourhood. Who is going to manage that? Who’s going to collect the fees to pay all for all those services?
Tracy:Exactly. So they’re the ones that are the body that’s supposed to be representative of the Home Owners and making sure that your neighbourhood stays nice and people are taking care of things.
Tego:Okay. So this is where we get in to the negatives and the positives about Home Owners Association, okay? Some people and we had these clients Tracy. They come to us and say, “I absolutely do not want to live in a neighbourhood with a Home Owners Association,” correct?
Tracy:That happens a lot.
Tego:And why do you think that is?
Tracy:They don’t want somebody telling them their trashcan has to be off the curve by 6 o’clock on trash day.
Tego:Correct. In most cases and correct me if I’m wrong; it’s because they’ve had a bad experience with a Home Owners or an HOA, right?
Tracy:I would like to correct you and say you’re wrong, but no.
Tego:Yeah. Oh, darn it, man!
Tracy:No. That’s exactly it. They had a bad experience with a Home Owners Association just kind of dictating and they feel like it’s their house, their yard, their land. But when you look at neighbourhoods that have Home Owners Associations, I know Eddy has a neighbourhood that’s maintained and beautiful and people keep it up. And if somebody leaves the car on blocks on the side walk or on the driveway, somebody’s going to ask them to take care of that.
Tego:To certain extent it’s more like I call it a police force but its group that going to mandate if you’re not taking care of your property, they’re going to send you a little love letter that says, “Hey! You need to pull those weeds under your front yard.” And that can be frustrating to people. But you know what? It keeps the neighbourhood looking great.
Tracy:It does, yeah.
Eddy:I actually love it until I’m the subject of the course.
Tego:Of course! Exactly! It’s just like anything, right?
Eddy:Absolutely it is, right?
Tego:Yeah. I want to speed until I get caught speeding.
Eddy:I get caught, right.
Tego:Yeah, yeah. Okay, no I don’t speed. No, I didn’t say that.
Tracy:That’s funny. Well, I want to get to our home of the week.
Tego:Yeah. Anyway, that was enough about Home Owners Association. What is our home of the week Tracy?
Tracy:We have a really great house and I said it’s in the Ocotillo subdivision. Ocotillo is a small in film neighbourhood that is by Trader’s Joes, northeast to Albuquerque by the Paseo…
Tego:And these are larger custom homes for the most part, correct?
Tracy:Very much so.
Tracy:Yes. On smaller lots. So you know, in that North Albuquerque acres.
Tracy:Area. And they’re not necessarily single storey, which is kind of I don’t know why I think executive of single storey…
Tracy:[00:20:58:21] Single storey because we have bad knees and backs from all the abuse we’ve taken on our bodies. So, Eddy wouldn’t know about that though, he’s still so young.
Eddy:Yeah. Oh, you guys are nice.
Tracy:So we have one it’s on Sand Verbena Trail and it’s in that gated Ocotillo neighbourhood that’s in Paseo Boulevard and it’s a single storey with four bedrooms, plus an office and it was built by Panorama Homes.
Eddy:If you’ve ever done parades over the last, parade of homes, over the last 10 years, you’ve probably seen a Panorama Home. They do a great job.
Tracy:They’re beautiful constructions; great to work with. If you’re looking to build a house, we can find that great builder like Panorama Homes.
Anyways, it’s 3500 sq. ft. It’s listed for $690,000, beautiful single storey, really great layout with a really plush master, backyard is very manageable. It had a nice little water feature.
Tego:Well, that’s a really good point because you can get the big lot, you can go North Albuquerque Acres and get that almost an acre but then you got to take care of it, right? In many times, it’s like having that nice larger home, executive home, custom details, but yet not having that huge lot that have to take care off, right?
Tracy:Correct. And this is house is in an HOA.
Tracy:And the HOA in this case pays for… you may pay in and its $40 a month which is really cheap, you go to big cities and a $40 HOA is non-existent. But its $40 and it’s gated. So they care of the gate and all the common areas.
Tego:Again, tell us the address and the price again.
Tracy: Sure. It’s 10004 Sand Verbena Trail…
Tracy:Yeah. So Google it. Go to our website and take a look at it. It’s $690,000. We’d love to show it to you.
Tego:Yeah. If you want to call us on that or anything else real estate related, we are at 505-933-6881 and then our website is welcomehomeabq.com. If you go to the homepage, there is a place that shows all our featured homes which are all the homes that we represent.
You know, we have one cool thing on our website I want to mention. We have “Real Time” Just Listed, right on our homepage. And what that means as new homes come on the market, they are displayed there and it’s maybe at most to 15-minute delay from when somebody enters a new MOS…
Tego:Until it ends up in our website. So if you’re one of those people that like to kind of view the latest and greatest, we got it right there, welcomehomeabq.com.
Eddy:Edge there Tego. We can just hangi in your new website at welcomehomeabq
Tego:Yeah. We sit there all day and watch all the new homes come in to the market.
Eddy:Alright Tego. We’ll see you again next week. Thank you both for being here. And this is been ABQ Real Estate Talk, back again with Tego and Tracy next week. Up next, Ward Arnold.
On this show… How to buy when you need to sell and real estate investing.
On this weeks show. April 2015 housing market update, first time home buyer question, the in’s and out’s of surveys, and more.
Albuquerque Real Estate Talk Radio – May 9, 2015
Tego Venturi: Welcome to Small Business Saturdays and Albuquerque Real Estate Talk here on KIVA Radio 95.9 FM/AM 1600. I love our new bumper music. That’s pretty sweet there. Our producer and Henry Diaz also the afternoon host here with the Rock of Talk. I kind of like that new bumper music.
Henry Diaz: I like it.
Tego: Help for Real Estate.
Henry: Real estate. And that’s what we do every Saturday here at Fox News Radio 95.9 FM/AM 1600 KIVA.
Tego: Fox News Radio. I got to get used to that. That’s great. You got a great, Eddy put together a great line up here now. Anyway, this is Tego Venturi with the Venturi Team Keller Williams Realty. I’m joined by Tracy Venturi, like always, talking real estate here in the Albuquerque area and what’s going on in our market. We just finished April. So, Tracy what are we’ve got on the list today of things we’re going to hit on?
Tracy Venturi: Well, good morning everybody.
Henry: Good morning.
Tracy: Yeah, hi. We were in San Diego last weekend. It was awesome meeting with other top realtors from actually international. Lot of heavy hitters and a lot of good information on what people are experiencing in their markets and how busy they are and that type of tying. And we’re also going to talk about Kevin O’Leary Shark Tank. Mister Wonderful.
Henry: Hey, Mister Wonderful.
Tracy: Yeah. He is there.
Henry: You guys got to meet him.
Tracy: We did.
Tego: Was he a speaker?
Tracy: He was.
Tego: He was a speaker and then we kind of, you do those and got a quick meet and greet kind of things. So, but that was cool. We had a two second of fame there or something like that.
Henry: There you go.
Tracy: And then we’re going to talk a little bit about surveys. Kind of nuts and bolts and maybe Tego will give us his famous market update.
Henry: Oh, yeah. We have to have that. We missed it last week. We got to get the latest and the greatest.
Tego: Now, we are, April is finished. So we got the latest and greatest numbers for April. And there are some pretty startling numbers coming out of the April statistics.
Okay, I’m a really kind of a real estate numbers deep guy. And something happened in April that we have not seen in a long time. And that was the number of homes that went pending in the month of April. It was up 41% versus the previous the month, the previous year same month.
Henry: Wow, that’s significant. That’s a chunk.
Tracy: It is. And listeners, pending means that it got unaccepted contract. A house that went pending sales. So, yeah, a lot of houses going under contract.
Tego: And the other thing, we talked about this last month, is that market supply has continued to decline slightly and demand is up. So, of course, you know…
Henry: Prices is going to adjust to that.
Tracy: Starting to see it.ee
Tego: It sure looks that way. And you know I think prices are definitely on the rise. You can never tell obviously when you’re in the middle of it. You know, we won’t know until later where we end up. But definitely it feels like prices are on the rise.
Tracy: And one of the things that kind of comes along with that, what we have seen is there are a few appraisal issues coming up where houses aren’t appraising because the market starting to move up a little bit. But the comparable sales aren’t there for an appraiser to say, “Yes this is the right price for that house.”
Tego: I want you to explain that Tracy how does the appraiser do that? Because they are just trying to justify that the purchase price to the bank to make the loan, correct?
Tracy: Right. And one of the things that a lot of people don’t realize is the appraiser isn’t shooting in the dark. They are given a copy of the contract. They know how much the house is selling for any concessions, any help the buyer might be getting from the seller. And all they are doing is justifying the price for the bank and say, “Yes this house is worth that much and it’s a good loan for you to make.” So it’s not shooting and fish in the barrel. It’s good.
But they have to find usually five houses that have sold within about 90-days within about a mile of the home that’s under contract that are similar size, similar features.
Henry: For comparison.
Tracy: Yeah. And so if there really isn’t any, the market 90-days ago is a little bit different than it is right now.
Tracy: So we are having a few low appraisals. We’re seeing them across our industry.
Tego: Yeah, and that’s challenging because the buyer who’s making the purchase, they feel the value is there based on other home they’ve seen. Unfortunately, the appraisers are required to use only homes that have sold to justify that price. And so there’s always going to be this lag between what the sales prices are and what the appraised price is.
Henry: And then you always have a seller who always puts the extra value on their home and their property just because it’s there as well so you had to deal with that.
Tego: Well, there is that. Not everybody’s that way.
Tracy: No, I’m dealing with that right now. And it’s a $150,000 house. It has a beautiful newer pro-panel roof which is one of those metal roofs they upgraded and they put AC in. They have rolled outs in their kitchen drawers and they are going wait the appraiser should be looking at these things. And yeah, it’s nice because most competing homes are refrigerated or they are cooling and things. But it’s still tough.
Tego: So, Tracy we had a question come up with this week and I’m going to hit you with this one was first time home buyer. We talked to a guy the other day where he is the “millennial”, you know about those Henry, right?
Henry: I know a couple of them.
Tego: Yeah. So the millennial which is the kind of under 30 crowd. Is that right? Is that the group or…
Henry: Yeah it’s like under 35. That’s the oldest millennial.
Tego: Yeah. This guy has never bought a house before and he is wanting to know, “What do I do? Where do I start? How do I decide? How do I start the process to start thinking about buying a home?”
Tracy: Well, it’s actually a much broader question because he was going, “How do I know what my credit and how do I establish credit and how do I know if I should be buying a house,” and it was like, yeah, all those questions if you haven’t done this, you don’t know, right?
Henry: Wow, yeah.
Henry: That’s funny.
Tracy: So, really that’s what we do best. We know how to guide people. So what we suggest is let’s get together. Sit down. Go through how we work to buy a home? What are the different steps so the things like I don’t really know the process. And we can go through it in our office and just kind of go through these steps. And then, also we bring a lender in. They might have a great lender that they are already look with.
Tego: I’ll take this one, Tracy. Go, okay.
Henry: I got to clear my throat.
Tego: This spring has been rough, I know. Everybody’s having allergies this year. So, we have a checklist on the process that we go through or we sit down, go through and then we bring that lender. And then the lender is really a partner in the whole thing. I mean, obviously they can’t go and show houses and we can’t make a loan. And so it’s a partnership where we work together and get them in the right loan that works for them.
Henry: So you do like an orientation essentially.
Tego: Basically, a consultation, right, exactly in the course. You know the fun part is going out looking at homes, right? You know, getting on websites and looking at homes, that’s all fun and games. But there is a lot of business that has to be done to make it all work.
Tracy: Totally. Yeah. But we love it. I mean, what joy to help somebody get in their first home.
Henry: Oh, yeah. I bet.
Tracy: And a lot of people think first time home buyers are all the $150,000 to $250,000 prices. But I’ve helped people, all ages and all incomes.
Henry: All brackets in income.
Tego: I remember that couple you helped a couple of years ago, Tracy, where they were probably in their mid-fifties. They’ve been married for quite a long time and they’d never owned a house.
Tracy: Oh my gosh. I cried that.
Tego: Well, they cried, I remember.
Tracy: And they were actually older than that. They were late 60’s, early 70’s.
Tego: Oh, okay. Got it. No, mid-50’s is pretty young, right? That’s real young.
Tracy: Yeah, that’s young. Save me for that. So speaking my language. So, yeah, so we were in the house and he turned around and he had tears streaming down his face and he looked at her and he said, “Honey, we found our house.” And they had the most beautiful hug and kiss. And I was sitting there with tears streaming down my face but it was awesome.
Henry: Those moments, I mean, that’s the American dream. Right there.
Tracy: Totally. What a pleasure to work with people and experience that. I had a woman who moved from Manhattan, too. She was probably 60’s. Had never owned a home and she moved here and got a place in Corrales on the side of the hill, a very affordable home in Corrales actually and had that amazing view of the valley and the mountain. And she did the same thing. She never even thought about owning because she lived in Manhattan where yoo can get a 100 square foot for tons of money.
Henry: Totally different market.
Tracy: Yeah. So anyway. We hold hands, we got people through it and we loved it.
Tracy: It’s part of the joy of what we get to do.
Tego: Yeah. So we hit on this earlier. Let’s go back to here. We just had an event here in Southern California, San Diego. Very nice. Of course, when you go to those event you don’t really get to see the city. You’re in a convention center, in this case it was a hotel. And that was networking with top real estate agents around the country. And our keynote speaker this year was Kevin O’Leary from Short Tank thing.
Tracy: Mr. Wonderful.
Tego: Mr. Wonderful.
Tracy: You’re dead to me.
Tego: You’re dead to me. Yeah, he’s your favorite shark?
Henry: Yes. He’s just a sharp guy. He sets the standard, I think. But he’s not as scary in real life, huh?
Tego: No, hes’ not. He’s very, Tracy was like, “Wow. He’s very like mellow.”
Tracy: He was really gentle and soft-spoken on stage. And when we met with him, he’s just a really warm, amazing person and his wisdom is just amazing.
Henry: Of course.
Tego: He’s very strong in his sense that business is war. Business is war.
Henry: It is.
Tego: And the object is to win.
Tracy: If you don’t, you’re out of business.
Tego: And if you don’t, you’re out of business because there’s somebody else always trying to beat you. And really some good advice and I’ve got a few things here. What we can share at the next segment is he brought up what are the three things that every person who get funded on Shark Tank do?
Tracy: Have in common.
Henry: Hey, insight. I like that.
Tego: Yeah. I’ll show that here after the break. We met Barbra Corcoran last year at the same event.
Henry: I’ve seen you guys on TV for the advertisements.
Tego: We were able to connect with her. Go ahead, Tracy.
Tracy: Actually, Barbara sent a video message to all of us this past weekend and it was awesome.
Henry: Did she? Yeah. She was a realtor.
Tracy: She really knows it. Yeah, she knows it. And she has great real estate advice.
Tego: If you get on YouTube and just search her and just any of her talks and interviews that she does are just amazing. And then we were so lucky to make that connection. And now she endorses us here in Albuquerque as her choice as a real estate team in Albuquerque.
Henry: And you guys are well-deserved, you know that. I mean, one of the top real estate teams here in Albuquerque in the Metro area. So, of course that’ why you guys have Real Estate Talk every Saturday here at the Rock of Talk Fox News Business.
Tego: And if you want to get a hold of us.
Henry: There we are.
Tego: Okay. Our team, our realtor, our duty line is 933-6881. If you listen to ABQ.FM you would be hearing that commercial all the time talking about our Home of the Week in that same number 933-6881. And we’re going to take a break here.
We’ll be back we’re going to talk about Kevin O’Leary’s top three things that get Sharks, people funded on Shark Tank And then we’re going to talk about surveys and some of the issues here. So take a break, we’ll be back shortly.
Welcome back to Small Business Saturday Market Makers and Risk Takers in Albuquerque Real Estate Talk on ABQ.FM Fox News Radio. That’s right. I got to get used to the not calling it Rock of Talk. That’s your show right, Henry Diaz?
Henry: That’s right. Every afternoon.
Tego: Yeah, you guys do the afternoon show. This is Tego Venturi with the Venturi Team Keller Williams Realty and I’m joined by Tracy Venturi. And Tracy, if somebody wants to get a hold of us, reach out to us, couple of different ways, right?
Tracy: Yeah, the best way if you’re really ready to talk is give us a call. 933-6881. Sometimes Tego and I answer that phone and sometimes it’s our realtor on duty because we all take turns but we would love to talk to you.
Henry: They are there 24/7 to answer the call of help.
Tracy: Almost. It feels like it.
Tego: Some days it feels like that. We do have a team structure and network flow because we can all serve our client, take care of our clients and still have a life. Because sometimes in this business there’s people – when you’re doing everything from the paperwork to the marketing to the appointments.
Tego: To radio shows, to inspections.
Tracy: Which is where I’m going next.
Henry: And the Mr. Wonderful.
Tego: And meeting Mr. Wonderful. So yeah. So I kind of tease that here before the break. We were talking about what does Mr. Wonderful from Shark Tank and he had a statistic on what is that gets people funded when they come into Shark Tank. Some guy went through.
Tracy: Yeah, somebody went through and did statistics on all of the shows and everybody that’s been in front of them and what did they have in common that these people are going to be chosen and funded by one of the Sharks. And so he put a slide up and it was three things.
Henry: So listen up folks. This is an inside baseball right here.
Tracy: What do you think it is?
Tego: So here it is. The number one thing is they must be able to articulate the opportunity in 90 seconds or less. So it’s the old elevator pitch.
Henry: Elevator pitch, yeah.
Tego: Yup. It’s you know, you got it, you got to give your message, got to give your value in that 90 seconds.
The second thing was successfully convincing the investors that they with the right team to execute the business plan. So they have to convince that everybody there in the Shark Tank that they are the right person. It can be the great idea. They can articulate it well. But if they’re not the right person they’re not going to get the funding.
Tracy: So, it’s kind of a personality thing, right? If they like you and they believe in you and they feel like you have the right passion for the business.
Tego: Right. Well, it’s just like, we’ve seen Barbra do that where she didn’t particularly care for the business but she liked the person. And she would invest in any way.
And then the last thing was you got to know your numbers. You got to know your data. You got to know what’s going on. You got to know what your competitors are going because if you come in there and fumble with your numbers you know what Kevin O’Leary is going to say, right? He’s going to say, “You’re dead to me.”
Tracy: That’s right.
Tego: Anyway, that was the interesting.
Tracy: You know what’s funny? We never heard him say, “You’re dead to me.” But everyone at the convention was saying it.
Tego: Yeah. I guess that was just the Shark Tank thing. So, anyway, we love that show and we love the new show that they’re doing now where they’re actually…
Tego: After they are going out, it’s kind of like the thing that The Profit on CMBC that show where they’re going out and help in struggling businesses.
Tracy: It’s like the after Shark Tank, what happens to them.
Henry: Six months later, that kind of deal.
Tracy: That’s fun. So Tego I know you’re always up on market stats. And you gave us a quick snap shot at the top of the hour on what the market’s been doing. But what else is interesting in real estate this month?
Tego: Well, I recorded the other day, just a market update video. I put it on our website at welcomehomeabq.com. Also on our YouTube page and Facebook page and just about every other page that I have. And it was a market update I went through it. If you want to catch it you can do that. However I’ll give you a couple different things. As I said earlier the really big highlight number for April is the number of homes that went under contracted in April. That’s a huge jump.
Tracy: Which means that a lot of them are closing in May. And that the home inspectors, the appraisers, all those people that help out in the process, they are all busy.
Tego: Everybody is busy. So what we’re finding is generally we’ll see a 30-day closing time. But you can probably expect that to be pushed out a little bit because there are so many people that are involved in that whole transaction once it gets under contract. From the home inspector, the surveyor, like Tracy said, the appraiser, the pest and termite person, the title people – they are busy.
And then the loan side, the underwriters who actually take all of that crazy documentation that you have to provide and go through it and see it their back log because that takes a long time. So we’re seeing that 30-day close may not always be realistic if there’s a lot of stuff to do because everybody’s busy.
Tracy: Or you do your paperwork quickly and get everything your lender asks you like the day they ask for it.
Tego: I always liked that. And I’m sure when you talked to the guy from Loan Star.
Henry: Oh, yeah.
Tego: A lender told me this once, and said, “If I asked you for something and I don’t get it, there is nothing happening on your file.”
Henry: That’s right.
Tego: So you better, if they ask you for something, keep it coming because it’s going to just delay the process. So that was the big thing. And the other thing is we had a 10% in the number of sold homes in April versus last year and overall for the year…
Tracy: Sold as in closed.
Henry: They closed in April.
Tracy: A lot of people moving.
Tracy: Think about those moving trucks all over.
Henry: That’s true.
Tego: Here I just found the other number here. Through April of this year we are 9% ahead of last year same time, the number of homes sold in the Metro Albuquerque area.
And just to give you an idea of those numbers; that was 3,140 this year versus 2,882 of last year so we have had an increase. Definitely enough to – average price, medium price, not a whole lot of movement. Like I said, it’s always difficult to gauge that when you’re in the middle of it. But I think they’re definitely is in price appreciation going on right now.
Tracy: What we know is it’s very spotty. Some neighborhoods were seeing prices go up and others were not. But the median and average don’t tell us too much because that doesn’t say what a house same house last year would have sold for versus this year same house.
Tego: I’ve got an interesting statistic. This comes up sometime. It’s like, “Okay. From the peak of the market, where are we? Or how much did we lose? Or where are we at from the peak of the market?”
And if you look at from the peak of our market which was sometime in the middle of 2007, we had a pretty substantial drop, maybe 30%. And now, we’re about 15% below those levels of 2007. So if you bought then and you’re waiting for the market to come back, you probably have a few more years.
Henry: Yes. That’s actually good news on the economy side, too. Because we don’t necessarily want to get to the levels of the financial markets that was kind of engrossing what happened during that period.
Tego: Right. Well, and Tracy, let’s tell the story about the people we talked to that are like from Frisco, Texas and Denver, Colorado and the things that are going on those markets and the real estate world right now.
Tracy: Yeah, so, we’re seeing real steady, slow recovery still or growth. They’re up the charts
Tego: Let’s call it steady, let’s not call it slow. No, it’s steady.
Tracy: They’re kind off the charts again where they put a house on the market and it’s getting 20 offers the first day, Denver and Frisco, some areas at Miami.
Henry: Frisco’s outside Dallas.
Tego: Basically Dallas.
Tracy: Yeah, sorry, just happens to be that’s where the realtors are from. But you know it’s interesting and people go all. That’s great, right? And I’m like, “Oh, no.” Think if you’re as a buyer and you want to get a house and you have to compete with 19 other people for every house that comes on the market that meets your needs, then it does when people start offering higher and not contingent on appraisal. And you know, it’s a bummer. It’s nice when you have a healthy market.
Henry: So, it’s definitely trend in seller’s market now.
Tego: In those areas for sure. There are markets, I would say yes at certain parts of towns, certain prices we are in the seller’s market. It’s very limited though. Neighborhood to neighborhood, price point to price point. You know, higher end is still kind of slow. We looked at the numbers earlier. Over a million where we had nine sell this year versus six last year.
Tracy: Year to date.
Tego: Year of the day. So I mean, what is that? That’s a 30% job. But yeah, it’s only three more houses.
Tracy: But that’s great.
Henry: Right. In context, but yeah.
Tego: But it is good. You know, we wanted to hit on just in the last section here, surveys. And we had a training session in our office the other day, Tracy, were we talked about surveys. Kind of interesting, I think people get this in their transactions and that’s like okay, it’s a piece of paper with drawings of my house and a bunch of lions and stuff and what does it all mean. What should people be looking for?
Tracy: Well you know a survey is just part of the process of the sale and making sure you’re buying the right piece of land and that there’s not encroachments so that the property lines are really where the fences are, right?
Henry: Okay. Literally.
Henry: It’s on the paper.
Tracy: Yeah. So they are just verifying that the lines are really where the fences might be and what you think. And they are looking for encroachments like building inside of an easements.
Tego: Yeah, I was going to say, will you explain an encroachment?
Tracy: Yes, let’s say, there’s utility easements on almost all of our land, right? So that they can just dig and put wires in and then if they have a problem…
Henry: Was that like three feet, something like that?
Tracy: It’s usually about 10-15.
Tego: Yeah, it depends. 7, 10, 15. It depends on the property.
Henry: It depends on where it’s at.
Tracy: And sometimes it’s at the front of the property. Sometimes it’s at the back. Sometimes it’s on the side, usually not right across the property.
Tego: Sometimes it’s on all four sides.
Tracy: Yeah, hopeful not. But it basically says don’t build anything permanent there because if the utility companies that have easements there need to access under the dirt.
Henry: They can do that.
Tracy: Yeah. And they’re not going to put it back all pretty. If you have a beautiful shed there or if you have some beautiful plantings there, they’re going to just kind of dig it up.
Henry: Survey is important.
Tego: Yeah it is. And you can have an encroachment into an easement like a utility easement but you can also have an encroachment into the neighborhood’s property which is a different issue as well. And so sometimes you’ll have a driveway that might have been overtime meander off the line into somebody else’s property. It does happen.
Henry: It happens, yeah.
Tracy: It does. But there’s ways to resolve everything and we’ve got great people that work with us to do that.
Tego: Tracy, do you have home of the week that you wanted to highlight or we’re going to record that here in the minute. It’s going to run next week, right? So, I’m putting you on the spot.
Tracy: Yeah. So we’ve got a couple of great new listings. We have one coming in North Albuquerque Acres actually that’s just gorgeous on San Diego. And so we’ll probably be talking about that next week. I still have that awesome one in Bosky Farms, the horse property.
Henry: Oh, yeah.
Tracy: You know any horse trainers or anybody that needs some beautiful grass to grace your horses or your cows in the barn? Everything, it’s gorgeous.
Tego: Yeah, that’s great. It’s time to wrap up. This has been Albuquerque Real Estate Talk with Tego and Tracy Venturi and the Venturi Team.
If you want to reach us, you can call our realtor on duty line at 933-6881. Get some help, right? I love that bumper music. And you can visit our website at welcomehomeabq.com.
Tracy: Have a great Mother’s Day.
The big highlight for this month is a 41% increase in the number of homes that went Pending (received a contract) vs April 2014. To me this shows that the demand for real estate market is healthy in the Albuquerque area and should lead toward some strong appreciation this year. The strongest demand is in the average home prices (around $200,000). Homes that are updated, look good, show well, and are priced “In the market” are selling quickly in the northeast heights in particular.
The number of homes sold so far this year (through April) is 9.1% ahead of last and the number of pending sales is up substantially, 23% more year to date than 2013. The other trend that I am watching is the Supply vs. Demand spread. We are currently at the lowest since 2007 and it appears that this trend will continue.
For buyers… prices are going up. Waiting another year will most likely cost you more not just in home price but also interest rate. For sellers… demand is strong in the median price range and demand is still a little soft in the higher prices. If you are thinking of “moving up” from your current home, the timing of doing that this summer looks perfect.
Albuquerque Real Estate Talk for April 25, 2015. This weeks show… Parade of Homes and Home Building Trends.
Albuquerque Real Estate Talk Apr 25, 2015
Tego: Welcome to Small Business Saturdays and Market Makers and Risk Takers here on 95.9 FM AM 1600, “The Rock of Talk”. This is Albuquerque Real Estate Talk with Tego and Tracy Venturi. We’re here every week talking about real estate and what’s happening in real estate market here in Albuquerque. Tracy good morning!
Tracy: Hey great to be here! Little rainy overcast weekend.
Tego: We’re with Keller Williams Realty and we have the Venturi Team of Realtors, we specialize in residential real estate. And if somebody wants to reach out to us Tracy.
Tracy: The best way is to call our realtor on duty line which is 9336881.
Tego: So this is a kind of an exciting weekend, we have a great show here planned. And Tracy do you want to introduce our guest and talk about what we’ve got planned and why it’s very timely to have them here.
Tracy: Sure! Well, we want to welcome Scott Ashcraft. Hi Scott!
Scott: Hi! How are you this morning?
Tracy: Good! Great! Thanks for being here on a Saturday morning.
Scott: Thanks for having me. It’s great to be here.
Tracy: Sure. So it’s a busy time for you. You are a home builder and Second Vice President of the Home Builders Association?
Scott: Home Builders Association of Central New Mexico. And this weekend the Home Builders Association sponsors th Parade of Homes which is a great event happens twice a year. Once in the spring and once in the fall so here we are for our spring event.
Tego: You know last weekend the Realtors Association, we had our big open house weekend where there was like 500 open houses last weekend. But of course those were existing homes.
Tracy: No, you mean resale.
Tego: Resale. Well however you want to call it. “Existing”,”Resale” Yes. But how long does the Home Builders Association been doing the parade, I mean years!
Scott: The parade has absolutely been going on for years and it’s a great event for home builders. It’s been very successful over the years. The event survived obviously. The slowdowning construction that occured a few years ago and we’re back strong.
Tego: So how many homes about this year for the spring parade?
Scott: The spring parade has 30 homes that are involved in the parade. Everything from a less expensive, two hundred thousand home all the way up to a home that’s over one-point two million dollars.
Tracy: If somebody wants to check out the homes on parade, is there a website or a publication they can go to?
Scott: The best way to look at the homes and find out who you want to see and what type of homes you want to see is to look at Su Casa Magazine. There is a great spread in this issue of Su Casa Magazine. Lists all of the homes with great pictures, descriptions, directions on how to get to the homes. That’s really your best resource.
Tracy: Great! I know that we’ve always enjoyed the parade of homes to see the lates and greatest and what builders are doing and different styles of homes. Are there certain trends we might be seeing this year?
Scott: You know I think that everything is really out there in the market for people to see these days. I can’t pick something that’s absolutely one hundred percent in every one of the homes. There’s a trend towards green building that I think is important for New Mexicans, Important for us here as home builders. Those homes that are green built are something that is more popular with the buyers so it’s something that we are proud and happy to see in Albuquerque.
Aaron: What are some of the features of a green built home exclusively?
Scott: One of the real important features of a green built home is water use. Obviously that’s important to all of us in Albuquerque and New Mexico. So the green built standards are very specific toward how much water you can use in a home, inside the home and outside the home in your landscaping.
Tego: So there’s within the Home Builders Association here, you know I know a few years ago you guys, the Home Builders Association (HBA) kind of put together the Build Green New Mexico standards. Is that correct?
Scott: There is an organization, Build Green New Mexico that puts together those standards for green built homes and then home builders in the Albuquerque, New Mexico area follows those standards for green build.
Tego: And not all green built homes are created equal. Is that fair to say?
Scott: Well there are varying levels, that’s fair to say absolutely. Everything from a bronze-level home all the way up to emerald which is the highest level of a green built home.
Tracy: So a house can be built green and have all the features in it but not necessarily certified by a Build Green?
Scott: Exactly. And what you just said is what’s important. The certification process and a home that is certified is really what’s important and a consumer should look for in home. Something that the builder has taken the extra steps to make sure that they are following the guidelines of a build green program and incorporating what they need to in a home.
Tracy: As I understand, that’s extra checks like seven extra checks to make sure that things are being done or something. It costs a lot more to build certified.
Scott: It does, it costs more to certify. And more importantly the home builder hires a third party inspectors to ensure that all those aspects of the green build are being followed. And at the end of the construction process, the home is then certified as green built.
Tego: If you are just joining us we’re talking with Scott Ashcraft with Los Fintanas home and is also the Vice President of the Home Builders Association of Central New Mexico. Did I get it right?
Scott: That is correct.
Tego: Got it. We’re talking about the parade, we’re talking some of the green buid. Just back to the parade, people can just go out and find a map, I know there is an online thing on the Home Builders Association website you could look up the different homes that re available. But they can just go right? There’s not like invite only, anything like that. You just go, that’s the whole idea. There are open house that are available to anybody to come through and talk to the builders. Correct?
Scott: That’s absolutely right Tego. You just show up,
Tracy: What are the hours? Is it Friday, Saturday, Sunday and well yesterday?
Scott: Friday, Saturday, Sunday it started yesterday. The parade of homes started yesterday and goes from 11:00 AM to 5:00 PM every day. So, today starting at eleven until five and tomorrow eleven to five. And then parade continues again next weekend Friday, Saturday, and Sunday of next weekend same hours.
Tracy: Perfect. And I know a lot of the homes along the way have maps and information. They’ll have extra suit causes sometimes if you don’t know. You stumble into one, you look for the little direction and say, “Hey, there’s one open’ might not be the one for you. But you can kind of get directed from there.
Scott: Every one of the homes does have suit cause of magazine at the home.
Tego: There you go. They’ll probably be gone by this weekend or by next weekend you’ll probably won’t find any. So you’re a home builder. You have been a home builder for how long?
Scott: I have been a home builder my whole life. I am actually the fourth generation of my family to be a home builder here in Albuquerque.
Tego: So you used to have Ashcraft Homes and some people may recognize that name. You’re company now is Los Fontanas Homes.
Scott: That’s correct. Los Fontanas Homes
Tego: Tracy and I are familiar with your product but others may not be. You guys build kind of a semi-custom, would that be fair to say? Little bit higher-end a home and you do a lot of in-fill work. Is that correct?
Scott: We do. We’re focused on trying to use those pieces of land that are still near the core of Albuquerque and build on lots in locations still near the core of Albuquerque. And we do I think semi-custom is really great description of what we do because we let our customers really customize our floor plans or start from scratch completely with the floor plans of their owns. So that’s a great description.
Tego: Let’s let you promote your product. So what neighborhood or neighborhoods you have right now. I know you have the neighborhood in High Desert. Is that sold out?
Scott: We still have homes in High Desert. The name of that neighborhood is the Legend at High Desert which is near academy at Tramway. And we do have one home in that subdivision in that neighborhood that’s on parade of homes this year. We have a second home that’s in La Luz del Sol which is near Coors and Delen on the west side of town. And we have a home in that neighborhood that’s on the parade as well.
Tego: Got it. What’s your price point let’s say on La Luz del Sol?
Scott: At La Luz del Sol we started three hundred thirty nine-nine is our price point. And up in the Legends at High Desert, we started four hundred sixty five thousand.
Tego: Got it. So La Luz del Sol, Tracy you know that are well that kind of built off the original Antoine pre-duct La Luz neighborhood right on Coors. And then just west of Coors is where the La Luz del Sol is, and the original parts were Antoine pre-duct? Is that correct?
Scott: That is correct. About thirty years ago when that neighborhood was originally started, originally developed.
Tracy: I bet it was more than that.
Scott: It may have been. Good point.
Tracy: I was thinking it was like the seventies. But anyway.
Scott: And there’s two parts, La luz which is on the east side of Coors may have been the older area. La Luz del Sol about thirty years ago when it started. And Los Fontanas Homes has been very fortunate to develop the last little bit of land that’s left on La Luz del Sol.
Tego: We’ll talk about in-fill. I mean that’s picking up a nice location you know obviously nowadays a good Central location for Albuquerque which is I know people been here a long time. Thinking about Coors as the central location but it is. It’s a great spot there looking back towards the mountains.
Scott: It is. It’s high atop a hill there just west of Coors Boulevard so it’s a great location. Really is in-fills these days, and amazing views because of the location.
Tracy: So if you’ve been to that area I just can’t recommend it enough to go see those homes. I don’t know what you call them but to me they’re clean contemporary, not really modern but modern just really inspiring. Because the windows and the views and the finishes that you guys use. It’s kind of like storybooks really.
Scott: We really appreciate that and you hit the nail on the head. It’s all about the windows and the views.
Tracy: Yes. Great!
Tego: So we’re going to wrap up this segment. We’ll be back. We’re going to talk about home building in the Albuquerque area. I’ve got a little bit of a market stats I want to cover. We’re talking with Scott Ashcraft with the Home Builders of New Mexico and this is Albuquerque Real Estate Talk with Tego and Tracy Venturi and the Venturi Team. If you want to reach out to us and talk real estate we’re always available. Our website is welcomehomeabq.com and our team line is 9336881. And Scott, what is your Los Fontanas website if somebody wants to just look at your homes and see what you got going on?
Scott: losfontanasnm.com is our website.
Tego: Got it, losfontanasnm.com. We’ll take a break and come back shortly and talk about home building as well as pretty exciting market stat. Things going on in the city and the country.
Tracy: Hi there! Tracy Venturi with Keller Williams Realty, the Venturi Team with these weeks home of the week. It’s a great one. At 1405 Pinnacle View, right next to the mountain in the foothills of Albuquerque. It’s four thousand five hundred forty six square feet, 5 Bedrooms with a huge game room.
Tego: Welcome back to Small Business Saturdays, Market Makers and Risk Takers and Albuquerque Real Estate talk with Tego and Tracy Venturi with the Venturi Team and Keller Williams Realty. We are here every week talking about real estate. We’ve been talking about the parade of home this week Tracy. Of course it’s a big thing going on this weekend and next weekend and if you’re not familiar with the parade of homes it’s something that the Home Builders Association of New Mexico does twice a year.
Couple of years were a little bit thin I got to say. There was not a lot of homes. But of course you know we just went through a little bit market change but things are definitely on a upswing. We’re joined by Scott Ashcraft with the Los Fonatanas Home and also Vice President of Home Builders Association.
And Scott what would you say? I mean we see it in our world in residencial real estate that things seems to be really on the upswing from a home sale standpoint. What do you guys seen in the building world?
Scott: We’re definitely seeing more customers out looking at homes now and choosing to build new homes at this point which is great. That is what we want to see from our standpoint and we’re also seeing those permits you know overall in the city and in the state. The number of permits for new homes is starting to tick up. It’s not shooting up. It’s not something that is rising you know extremely quickly but it is something on a steady upward trend.
Tego: You know something you and I have been talking about before we came on the air was obviously there was a period there when there wasn’t a whole lot of development going on. And when I say development, the land development and that’s a long process. Correct? To get lots ready to go to build homes on. Correct?
Scott: It is. I think a lot of people don’t appreciate the amount of work that goes into taking a raw piece of land. Something that’s any from two acres to a hundred acres and developing that into lots that are ready for a home builder to build homes.
Tego: Yes. And so that could could be a long of process not just the actual build up but all the permitting and the approvals and the zonings and the stuff you’ve got to go through. Right?
Scott: Absolutely. That’s the entitlement process and it can take anywhere from months to years so it is important and it’s something that hasn’t happen for many lots in the Albuquerque metro area for the last few years. So we’re starting to see that again which is a good thing.
Tego: Again we talked about this earlier. Your company lost a ton of. You guys specializes in in-fills smaller projects. Correct?
Aaron: That is correct. We’re not a company that’s going to go out and buy a hundred lots somewhere and do a huge neighborhood. We really try to do something that is closer to the core of the city. Smaller you know nine to thirty lots a time. Something along those lines where we’re comfortable.
Henry: I’m sorry Tracy. Are you seeing younger consumers especially the older Millenials, late 20s, mid 30’s starting to want that product closer to their urban population center?
Scott: Well that’s absolutely what the statistics are telling us at this point. Millenials are choosing and want to live in areas where they can you know go out and walk to dinner or walk to the gym or catch the bus or the train. So that’s definitely something that Los Fontanas Homes wants to focus on and make sure that we’re in those areas where you don’t have to get in your car and drive all the way across the town to go where you want to go.
Tracy: That’s awesome. So the location on the west side is right by Jinja and there is a fitness place right there and I think maybe a karate or something that you know, its west side is very close to the freeway. So getting downtown, the base, lot of people that want to commute those directions plus some areas you can walk to if you want to have a glass of wine and walk home.
Scott: You can absolutely.
Tego: You know something that we have talked last week was the trend is not so much suburban building and it’s more in-fill like what you’re doing. And we talked about the project that Kenny Hiccus is working on at downtown Central at Carlisle last weekend. Again it’s more that kind of stuff that seems to be you know going for the next thirty years. That’s what is going to be more popular and more demand it seems like for building. Would you agree with that Scott?
Scott: Absolutely. And that’s something that our company wants to focus on and we think it is something that is good for the city.
Tracy: So if somebody wants to maybe they have a lot and they want to build just their house. Do you do that?
Scott: Absolutely. That is something that is important to our company. We can take a lot that a customer comes to us and says, “Look, I have a lot in this part of town. Can you start from scratch? Help us design and then build a home on this lot.” We love to do that.
Tracy: And if you haven’t seen their homes I definitely suggest to get into one. You obviously have your parade of homes but you have model homes all the time open don’t you?
Scott: We do. We have model homes, right now we have two model homes in the La Luz del Sol subdivision off of Coors and those are open all year .
Scott: Or off of Coors if you’re from Texas.
Aaron: And Tego looks for me for the Coors.
Tego: By the way, that’s Aaron Henry Diaz, our wonderful producer and obviously afternoon host of the Rock of Talk here. So Aaron Henry thank you for producing for us. Of course we love the afternoon show. You know market stuff, I just want to hit a couple of things because I saw some national numbers that I thought was interesting and we’ve been talking about this. That there was a lot of activity it seems like this spring. Tracy, would you agree?
Tracy: There has been. And I know your statisticians so I’m hoping you brought some stats to share with us.
Tego: You know the one number I’ve been talking about a lot is the March pendings in Albuquerque were up thirty five percent, fourteen versus fifteen. It’s a huge jump in the number of homes that we received in and had a contract on the home. And then I saw some national numbers go back to February. Obviously there is always a little bit of delay but kind of the same thing. It’s almost double the amount of buyer activity nationally from February of fourteen to February of fifteen. So just seems like there is a lot going on out there and I know in our market. When I say our inventory supply is low, it’s been the lowest it’s been since two thousand seven. Meaning the number of homes available to purchase versus the number of buyers available in the market.
Tracy: So if you want to talk about real estate with us give us a call. We have a realtor on duty number it’s 9336881 or welcomehomeabq.com and if you interested in learning more about the neighborhoods Scott builds or finding about building a home. Scott tell us how can we reach you?
Scott: Well we have a website that has a great place to look at photos. We have a great photo gallery there of the homes we’ve built like losfontanasnm.com or my wife sells our real estate as well. So you can contact her.
Tego: Yes. And you can always contact us, The Venturi Team and we can get you in touch with them and help you obviously with your real estate needs. That’s what we do. And Scott, I wanted to ask you as we finish up here we still have time. But trends and new home construction seemed to have changed quite a bit just in the last ten years. Would you agree with that?
Tracy: And before you do that we talked about trends in color and finishes.
Tego: Oh right!
Tracy: You mean kind of construction methods and qualities and things?
Tego: I think so. I don’t want to say building standards, I don’t know if the actual standards have changed but seems like the products, materials, the way homes are being built are quite a bit different than even in just the last five or ten years. Is that?
Scott: I think the trend toward the green building has really helped builders focus on those things that are important to building a good home. So the fact that many people are interested in the green build process has made myself and other builders focus on how we insulate homes, what type of materials we put in the homes to ensure that we have good indoor air quality and the mechanical systems we use in homes as well. And what I mean by the mechanical systems are the heating, the air conditioning, and the water heaters in homes are all things have gotten so much better and so much more efficient over the last few years.
Tego: Yes. It’s amazing how much you know you think about when the housing market is really in that crazy boom time in ’04,’05, ’06. And then nobody can build homes as fast enough at one point there in the course, the switch just got turned off for a little while. But it seems during that period where the market was slowed down the builders just started to uppen their game. I don’t know if that’s true but it just seems that way.
Scott: I think you’re right and that’s definitely good for the consumer. We see builders who are professional builders who are now out building homes and that’s good for the consumer because we have great quality now.
Tego: Well okay let me say then since you are a builder and a professional builder. I’ll be the one to say it, there were a lot of people that were “builders” that had their GB98 contractors licence but they weren’t necessarily home builders but they knew the could go build a house. Make you know fifty thousand dollars and do another one when they have more cash. But they weren’t true professionals home builders.
Scott: That’s right. And the consumer really needs to focus and look for builders that do this all day every day and have done so for years.
Tego: Well we say the same thing about real estate agents and it’s true.
Tracy: And reputation matters. Who’s going to be around afterwards you know to make sure to take care of the products?
Tego: And so if somebody is looking for a home builder obviously HBACNM right?
Scott: That’s correct.
Tego: HBACNM Home Builders Association of Central New Mexico, that’s a good resource right? Then go to the website they can see all of the builders that are part of that association. Correct?
Tracy: I’ve been over that website and it could be overwhelming. I would say go to parade of homes.
Tego: There you go. Okay.
Tracy: Walk through houses, talk to the builders. They’re mostly on site at the properties. You can talk to them about what you like and see if it matches with what they really build.
Tego: That’s a really great tip Tracy, really. And just like anythinh it’s about personality and meshing with that person as well. And there’s a lot of great builders out there but I suspect that not everybody is going to jive with everybody out there. Just like again, just any professional hiring.
Scott: It’s exactly like hiring a realtor so I’m sure it’s something you talked about and you experience all the time. Hiring a builder is just like hiring a great real estate agent so you need to meet that person, you need to make sure that your personalities really work together. And that’s why the parade of homes, Tracy is absolutely right. That is why the parade of homes is a great opportunity if you’re thinking about building a home. This is when you need to get out there look at homes and decide who the right fit for you is.
Tego: So Scott thank you so much for coming in and talking about the parade of homes. If you’re listening and just joined us, we’ve been talking about the parade of homes. Get out there. There are a bunch of homes to see this weekend. You can do that this weekend and next weekend. You’ve been listening to Albuquerque Real Estate talk. And if you want to visit the Venturi Team where at www.welcomehomeabq.com or you could call us at 9336881 to talk about this show or talk or any questions you have about real estate in Albuquerque. Have a Great Weekend!
Welcome to Small Business Saturdays and market
risk-takers on kiva radio
the rock of talk on 95 nine FM a.m. 1600
in this is
tego venturi with the venturi team at
Keller Williams Realty
and I’m joined by Tracy venturi like
residential real estate here in the
area on the production panel back there
behind the glass is Aaron Henry DS
thanks for posting with us to share your
afternoon show to buy thanks man
pleasure to be here venture is yell good
Easter weekend we’re here in yeah
usually a little busy with
well right presidential we are you know
you know a lot of people are of over
which gives them time to look at houses
so we actually get really busy over
these weekends and we love it
we’re ready gives we’re hoping the
little little windy I must be spring in
New Mexico little breezy
allergies are definitely senior yeah its
at that time you’re so I you know we’ve
got a good lineup today we’re going to
talk about some in the market statistics
and there’s a really dramatic things
happening in our market now 10
I want to bring those up regarding on
supply versus demand
and then work with God trees you got a
list that we saw a news story and it was
pretty interesting kind and what’s
trending in real estate right now and
we’re gonna go through that
absolutely no we as Realtors rack we get
a lot of information for that from the
National Association for realtors and we
just were looking this morning at what’s
in real estate and it was like five
topics it will just hit on quickly
better really training for us all relate
to and a
this again is to go venturi with the
venturi team Keller Williams Realty if
you wanna talk
real estate you can call our team line
our realtor on duty line
thats 505 of course and 9
33 sexy 81 in our website is welcome
dot com so you to get these markets test
received pretty pretty interesting stuff
you know we went over this in our team
and it there’s some really the
you know absolutely I love to
to know what the market is doing and
what we know is there’s really
to different markets in Albuquerque rate
we’ve got there more affordable home
market and then are certified luxury
just very distinctly different yet they
the thing that’s this happened is we had
we had a really strong March we had a
lot of home selling marching 100 more
this March versus last year yes you know
6 I had the number you’re fires fires
were out in March taking it and she know
yeah were expected to start rising and
we got news that the
worst staying steady for now enjoy a lot
of people jumped in
India likely will stay steady of course
the jobs report coming out yesterday
Friday lackluster numbers again so the
and the central bankers are definitely
gonna be considering with more patients
went to raise those rates on all things
in the coming sooner than June 18
we would be looking towards yeah you
know it in everybody keeps rates gonna
Rays gonna go up in a corset did bump up
your month or so ago
and day just came right back down a tree
they did they went up significantly over
half a point which in near
monthly mortgage is significant and you
know we appreciate you keeping us up to
you know the nation news because we all
need to know because
things affect yes its it’s great because
when the jobs report comes out how does
that affect interest rates for home
years Albuquerque in New Mexico well as
dozen it’s interesting you know we
you know real estate is local your that
the market is
very much that but somebody’s national
like the interest rate what the Fed is
due in court you guys
you Aaron in any you’re gone in the
afternoon you guys are both kinda
a economist d types
I’m a nerd I read the journal yeah Wall
on anything yeah yen
entered into steep so anyway March
I just found the number here we had 930
in this there there’s prolly gonna be a
few more cuz there’s always a couple
don’t get picked up your were only a few
days into the
a.m. April and verses
9:20 so it’s like a 12 percent gain in
the number of homes sold in March
year-over-year thought pretty Priya I’m
pretty amazing Indians
the bigger number the number get this
the number of homes
when under contract in March was
920 last year at a 35 percent increase
mom number of homes that actually got a
contract went under contract no question
there’s still a net said in Seoul
its it’s pretty dynamic in in what that
clause is actually kind of a supply
issue in certain price ranges
right it’s either exactly n in Seoul
it’s sort of time if you thinking about
selling your house
callers now there’s buyers waiting we
only have less than a three-man
inventory homes on the market in net
more affordable price range
the third first-time homebuyer under a
hundred and fifty thousand there’s
there’s not a lot to supply rendered 200
Virginia yeah and you know Tracy Letts
hit on that you start to say this kinda
to markets explain which
you mean by that well our markets like
maybe four hundred 500,000 in a bad his
and a distinctly different market then a
house that’s price to 250,000
their homes that ur in what we would
consider higher-priced her luxury
are still lagging behind their
recovering we’re not seeing
on a lot as sales I believe last year
over a million maybe
28 houses in our markets old yeah yeah
and it’s it’s getting better
it’s still it still lagging behind
kinda you know let’s say you know
entry-level or kinda
out average price/night turkeys 200,000
so basically it’s a set average price
for market area you know in some parts
of town we still see
a demand for like that 400,000 sorghum
executive levering home maybe it’s a
move up buyers
needed innis ranchers Northeast High
specific areas where yep los Ranchos
doesn’t get too much show it depends
really does your
if somebody wants to sell in there
around 400 450 maybe it’s a single-story
sorted newer 10-15 years old in there in
then far northeast high desert north
passaic hours in the heights or
it’s in demand we have a shortage Fisher
yeah I’m so you the the takeaway couple
things I i
took out at this and I’ve been watching
this now for months that just you know
is interested in December when I saw
this as how supply is down in December
really in it continued now you know
for the last four months in it that
is continuing so you know what I see
obviously eventually appreciations gonna
come along with us
prices are gonna get driven up simple
supplied traditionally this
right happens right how long has it been
since you games yeah I seen the
this price range inventory cut go down
all the way to three months I mean
trees sounding the for late reply
specially the recent market
I went back and tried to find something
I can find I can go back i mean a
you know I I went back three years and
then there is nothing in so I’m sure
it’ll probably been since 08 yeah 07
somewhere near the crisis the yah the
yesterday it actually maybe go back like
here in our boom time you know the other
thing we know is
and we do lag behind the rest of the
country and we
we do expect a strong summer selling
season it doesn’t mean prices are gonna
go up specifically for all of our home
sellers but it does mean that your days
on market may be better
and that there will be more buyers
perhaps looking at your house in
might sell quicker so if you’re looking
to sell right now
it’s the time to do it I would you know
what I I’d even add to that if you’re
looking to sell
and move up yeah if you’re next hundred
thousand dollar house now
to a certain extent you’re in a seller’s
market in the chem
thousand dollar price range in if you’re
by a five hundred thousand dollar house
you’re in a buyer’s market
so it’s and interest rates are still
hymie I know know it’s like it sound so
I know it sounds too good to be true
bubble right doing their jobs job right
you know I mean so that you know some
other national stories is
we there some markets that are just
dying for homes for sale again Haas its
marketing are getting ten offers
right you know Denver San Francisco
you know I’ve heard some others on a
Austin San Antonio Texas definitely yeah
so we we network with Realtors all over
the country and we’re actually going to
an event at the ended April
in San Diego where the top about 200-250
Realtors can get together and share best
known methods and ideas in just
it’s always phenomenal that we keep up
with those folks on a private facebook
doors and your colleagues at your
network right place it keeps us up on
the country in like I I was talking this
morning actually yesterday morning with
broker out in the miami area they do
overseas they get tons of foreign people
slipped to do like a walkthrough video
naturally don’t class it out the because
there’s so many people buying sight
right they do a real Ron walkthrough so
people know this is really what the
house looks like this isn’t those photos
where we only
pic pick and choose the ones who really
wanted to see
because they’re buying it without ever
even come into the state’s
now we don’t have that we don’t have
day you know Santa Fe international
we don’t know Albuquerque we don’t miss
anything is heating up to you I know we
have a partner that we work with and
Santa Fe in
and their market is also heating up but
it’s just great for us to come to keep
our polls on the rest to the country and
we can you know then what’s coming our
way and I think we’re starting to see
some love what the other Realtors have
experienced over the last two years
I just wanna kinda wrap up for our young
next segment for our listeners what you
talk real estate next same I’m we’ve got
this list again what’s trending and
you know we cannot talk about some
trends here locally in in the market
just a national things that are that
apply to us
one thing I want to close out the
segment with is there you know we’re
real estate agents were real tours and
we have a team
the venturi team and we’re looking for
good people join our team
and so we’re hiring and so if you’re if
to talked about that with us just you
know reach out to us on the hotline
which is our 93 360
one number you know whoever picks it up
or mortgages directed to
probably Tracy to talk about that so I
want to put that out there and yeah
and we’re we’re looking for for good
we can always are but good definitely
will this is the team to join if you’re
looking to get into real estate or
getting as a seller buyer as well and
what’s the website again
welcome home BBQ dot com Welcome Home
a DQ dot com dot com will be back
shortly with Small Business Saturday
and market makers and risk-takers here
welcome back to
Small Business Saturday and market
makers and risk takers with Albuquerque
real estate talk this is to go venturi
with the venturi team
Keller Williams Realty and I’m joined by
Tracy entry like always talking about
real estate we just had a great
what’s going on the market in a coarser
producer here in
and medias and he a at a great great im
inside as well so appreciate that Aaron
on Tracy you’ve got this story that came
out no one to go over cuz I thought it
was pretty interesting is like what’s
trending in real estate
absolutely so it’s interesting because a
lot of these topics there’s
123 her five bullet points that realtor
dot com just released in
they’re all topics we’ve been talking
about over the last couple weeks and
you know pretty spot-on Sauron we’re
headed the curve totally
night right here in Albuquerque right
here we like to think so in
I mean this is gonna sound weird but
we pay attention I mean Tracy and I and
in our team
we really watch the market all the time
oh yeah we live and breathe this and you
know we are very much full time Realtor
3,000 real estate agents here in
Albuquerque market believe it or not in
really wanna be the polls and be the the
source for the information regarding
real estate so
so let me check give you that bullet
points and we can talk about whatever
to seems interesting so topic one was
work foreclosures keep slipping now
we’ve talked about that a couple a times
great and I looked at it again for for
march in it in it’s down again and we’re
you know less and less foreclosures on
the market less and less foreclosures
selling of course researchers lots of
them yep buyers want move in ready
properties and we could talk for hours
on this island’s
come back to that they do sellers are
so even in our market we just talked
about that mortgage rates held steady
again and home prices are surging
which were not seen not
yet a little bit yeah I mean your last
year old just
hit this cuz we did talk about earlier
is we had basically we tracked about a3
percent appreciation Albuquerque
which isn’t bad I mean it’s that
considering it it
yet okay I mean it you don’t feel it
obviously dated a month to month even
but home sellers this is good and what
we know is less
less people are upside down in their
home wrecked so
skin so let’s go back to buyers want
move in ready
capitis what is a move in ready property
most buyers that lets let’s go back to
our average sale prices 200,000
most buyers you can use an FHA loan
which is three and a half percent down
so that seven thousand dollars
maybe yeah down payment for the first
first fired by a 2000 are two hundred
thousand dollar house and then maybe
they have a little bit a closing costs
and there’s certainly no other
2000 can I just say something did its
in that three and a half percent down
earn you need to change into three
even it’s not that not just first-time
not no no now yeah sorry I stand
yeah it’s it’s available to anybody
right primary residence
impact this your first time home buyer
there some programs to help
with that decision percent so there’s a
programs which we’ve talked about an FHA
buyers not necessarily a first time
it’s got to be a primary residence now
that’s all on but move in ready a lot of
times when we’re looking at somebody is
buying a two hundred thousand dollar
house they have just enough for their
down payment or they’re getting down
may be the seller’s helping them with
closing costs are they’ve got that saved
they don’t usually have money to go in
and remodeled house
or put a new roof under a new heating
and cooling raining
you know way can operate a couple cord
or even something like new carpet you
yeah you know this year the average home
you know just average carpet may cost
three to five thousand dollars to do a
yeah and in the painting a mural
painting is one thing obviously we can
ourselves it’s not that expensive and
it’s not that excellent just messy
fortunately unfortunately some people
have painted their homes that had no
but that the whole nother discussion you
know when you see those houses you know
later treaty and Nellies yeah see
this for the buyers wanting move in
ready can see a need it freshly painted
they need to curb either shampooed
it’s bad they don’t have the ability
most to them to even go
they’re offering a kirpan allowance to
you picking you do it but most people
they need to be motivated they need to
walk in and be moved in fields
nothing and when you walk in in the
carpets old worn-out
they’re comparing it to the the seller
who updated the house who got it ready
your think about when you go so you use
technology rappers us Kennedy
detailed so when when the seller’s take
the time to detail their house they get
they sell it faster and the buyers
feeling so it’s stuff like
you know getting rid the dirty carpet
putting in a newer carpet
re: even having them take that carpet or
what stuff with the walls I would assume
yet different things
a lot of it honestly is good old fashion
cleaning with the extra elbow grease
and you know net that the yard the house
curved exactly all that stuff in
and cleaning doesn’t cost you anything
no in in in a course decline are we
always talk about the clutter and
you know buyers need to see it through
how they’re gonna live right they don’t
wanna see all your stuff now
they just wanna see the bare-bones you
know furniture just to get the basic
no a blank campus open campus yeah
so move in ready really means I can just
bring my moving boxes
income and maybe I need to wash out a
few cupboards and things but basically
need to paint and Anita we can walk
war unit at the Home Depot for the next
no HD TV show you for some in-house
that’s right okay you know another trend
that they’ve gone into I’m sorry
now Neemrana to wrap that up in and talk
about this guy I think it’s important is
the rents and that rents continue to
increase at a much faster rate is
rate then home prices and in renting
is definitely more expensive than by oh
ish you know okay into yeah it
you need to you need to think about that
if now again if you’re gonna be in a
in a city for you know it righted it
probably doesn’t make sense because
have your eight percent closing costs
you know going out of the home so you
you want to be careful about bad by in
you know but you still get those tax
advantages he got a player does and
into the equation as well so you know
it did to me it seems like the trend
going to continue the trend teen
is going to continue to increase to a
certain extent although
there’s a lotta building going on than
the multi-family world right now
you know we’ve talked about this before
too and I’m just gonna
and that can give topic about that it’s
your monthly payment
on owning is probably less than what
your rent might be right now because ur
interest rates and home prices
I’m not even to take into account the
racked just to close it with that
if you buy today you’re locking in your
monthly housing costs right
for thirty years years I’m sure that
rents aren’t gonna stay stable for
on the next topic I wanna go to this
kind of a trending topic
is the Millennials especially they’re
yes ma’am there we go so
we’re where you know they’re pushing
home builders to really be green which
we know most of our new home builders
on in the trash conservation
and stuff like that something we saw
happen here in let’s say oh nine
10 range when the builders in town were
i mean they were they were changing
they were struggling I mean it was time
enough selling anything in
and a few other the builders i think is
third with a local builders production
they started doing the the bill green
New Mexico certification
and then they kinda paul started doing
it can what happens in the homebuilding
world is right guy does it
like it used to be everybody had a
backward coolers and then builders
started putting in air conditioning is a
standard not all the builders have your
there the same thing with the green like
they’re all doing some certain level of
green green certification solar
water aspects on this green I guess
certification or green
communities that Millennials love
obviously if you’re gonna be paying your
utility bills you want to be able to
keep it comfortable so what about
heating and cooling those things
remaining unite even landscaping so that
use less water
one to plant grass and keep it watered
but if users keep interactions keep it
depends on yeah
artist you’re from how you say it but
down south because you call it sounds
like exercisers Kate yeah I
Europe X-ers game down down in yeppers
yeah we say y’all over well scholarship
get that text things little bit but this
is real estate Oct nine yr
yeah not know how it operates truces I
what what’s interesting about the bill
green New Mexico’s it was a group
who got together and started meeting and
when they were first meeting I was going
to those meetings they’re the ones who
came up with the different levels
green certifications gold silver bronze
levels so they put together charts and
they said okay this is the minimum to be
this level and then we’re gonna add on
all these other green features to be the
next level and green
and each level obviously cost them a lot
more to build that way
it’s like anything you know the the
first things aren’t that expensive in
obviously to get more and more gets more
am a premium Canada crossover right it’s
like it some point how green tea need to
you know it’s like the the extra costs
really in the long run over 30 years
probably isn’t worth it break but the
Millennials really do appreciate this
and I think this year and
in training in the future the house is
that people are buying now littered
are going to be the ones people
gravitate towards in the future as we
continue to see in
increases in utility expenses in course
Millennials getting older and moving
from the basement you know that’s what
they were saying last year there and yes
yes you’re shared roommate situation
this year we’re in the roommate
naturally the you know the length of
time will be
going into the market in a couple years
saying you know what you wanna buy one
of these houses well
in you know we could do a whole show
just on the homeowner maloney
saying in the transition in the fact
that they are larger population
then the baby boomers I don’t know if
people know than others eighty
ending eighty million yields in this
generation and 60 to 65
billion a.m. baby boomers sonya
and most people don’t own a house no we
in this economy here yes there in the
ice is right
well thanks Aaron Henry yes for for
obviously hosting with those producing
pleasure this is Ben Albuquerque real
estate talk here
on k I the a radio 95.9% FM a.m.
1600 in if you want to reach out to us
the venturi team at Keller Williams
were at 933 68 81 or welcome home
BBQ dot com