Welcome to Sandia Homes Blog

We write often to give you the latest insights on owning a home or property in the Albuquerque/Rio Rancho area. 

We are always trying to improve and help. If there are topics that you are interested in please mention them in the comment section. 

 

Oct. 19, 2021

ABQ Housing Update Sept 2021

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Albuquerque Housing Update August 2021

 

Watch the video for the full Martha Alex effect, or scroll to the bottom to get the link to market stats for September 2021

Hello Friends,

The Albuquerque Housing Market still showing signs of stabilizing. September also showed another month where the Closed sales numbers are down from the previous month, the listing inventory continues to drop but not by as much as last year.  It appears that this is as fast as this market will go, there just aren't enough homes to sell.  This is fine.  The big question is, how high can pricing go?  Currently the average price home is $340,821.  This has priced the average consumer out of the market.  Nationally this is happening as well and there was a -2% drop in closed sales.  This is being attributed to a lot of first-time buyers waiting to see what happens with the market.  New home is building as fast as they can however their pricing is moving up just as fast.  

One advantage of this market is current home values are still appreciating at an insane pace, 18.6% up this year.  So if you are still paying PMI check with your lender, odds are good you have enough equity in your home to have that removed. 

Want to know what your new home value is?
Message us and we will get that to you lickity split.

Here is the link to the full market Report.
http://www.gaar.com/images/uploads/statistics/ABQ_MMI_2021-09.pdf

 


Cheers,
Alex, Martha
and the Sandia Homes Team

 

Text us directly at 505-400-5024

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Posted in Market Reports
Oct. 3, 2021

As equity rises so does your wealth

As Home Equity Rises, So Does Your Wealth

As Home Equity Rises, So Does Your Wealth | MyKCM

Homeownership is still a crucial part of the American dream. For those people who own a home (and those looking to buy one), it’s clear that being a homeowner has considerable benefits both emotionally and financially. In addition to long-term stability, buying a home is one of the best ways to increase your net worth. This boost to your wealth comes in the form of equity.

Equity is the difference between what you owe on the home and its market value based on factors like price appreciation.

The best thing about equity is that it often grows without you even realizing it, especially in a sellers’ market like we’re in now. In today’s real estate market, the combination of low housing supply and high buyer demand is driving home values up. This is giving homeowners a significant equity boost.

According to the latest data from CoreLogic, the amount of equity homeowners have has continued to grow as home values appreciate. Here are some key takeaways from the Homeowner Equity Insights Report:

  • The average homeowner gained $51,500 in equity over the past year
  • There was a 29.3% increase in national homeowner equity year over year

To give you an idea of what that looks like in your area, the map below shows the average equity gains by state.As Home Equity Rises, So Does Your Wealth | MyKCM

What does all of that mean for you?

If you’re already a homeowner, you likely have more equity in your house than you realize. The numbers in the map above reflect year-over-year growth. If you’ve been in your home for longer than a year, you’ll likely have even more equity than that. That equity can take you places. You can use the equity you’ve gained to fuel your next move, achieve other life goals, and more.

On the other hand, if you haven’t purchased a home yet, understanding equity can help you realize why homeownership is a worthwhile goal. Homeowners across the nation gained an average of over $50,000 in equity this year. Don’t miss out on this chance to grow your net worth.

Bottom Line

If you want to learn more, let's connect. A trusted advisor can help you understand where home prices are today, how they contribute to a homeowner’s net worth, and the impact equity can have when you own a home.

Posted in House Trends
June 3, 2021

Why are people Moving?

What’s Motivating People To Move Right Now?

What’s Motivating People To Move Right Now? | MyKCM

This year, Americans are moving for a variety of reasons. The health crisis has truly reshaped our lifestyles and our needs. Spending so much more time in our current homes has driven many people to reconsider what homeownership means and what they find most valuable in their living spaces.

According to the 2020 Annual National Movers Study:

“For customers who cited COVID-19 as an influence on their move in 2020, the top reasons associated with COVID-19 were concerns for personal and family health and wellbeing (60%); desires to be closer to family (59%); 57% moved due to changes in employment status or work arrangement (including the ability to work remotely); and 53% desired a lifestyle change or improvement of quality of life.”

With a new perspective on homeownership, here are some of the reasons people are reconsidering where they live and making moves right now.

1. Working from Home

Remote work became the new norm, and for some, it’s persisting longer than initially expected. Many in the workforce today are discovering they don’t need to live so close to the office anymore and they can get more for their money if they move a little further outside the city limits. Apartment List notes:

“The COVID pandemic has sparked a rebound in residential migration: survey data suggest that 16 percent of American workers moved between April 2020 and April 2021, up from 14 percent in 2019 and the first increase in migration in over a decade… One of the major drivers in this trend is remote work, which expanded greatly in response to COVID and will remain prevalent even after the pandemic wanes. No longer tethered to a physical job site, remote workers were 53 percent more likely to move this past year than on-site workers.”

If you’ve tried to convert your guest room or your dining room into a home office with minimal success, it may be time to find a larger home. The reality is, your current house may not be optimally designed for this kind of space, making remote work very challenging.

2. Room for Fitness & Activities

Staying healthy and active is a top priority for many Americans, and dreams of having space for a home gym are growing stronger. A recent survey of 4,538 active adults from 122 countries noted the three fastest-growing fitness trends amongst active adults:

  • At-home fitness equipment (up 50%)
  • Personal trainers/nutritionists (up 48%)
  • Online fitness courses, classes, and subscriptions (up 17%)

Having room to maintain a healthy lifestyle at home – physically and mentally – may prompt you to consider a new place to live that includes space for at-home workouts, hobbies, and activities for your household.

3. Outdoor Space

Better Homes & Gardens recently released the outdoor living trends for this year, and three of them are:

  • Outdoor Kitchens: 60% of homeowners are looking to add outdoor kitchens.
  • Edible Garden: Millions of people began gardening during the pandemic . . . to supplement pantries with homegrown fruits, vegetables, and herbs.
  • Secluded Spaces: As outdoor activity increases, so does the need for privacy.

You may not, however, currently have the space you need for these designated areas – inside or out.

Bottom Line

If you’re clamoring for more room to accommodate your changing needs, making a move may be your best bet, especially while you can take advantage of today’s low mortgage rates. It’s a great time to get more home for your money, just when you need it most.

Posted in House Trends
May 27, 2021

How Misunderstandings about Affordability Could Cost You

How Misunderstandings about Affordability Could Cost You

How Misunderstandings about Affordability Could Cost You | MyKCM

There’s a lot of discussion about affordability as home prices continue to appreciate rapidly. Even though the most recent index on affordability from the National Association of Realtors (NAR) shows homes are more affordable today than the historical average, some still have concerns about whether or not it’s truly affordable to buy a home right now.

When addressing this topic, there are various measures of affordability to consider. However, very few of the indexes compare the affordability of owning a home to renting one. In a paper just published by the Urban Institute, Homeownership Is Affordable Housing, author Mike Loftin examines whether it’s more affordable to buy or rent. Here are some of the highlights included.

1. Renters pay a higher percentage of their income toward their rental payment than homeowners pay toward their mortgage.

The report explains:

“When we look at the median housing expense ratio of all households, the typical homeowner household spends 16 percent of its income on housing while the typical renter household spends 26 percent. This is true, you might say, because people who own their own home must make more money than people who rent. But if we control for income, it is still more affordable to own a home than to rent housing, on average.”

Here’s the data from the report shown in a graph:How Misunderstandings about Affordability Could Cost You | MyKCM

2. Renters don’t have extra money to invest in other assets.

The report goes on to say:

“Buying a home is not a decision between investing in real estate versus investing in stocks, as financial advisers often claim. Instead, the home buying investment simply converts some portion of an existing expense (renting) into an investment in real estate.”

It explains that you still have a housing expense (rent payments) even if you don’t buy a home. You can’t live in your 401K, but you can transfer housing expenses to your real estate investment. A mortgage payment is forced savings; it goes toward building equity you will likely get back when you sell your home. There’s no return on your rent payments.

3. Your mortgage payment remains relatively the same over time. Your rent keeps going up.

The report also notes:

“Whereas renters are continuously vulnerable to cost increases, rising home prices do not affect homeowners. Nobody rebuys the same home every year. For the homeowner with a fixed-rate mortgage, monthly payments increase only if property taxes and property insurance costs increase. The principal and interest portion of the payment, the largest portion, is fixed. Meanwhile, the renter’s entire payment is subject to inflation.

Consequently, over time, the homeowner’s and renter’s differing trajectories produce starkly different economic outcomes. Homeownership’s major affordability benefit is that it stabilizes what is likely the homeowner’s biggest monthly expense, assuming a buyer has a fixed-rate mortgage, which most American homeowners do. The only portion of the homeowner’s housing expenses that can increase is taxes and insurance. The principal and interest portion stays the same for 30 years.”

A mortgage payment remains about the same over the 30 years of the mortgage. Here’s what rents have done over the last 30 years:How Misunderstandings about Affordability Could Cost You | MyKCM

4. If you want to own a home and can afford it, waiting could cost you.

As the report also indicates:

“We need to stop seeing housing as a reward for financial success and instead see it as a critical tool that can facilitate financial success. Affordable homeownership is not the capstone of economic well-being; it is the cornerstone.”

Homeownership is the first rung on the ladder of financial success for most households, as their home is most often their largest asset.

Bottom Line

If the current headlines reporting a supposed drop-off in home affordability are making you nervous, let’s connect to go over the real insights into our area.

Posted in Home Tips
Sept. 15, 2020

Housing Update August 2020

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Housing Update August 2020

 

Hello Friends,

The August Housing Market continues to move forward with high demand and low inventory.  The interest rates are also at historic lows.  This has caused the housing market to reach the highest Average Home Price ever in Albuquerque.  This is good news for home owners who can take advantage of their record-high equity or even refinance.

On the other hand it is still extremely competitive for home buyers.  Buyers are having to bid at list price and commonly over list price which is causing house pricing to rise.  

One of the main drivers of this housing economy is the crazy low interest rates.  They are predicting that rates will remain low for the next 12 months, we shall see.  This doesn't mean you should wait to refinance your home.   

 Watch the Video 

Average Home Price  $299,444  +15.8%
Closed Sales               1265         +1.4%
Pending Sales             1481         +32.1%
%List Price Received                     99.5%
Inventory of Homes     1188          -57.2%


 


Are you curious what your home is worth?

Message us to know what your home is worth.
Message us to talk about Refinancing.

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Posted in Market Reports
Sept. 8, 2020

Is it Time to Dump Your Rental

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Is it Time to Dump Your Rental Property

 


Hello Friends,

The Housing Market continues to move forward with high demand and low inventory.  The interest rates are also at historic lows.  This has created opportunities for people to refinance their homes and also sell their unwanted rental properties.

 Watch the Video 

Here are 10 Tips to Know if it is Time to Dump your Rental

  1.  Being a Landlord is More trouble than it's Worth (Is the Stress worth more than the revenue?)
  2. Your property is worth a lot more than when you bought it. (Is the Return on Equity out of line?)
  3. You no Longer See a Positive Cash Flow (Have the repairs, and other costs increased over time?)
  4. You are Ready to Move On (Are you a long-distance landlord?)
  5. You can longer afford the maintenance  (Is it an older property)
  6. You can read the writing on the Wall.  (Do you want to take an advantage of this up market?)
  7. You need the Capital to pay off --College, or other Debts. ( Will you need the money in the next couple of years?)
  8. Identified a Better Investment Opportunity (1031 Exchange)
  9. Inherits a Property
  10. Accidental Landlord (Are you still holding onto that house you bought in the 2006-2008 housing bubble? You are recovered now)
We love rental property when it is done right.  

Martha and Alex are live on Facebook at 9:00 am every Saturday and Wed talking about Real Estate, life and whatever else Martha wants to talk about.


Watch the video for more details on whether you should keep or dump your rental.






Are you curious what your home is worth?

Message us to know what your home is worth.
Message us to talk about Keller Mortgage.

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Posted in Home Tips
July 28, 2020

Guidance and Support are Key When Buying Your first Home

Guidance and Support Are Key When Buying Your First Home

Guidance and Support Are Key When Buying Your First Home | MyKCM

In June, the number of first-time homebuyers accounted for 35% of the existing homes sold, a trend that’s been building steadily throughout the year. According to the National Association of Realtors (NAR):

“The share of first-time buyers increased in March through June—right into the heart of the pandemic period and the surge in unemployment—and is now trending higher than the 29% to 32% average in past years since 2012.” (See graph below):

Guidance and Support Are Key When Buying Your First Home | MyKCM

Why the rise in first-time homebuying?

NAR continues to say:

“The major factor is, arguably, low mortgage rates. As of the week ended July 16, the 30-year fixed mortgage rate dropped to 2.98%. With rates so low that are locked in under a 30-year mortgage, the typical mortgage payment, estimated at $1,036, has fallen below the median rent, at $1,045. For potential home buyers who were thinking of purchasing a home anyway before the pandemic outbreak and who are likely to remain employed, the low mortgage rate may be the clincher.”

Clearly, historically low mortgage rates are encouraging many to buy. With the average mortgage payment now estimated at a lower monthly cost than renting, it’s a great time for first-time homebuyers to enter the market. According to the Q2 2020 Housing Trends Report from the National Association of Homebuilders (NAHB):

“Eighty-four percent of Gen Z’s planning to buy a home are first timers, compared to 68% of Millennials, 52% of Gen X’s, and 21% of Boomers. Looking at results by region shows that over 60% of prospective buyers in the Northeast and South are buying a home for the first time. The share is above 55% in the Midwest and West.”

There are, however, challenges for first-time buyers. A recent survey conducted by NeighborWorks America also notes that understanding the homebuying process may be the most significant barrier for many hopeful homeowners:

“Homeownership is a particular challenge for many, despite high levels of interest. Americans believe there are many benefits to homeownership and half of non-owners will seek information about the process in the next few years...a large share of non-owners say the process is too challenging and only a minority know where to find advice if they wanted it. And although many would seek the guidance of community and non-profit programs, only one in three non-owners are aware of such services.”

Guidance and Support Are Key When Buying Your First Home | MyKCMIf you’re among the first-time homebuyers who feel the process is complicated, you’re not alone. If you’re not sure where to begin or you simply want help in figuring out how to save for a home, finding a trusted real estate advisor to work with is a critical step toward your success. A real estate professional can help you understand the process, review your current situation, and guide you with a plan to help you to feel confident when buying a home.

Bottom Line

If you’re interested in purchasing a home and need help getting started, let’s connect today so you can take advantage of the support available to guide you through each step of the way.

Posted in Home Buying Tips
July 20, 2020

Is now the Right Time to Sell

Thinking of Selling Your House? Now May be the Right Time

Thinking of Selling Your House? Now May be the Right Time | MyKCM

Inventory is arguably the biggest challenge for buyers in today’s housing market. There are simply more buyers actively looking for homes to purchase than there are sellers selling them, so the scale is tipped in favor of the sellers.

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), total housing inventory is down 18.8% from one year ago. Inventory is well below what was available last year, and the houses that do come to the market are selling very quickly.

Sam Khater, Chief Economist at Freddie Mac notes:

“Simply put, new housing supply is not keeping up with rising demand. We estimate that the housing market is undersupplied by 3.3 million units, and the shortage is rising by about 300,000 units a year. More than half of all states have a housing shortage.”

Why is inventory so low?

There are many reasons why it’s hard to find a home to buy today, stemming from an undersupply of newly constructed homes to sellers pressing pause on their moving plans due to the current health pandemic. One of the key factors making it even more challenging, however, is the amount of time current homeowners are staying in their homes. There has truly been a fundamental shift in the market that started about 10 years ago: people are staying put longer, and it’s contributing to the shortage of houses for sale.

In the 2019 Profile of Home Buyers and Sellers, NAR explained:

“In 2019, the median tenure for sellers was 10 years…After 2008, the median tenure in the home began to increase by one year each year. By 2011, the median tenure reached nine years, where it remained for three consecutive years, and jumped up again in 2014 to 10 years.”

As shown in the graph below, historical data indicates that staying in a home for 5-7 years used to be the norm, until the housing bubble burst. Since 2010, that length of time has trended upward, toward 9-10 years, largely due to homeowners aiming to recoup their equity:Thinking of Selling Your House? Now May be the Right Time | MyKCMThankfully, with the strength the market has gained over the last 10 years, today’s homeowners are in a much better equity position. Now is a fantastic time for homeowners who are ready to make a move to break the 10-year trend and sell their houses, especially while buyer demand is so high and inventory is so low. It’s a prime time to sell.

In addition, with today’s historically low interest rates, there’s an opportunity for sellers to maintain a low monthly payment while getting more house for their money. Think: move-up opportunity, more square footage, or finding the features they’re really looking for rather than doing costly renovations. With more new homes poised to enter the market this year, homeowners ready to make a move may have a golden opportunity to do so right now.

Bottom Line

There are simply not enough houses for sale today. If you’re ready to leverage your equity and sell your house, let’s connect today. It’s a great time to move while demand for homes to buy is extremely high.

Posted in House Trends
June 10, 2020

Procrastination Monkey

Well the procrastination monkey has made an appearance at our house.  Martha and I are realtors in the Albuquerque Area and are at the time of this recording are home schooling 4 of our 6 children.  the other two are adults and have surpassed my ability to help them with school many years ago.

We had a good system going, we thought, until we discovered our daughter is missing deadlines and staying up doing homework until midnight to finish assignments.  Yes that is when we discovered the Procrastination Monkey is residing in our home.  I always new him and I were friends, I have always preferred to do what was fun more so than what was 'Important'.  This week's video Martha and I discuss procrastination, and it might not serve you well when buying a home.

 

 

Posted in Coffee Talks
Oct. 8, 2019

2019 August Albuquerque Market Update

So August is over. I'm a little sad. I love the heat. You know, it feels like a great big hug. Martha, don't you love the heat? You know what was interesting about August, you're complaining how hot it was. Do you know how many days we had over a hundred degrees in August 31 zero zero. I looked it up. Zero. So you know what else happened in August, which is probably our most exciting thing. Mark kids went back to school. Yeah, I know I say this every August, but the kids went back to school and all of them. It wasn't just like four or five other five. They're all of them. Even the baby kindergarten in school. So cool. The other thing that happened in August, which actually is becoming a little bit bigger deal now on August 13th was national left-hander day. I've actually seen little cards and stuff with that. So tall. You left-handers happy, happy late left-hander day. And a little shout out to my favorite left-hander, Jacob. We've got a little video of him right here. Well, you know your mom's also left-handed, right? Special shout out to my two favorite left-handers. Hi mom. Little video of Jacob right here. Thank you. Think I'm going to get in trouble or not. Yeah, so what was hot was the August real estate market, so let's get into that right now.

You talked about it. Yes, inventory keeps going down. So August we had 2,418 detached homes for sale, which is down over 30% from this time last year, which we had 3,483 homes. Okay. Pending sales pending sales are still going up. So we had 1,276 homes that went under contract in August, which is up from 1,115 this time last year. The other thing I like to look at is closed, right? We just want to make sure things are selling and that they're actually closing. So we had 1,241 home sell in August, which is up about 7% over last year, which was 1,157 so sales and everything is still steady. So average sales price for August. This is 258,279 which is up a little under 2% from August, 2018 which was 253,817 so in July we saw a lot bigger gain on the average sales price, but we're still at 7% appreciation for the year.

So the other thing that we like to look at is days on market, which for August was 34 days on market average, which this time last year was 38 days. So we still have a decline on days on market, which means houses are moving quickly. Okay. So nationally they're starting to see a little bit of a slow down and that's why we saw interest rates drop. They're trying to encourage that, uh, momentum to keep going. But we are nationally starting to see a bit of a slowdown. So Martha, what are you seeing in the million dollar market? Only three. Only three. What? How's this sold in August? Well that's still pretty good, isn't it? I guess so. Two in Albuquerque, one in Los Ranchos, and I still didn't take you to go look at one. Did I? No, I'm sorry. Maybe next month. Maybe I'll just go on my own. Maybe it will just go on your own. Thank you guys. I hope this was helpful and I'll see you later.

LINK TO THE VIDEO BELOW:

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LINK TO THIS MONTH'S COFFEE TALK:

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Posted in Market Reports