RealABQ Real Estate

How the Short Term Rental Housing Market affects Albuquerque Buyers and Sellers

Albuquerque real estate market, short-term rentals (STRs) can impact your house’s marketability. Let’s delve into their role and impact:

  1. Housing Crisis and STRs:
    • Albuquerque is currently grappling with a housing crisis. As our population grows, safeguarding our limited housing stock for local families and future homeowners is crucial for long-term prosperity.
    • While STRs contribute to the city’s economy, it’s essential to prioritize local community members who host these rentals. Striking a balance between tourism and housing availability is vital1.
  2. Maximizing Access for Locals:
  4. Proposed Changes:
    • The proposed changes include:
      • Requiring all STR units to have a local property manager available within 20 miles to address maintenance and security concerns.
      • Limiting STR permits to three per natural person.
      • Capping the citywide STR permits at no more than 1,200 based on the current monthly average of active STRs.
      • Increasing civil penalties for non-compliance with the ordinance1.
  5. Local Perspectives:
How the Short Term Rental Housing Market affects Albuquerque Buyers and Sellers2024-04-10T19:10:23+00:00

Albuquerque Housing a Seller’s Market in 2024

Albuquerque is currently a seller’s market, according to an analysis by Knock, a home loan company. In fact, it ranks as the 10th best market for sellers. The forecast indicates that Albuquerque will continue to be a seller’s market for the next year. Despite nationwide shifts favoring buyers, Albuquerque still experiences a shortage of homes, contributing to its seller-friendly conditions. Affordable homes, first-time home markets, and attached condos remain particularly favorable for sellers. However, mid-level homes within the $450,000 to $700,000 range may offer opportunities for buyers, depending on location. Home prices are expected to continue increasing, so prospective buyers should explore special programs and consider assumable loans to make homeownership more affordable1.

For more detailed insights into the Albuquerque housing market, you can refer to the Albuquerque Housing Market Tracker, which provides weekly updates on trends, inventory changes, and price movements2. Overall, the current data suggests a well-balanced market, offering opportunities for both buyers and sellers3.

Albuquerque Housing a Seller’s Market in 20242024-04-10T19:11:01+00:00

Hybrid Fee Structure Explained – Realabq.com; early adapter with experience

  1. Traditional Real Estate Route:
    • Traditional real estate firms offer comprehensive services to home sellers. These services include:
      • Evaluating the home, property, neighborhood, and market data to determine a fair list price.
      • Managing photography and virtual tours.
      • Marketing the home on the Multiple Listing Service (MLS) and syndicated sites.
      • Placing a “For Sale” sign in the yard and using key lockboxes.
      • Creating marketing materials and advertising through various channels.
      • Home staging (if offered).
      • Facilitating open houses.
      • Handling contract negotiations, buyer inquiries, and home inspections.
      • Guiding the transaction through closing.
    • The cost for these services is covered by the seller through a commission. On average, the seller’s agent receives 3% of the home sale price, and the buyer’s agent also receives a similar commission.
    • Negotiating lower commissions can be challenging, as agents rely on these fees for their livelihood1.
  2. For Sale by Owner (FSBO):
    • In the past, FSBO meant selling a home without any support, but it allowed sellers to avoid commissions.
    • Technology has made FSBO less daunting, and sellers now have more choices even within the FSBO route.
  3. Hybrid Rate Fees:
    • Hybrid fees combine elements of traditional and FSBO approaches.
    • They offer a middle ground, allowing sellers to save on commissions while still accessing essential services.
    • Examples of hybrid fee arrangements include:
      • Discounted Commissions: Negotiating lower commissions with an agent.
      • Flat Fee Services: Paying a fixed fee for specific services (e.g., listing on MLS, marketing materials).
      • Technology-Driven Support: Leveraging technology platforms for marketing and transaction management.
    • These options empower sellers to make informed decisions based on their preferences and needs2.

In summary, hybrid rate fees provide flexibility, allowing sellers to tailor their real estate experience while balancing costs and services. Whether you choose the traditional route, FSBO, or a hybrid approach, understanding your options is crucial for a successful home sale! 🏡🔑

Hybrid Fee Structure Explained – Realabq.com; early adapter with experience2024-04-10T19:11:17+00:00

Where Have all the Albuquerque Houses Gone?

  • 626 homes available in the Metro counties in January
  • Median home price Metro wide was $304,000
  • Median Single Family price was $310,000
  • 20 days from listing to escrow across Metro
  • 986 new listings hit the market in January
  • 1,005 deals were inked, pending sale
  • 893 Homes closed

Holy cow inventory is tight! As I write this in late February there are 571 homes of any type available in the Albuquerque Metro area – that’s Bernalillo, Sandoval, Valencia and Torrance counties. And I’m not just talking single family homes. I’m counting SFs, townhomes, condos and manufactured homes.

 

And We Thought Inventory Was Tight Last Year

For January the count was 626 homes available on average on any given day throughout Metro. Back in January 2021 there was an average of 1,116 homes available and in January 2020, right before Covid hit, we averaged 2,086 available homes. Even then we were seeing inventory tightening.

Think about that – we’re running about a third or less homes available for buyers than we had just two years ago. Add in low interest rates, some (not all) buyers with deep pockets and improving economics and you have a recipe for some serious price hikes. This is not news to you, I’m sure.

This January the median Albuquerque Metro home price for all types of homes was $304,000, up 21% from the $250,650 January 2021 median and a whopping 39.5% jump over the January 2020 median of $217,900. For single family detached the median was $310,000, compared to $257,900 in January 2021 and $222,500 in January 2020.

The typical January sale was just a hair over ask at 100.3% of list price. That’s up a skosh from January 2021’s 99.5% list to sell ratio. January 2020s list to sell was 98%. Homes went into escrow in 20 days on average but fully half the homes went into escrow in 6 days or less. In January 2021 homes went pending in about 24 days (half in 6 days or less) and in January 2020 we ran about 44 days to contract, half going in 25 days or less.

 

How About Just Albuquerque?

 

  • 422 homes available in Albuquerque in January
  • Median Home price in Albuquerque was $290,000
  • Median Single Family price was $305,000
  • 17 days from Listing to Escrow in Albuquerque
  • 712 new Albuquerque listings to market in January
  • 635 deals inked in Albuquerque
  • 610 homes closed in Albuquerque

If we look just at Albuquerque proper there are 276 homes available as I write this in late February. In an historically normal February we’d have about 1,600 homes available in Albuquerque and roughly 2,500 in the Metro area.

January averaged 422 homes available in Albuquerque on any given day. In January 2021 we would have about 600 homes available on most days and in January 2020 we would be picking through about 1,200 homes. And again, way back as we started 2020 we were remarking on the tight inventory.

 

Prices Up 33% in Two Years

In our little town of Albuquerque the median home price was $290,000 in January for all types of homes. The median in January 2021 was $246,000 and in January 2020 we had a median of $218,000. So This year we’re up 17.9% over 2021 and a snappy 33% over January 2020. The median price of a single family detached home was $305,000 in January compared to $255,000 in 2021 and $225,000 on 2020.

Homes in Albuquerque sold right at list price, the list to sell at 100%. That’s unchanged from January 20921 and up from the 98.7% list to sell in January 2020. Homes went pending in 17 days on average with half the homes going pending in 5 days or less. In January 2021 that was 24 days on average with half going pending in 6 days. In 2020 it was 42 days to pending, half in less than 21 days.

 

Great Time to Sell?

That’s pretty remarkable. You’ve been reading about low inventory for a while and it’s a country-wide phenomenon. There a few factors involved and not total agreement on all of them. But there’s no question the low number of homes is what’s fueling sharply rising prices.

It’s as much a seller’s market as we’ve seen in decades, maybe ever. If you are a buyer it’s a brutal market to be hunting homes in. If you are a seller, well you’re pretty happy on the listing side of course. Problem is, most sellers are also buyers so any gains they make on the sell side are quickly lost on the buy.

Now January and February are generally the cruelest months for home searching with inventories generally as tight as you’ll see for the year. I have no reason to think that won’t be true in 2022 and I expect we’ll see more homes come available and more choices as we progress to summer.

– Joe LaMastra, RealABQ Real Estate, February 25, 2022

Where Have all the Albuquerque Houses Gone?2024-04-09T21:20:41+00:00
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