New Mexico Bucks the Trend.

NM ranks #1 in the USA for home appreciation at 9% for 2007. Go figure. We also have seen a 30% drop in foreclosures which rose 58% nationally. Our rate was 1 in 395 households compared to 1 in 134 nationally. Our market has slowed but is quickly getting to a normal volume and rhythm now that investors are mostly gone. Homes are on the market 1-2 months and sellers have to be prepared to consider a lower price. The ole “assumed high appreciation” just isn’t what it was two years ago. But the prices are fair and have appreciated, and the seller who tests the market with a high price loses time and money in the end.

The number of homes nationally that went under contract in November went up by almost 1% for the second consecutive month. The NAR predicted trend for next year is a gradual rise in existing home sales. This optimism is fueled by interest rates that are hovering just over 6%. And buyers aren’t stupid. They know that the inventory is still very high with sellers getting more motivated as each month goes by. One interesting fall-out in the real estate crisis is that remodeling is not worth what it used to be. Sellers are finding a lower return on their remodeling investment. Get some professional advice from your realtor before spending your money there.

Give me a call at 505) 220-9193 or go to www.judypierson.com for more details on the area or to search all listings.. THANKS! Judy