ALBUQUERQUE, NM REAL ESTATE UPDATE FOR DEC, 2008

RATES DROP AND BUYERS FLOCK

The 30-year mortgages have dropped steadily as efforts are made to stop the national housing crisis. The Feds are talking about increasing the cap for jumbo loans which will free up buyers for those homes over $600,000 that sit for a long time in our market now. Fixed 30-year rates are below 6% for the first time in months and 15 year rates are hovering just over 5%. Listing prices continue to come down as sellers become more realistic in what the market sees as the worth of their home. The high assumed appreciation dreams have become realistic gains. We have and will continue to see actual home sales go up so no one is really losing value here unless the house has not been maintained. Whereas buyers used to see price reduction as a red flag indicating something was wrong with the home, now they see it as a positive indication that the seller is getting more realistic. What a great time to buy--- lots of inventory, low rates and realistic sellers! What else could one ask for?

It’s actually a good time to sell to because buyers are out there looking with access to good loans and the inventory has not ramped up as it does in Spring. The number of homes that went under contract in January here was significantly increased over the last several months. As other parts of the country begin to show sales, we expect even more out-of-state buyers to come here.

The new home market in ABQ has yet to sort out. Nationally the sales of new homes plunged by a record amount in 2007 and builders have huge backlogs of unsold homes. We are not much different here. Builders have pulled back and I would like to see them target the first time homeowners again. We’ll see.

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Recommended Real Estate Book

All Real Estate Is Local: What You Need to Know to Profit in Real Estate - in a Buyer's and a Seller's MarketBy David Lereah.Countless books offer advice on how to buy and sell a home. But All Real Estate is Local is the first book to explain how knowing the ins and outs of the local market you are targeting is essential to deciding when, where, and what to buy.Whatever the national trends are with regard to real estate - whether they are booming or busting - what really matters is what the market conditions are in your region, town, or neighborhood. What does that mean? Even during the real estate boom of 2001-2005, a great many cities and regions did not participate in the boom - they lagged behind, or even decreased in value. Similarly, when prices began to fall nationally, there were plenty of regions and locales where prices rose, and sales boomed. As Lereah makes clear, the most important factor in buying or selling a home isn't what is going on nationally - it is what is going on in your local market. Evaluating present and future trends and influences in your region or neighborhood is essential to creating long term wealth, whether you are in a buyer's or a seller's market. All Real Estate is Local shows you how to determine the conditions in your neighborhood. Lereah reveals how to: • Evaluate the DNA of homes in the town or county or region you are considering (every town has its own real estate DNA - the characteristics that make a region or city more or less desirable to live in). • Determine whether property values in your targeted neighborhood are on the rise. • Research future real estate influences and trends, from migration into or out of the region, to plans to attract or develop new businesses in the area. • Understand the local factors that can affect your investment in the future.

TIPS FOR ABQ HOME SELLERS

I actually saw something useful about the housing market on television this week. It was a piece from www.redfin.com on Tips for Selling Your Home. I’ve added a few of my own observations but here goes:

Don’t price high. If you start high “to see what happens”, you have a slim to none chance to get viewings much less buyers. Statistics show that those who price high get 88% of their asking price. Then when you drop the price, buyers smell blood and push aggressively. If you price realistically, you are likely to get between 95-100% of your asking price. Buyers aren’t stupid and their realtors will give them good information on sales in your area so offers will be realistic.
Be web savy. 75% of buyers nationally, and I think more like 85% locally, search on the web for a home before they even contact an agent. If your agent doesn’t have you on at least 8-10 good websites, then get another agent! Also, keep your price within the search framework so don’t price your home at $305,000 as most people will do a search cut-off at the even number of $300,000, for example.
List on Friday. People, and agents for that matter, are most likely to search on Fridays so you will get more traffic both on the websites and to your home.
List on Craig’s List. Make sure your agent puts your home on Craig’s list and updates it regularly with a link to your website. I haven’t sold a home yet on Craig’s list but I get about 200 hits a month on my website from it. Once they get to your agent’s website they will find your listing.
Wait to List if a Foreclosure is in the Neighborhood. It’s simple; you can’t compete. The foreclosure price will be an anchor that will pull your list price down. Wait.

ABQ REALTOR ADVISES RADON TESTS IN ABQ

As a realtor, we advise radon testing in most home sales in Albuquerque. We are located at the base of a mountain that emits radon so testing is prudent. Some homes nearest the hills or with basements have particular issues. This article is from HouseMasters, one of the vendors we use to do the testing and remediation. For more information contact me at www.JudyPierson.com

RADON
Radon is an odorless, colorless radioactive gas, which is formed by the natural breakdown of uranium. Radon can be found in high concentrations in rock and soil that contains granite, shale, phosphate and uranium, or even fill soil containing industrial waste. Radon can be present in any area, but typically concerns are higher in hilly or mountainous areas and lower in sandy, coastal areas.
Radon gas moves through the soil toward the earth’s surface where it either safely dissipates in outdoor air or seeps into buildings through cracks and gaps in the building's foundation. Radon can also be introduced into a building or home through the water-supply, particularly if there is a private well.
Once trapped inside a home, radon can accumulate to the point where it can be harmful to the occupants. Actually, it is the breakdown of radon, into what is referred to as radon decay products, that represents the greatest concern. These radioactive products become attached to airborne particles, which can be inhaled and ultimately cause lung tissue damage and cancer. Smokers are especially prone to the adverse effects of long-term radon exposure.
If radon is a concern in your home, elevated radon levels are more likely to occur during the winter months when the house is generally in closed-house conditions. The best way to test your home's radon level is by purchasing a special test kit or by hiring a professional to perform the measurement.For more information, visit http://www.epa.gov/iaq/radon or http://www.hc-sc.gc.ca/iyh-vsv/environ/radon_e.html
Remember, these tips are only general guidelines. Since each situation is different, contact a professional if you have questions about a specific issue. More home safety and maintenance information is available online at www.housemaster.com.
Copyright © HMA Franchise Systems, Inc.

LOWE'S TIPS FOR GETTING ORGANIZED

LOWE'S TIPS FOR GETTING ORGANIZED

1. Start with a plan. Make a list of projects
you want to complete during the year
and prioritize them. You don’t have to do
everything in January and February; pace
yourself so you won’t feel overwhelmed.
2. Take three simple steps. Every
organization project starts with three basic
steps: purge the items you no longer want
or need, analyze what’s left to determine
how you use it and measure the space you
have to figure out what will fit where.
When you’re organizing, use a three-box
system: keep, discard, and don’t know.
When you’re finished, seal the don’t know
box and put it away. If you haven’t opened
it in a year, you don’t really need whatever
is in there. Throw it away without looking
inside.
3. Clean out the closets. Get everyone in
your household involved by competing
for the “cleanest closet” award. When
organizing a closet, frequency of use is
an important consideration. Things you
reach for at least once a week should be
stored at a height between your shoulders
and your knees. Lowe’s has a variety
of closet organizers to handle hanging
garments, shoes, sweaters, and all types of
accessories.
4. De-clutter the kitchen. The kitchen
is often a catch-all for clutter. Review
what’s on your counters and move small
appliances and cookware you use most
often to easy-to-reach cabinets. Lowe’s
has an Unfinished Oak Lazy Susan
Corner Unit that’s perfect for maximizing
your corner cabinet storage space.
5. Tidy up the bathrooms. Clean out all
the drawers and cabinets by tossing out
expired products and items you haven’t
used in at least a year. Then sort your
products in a drawer organizer, such as
the Real Organized™ Chrome Drawer
Organizer, available at Lowe’s.
6. Make laundry day a breeze. Keep
a plastic shoe box in the laundry room
to store items you find such as lipstick,
buttons and money. Set up a three-basket
hamper system in your closet or bathroom
so you can sort your clothes the moment
you take them off, making laundry day that
much easier.
7. Organize your home office.
Customizable closet systems aren’t just
for bedroom closets. Check out Lowe’s
selection of shelves, drawers and hanging
storage for your home office closet.
Lightweight storage bins are great for files
you use often and come in decorative
canvas, metal, wood and plastic styles.
8. Don’t forget the basement and garage.
Oil drips, grass clippings and trackedin
mud make basements and garages a
challenge to keep clean and organized.
The best way to organize these areas is
to create “zones” and keep the tools and
products you need in their respective
zones, such as lawn care (mower, tools,
potting soil), car care (antifreeze, oil, car
wax), sports equipment/toys, and general
hardware/tools.

ALBUQUERQUE MAYOR IN TOP 50 WORLDWIDE

Our ABQ mayor, Marty Chavez, is one of the finalist for the best mayor on the planet! Go figure. He is well loved although got no support for his bid to go for a soon to be vacated Senate seat. I think we like him here at home, just like our Governor Bill Richardson. The two of them have an interesting competition for economic development and Green Development. And they have both been amazingly successful here bringing in new businesses and reducing energy use. One does wonder how the Mayor could encourage converting lawns to xeriscape while suggesting we put lawns on our roofs. I can't quite figure that one out!

Judy Pierson, REALTOR, ePRO
Previews Property Specialist
Coldwell Banker Legacy
"One of ABQ's Top 1%"

Mortgage Rates Drop Again

The average principal and interest payment on a $250,000 loan has dropped by $131.83 per month since August 3, 2007.1
And, there’s more good news:
The 30-year fixed rate mortgage averaged 5.87% with 0.4 points2
The 15-year fixed rate mortgage averaged 5.43% with 0.5 points2
The 5/1 ARM averaged 5.63% with 0.5 points2
The 1-year ARM averaged 5.37% with 0.6 points2

Go with a lender you can trust. With over 150 loan products, Coldwell Banker Mortgage will find the mortgage that meets your customers’ financial needs. Call your local Mortgage Advisor or visit http://traffic.mortgagesvcs.com/CT00066301NDYwMzMA.HTML?D=2008-01-11.

Year End Real Estate Sales Numbers For Albuquerque

2007 saw the real estate market in Albuquerque end with a 2% gain in appreciation for December compared to December of 2006 for detached homes in the metro area. This while the number of transactions ended about 20% behind the previous year. The North
East Heights fared far better with sales for the year only off 12%.

So despite the doom and gloom reported in the National news media Albuquerque has managed to hold on and even push ahead while the real estate market corrects itself to a more normal condition.