FORECLOSURES LOW IN NEW MEXICO

Forbes rated New Mexico one of the state's where you can get the best deal on foreclosures. There will not be as many here and the economy is strong so buying low and selling high is a real possiblity.

The New York Times last week analyzed where the high foreclosures are occurring and we didn’t make the cut. In some States, like Nevada, the number of foreclosures exceeds the number of sales. In CA in 2007 a quarter million homes were subject to some legal action. I spoke today with another realtor friend in Santa Fe who said there are few foreclosures. Everyday I get an investor who calls and wants me to look for good foreclosure deals where they can pay 40% off the list price. It’s just not happening here. Maybe it will, but we aren’t seeing it yet.

OUR MARKET IS NOT SOUTHERN CALIFORNIA’S

Every Friday night my husband, who works in LA, comes back to our home in ABQ with the Los Angeles Times. The headline this Friday was Southland Home Prices Tumble Fast as the region sees a 19% decline from the peak in less than a year and experts expect a continuing slide. Just to put it in perspective, in 1991 the average home price was $200,000 and by 2007 it jumped up to $505,000. So call me crazy, but a 19% decrease isn’t so bad given the outrageous growth. I mean it was unreal. Certainly, if one had bought at that peak and need to sell soon, it will be a shock. I remember when I lived in LA our house value made great swings and I just lucked out in buying and selling at the right points in the cycles. For us here in NM, we have no idea what this kind of market is like. And we don’t have to worry about earthquakes and mudslides either. All and all, I am glad to be here!

FIRST KB LEAVES AND NOW SUNCAL DEFAULTS

The difference is that their project in NM is organized and funded separately so we won’t be affected. The California-based developer was given the large Westland project. The project is to develop the historic 57,000 acre Atrisco Land Grant in the West Mesa. They insist their troubles in CA will not affect their project here. We hope so! Last week SunCal submitted plans for a 1,500 home site and another proposal for Ladera and Unser which would include 12 commercial buildings. We’ll see what happens.

Give me a call if you are looking to buy either new or resale homes!
Judy

KB HOMES LEAVING NEW MEXICO

KB is leaving our State, but will build out the homes on lots that are now contracted. They will sell remaining lots which will create some interesting opportunities and certainly create a non-cookie cutter looking community. I think it will be interesting.
The communities are Montecito Estates in the NW Mesa, the Orchards at Anderson Heights on the SW Mesa and The Villas at Broadway and Menaul which is the only one that is a condominium project.

New Mexico First in Venture Capital Growth

Another first for us. According to an national survey, New Mexico ranks number 1 for growth in venture capital over the last decade. This is due in part to aggressive government and community efforts to attract and provide incentives for new ventures. We are on the move!

No one can believe it when I tell them that our Albuquerque foreclosure rate is still very low and our home values are still appreciating. It's economic growth like our venture capital funded companies that is fueling our economy and keeping the housing market strong. Good time to Buy!

HOUSING RECOVERY LATE 2009

Forecast Positive for Second Half of 2008Thursday, March 06, 2008 National Realty News

WASHINGTON, D.C. - The volume of existing-home sales is expected to hold steady through late spring, with a gradual recovery during the second half of the year as the mortgage situation improves in high-cost areas, according to the latest forecast by the National Association of Realtors®. Lawrence Yun, NAR chief economist, said many buyers have been waiting for higher mortgage loan limits. “The higher loan limits for both FHA and conventional loans will increase consumer choice and provide greater access to lower interest rate mortgages in high-cost regions,” he said. “Therefore, a notable rise in home sales can be anticipated in the second half of the year." Realtors locally report that calls off of signs and activity has picked up in since the start of March.
In ABQ, the number of sales is off by 35% from last year this month, but the average sales price has increase about 1% a month so far this year. A pattern of disparate price performance continues around the country with a roughly even split between up and down markets. Many areas that have lost jobs are showing price declines which might be why ABQ looks good. We are gaining jobs.
“New-home sales nationally should decline 23.7 percent to 590,000 this year before rising 7.2 percent to 633,000 in 2009. Locally, KB Homes has announced that they are leaving ABQ. For years they successfully built for starter-homes at the low end, but their last move to higher priced homes here has proven to be a poor strategic move.
The 30-year fixed-rate mortgage, which has moved erratically in recent weeks, is expected to hover around 5.8 percent most of the year, and then rise to an average of 6.3 percent in 2009. Growth in the U.S. gross domestic product (GDP) should be 1.5 percent this year and 2.4 percent in 2009. The unemployment rate is projected to average 5.4 percent in 2008 and 5.5 percent next year. Inflation, as measured by the Consumer Price Index, will probably be 3.2 percent this year and 1.5 percent in 2009. Inflation-adjusted disposable personal income is expected to grow 1.4 percent in 2008 and 3.1 percent next year.

NEW HOME SALES PICK UP

The demand for lower priced homes was there all along, but the builders targeted a higher income group in subdivisions at the far edges of the city. That marketing strategy did not work for them. I've been saying that the builders were not building for the right target market for two years, but who listens to me! Anyway, my favorite wizard on builders, David Murphy of SalesTraq, reports that the price of new homes has declined as builders get back to that first time homebuyer market. And guess what? Sales have picked up with the absorption of the new home inventory happening rapidly.

Our own stats show that the resale market is off by about 30% from last year even though the prices have stayed steady. The only area that has the same number of sales volume is the high end area of High Desert and the Far Northeast Heights.

Buyers should buy now. The rates are great and the inventory is fantastic. Ya'all come on. Call me 505-220-9193.

This Weeks Real Estate Update

Here is a link to my weekly "REAL ESTATE NEWS CHANNEL":Click Here This week's segments are full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.Some of the topics covered this week are:Real Estate Outlook - Every week, it seems, there's a battle of conflicting numbers when it comes to housing. The latest existing home sales survey from the National Association of Realtors is a perfect example.Mortgage Moment - Jan Demas discusses "Stated Income Loans"Market Condition - Local market expert Realtor Craig Martin, reports Greenville, South Carolina, is one of the few cities bucking the national trends.Ask the Expert - "Can anyone steer me to a report that will tell me the U.S Real Estate Appreciation Rates by state for the last 15 to 20 years?" Video of the Week - This week's amazing video.You can also tour my latest listing as well as view some of my personal favorites.I hope you enjoy this week's show. If you have any comments, please e-mail them to me.If you do not wish to receive this each week, please reply to this e-mail with the word 'REMOVE' in the subject line.Sincerely,Judy Pierson

REAL ESTATE NEWSLETTER

Here is a link to my "March Real Estate Update":http://realtytimes.com/112/JudyPierson

This Newsletter is full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.This month's issue includes topics such as: "When Selling Your Home, Using Scents Makes Sense!";"Condos Pay Off As Second Homes";"Timing Is Everything: When And How To Move"; "How To Stop ID Theft Cold";"Use Home Equity Protection"; Plus a roundup of February real estate activity as well as much more advice and information.I hope you enjoy this monthly newsletter. If you have any comments, please e-mail them to me. Or, if you would like to see a certain topic covered in future months, let me know that too! If you do not wish to receive this Newsletter each month, please reply to this e-mail with the word 'REMOVE' in the subject line.Sincerely,Judy Pierson