HOME PRICES RISE IN ABQ

Well, the prices didn't go up by much, but they didn't go down. Last year the average price was $246,000 and now it is $247,000. Most of the sales are happening in the price range $100,000 - 300,000 so that depresses the average abit. In this price range we see first time homeowners and local couples moving up from their first home. FHA loans are quite popular and NM has a program for first time homebuyers called MFA that pays the down payment. Lots of VA loans too. Looks like whoever can get help is getting it with these government programs. The range between $300,000 - 500,000 has fewer buyers and these houses sit on the market 3-4 months or more. It's an in between range where buyers need at least 10% down. Most people in this group and above, need to sell their home first and they are fearful to buy before they sell. They can't afford to end up with two payments for an extended period.
None of my deals are straight up easy ones anymore. I am seeing more Real Estate Contracts where the seller carries some amount until the buyers home sells. The buyer still needs to come in with enough cash to cover closing costs so it is not a slam dunk. One deal this week was a REC for just three weeks while the buyer who is over 62 years gets a reverse mortgage on the equity in the house and pays off the seller. YOu just need to be 62 to qualify for a reverse mortgage. Interesting.
We have more homes under contract than in months. It feels to me like the market is turning around. I think we hit bottom and didn't realize it. Let's hope.