ALBUQUERQUE RANKS 86TH NATIONALLY

The performance of ABQ's real estate market ranked 86th out of 292 cities nationally from the first quarter of 2007 to the first quarter of 2008. For the year, our metro's average home prices were up 3.2%. Prices were flat for the first quarter however. Prices have increased 55% in the last five years here. The median price is $190,500 up to the end of the first quarter in 2008.

Buyers seem to be back in the market as the lenders have made more loans available. The homes under $250,000 have not been problems to sell. First time homebuyers have the best opportunities. Investors are around scooping up the foreclosures and many homes are marketed as short sales, which means the bank is considering taking less than is owed. The issue is that the seller also needs to get the lender to agree not to report the pre-foreclosure situation to the creditors and not to pursue compensation of the difference from the seller. There may be tax implications on the money "forgiven" as the IRS considers that "profit". Complicated.

For higher priced houses except for those involved in Relocations, the issue is coming up with 20% or even 10% cash now required by the lender. There are no more loans for that amount and PMI insurance has to be paid. SEllers are carryingnotes. Well, it's challenging, but houses are moving.