ARE WE RECOVERED YET?

Well, no, but there is definitely more activity since May in Albuquerque and the USA as a whole. As an article in the National Association of Realtors states "we have had six years of upside craziness followed by three years of downside terror. Now we're in a tug-of-war between those who think we have found a bottom and those who think prices will continue to decrease." Here in ABQ sales are picking up, but the prices do not seem to be turning around.
Whereas the long term appreciation trajectory in ABQ is traditionally between 3-5% annually, the decline has been 5-6% in the last couple of years. For those who can wait it out, it is not a problem and many have successfully petitioned to have their taxes reduced. For those who bought in the last four years and now must sell, the picture is not rosy. When you estimate the seller pays about 8% of the sale price just to close the deal, you see the problem. Either the equity is eaten up, they come up with the difference at closing or pursue a short sale. Not good alternatives.
The housing outlook by NAR is that we will see some recovery in 2010 and by 2012 we will have full recovery. We are seeing more buyers although the demand is still in homes under $250,000. I hope the President extends the Tax Credit for first time homebuyers because this program has really been working to stimulate purchases. The domino on that is that for each house sold someone "moves up" to a more expensive home so the whole market eventually will start to move.
We are beginning to see more buyers in the higher end who have finally sold their homes in other states and are moving to ABQ. I think that growth will just continue in the next two years. As a city we are attractive as a place to live or retire.
So the future is still not clear. Each situation has to be assessed individually as there are different trends in different parts of the city. I am available for a strategy session to help anyone figure out what they should be doing. I've also been helping provide comparables for those who are challenging their tax assessment. Give me a call.
Give me a call at 505) 220-9193