AUGUST MONTHLY MARKET REPORT

ABQ RATES HIGH FOR REAL ESTATE INVESTMENT

Forbes magazine this week ranked Albuquerque among one of the Best Housing Markets for investors. The housing health of a city is affected by a lot of factors including the jobs picture and the rate of vacancies and foreclosures. But some cities where home prices have been battered look like great buys for investors, a good sign that in spite of deep declines, they might turn around dramatically.
Two years ago the idea of putting money behind real estate ventures seemed too risky for even the most reckless of capitalists. But investor skittishness about the real estate market is slipping away, and speculators are seeing value in distressed markets
Those cities, like ABQ, that didn't see the same dramatic run-ups in prices as many cities did between 2001 and 2006 were spared a corresponding bust. They are also buoyed by a mix of jobs that's weighted toward growth industries like government and education.
But investors aren't just looking at the jobs picture, and neither should families seeking promising cities in which to live. One of the characteristics of a city poised for a comeback is a population that was booming before tough economic times made relocating difficult for most American. Albuquerque, N.M. is on the list because it grew by 9% before the downturn hit. "These are markets that in the past year have had turndowns but we think they have longer-term potential," says Wizner. "Markets with longer-term prospects in general had above-average population growth between 2000 and 2005."
Although much of the housing crisis fallout has already occurred, investing in residential real estate is still dicey, and valuations are trickier than ever. Wizner says that's exactly why real estate is becoming exciting again.
"You tend to get the best bargains in the market when nobody knows where price ought to be," he says. "The question is no longer which are the risky markets. Now that that adjustment has taken place, it's what's going to happen from here on in."

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

IS REAL ESTATE STILL GOOD INVESTMENT?

Over the last few months I have personally had the opportunity to ask several people (at random) about the residential real estate market. I did not mention that I was associated with the real estate industry. During our conversation, the majority had expressed a concern for future values. Most believed values would continue to drop. Combined with the media and some pessimistic people, it is our job to be the educator in our business.

Here are some facts of today’s market and these examples will apply to any value with the same percentages:

Let’s use a $200,000.00 value and to make things easier, let’s assume 100% financing. At 4.500% the P & I payment would be $1,013.37

Assume values dropped an additional 10% - NOW using a loan amount of $180,000. Assume 6.500%, the P & I payment would be $1,137.72. $124.35 higher!

Okay, for those who view as “half empty” – With a 20% drop using $160,000 assuming 6.500%, the P & I payment would be $1,011.31, only $2.06 difference!!!

History has proven that buying real estate is a good investment. Generally over time, most can depend on appreciation. The majority of business that we do generate is primarily consumers who are purchasing a home to occupy as their principal residence. The consumer’s concern should be narrowed to personal preference. As history has proven, the investment overtime shOver the last few months I have personally had the opportunity to ask several people (at random) about the residential real estate market. I did not mention that I was associated with the real estate industry. During our conversation, the majority had expressed a concern for future values. Most believed values would continue to drop. Combined with the media and some pessimistic people, it is our job to be the educator in our business.

Here are some facts of today’s market and these examples will apply to any value with the same percentages:

Let’s use a $200,000.00 value and to make things easier, let’s assume 100% financing. At 4.500% the P & I payment would be $1,013.37

Assume values dropped an additional 10% - NOW using a loan amount of $180,000. Assume 6.500%, the P & I payment would be $1,137.72. $124.35 higher!

Okay, for those who view as “half empty” – With a 20% drop using $160,000 assuming 6.500%, the P & I payment would be $1,011.31, only $2.06 difference!!!

History has proven that buying real estate is a good investment. Generally over time, most can depend on appreciation. The majority of business that we do generate is primarily consumers who are purchasing a home to occupy as their principal residence. The consumer’s concern should be narrowed to personal preference. As history has proven, the investment overtime should be sound. However, past results do not guarantee future performance.

If the consumer’s primary motive for purchasing is strictly investment, the approach is completely different. As we are all aware, timing is everything! Buying real estate does not provide a prospectus as does investing with stocks or bonds. That said, personally, I have done very well over the last twenty years by buying real estate. Today my real estate investments lie in a shallow valley, as do my other investments. I recognize that this is the time to buy. A buyer’s market combined with historic interest rates should help buyer’s fear.

If your purchaser’s are buying below $300,000, a great option is a thirty-year FHA fixed rate mortgage. FHA loans are assumable with qualifying. This will release the seller from any future liability along with creating a low interest rate for future buyers! Assuming values do decrease, the assumable mortgage will add a valuable feature for future buyers! ould be sound. However, past results do not guarantee future performance.

If the consumer’s primary motive for purchasing is strictly investment, the approach is completely different. As we are all aware, timing is everything! Buying real estate does not provide a prospectus as does investing with stocks or bonds. That said, personally, I have done very well over the last twenty years by buying real estate. Today my real estate investments lie in a shallow valley, as do my other investments. I recognize that this is the time to buy. A buyer’s market combined with historic interest rates should help buyer’s fear.

If your purchaser’s are buying below $300,000, a great option is a thirty-year FHA fixed rate mortgage. FHA loans are assumable with qualifying. This will release the seller from any future liability along with creating a low interest rate for future buyers! Assuming values do decrease, the assumable mortgage will add a valuable feature for future buyers!