NM Turns the Corner

New Mexico’s economic growth will be “lukewarm” in 2011, unemployment will peak at 8.8 percent and normal job growth won’t return until 2014, according to the UNM Economic Research forecast. Job growth started to return by the end of 2010 and is expected to grow 1.3% through 2015. Personal income should grow 2% this year and up to 5% in 2014. Nationally, the GDP will grow 2.6% in 2011, interest rates will remain low and the housing market has probably bottomed out. Most of NM’s industries are showing improved employment, even if at a rate slower than the rate at which jobs were lost with the exception of government jobs. Robust growth in professional services, business services and moderate growth in education and healthcare is anticipated. The collapsed housing bubble is a problem because even if someone wanted to relocate for a job, they can’t easily sell their homes. The good news is that in NM only 4.6% of homeowners are underwater compared to 68% in Nevada. People have no idea what to do with their homes.

I am finding that buyers are starting to get active and feel that now is a good time to buy, which means now is a good time to list especially before more foreclosures are dumped on the market by the large banks. Give me a call at 505-220-9193 to discuss your options.

WHY BUY HOME IN 2011?

Michele Lerner, author of Homebuying: Tough Times, First Time, Any Time, offers reasons why real estate is likely to improve in 2011. Here are five reasons she thinks consumers should consider a home purchase next year:▪ Mortgage rates will stay low. Even with rates climbing — maybe to as high as 6 percent by 2012 — they are still well below where they have been historically.▪ Tax cuts could help. Extending the tax cuts could encourage a more rapid recovery for the economy.▪ Americans want to be home owners. A recent Fannie Mae survey showed that Americans still believe a home is a safe and desirable investment.▪ Builders are about to begin building. Home builders have been sitting on the sidelines. This year, they think pent-up demand will create an appetite for new homes.▪ Homes are shrinking. Homes are getting smaller, which has made them more affordable.

I am seeing more action this year so far than in the last two years. Check out my website to search for homes that might meet your needs.

Housing Recover Expected (Hoped for) in 2011

Survey Reveals 58% of Americans Expect Housing Marketing to Recover After 2012by: Sharon GoWith the start of a new year, many are questioning if 2011 will be the bearer of better news when it comes to the state of our economy. Trulia, in conjunction with RealtyTrac, recently conducted a survey of American adults to see what their thoughts are regarding this situation. "Today, Trulia and RealtyTrac, the leading online marketplace for foreclosure properties, released the latest results of an ongoing survey tracking homebuyers' attitudes toward foreclosed homes. Results of the survey conducted online from November 2-4, 2010 by Harris Interactive on behalf of Trulia and RealtyTrac showed that Americans continue to grapple with uncertainty about the housing market, with 58 percent of U.S. adults expecting recovery to take at least another two years..."

My January is starting off really busy with Buyers and Sellers starting to get more active. This, I believe, is a good sign. Call me if you want to get ready to buy or sell...... 505-220-9193 or contact me by email at Judy@Judypierson.com.

ABQ Real Estate Prediction

Well, here goes....... my personal Crystal Ball for 2011. What is the good news? Prices will continue to stabilize and inch up month by month. Mortgage rates will go up to 5% which still is terrific. All and all, it will be a good time to buy because buyers can have some confidence that if they make an investment now, the value will hold and begin to appreciate over the next five years. Already, I have more buyers who want to purchase in this first quarter than I have had in the last two years. I sense that people are more secure in thier jobs as the mass layoffs have all but disappeared, and the stock market is positive so no more losses are expected in that arena. Retail sales are up and real estate is next, I think. For sellers, the time to sell will be better in 2011. Prices won't be up from the past two years, but the slide downward in value has largely stopped. There are foreclosures that will need to be sold this year and those are tough competition, but that too shall end. The thing I see is the return to a "Fair Market" value. Not that buyers won't still come in with low offers, but they quickly up the offer when the Seller counters at a reasonable price. Homes that are selling are selling at fair prices. Homes that are in good condition and fairly priced sell within 60 days. The days of wildly inflated prices, and profits, from real estate may be over, but property once again will be a good, reliable investment for the future. I am forecasting an improved market. There it is..... my Crystal Ball. Call me if you want to discuss your particular situation. 2011 will be the year to make a move!