Garden To-Do List

With the nice weather this last week, weren't you tempted to go and buy flowers to plant? After that freeze we had, we are all ready for Spring! But last night it dropped again below freezing so what can we really do to get ready for Spring? For one, we can water once a week. Next we can do a final cleanup on our garden beds and replant any volunteer seedlings that are shooting up. It's so nice to see the green shoots coming up through the winter dead plants. We can amend the soil especially with iron. Personally, I need to fillin the holes my dog dug burying bones in the winter lawn. I keep her off the lawn in the Spring & Summer. She won't be happy but Huskies dig.
Speaking of lawn, the Journal had a good article today about not powerraking to remove thatch. Instead, to aerate by making plugs and leaving them on the lawn. In Africa, we teach our villagers to do the same thing. Maintain the ground cover and make sure the soil surface is broken so that air and water and nutrients can enter. Same principles work here.
Soon we can break out the lawn chairs and barBQ!

BEST TIME TO BUY A HOME

Leading economist who predicted housing crash says now is time to buy
AN economist who was the only person in the property industry to label the housing market a bubble said yesterday that now is the right time for new buyers to enter the market.
Derek Brawn, whose book on the property market predicted the bursting of the bubble, said first-time buyers should buy now once they find a property at the right price.
The optimal time to buy a house was not at the bottom of the market but just before the market hit the bottom, Mr Brawn said.
A year before the bottom of the housing market is the ideal time to buy, he said.
Mr Brawn, who has launched a house price calculator at www.CompareBuy2Rent.ie, added: “House prices are only one factor that people should consider when choosing whether to buy a house now or wait for further reductions.”
The other factors include benefits of paying off the capital amount on a mortgage, plus the fact that homeowners receive tax relief on mortgage interest.
“People need to consider both these benefits and factor in further house price drops, so they can buy now — but at the right price,” the former economist with an estate agency chain said.
Mr Brawn, whose book ‘Ireland’s House Party: What the Estate Agents Don’t Want You to Know’ made him the scourge of the property industry, said renters were missing out on mortgage tax relief.
Mr Brawn gave an example of a three-bed semi for sale in Kildare for €200,000.
A couple with a €20,000 deposit who are now renting a similar property for €850 a month should buy now if they can get the price down to €183,000.
This is based on a likely further decline in house prices of 15pc over the next five years, with a rise in European interest rates, calculations on CompareBuy2Rent suggest.
- Charlie Weston Personal Finance Editor

LOWEST MORTGAGE RATES IN HISTORY!

This just in from our Realtors Association:
Mortgage applications to purchase homes rose 0.3 percent on an adjusted basis last week, virtually unchanged from the previous week, according to the Mortgage Bankers Association weekly survey.On an unadjusted basis, purchases decreased 0.3 percent compared with the previous week and were 34.1 percent lower than they were the same week a year ago.This trough in purchases comes despite the fact that 30-year fixed rate mortgages are at the lowest level they’ve been since the MBA began keeping track: 30-year fixed-rate mortgages decreased to 4.57 percent from 4.60 percent. 15-year fixed-rate mortgages decreased to 3.95 percent from 4.03 percent. 1-year ARMs decreased to 7 percent from 7.10 percent.

Housing Sales up for 3 Months

Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7% to 90.3 from a reading of 84.6 in March, and is 3.2% above April 2008 when it was 87.5.
Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions. “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”
The Pending Home Sales Index in the Northeast shot up 32.6% to 78.9 in April and is 0.8% above a year ago. In the Midwest the index rose 9.8% to 90.4 and is 11.1% above April 2008. The index in the South slipped 0.2% to 93.0 in April but is 3.5% higher than a year ago. In the West the index rose 1.8% to 94.8 but is 2.9% below April 2008.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are numerous buyer assistance programs around the country. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for downpayment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location,” he said.
“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans, to buy down the interest rate or make a larger downpayment. Buyers who are wondering about their options should contact a Realtor®, who can advise consumers on the housing assistance programs and resources available in a given area.”Read more: "Pending Home Sales Up for Three Months in a Row RISMedia" - http://rismedia.com/2009-06-02/pending-home-sales-up-for-three-months-in-a-row/#ixzz0HNbSYHWN&A

SUMMARY OF HOUSING STIMULUS BILL

National Association of REALTORS®Summary of Key Provisions of H.R. 3221 - The Housing Stimulus Bill (as of 7/30/08)
H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:
GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.
GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.
Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.For more information, visit http://www.realtor.org/governmentaffairs

RIO RANCHO THIRD LARGEST CITY IN NM

Rio Rancho is now New Mexico’s third largest city beating out Santa Fe. Since 2000, Rio Rancho has grown from 51,765 to 70,493 at a rate of 36%. The pace accelerated until 2007 and has now slowed some allowing the growth to prepare for the next growth spurt. The growth will come from the re-hiring at Intel, the new HP center to open in 2009 and movie studio activity. The housing activity is picking up some although there are still more houses for sale than buyers in the market now. As the new home inventory has been absorbed, the resale sector has picked up. For the forward looking buyer, it's an area with a long term upside.

MORTGAGE FRAUD ON THE RISE

This just in from my favorite lender, Jason Pike from Countrywide.
Arresting Times: Law Enforcement Agencies Cracking Down on Mortgage Fraud Fort Worth Business Press (07/07/08); Howe, Aleshia The FBI has seen its mortgage fraud caseload double to more than 1,400 pending cases over the past three years, and the agency expects the number to rise in the years to come. In fiscal 2007, the bureau pursued 1,204 cases, which produced 321 indictments and 260 convictions of mortgage fraud perpetrators. Appraisers are seen as key figures in mortgage fraud; and the FBI will continue to focus its efforts on industry insiders and schemes that involve inflated appraisals, fake buyers also known as "straw buyers" and loans impacted by identity theft. "The problem is going to get worse before it gets better and just because there's a downturn in the housing market doesn't mean the problem will go away," says Michael Anderson, an assistant special agent in charge of the Dallas division that oversees the FBI's white collar crime program.

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.

New Mexico First in Venture Capital Growth

Another first for us. According to an national survey, New Mexico ranks number 1 for growth in venture capital over the last decade. This is due in part to aggressive government and community efforts to attract and provide incentives for new ventures. We are on the move!

No one can believe it when I tell them that our Albuquerque foreclosure rate is still very low and our home values are still appreciating. It's economic growth like our venture capital funded companies that is fueling our economy and keeping the housing market strong. Good time to Buy!

HOUSING RECOVERY LATE 2009

Forecast Positive for Second Half of 2008Thursday, March 06, 2008 National Realty News

WASHINGTON, D.C. - The volume of existing-home sales is expected to hold steady through late spring, with a gradual recovery during the second half of the year as the mortgage situation improves in high-cost areas, according to the latest forecast by the National Association of Realtors®. Lawrence Yun, NAR chief economist, said many buyers have been waiting for higher mortgage loan limits. “The higher loan limits for both FHA and conventional loans will increase consumer choice and provide greater access to lower interest rate mortgages in high-cost regions,” he said. “Therefore, a notable rise in home sales can be anticipated in the second half of the year." Realtors locally report that calls off of signs and activity has picked up in since the start of March.
In ABQ, the number of sales is off by 35% from last year this month, but the average sales price has increase about 1% a month so far this year. A pattern of disparate price performance continues around the country with a roughly even split between up and down markets. Many areas that have lost jobs are showing price declines which might be why ABQ looks good. We are gaining jobs.
“New-home sales nationally should decline 23.7 percent to 590,000 this year before rising 7.2 percent to 633,000 in 2009. Locally, KB Homes has announced that they are leaving ABQ. For years they successfully built for starter-homes at the low end, but their last move to higher priced homes here has proven to be a poor strategic move.
The 30-year fixed-rate mortgage, which has moved erratically in recent weeks, is expected to hover around 5.8 percent most of the year, and then rise to an average of 6.3 percent in 2009. Growth in the U.S. gross domestic product (GDP) should be 1.5 percent this year and 2.4 percent in 2009. The unemployment rate is projected to average 5.4 percent in 2008 and 5.5 percent next year. Inflation, as measured by the Consumer Price Index, will probably be 3.2 percent this year and 1.5 percent in 2009. Inflation-adjusted disposable personal income is expected to grow 1.4 percent in 2008 and 3.1 percent next year.

NEW HOME SALES PICK UP

The demand for lower priced homes was there all along, but the builders targeted a higher income group in subdivisions at the far edges of the city. That marketing strategy did not work for them. I've been saying that the builders were not building for the right target market for two years, but who listens to me! Anyway, my favorite wizard on builders, David Murphy of SalesTraq, reports that the price of new homes has declined as builders get back to that first time homebuyer market. And guess what? Sales have picked up with the absorption of the new home inventory happening rapidly.

Our own stats show that the resale market is off by about 30% from last year even though the prices have stayed steady. The only area that has the same number of sales volume is the high end area of High Desert and the Far Northeast Heights.

Buyers should buy now. The rates are great and the inventory is fantastic. Ya'all come on. Call me 505-220-9193.

This Weeks Real Estate Update

Here is a link to my weekly "REAL ESTATE NEWS CHANNEL":Click Here This week's segments are full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.Some of the topics covered this week are:Real Estate Outlook - Every week, it seems, there's a battle of conflicting numbers when it comes to housing. The latest existing home sales survey from the National Association of Realtors is a perfect example.Mortgage Moment - Jan Demas discusses "Stated Income Loans"Market Condition - Local market expert Realtor Craig Martin, reports Greenville, South Carolina, is one of the few cities bucking the national trends.Ask the Expert - "Can anyone steer me to a report that will tell me the U.S Real Estate Appreciation Rates by state for the last 15 to 20 years?" Video of the Week - This week's amazing video.You can also tour my latest listing as well as view some of my personal favorites.I hope you enjoy this week's show. If you have any comments, please e-mail them to me.If you do not wish to receive this each week, please reply to this e-mail with the word 'REMOVE' in the subject line.Sincerely,Judy Pierson

REAL ESTATE NEWSLETTER

Here is a link to my "March Real Estate Update":http://realtytimes.com/112/JudyPierson

This Newsletter is full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.This month's issue includes topics such as: "When Selling Your Home, Using Scents Makes Sense!";"Condos Pay Off As Second Homes";"Timing Is Everything: When And How To Move"; "How To Stop ID Theft Cold";"Use Home Equity Protection"; Plus a roundup of February real estate activity as well as much more advice and information.I hope you enjoy this monthly newsletter. If you have any comments, please e-mail them to me. Or, if you would like to see a certain topic covered in future months, let me know that too! If you do not wish to receive this Newsletter each month, please reply to this e-mail with the word 'REMOVE' in the subject line.Sincerely,Judy Pierson

Falling Homes Sales in ABQ

The bad news is that home sales in the last quarter of 2007 for New Mexico fell 38.7% which is one of the three largest drops in the USA. The good news is that prices did not fall and in fact appreciated about 6% for all of 2007. The market picked up in Jan. so we will see what the new interest rates does to our home sales. It's a great time to buy here for those who can get financing.

For all your real estate needs, go to www.JudyPierson.com, one of ABQ's top realtors and in the top 4% of Coldwell Banker nationally. Why settle for less than the best?

ALBUQUERQUE MAYOR IN TOP 50 WORLDWIDE

Our ABQ mayor, Marty Chavez, is one of the finalist for the best mayor on the planet! Go figure. He is well loved although got no support for his bid to go for a soon to be vacated Senate seat. I think we like him here at home, just like our Governor Bill Richardson. The two of them have an interesting competition for economic development and Green Development. And they have both been amazingly successful here bringing in new businesses and reducing energy use. One does wonder how the Mayor could encourage converting lawns to xeriscape while suggesting we put lawns on our roofs. I can't quite figure that one out!

Judy Pierson, REALTOR, ePRO
Previews Property Specialist
Coldwell Banker Legacy
"One of ABQ's Top 1%"