Sunday, November 20, 2011

Brainpower Ranking High in ABQ

Albuquerque has been ranked among major U.S. cities for 'brainpower' in On Numbers' analysis of educational attainment in 269 communities with more than 100,000 residents.
The Duke City ranked No. 68 in the analysis. The city's population in 2009 was estimated at 515,107. The educational numbers show almost 14 percent of all adults (25 or older) have earned graduate and/or professional degrees.
Nationally, Ann Arbor, Mich.; Cambridge, Mass.; and Berkeley, Calif., hold the top three spots.
In my practice, I deal with many, many clients from Sandia lab, UNM, and even Los Alamos. I enjoy the logical thinking and analysis those clients demand. My husband, the aerospace engineer, says I'm a "closet engineer" but don't tell anyone!

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Wednesday, August 24, 2011

ABQ Home Sales Sag In July

That is the headline but what’s behind the numbers? First of all, we had some terrible financial uncertainty that threw everyone off guard for a couple of weeks. That will stop things dead in their tracks. While it is true that the housing recovery in ABQ is up and down, we see a steady solid influx of new buyers and a few new sellers. Usually, sellers have already got their homes on the market to catch the summer traffic. In ABQ, new listings always slow come Fall and Winter. Sales in ABQ have been steadily rising month by month bucking the national trend until July. Compared to last year however, sales are up by 12 percent. The home prices went up but are still below last year’s level. Statistics can be viewed at www.gaar.com. Call me if you want to see what this means for you.

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Friday, December 10, 2010

RATES INCHING UP - BUY NOW!

This just in from the Wall Street Journal: Mortgage rates rose again last week to their highest level since July.
The 30-year fixed-rate mortgage averaged 4.66% last week, up from 4.56% two weeks ago. That’s still below the year-to-date average of 4.74%, but it’s up from a low of 4.21% in October.
Rising rates are likely to further crimp refinance activity, which was down 1% for the week and down 8% from year-earlier levels.
But rising rates could encourage some fence-sitting buyers to close deals, and home-purchase mortgage applications jumped by nearly 2% last week, sending activity to its highest level since May.
Rates are closely tied to the 10-year Treasury, which has been on the rise over the past few weeks and jumped in recent days after the tax-cut compromise struck by the White House and congressional Republicans.

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Thursday, November 11, 2010

HOLIDAY DECORATING TIPS

Nobody wants to be the Grinch who stole Christmas but when you’re trying to sell a home, too much holiday spirit can turnoff some potential buyers. Buyers are there to look at the house and all of its wonderful features, not tippy-toe over the giant blow-up Santa impeding the front door or squint to see the roof over the nine reindeer poised upon it.

But before you stick a needle in your seller’s inflatable Santa, some real estate and staging professionals say home owners can still add a few decorations for the holidays when selling a home and don’t assume buyers won’t appreciate it too. Holiday decor can lighten moods and warm up interiors, so you don’t have to swear it off completely because you’re afraid of offending those who don’t celebrate, they say.

Betty Cunningham with Coldwell Banker Residential Brokerage in Schaumburg, Ill., says showing homes in the Midwest during the winter can be challenging enough, so to spice things up during the winter months she encourages her clients to decorate for the holidays. She’ll even provide guidance on how.

“Isn’t it nice to open the front door and see lights and the Christmas music playing with some cinnamon smells welcoming you? It just says ‘welcome, come in and stay awhile,’” Cunningham says.


6 Principles to Holiday Staging

The key to holiday decorating is to keep the decor high quality and color-coordinated, says June Lizotte with June Lizotte Real Estate in Milwaukie, Ore.

If you plan on staging a home for the holidays, here are some important things to keep in mind.

1. Don’t overdo the holiday cheer.

When Santas start to outnumber the rooms in the house, you may want to start being more selective in what you display.

“If it is ‘cute,’ it stays packed,” says Joanne O’Donnell, president and CEO of Chic Home Interiors, who offers holiday staging services. “Cute is not a universal concept and the surest way to avoid trouble is to keep it simple and elegant.”

The same staging principles apply during the holidays: Don’t overwhelm the space with clutter.

“For every holiday decor item put on display, temporarily pack something you keep out all the time. That way you can avoid over-decorating,” says staging and real estate pro Tori Lynn Wallitsch with Alliance Real Estate and Ross Designs LLC in Omaha, Neb.

Instead of a large Christmas tree dominating the living room, you might opt to have a smaller tree display on a table top -- particularly if the space is small, suggests Lizotte. Your decor doesn’t have to be super-sized or scattered everywhere: Mix in small centerpieces on dining room tables, bookcases, bathroom sinks or end tables -- simple touches such as pine cones or ornaments in a glass bowl. (See 11 Inexpensive, Simple Holiday Decor Ideas).

You also might want to have home owners rethink hanging those Christmas stockings from the fireplace too.

“Whatever the season, when you are selling a home, you want buyers to notice and appreciate the permanent features of the home and if your fireplace is almost impossible to see because your highly personalized stockings are blocking the view, then buyers will not appreciate this focal point for what it is,” Wallitsch says. Instead, ask your sellers to hang the stockings on Christmas eve and remove them Christmas day.

2. Add splashes of holiday colors.

How about some holiday red? Psychology research on color responses has shown that warm colors, such as red, can increase excitement and energy in those viewing it. Pops of seasonal colors -- such as red or green -- add festive cheer to a home too and can be as simple as just adding a red everyday throw to the sofa or adding poinsettias throughout the home.

It doesn’t have to be bold holiday statements: Add greenery to fireplace mantels or as a base for the dining room table centerpieces, O’Donnell says. Or another holiday favorite: Bows and ribbons can add splashes of color -- tie them around candles, wreaths, and basket handles throughout the house for extra pops of color. Don’t underestimate the power of neutral palettes too in your holiday decor, such as silvers and classic whites.

Try repeating colors from room to room and using similar ribbons, ornaments, patterns or decorative items that can add to the consistency of your holiday look, according to holiday decorating tips by WorldofChristmas.net.

But when bringing in holiday colors, be careful not to clash with your home’s current color scheme, O’Donnell says. For example, if turquoise is the room’s dominant color, you might want to hold off on adding bold holiday reds; try silver instead.

3. Stage for the senses.

Get buyers in the mood with some holiday music and the smell of Christmas filling the home. Christmas music -- mixed with holiday scents -- has been shown to boost people’s attitudes in retail stores and increase their likelihood of wanting to visit them, according to research conducted in 2005 by Eric R. Spangenberg, Blanca Grohmann and David E. Sprott Journal of Business Research (Vol. 58, Issue 11).

Cunningham usually gives a holiday CD to her clients to use for showings -- it features mostly instrumental and soft holiday music.

For scents, O’Donnell recommends adding a pot of mulling spices or cider. The Smell of Christmas by Aromatique (candles, potpourri or oil) is a favorite of Cunningham’s or candles that smell like pine or fresh-baked cookies can create holiday season scents too, adds Valerie Torelli with Torelli Realty in Costa Mesa, Ca.

But if you’re going to include a holiday scent just don’t forget the music. The 2005 study showed that the presence of Christmas scent (Enchanted Christmas by Greenleaf in this case) with non-christmas music lowered buyers’ perceptions of the store and its merchandise. But when the Enchanted Christmas scent filled the air with Amy Grant’s “Home for Christmas” music playing in the background, participants had a favorable response and were more eager to buy.

4. Keep the tree simple, yet elegant.

The Christmas tree will likely be your biggest decor piece so it needs to make a statement. Use a string of 100 lights for every foot of tree, suggests Cunningham. In other words, if you have a 7-foot tree, use at least 700 lights (she prefers the white twinkling ones).

Other tips:
If your tree is larger than six feet, consider removing a piece or two of furniture so the space doesn’t feel crowded, Wallitsch says.
Use ornaments all in one basic color palette with “show piece” ornaments mixed in that add extra style, O’Donnell says. As a general rule of thumb, use about 20 filler ornaments (such as one or two tone bulb ornaments) for every two feet of Christmas tree and then mix in those special “show piece” ornaments between the filler ornaments, using about 10 for every two feet of tree, according to interior design writer Coral Nafie who wrote about holiday decorating tips at About.com.
Hang ornaments on the tips of branches as well as inside the tree to add depth, and mix in various size of ornaments.
Make sure ornaments that are overly personal -- such as those marking milestones like “Our First Christmas” or “Baby’s First Christmas” -- are not in prominent locations on the tree or keep them packed up for next year, Wallitsch suggests.

5. Give a holiday impression from the curb.

You needn’t be able to view your outdoor holiday lights from space, Clark Griswold, to show your holiday spirit. Twinkling clear, white lights (preferably non-blinking) tend to be the favorite among staging and real estate professionals for classy holiday curb appeal that adds a glow to your listings at night.

“The winter months are usually less than attractive outdoors and some well-placed and tasteful holiday lights or yard ornaments can go a long way to adding a festive and welcoming touch,” Wallitsch says. “Just remember that many potential buyers may either cruise by your home for sale during the day or schedule a showing during the day when outdoor lights are more likely to be an unsightly bunch of wires (such as icicle lights) rather than a cheerful display of color or white lights. Do your best to make your home show its best during the day and night.”

Here some holiday curb appeal tips:
Add poinsettias: Plant several poinsettias in groups of three or five close together in the garden. “They really set off the first impression,” says Torelli.
Hang a wreath on the front door (and make sure it’s clean!), suggests Cunningham.
Have battery-operated candle lamps in each of the windows for extra glow and to show off all of those windows at night.
Make the deck sparkle. For example, a weather-proof, tip-proof tree with lights or a simple strings of lights along the deck’s railing can go a long way in adding charm to your showings after dark, says Judy Jensen, Edina Realty in Eagan, Minn.

Then, consider adding the holidays to your marketing: Take a photo of the home at night as it twinkles from the holiday lights and create a special holiday flyer with information about the house.

“This is a great marketing tool we often use in the months of November and December to help sell the home,” adds Torelli with Torelli Realty in Costa Mesa, Calif.

6. Remove decor after the holidays.

Jolenta Averill, broker-owner of Lake & City Homes in Madison, Wis., once showed a home in the middle of summer that still had a huge Santa Claus on its front porch and a Christmas tree lit in the living room.

But Christmas in July isn’t for everyone, so in general, wait to decorate for the holidays until after Thanksgiving and be sure your home owners remove all holiday decor promptly by New Year’s.

As Wallitsch tells her clients: “If you are feeling a little cheated this holiday season by not putting all of your beloved holiday treasures around your house, focus on the reason that you placed your home on the market and keep your eyes on that goal. Next year when you are comfortably settled into your new home, you can go all out with the holiday cheer.”

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Wednesday, November 3, 2010

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

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Saturday, September 11, 2010

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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Tuesday, March 16, 2010

New Lead Based Paint Remodeling Rule

Lead-Safe RemodelingU.S. Environmental Protection Agency rules taking effect April 22 require remodeling work on homes built before 1978 to be undertaken only by contractors certified by the agency in lead-safe practices. ( An EPA-certified contractor isn't necessary if the work doesn't disturb the paint, but that can be hard to know up front. ) The National Association of the Remodeling Industry recommends that home owners assume lead is present if their home was built before 1978 unless they've had it tested and found it lead-free. Certified remodelers are required to display their EPA - certified training certificate to home owners. For a compliance guide,search for "lead paint renovation rule" at www.realtor.org.

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Sunday, January 24, 2010

HEAD OF FAMILY EXEMPTIONS

In New Mexico, a homeowner can apply for the Head of Family exemption which allows a $2000 exemption from the taxable value of the residential property. This applies only if the home is the primary residence and not vacant property, now a second home nor a commercial holding. Owners of manufactured homes are eligible too. The exemption doesn’t mean that $2000 is subtracted from their property tax but that the value of the property is reduced by $2000 for taxation purposes so about $80 per year is saved. The application form is issued by the County Tax Assessor’s office or can be done by phone. The exemption is for the next taxable year, and cannot be applied retroactively.
Other exemptions are $4000 for Veterans’ when a certificate of eligibility is provided from the NM Veterans’ Service Commission. Homeowners over 65 or disabled can apply for a Value Freeze program if their modified gross household income is $32,000 or less.
Who qualifies as “Head of Family”? A married person, but only one spouse can be listed. A widow or widower. A person furnishing more than one-half the cost of support of a related person. A single person and a member of a condominium association who pays the property tax.
It is a good idea anyway to check annually on www.bernco.gov under Assessor to make sure the ownership information is accurate and to see that the exemption is noted.

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Wednesday, January 20, 2010

TAX LIGHTENING HEATS UP

So after two District Court judges ruled that the "tax lightening" regulation was unconstitutional, now they have apparently been intimidated by the Governor who wants a constitutional amendment proposition to make it legal. One of the judges is sending it to the Court of Appeals after saying she wouldn't to get a confirming opinion. In the meantime, I guess she is not going to rollback taxes in 2010 for those who have bought in the County of Bernalillo since 2002. And her attorney just quit in the light of 2000 plus filed appeals by these same taxpayers.

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Sunday, November 29, 2009

MILESTONES FOR TRUE HOUSING RECOVERY

A recent article references Americans tendency to pick up and move to seek new opportunities, and characterizes the housing collapse as “the sudden imprisonment of millions in our homes.” Millions are watching for signs of recovery before making a move. What signs should one look for?
· The Price of Land – Housing construction is stuck with the collapse of land values and reluctance of banks to loan on lot purchases. Will the government need to over 3% on lot loans for first time homebuyers to get new construction going again?
· Decline in Foreclosures – The crisis started with foreclosures by those who paid overinflated prices and bailed when they couldn’t meet the ARM payment increase. Then we had people who lost their jobs foreclosing. So jobs will be the leading indicator on fewer foreclosures. Of note, in ABQ the foreclosure sales prices are only 5% below market value. Not such great deals!
· Assumed Appreciation Stymies Baby-Boomers – The only ones buying have been First Time Homeowners. Now we see those sellers buying the next price range up for growing families. However, Baby-Boomers are stuck trying to dump expensive large homes. Their focus is on not wanting to lose anticipated gains from homes they have owned for years so they price too high or are hanging tight. Instead they might be downsizing into great values and dealing with imaginary gains now gone. As the younger generation might say, “Deal with it! It is what it is.” At an anticipated appreciation starting in 2012 of 1-3% a year in ABQ, one can’t hang on a couple years and hope to get that assumed appreciation.
· Return of Second Mortgages – Blaming second mortgages may have been appropriate when they were at 125% of value, but a 5-15% second mortgage on a valid market value needs to return to get the buyers off the dime. Very few buyers have 20% cash to make the 80% equity loans banks are now requiring. We are seeing local lenders come back with the lovable 80-15-5 loans. When those become available, homes will start to sell.
· Home Improvements Return – With fear of not getting their money back, homeowners stopped putting money into their homes to make improvements that might raise the sale value. We still see that hesitation as buyers look for deals and are willing to put in sweat equity. If they can’t get a good cheap foreclosure (which they usually can’t), they will go for a good home needing updates. When buyers put value into improvements, it will indicate confidence that the market is strong again and home improvement spending and market values will tend to go up again. In the meantime, I am waiting to put in those stainless steel appliances and marble countertops.

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