Time to Challenge Assessed Home Values in ABQ

Bernalillo County Assessor Karen Montoya will mail out Notice of Valuations for Real Property and Mobile Homes on Thursday, March 1, 2012.The Assessor’s Office will also begin its annual protest period for Real Property and Mobile Homes on March 1st. Subsequent to the mail out of the Notices of Values, property owners will have the opportunity to file a valuation protest within 30 days of the actual date of mailing.




How do you know if you should file a protest? I can check for you or you can estimate based on market value trends. The statistics for yearend show that the values went down about 6% last year. It varies by area but that is a rule of thumb you can use to compare last year's assessment with the one you get for 2011.



If you want me to help you decide give me a call and I will do a free market analysis for you. Also, you can go to my website and click on Market Snapshot to see what the values were for similar homes sold in 2011. If you decide to protest, I can provide you with three comparable homes that have sold which you will need for the protest. If that doesn't work, a good friend of mine is an attorney who specializes in protests. Give me a call and let me know how I can help you save money on taxes.

PSYCHOLOGY OF BUYING A HOME

Conducted by International Communications Research (ICR), a leading third-party research company, the findings from the Coldwell Banker Survey include the following highlights:
Quality, “Feel”and First Impression of Home Matter
More than three out of every four respondents (78 percent) felt that the quality of a home is more important than square footage.
The majority of respondents (60 percent) also said that the “feel” of a home is as important as its price.
12 percent of respondents knew their house was “the one” even before stepping inside. After visiting just once, that figure rose to 51 percent.

“While some buyers begin the process with a list of “must-haves,” this data demonstrates how intangible impressions like “quality” and “feel” factor heavily into the home decision-making process,” said Dr. Peters. “In fact, some people even experience ’love at first sight’ when it comes to their homes, which means one cannot overstate the importance of a strong first impression. And price isn’t all that matters – as opposed to investing and then hoping for an overnight return, consumers recognize that a home must have the right ‘feel’ for their everyday lifestyles.”

Buyers Prefer Security, Nurturing and Cozy Spaces Over More Abstract Ideals
51 percent of respondents said that, “A home should be a space that feels safe and secure,” while an additional 16 percent felt it should be “full of warm, cozy spaces where I can curl up.” Taken together, these responses heavily outweighed those who felt a home should be a “refuge to get away from it all” (13 percent), “open to nature with great views (12 percent),” or “a space that feels airy and light (6 percent).”
58 percent of respondents agreed with the statement, “My home is a place to shelter and nurture my family.” The next most popular response was, “My home is a place to escape from the pressures of daily life,” which 19 percent of respondents agreed with.

“Lovely views and lots of light are nice to have,” said Dr. Peters, “but these results underscore that first and foremost, a house becomes a home when it feels comfortable and safe for the family that resides there. Now more than ever, consumers are probably more inclined to choose security over special add-ons like lofty views or an airy atmosphere.”

Credit Scores versus Low Interest Rates

Many consumers applying for a mortgage are going to start sharing more personal information with lenders next year, like it or not. FICO scores, the industry standard for determining credit risk in mortgages backed by Fannie Mae, Freddie Mac and the Federal Housing Administration, largely have been based on a person's credit history. But in an attempt to develop a more well-rounded picture of a person's finances beyond credit, tools are being developed to help the lending industry dig deeper. Fair Isaac Corp., or FICO, the company behind the widely used scoring formula announced a separate score that will be available to mortgage lenders and incorporates information that will include payday loans, evictions and child support payments. In the future, information on the status of utility, rent and cell phone payments may also be included. Separately, last month, the big three credit reporting agencies, Experian, Equifax and TransUnion, began providing estimates of consumer income as a credit report option. And earlier this year, Experian began including data on on-time rental payments in its reports.




The new information could prove to be a double-edged sword for consumers: It may open the door to homeownership to some consumers who have, according to industryspeak, a "thin file" or worse, a "no-file," meaning they lack sufficient credit histories. On the other hand, the extra information may make a borderline borrower look even worse on paper. And it's unlikely to quiet critics who complain that too much emphasis is put on a single number. It may expand the universe of people who can get a mortgages.


FICO scores have been around since the 1950s, but they didn't become a major factor in mortgage lending until 1995, when Fannie Mae and Freddie Mac began recommending their use to help determine a mortgage borrower's creditworthiness. The score, which ranges from 300 to 850, factors in how long borrowers have had credit, how they're using it and repaying it, and if they have any judgments or delinquencies logged against them. The change comes at a time when the average FICO scores of homebuyers who qualify for loans continue to rise, as mortgage lenders reward the most creditworthy borrowers with low rates and tack extra fees onto loans for those with lower credit scores. The extra information may also help more affluent homeowners who aren't on the credit grid. Residential lenders are open for business. Money's almost free; it's extraordinary.

Home Sales Up but Values Down

Albuquerque like the rest of the US saw home prices falling after some small gains in home values in the Summer and Spring of 2011. In ABQ, almost 30% of home sales are short sales or foreclosed home where the bank takes 20-25% of the market value for a home. For a Seller, these distressed properties depress the value of nearby homes. For Buyers, there continue to be terrific values out there especially with low interest rates. The average median price in ABQ area was $167,000 in October down 7% from last year. Recovery is a long way off. To see an excellent article on the national trend click on the link below.

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!

Forclosures UP - Good News Bad News

Foreclosure starts are reversing course and are back on the rise, which is expected to continue to put downward pressure on home prices, a new report released Monday from Fitch Ratings says. With a jump in the inventory of distressed homes, Fitch predicts home prices to dive another 10 percent nationally before stabilizing.
Foreclosures are up by 7-10% in the last month depending on what source you believe. This trend was expected as the banks start putting their foreclosures on the market after the robo-signing scandal temporarily brought foreclosures to a standstill. Fact is banks need to get rid of these properties to improve their financials. Like they need to have more profit, but that’s another blog!
The spike is nearing the average rate of 14 percent that was seen between 2000 and 2010, according to Fitch’s RMBS (residential mortgage-backed security) Performance Metric.
Foreclosure initiation rates on borrowers who haven’t made a mortgage payment in more than six months also have nearly doubled in the last five months. This means that they are not as patient with the timeline needed for a short sale and are rushing to get into the foreclosure sale. Although the home is sold for less as a bank-owned property, banks do NOT give up their right to file for a deficiency waiver so can come after the homeowner for the difference between mortgage owed and sale price!
The good news is that for buyers there are some very competitively priced short sales and even lower priced bank owned properties. The bad news is for Sellers who find themselves competing on price just to get their house sold. That said, there are many Buyers who don’t want to mess with a distressed property and would rather have the home that is in the best condition and fairly priced. That rule remains the same. The shiny penny sells first in all cases.

Refinancing Home Loans Now Easier

The government announced enhancements to a refinance program that will enable homeowners whose mortgage balances are higher than their home values to refinance at today's low interest rates. Here's the skinny on what the program revisions mean to consumers.The Home Affordable Refinance Program was launched in March 2009 as part of the Obama administration's Homeowner Affordability and Stability Plan. But the program has fallen well short of helping the 4 million to 5 million borrowers originally projected largely because many of the prospective recipients have seen their home values plummet over the past few years.So the Federal Housing Finance Agency announced that equity requirements are being eliminated from the program. The regulator had previously limited the loan balance to 125 percent of a home's appraised value. The program changes will be implemented by Fannie Mae and Freddie Mac by Nov. 15. The two secondary lenders buy loans from banks and mortgage bankers, package and sell the loans to investors, and guarantee the payments to investors. Downside is that Lenders aren't required to participate in the program, so there are no deadlines in place for when the program might be available at a particular lender. Eligible borrowers are advised to contact their existing lenders or any other mortgage lender offering HARP refinances.I recently achieved Certification as a Distressed Properties Expert do if you know of anyone who has concerns about their mortgage or getting into a default situation, have them contact me. Judy@JudyPierson.com or call 505-220-9193.

ABQ/RR Home Sales Show Signs of Life

While the number of people who bought existing homes fell slightly this last month, the sale of new homes in NM rose slightly. The median price of sold existing homes rose 5% from August to now with a median price at $171,500. The average price of new homes fell as builder's target first time homebuyers.
Interestingly, activity among first-time home buyers accounted for 32% of all sales. These buyers are critical to get the ball rolling, so to speak, because for every house they buy the Seller has to buy "up" the food chain. Sale by first-time home buyers is an important indicator for a recovering home market.
Another good indicator is that foreclosures edged down to 30% of sales. As these discounted distressed properties clear out of the inventory, home prices will tend to rise. In certain neighborhoods in RR and ABQ, I see this happening. And because of the continued presence of these properties, I just got certified as a Distressed Properties Specialist so I can be responsive to all my clients. Hopefully, in the next year or two that specialty certification won't be needed!
To see what is happening in any part of RR or ABQ, simply go to my website at www.judypierson.com and click on Market Snapshot for current and trended sales activity. Call me if you want more information or a consultation about buying or selling here.Give me a call at 505) 220-9193

Albuquerque Ranked 13 of Top Fifty US Cities!

Albuquerque was listed 15th among America's 50 Best Cities according to a Businessweek story. Boston was 16 and New York was 14. We were higher than Phoenix (of course!) which ranked 49 and Denver which ranked 27. To quote the article, "With the Rio Grande running through and the Sandia Mountains to the east, New Mexico's largest city is a picturesque and sunny place to live. The schools are great, unemployment is low and there are lots of park acres per person." The ranking is based on various metrics of quality of life, such as number of restaurants, museums per capita; number of colleges, libraries and professional sports teams; the income, pverty, crime and foreclosure rates; percentage of population with higher degrees and air quality.
As a real estate agent, I get a snapshot every day of why people want to move here and why people love it here. The standard reason for loving ABQ is the weather (no we are not HOT like Phoenix) and the frienliness of people. The weather encourages lots of outdoor activities. The main reasons for moving here are for retirement or job transfer. Right now we are busy with both types of buyers. Plus a rush of buyers who are in their twenties, married or not. Wish I had been that smart in my twenties! They are getting rates in the low "4's" so that's an incredible deal.
Call me if you want more information or a consultation about buying or selling here in the top ranked City.

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.

Home Sales Expected to Uptrend

Home sales are expected to stay on an uptrend through 2012. The chief economist of the National Association of Realtors, Lawrence Yun, expects 5.3 million existing-home sales this year, up from 4.9 million in 2010, with additional gains in 2012 to about 5.6 million. Rates are lower than low so call if you would like to buy or sell. Now is the time.

NEW FHA LOANS FOR IMPROVEMENTS

Often the barrier to buying a bank owned property is the cost of repairs needed after it's yours. Now there is an FHA 203K loan program for owner occupied purchases of single family homes.that allows the buyer to finance the cost of repairs and improvements. The minimum to borrow is $5000 and the maximum is $35,000. It's not for investors to flip or for major additions or improvements. The list of items allowed, however, is extensive --- roofing, flooring, cabinets, paint, stucco, driveways, countertops, plumbing, HVAC and the list goes on. The work must be done by licensed contractors and completed within 6 months after closing. The appraisal would be one for the "as is" value and one for the "as repaired" value. This program is ideal and of course, FHA only requires 3.5% down payment. The VA doesn't have the program yet.
Are there bank owned properties available still? By all means, but they move quickly. Most buyers are reluctant now to go after short sales because they take so long and are so unpredictable. But the bank owned properties go fast. In May in ABQ, 50 new ones went on the market and 160 went under contract. The inventory is being eaten up quickly. Part of the reason is that the deals close in a month and the prices are low averaging $85 per s.f. In the northeast heights, only 4.5% of all listings are bank owned compared to 15% in the southwest part of the city.
We are set up with the few lenders in town who do these new FHA programs so call and we'll get you a good REO property and the repair loan. It's a good deal. Give me a call to check this out --- 505-220-9193

GOOD TIME TO BUY A HOUSE

We’ve all experienced that “If only I would have” moment in our lives and with out a doubt we are at the threshold of another of another one of those times with respect to home ownership. We are seeing home prices at levels not seen for more than 12 years. Foreclosures are the primary driver for this phenomenon and the banks are accepting offers at $50 to $60 dollars per sq ft all over town. With out a doubt Now is the time to buy to avoid another “If only” moment. Give us a call 505-220-9193 or start your search on our website.

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!

Great Bank-Owned Properties to Buy in ABQ

This just in on the real estate stats for the Greater Albuquerque Area:

Listings are down slightly to last year 3.4% but the Federal incentive pumped up those sales.Pendings are down 11.2% which makes sense given the above fact. Closed deals are up 7.3%.
The Average ABQ detached home price was $230,417 15% higher than last year which may be because most of the sales last year at this time were below $150,000 for the first time homebuyers.

But most interesting is this:
Short and Bank owned properties are 28% of total listings, 55% of pendings and 35% of Closed deals. BOTTOMLINE: Great time to get a good deal on a bank owned or short sale property. And rates are still close to 5%. We have buyers who have paid less than the appraised value so walk into the house with equity. Can't beat that!! Call me and we'll go look at some houses. 505-220-9193. On my website you can search for foreclosures. Set up a search and I'll refine it for you and find you something.

Fire Hazard Warning

A friend just sent me this after having a fire in her bathroom. I will be removing all the Globe bulbs from my house. CFL bulbs are a great energy saver but make sure you buy a name brand like Sylvania , Phillips or GE and not the ones from China . An electirician told me the plug-in air fresheners are their fire hazards too. Just a word of caution.......

30 Mortgage Rates Up

The average rate on 30-mortgages toped 5 % this month. Rates followed Treasury notes fueled by fear of higher inflation. Five percent is still wonderful though. It’s all relative but some of us remember 18% rates! 5% is a once in a lifetime opportunity for this buyer’s market. On a $200,000 loan compared to November’s rates is still less than $100 per month. And with enough down and a score above 650 you might get a rate of 3.5%. It’s all relative, but still great! Go on my website to Mortgage Center to get a quote.

Albuquerque Homes Underwater

The Los Angeles Times had a big article on the dilemna of homeowners whose mortgage is greater than their current home value. Essentially they are stuck. If they continue paying the mortgage it's a waste of sorts unless they stay there long enough to see the value rise again. If they foreclose or walk away, their credit is wrecked for years. They don't qualify for Federal refinancing is they haven't lost their jobs and they can't refinance because the house won't appraise. It's a mess.

So i wondered what our situation was here in New Mexico. Turns out we have stronger equity in NM. Fewer homes are underwater here because we didn't see a big bubble and haven't depreciated very much. Whewww!! That's a relief. Granted some homeowners can't sell because the home would sell at the current market value and they wouldn't have the money for closing costs. But most will at minimum breakeven if not make a buck or two. Only 14% of our homes are near negative values. Many of those can refi or foreclose so few are in that no win bind.

I have been doing lots of short sales which is a great alternative in that the house is sold but usually the short sale is not reported to credit or tax agencies. Well, it's not a great alternative but a less onerous one. Call me if you want to discuss your situation. I'll find a way.

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.

Where is the Real Estate Tipping Point?

I loved the book “Tipping Point” which speaks to a pivotal moment or event that will dramatically shift the course of a trend or behavior. For real estate, the tipping point was certainly the meltdown of the stock market and banking institutions resulting in loss of confidence and loss of jobs and investment nest eggs. The loss of confidence I think is still at the core of the issue. Buyers are not confident that they will continue to be employed or that their stocks or home will be good investments for the future. Of course, the fact that almost everyone had irresponsibly accumulated credit card debt is undeniable, and as those debts are reduced by paying them off or spending control, confidence in one’s own ability to manage money will return. The obvious indicators to look at to foresee a turnaround would be increased employment rates and improved home values and stock performance.
There are some other interesting trends contributing to the low volume of home sales. One is that the white-collar jobs are being reduced and these buyers were the “bread and butter” of a healthy market. Now we see first-time homebuyers, especially returning Veterans and higher end professionals but that range of $300,000 – 500,000 is like a never, never land recently.
Another factor of interest is the fact that home formation is way down. That would be people moving in together to buy a home and establish a home or family. Another indicator I follow is retail sales which was up this last week and even auto sales are up. Could a home purchase be next? I am hoping so because mortgage rates are at rock bottom so the opportunity is a once in a lifetime one.
What will be the tipping point to get people back into the housing market? I wish I could predict that and in fact what we may see is a slow turn of this Recession Ship as confidence returns to American homebuyers.