The Greater Albuquerque area once again defied the rest of the United States. The total homes sold, attached and detached, for April were 1,668 up from 1,616 in March. Days on market decreased to 66 days in April from a high of 71 in January. As reported in the USA Today, April 29, 2008, "Few areas of the country have been spared from the housing market meltdown, but some cities have managed to avoid the worst of the surge in home foreclosures. Consider Albuquerque."
Demand for luxury homes has slowed but activity in the range of $249,000 and lower remains strong. That being said Rio Rancho showed the strongest price gains in the Albuquerque MSA with a 7.13% increase in average sales price from April 2007.
The same USA Today article reported from Kiplinger.com saying, "The area’s outlook remains bright. It continues to generate jobs and attract retirees. The city offers "resort-town ambience, a boomtown economy and cow-town prices." Kiplinger has named Albuquerque one of the top 10 smart places to live in 2006.
"The Albuquerque area real estate market is strong and stable compared to other parts of the country," says Cathy Olson, Chair of the Board of the Greater Albuquerque Association of REALTORS® "Housing
remains affordable in Albuquerque as we continue to attract new employers ranging from film to high tech to government contracting."
For more information please visit www.DavidSokolowski.com
Saturday, May 10, 2008
Thursday, January 31, 2008
ALBUQUERQUE, NM REAL ESTATE UPDATE FOR DEC, 2008
RATES DROP AND BUYERS FLOCKThe 30-year mortgages have dropped steadily as efforts are made to stop the national housing crisis. The Feds are talking about increasing the cap for jumbo loans which will free up buyers for those homes over $600,000 that sit for a long time in our market now. Fixed 30-year rates are below 6% for the first time in months and 15 year rates are hovering just over 5%. Listing prices continue to come down as sellers become more realistic in what the market sees as the worth of their home. The high assumed appreciation dreams have become realistic gains. We have and will continue to see actual home sales go up so no one is really losing value here unless the house has not been maintained. Whereas buyers used to see price reduction as a red flag indicating something was wrong with the home, now they see it as a positive indication that the seller is getting more realistic. What a great time to buy--- lots of inventory, low rates and realistic sellers! What else could one ask for?It’s actually a good time to sell to because buyers are out there looking with access to good loans and the inventory has not ramped up as it does in Spring. The number of homes that went under contract in January here was significantly increased over the last several months. As other parts of the country begin to show sales, we expect even more out-of-state buyers to come here.The new home market in ABQ has yet to sort out. Nationally the sales of new homes plunged by a record amount in 2007 and builders have huge backlogs of unsold homes. We are not much different here. Builders have pulled back and I would like to see them target the first time homeowners again. We’ll see.Click Herehttp://realtytimes.com/vnc/JudyPierson for newsletter in RealtyTimes.com or go to my website for local listings at http://www.judypierson.com/
Friday, January 18, 2008
New Mexico Bucks the Trend.
NM ranks #1 in the USA for home appreciation at 9% for 2007. Go figure. We also have seen a 30% drop in foreclosures which rose 58% nationally. Our rate was 1 in 395 households compared to 1 in 134 nationally. Our market has slowed but is quickly getting to a normal volume and rhythm now that investors are mostly gone. Homes are on the market 1-2 months and sellers have to be prepared to consider a lower price. The ole “assumed high appreciation” just isn’t what it was two years ago. But the prices are fair and have appreciated, and the seller who tests the market with a high price loses time and money in the end.The number of homes nationally that went under contract in November went up by almost 1% for the second consecutive month. The NAR predicted trend for next year is a gradual rise in existing home sales. This optimism is fueled by interest rates that are hovering just over 6%. And buyers aren’t stupid. They know that the inventory is still very high with sellers getting more motivated as each month goes by. One interesting fall-out in the real estate crisis is that remodeling is not worth what it used to be. Sellers are finding a lower return on their remodeling investment. Get some professional advice from your realtor before spending your money there. Give me a call at 505) 220-9193 or go to www.judypierson.com for more details on the area or to search all listings.. THANKS! Judy
Year End Real Estate Sales Numbers For Albuquerque
2007 saw the real estate market in Albuquerque end with a 2% gain in appreciation for December compared to December of 2006 for detached homes in the metro area. This while the number of transactions ended about 20% behind the previous year. The NorthEast Heights fared far better with sales for the year only off 12%.So despite the doom and gloom reported in the National news media Albuquerque has managed to hold on and even push ahead while the real estate market corrects itself to a more normal condition.
Mortgage Market Update
The average principal and interest payment on a $250,000 loan has dropped by $131.83 per month since August 3, 2007.1And, there’s more good news:The 30-year fixed rate mortgage averaged 5.87% with 0.4 points2The 15-year fixed rate mortgage averaged 5.43% with 0.5 points2The 5/1 ARM averaged 5.63% with 0.5 points2The 1-year ARM averaged 5.37% with 0.6 points2
Go with a lender you can trust. With over 150 loan products, Coldwell Banker Mortgage will find the mortgage that meets your customers’ financial needs. Call your local Mortgage Advisor or visit
Go with a lender you can trust. With over 150 loan products, Coldwell Banker Mortgage will find the mortgage that meets your customers’ financial needs. Call your local Mortgage Advisor or visit
Monday, December 17, 2007
Mortgage Market Update
"LIFE IS NEVER BORING...BUT SOME PEOPLE CHOOSE TO BE BORED." Wayne Dyer Yet even if Traders had wanted to be bored last week, the financial markets had other plans. Volatility reigned supreme, with large swings throughout the week in Stocks, Bonds, and home loan rates — and once the smoke cleared, home loan rates were slightly worse than where they began the week.
What caused all the volatility? You name it — continuing concerns on the liquidity and stability of the financial markets; the Federal Reserve at work, cutting the Fed Funds and Discount Rates by .25% and the opening of a new auction facility; a red hot Retail Sales Report; and last but certainly not least, the Producer and Consumer Price Indices both showing inflation to be much higher than expected.
The big mover was the Fed rate cut of .25%, which was a disappointment to the financial markets, as a deeper cut was hoped for. The reaction was very negative for stocks, as the fear of a recession amidst the current credit crunch grows. There are increasing concerns that the Fed is not getting ahead of this problem.
But it is not an easy job for the Fed because they may be fighting a possible recession with a hand tied behind their back...this is due to higher levels of inflation. Surely inflation is still at reasonable levels, but even a little stronger inflation can take a major toll on our lifestyle over time. High levels of inflation have caused unrest, revolt, poverty and wars. It is possible that the Great Inflation of 1920 in Germany eventually led to WWII. During that time, prices rose over an almost unimaginable 1000 times a year! Savings were wiped out and imagine this...the cost of a loaf of bread went from 20 Marks to 20,000 to 20,000,000. And in Mexico, hyperinflation caused a crisis in the peso that has led to extreme levels of poverty. Of course, the US is nowhere close to this type of problem, but inflation is a very serious issue. And with the current rate of inflation in the US ticking higher and towards the upper range of acceptable limits, additional Fed cuts would push inflation even higher. So should the Fed risk a recession to protect against inflation or move to avoid recession and risk inflation? This will likely be one of the hotter economic topics of 2008.
So the week was certainly far from boring — and the volatility may just continue ahead. Yet overall, home loan rates continue to be at very low levels — so if you, or a client, friend, family member or neighbor have been contemplating a refinance or home purchase — now is the time to start making plans. Although the holiday season is a busy time, I am glad to make time for you and your referrals. And even if you don’t have a home loan need at the present time — it’s always wise for us to examine your overall debt structure and financial goals, just to ensure that you are positioned in
What caused all the volatility? You name it — continuing concerns on the liquidity and stability of the financial markets; the Federal Reserve at work, cutting the Fed Funds and Discount Rates by .25% and the opening of a new auction facility; a red hot Retail Sales Report; and last but certainly not least, the Producer and Consumer Price Indices both showing inflation to be much higher than expected.
The big mover was the Fed rate cut of .25%, which was a disappointment to the financial markets, as a deeper cut was hoped for. The reaction was very negative for stocks, as the fear of a recession amidst the current credit crunch grows. There are increasing concerns that the Fed is not getting ahead of this problem.
But it is not an easy job for the Fed because they may be fighting a possible recession with a hand tied behind their back...this is due to higher levels of inflation. Surely inflation is still at reasonable levels, but even a little stronger inflation can take a major toll on our lifestyle over time. High levels of inflation have caused unrest, revolt, poverty and wars. It is possible that the Great Inflation of 1920 in Germany eventually led to WWII. During that time, prices rose over an almost unimaginable 1000 times a year! Savings were wiped out and imagine this...the cost of a loaf of bread went from 20 Marks to 20,000 to 20,000,000. And in Mexico, hyperinflation caused a crisis in the peso that has led to extreme levels of poverty. Of course, the US is nowhere close to this type of problem, but inflation is a very serious issue. And with the current rate of inflation in the US ticking higher and towards the upper range of acceptable limits, additional Fed cuts would push inflation even higher. So should the Fed risk a recession to protect against inflation or move to avoid recession and risk inflation? This will likely be one of the hotter economic topics of 2008.
So the week was certainly far from boring — and the volatility may just continue ahead. Yet overall, home loan rates continue to be at very low levels — so if you, or a client, friend, family member or neighbor have been contemplating a refinance or home purchase — now is the time to start making plans. Although the holiday season is a busy time, I am glad to make time for you and your referrals. And even if you don’t have a home loan need at the present time — it’s always wise for us to examine your overall debt structure and financial goals, just to ensure that you are positioned in
Saturday, December 15, 2007
Senate to vote on FHA Improvement
TOP NATIONAL NEWS FHA
Loan Expansion Heading to a Vote Washington Post (12/14/07)
P. D1; Cho, David Senate legislation to revamp the Federal Housing Administration mortgage program has finally moved out of committee and is expected to be passed in the next couple of days when it comes up for a full floor vote. The bill would reduce the required down payment on FHA-insured mortgages to 1.5 percent from 3 percent and open the program to pricier housing markets by letting the agency insure mortgages up to $417,000. With nontraditional mortgage originations on the decline, the FHA anticipates a surge in applications to 1.4 million this year from close to 680,000 in 2006. The bill, intended to provide borrowers with a less risky alternative to subprime loans, will qualify hundreds of thousands of minority and low-income borrowers for low-cost, low-down-payment loans backed by the U.S. government.
Loan Expansion Heading to a Vote Washington Post (12/14/07)
P. D1; Cho, David Senate legislation to revamp the Federal Housing Administration mortgage program has finally moved out of committee and is expected to be passed in the next couple of days when it comes up for a full floor vote. The bill would reduce the required down payment on FHA-insured mortgages to 1.5 percent from 3 percent and open the program to pricier housing markets by letting the agency insure mortgages up to $417,000. With nontraditional mortgage originations on the decline, the FHA anticipates a surge in applications to 1.4 million this year from close to 680,000 in 2006. The bill, intended to provide borrowers with a less risky alternative to subprime loans, will qualify hundreds of thousands of minority and low-income borrowers for low-cost, low-down-payment loans backed by the U.S. government.
Subscribe to:
Comments (Atom)
