Market Conditions for Albuquerque, New Mexico Reported by Archie Saiz , CRS, ABR, SRES, GREEN Updated November 9, 2009.

Current Market Rating: 2 1 2 3 4 5 Buyer's Seller's

Current Price Trend: 3 1 2 3 4 5 Falling Rising

TAX CREDIT EXTENDED AND EXPANDED. Details available at http://www.findahomenewmexico.com
Home sales are moving up! The latest statistics from the Greater Albuquerque Association of Realtors show an increase in home sales and pending sales over the previous month as well as over the previous years monthly sales at this same time. Inventory is beginning to shrink as well with fewer new listings coming on the market but supply is still outpacing demand. We have not moved out of the buyer's market yet but with the increase in sales there is anticipated growth in home prices. Compared to other cities around the nation the real estate market in Albuquerque and the surrounding communities is above the average. Home values are for the most part stable with some areas having slight appreciation and others showing a slight decrease.You really have to look at this market neighborhood by neighborhood. Interest rates are at historical lows hovering around 5%. Look for changes for acquiring an FHA loan which will be good for the consumer and for the economy. If you are thinking of buying a home and have the means this would be the time to do it. With the stimulus incentives of up to $8000 in tax credits, the lower interest rates, and the sellers negotiating more than in the past it will not be this good in a long time. Call me today to set up a free buyer counseling session to discuss your personal needs and answer all your questions of buying a home.

ZIP Codes: 87114, 87120, 87059, 87110, 87122, 87124, 87111, 87048

Approximate Location Boundaries: Albuquerque,RioRancho,Placitas,Corrales,East Mountains,Los Lunas,Belen

Location Characteristics: TAX CREDIT EXTENDED AND EXPANDED: The president has signed the bill to extend and expand the HOME BUYERS TAX CREDIT. The credit is expanded until April 2010 with the first time home buyer credit extended with all the same incentives. Expanding on the credit there will be available to those who wish to buy a home in 2010 but are not first time homebuyers. Couples can get a $6500 credit by purchasing before April 2010. To qualify a person must have lived in a primary residence 5 of the last 8 years. This will allow buyers who have been wanting to move up to do so and to stimulate saleable inventory. There is important informatoin on the 2009/2010 Tax Credit at our web site www.findahomenewmexico.com to read and request additional information.
TAX LOAN: Efforts are being made so that those eligible for the Tax Credit can use the tax credit for their down payment. Currently the loan is a 0% interest loan for 1 year to be paid back with your tax credit. This other way the buyer will have funds up front allowing for more consumers to buy a home.

Is the housing market moving? Last month sales and year to date sales showed an increase in number of homes sold and homes in pending status. The first time home buyer is driving the market with the majority of homes sold being in the $135,000 to $250,000 price range. Luxury home sales are very slow.

They are still predicting more foreclosurers so we will have to wait and see if they are correct and how that inventory will effect the market. We still maintain a large inventory of homes in the market with over 5200 single family homes for sale. For buyers this is good news as they have an abdundance of homes to choose from in all price ranges. With the advent of the financial crisis and job layoffs, consumer confidence is certainly waning so buyer's are extremly wary about making big financial purchases at this time. Interest rates are again below 5% but starting to climb so if you are thinking of buying I wouldn't wait too much longer. If you are in the market to buy this is the time to get the home of your dreams at an interest rate that will probably never be seen again. For sellers it is a tough time due to fewer buyers and the supply and demand factor will affect home prices. We did see a slight increase in home prices last month so if you are a buyer I would reccomend you make your decision now. To get to a balanced inventory we would be at 5-6 months supply of homes.

Here is information regarding mortgage money that is very important.First Time Home Buyers via New Mexico Finance Authority (MFA) continues to offer 100% financing. VA of course is still zero down. FHA CURRENTLY requires 3.50% down. Conventional Loans still have 5% down payment requirements with credit scores of 660 or higher. JUMBO loans require 15% down up to a loan amount of $ 650,000.00. JUMBO loans OVER $ 650,000 require 25% down. JUMBO loans OVER $ 1,000,000 require 30% down. JUMBO loans OVER $ 1,500,000 require 35% down to up to $3,000,000.
Advice to sellers is they need to price according to the market and realize that this is not the 2005/2006 market. The biggest impact for sellers are those that bought in 2005/2006 and are trying to sell. Even though there has been appreciation after paying closing costs they are at or below a break even point. They need to have there homes in tip top condition and staged to show the home in it's very best light. For anyone nearing foreclosure they may be able to do a loan modification and stay in their homes. With such a diversity, buyers need a Realtor that is truly aware of the inventory and the absorbtion rates. This is equally important for sellers so they can price their properties at market value. Sellers need to have patience in todays market. There have been several articles published in the last several weeks that show Albuquerque and the surrounding areas to be ideal places to live and work. Please email me or visit my web site to read these articles. For details for a specific area contact me for a complete market anaylisis. Please call me with any of your Real Estate Questions and I will be glad to help.

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