Subprime Mortgage Market

Even though we may see a bit of a change in the Mortgage lending market this is no cause for alarm.

Buyers in this current market have been saying to me, "I don't want to buy now and then face foreclosure in a few years" Well do you pay $600 in rent or more per month? In a few years will you be facing eviction instead of foreclosure? You could be using your mortgage payment as a tax deduction but with rent you cannot.

You can also look in to products like 40yr mortgages which will help ease the burden with lower payments or Interest only loans that do not carry a balloon payment after 10 years.

Contact AnaLisa Cordoba with Pennington Mortgage for answers to these questions and find a loan program that works best for you (505) 883-5153

Another great deal from FastFloors:

Rubber Flooring: A safer choice for children's playgrounds.  Sold exclusively at FastFloors.com

New Mexico & Albuquerque Real Estate update

Looks like home sales in the SW section of the city are hot right now, Anderson Hills and other new projects seem to be changing the perception of this area of the city. With Tessla Motors, Temperpedic Mattress & Eclipse Aviation in the next few years all located off Paseo Del Volcan this area should continue to see a dramatic rise in home prices.

Currently it looks like a bit of a Slowdown in Rio Rancho with homes between $250K-$350K of the 221 homes for sale only 15 went under contract in February of 2007.

Continueing to bring deals for all aspects of the home sale and make www.BuyaHouseNM.com a more rounded and goto website I am continueing to negotiate deals for clients check out this latest one from Hudson Reed Home Faucets & Fixtures:

Hudson Reed Summer Sale Now On.

When is the Best Time to Sell?

Although Albuquerque and Rio Rancho real estate markets continue to sell all through the year. Most people do not realize that 75% of the transactions will take place from the 2nd week of January through the end of May. As other home sellers see the price of their property rising, the market gets flooded with homes through July, August (parents want to sell before the kids change schools) that buyers have alot more inventory to choose from. Although Doomsdayers like Good Morning America and others have been predicting a bust in the Real Estate bubble last fall this has not happened. In Albuquerque with traditionally stable home prices this has not accured at all. When is the Best time to Sell? Whenever you are ready!

Another contract negotiated by Abaris Team with Luggage Online: Enter LSACTV to receive 10% off & Free Shipping when you shop online (excludes TUMI & Brigg's & Riley) Below:

Up to 70% off Samsonite's 550 SeriesUltra 3000

Fears of Delinquency have Subprime Lenders tightening their belts.

With the recent filing for bankruptcy of Ownit Mortgage Solutions a major subprime lender in December a steady stream of mortgage lenders including, Wells Fargo & Washington Mutual bank have tightened up their underwriting rules.

The trend continued downward last week with the filing for bankruptcy of ResMae Corp out of CA, & Fremont; this may mean that Home Buyers with impaired credit will face higher rates in the months ahead.

Quoting AnaLisa Cordoba of Pennington Financial (see financial page www.BuyaHouseNM.com for more info): "My concerns are with my clients with blemished credit to be able to find financing at all. The days of the zero down payment maybe coming to an end."

Will Mortgage Bond investors head for the hills in the subprime market with the rising delinquencies? Time will Tell.



Park Seed is Having a $1 Seed Sale!

Contracts & Other Goods & Services

Did you know that www.BuyaHouseNM.com & Abaris Team - William Staab have negotiated contracts with major online companies to save you money on your home purchase or related services needs. On page 2 of our relocation page you will find many travel, hotel, & moving discounts or check out the bottom of this blog for savings from Ramada Hotels, & Overstock.com. We also in upcoming Blogs will be featuring other companies we have contracts with since we do not have room on the website and do not want it to appear cluttered but check out savings from:


Orange Glo Hardwood Allura Floor Care System - The Easy Way to Brighter Floors. Shop Now!

P.I.D.'s -Hidden Tax Increases - What you need to know:

Recently, a Ventana West re-sale customer contacted Stewart Title because their
property tax bill was increased by $506 dollars. Jeanine Dodson a Stewart Title
Escrow Officer, jdodson@stewart.com, researched and found that $506 will be
charged yearly for the next 30 years to pay for municipal infrastructure and public
services and is called a PID (Public Improvement District).
Jeanine's information comes from Mitchell Mosesman at (800) 969-4382, mmossesman@taussig.
com who is Senior Vice President of David Taussig & Associates, Inc. www.
taussig.com. He specializes in the use of land-secured bonds to finance public
infrastructure in California, Illinois and New Mexico.
I contacted Phil Rodriguez, Property Tax Exempt Specialist, pmrodrigue@bernco.gov of the
Bernalillo County Assessors Office, www.bernco.gov for a public list of other new
construction subdivisions that are passing their infrastructure costs onto
potentially unsuspecting re-sale buyers. He could only refer me back to Mitch
Mossesman.
Pauline (949) 955-1500 of David Taussig & Associates explained that new
construction purchasers are given a disclosure of this 30 year lien but she is not
certain if re-sale purchasers are given any disclosure or if any public record exists
of which new subdivisions are using this 30 year additional tax to pay for their
roads, parks and landscaping. She is only currently aware of Ventana West and
Cabezon and suggested I obtain a title package or tax record to find out which
other builders are using this method.
I explained to her of the cost involved in obtaining a title package and of the near
impossibility of online tax records for new construction especially in Rio Rancho.
(I've checked title packages from Cabezon and they do not disclose
this lien. Approximately $400 to $500 is for roads and parks, etc and $67 to $100
is for maintenance. This cost is dictated by the number of homes in the
subdivision.)
New construction subdivision builders will increasingly use this pass-along
method that is not reflected in the purchase price of the new home. Re-sale
buyers especially need to know of this additional 30 year tax burden. There needs
to be a legal disclosure document for re-sale buyers in these communities.
Ignorance may not be enough of an excuse for what has the potential to become
a future dispute or claim by the re-sale purchaser.

Forbes Ranks Albuquerque in Top 10

Albuquerque's placement on the latest national list comes courtesy of the metro area's resilient real estate market. The Duke City ranked third nationally on a list published Thursday by Fortune magazine listing the "top 10 places to own real estate."

The Fortune report, with analysis provided by Moody's economy.com and real estate valuation company Fiserv Lending Solutions, highlights the top markets where real estate values are expected to rise in 2007 and 2008.

Albuquerque, with a median home price of $179,620, is expected to see home values increase by 5.9 percent in 2007, according to the report on Fortune's Web site. Albuquerque was ranked first among cities in the western United States.

"I think it's an indication of what happens to real estate values . . . when you have substantial and growing job growth" said Jim Folkman, executive director of the Home Builders Association of Central New Mexico. "I think New Mexico is being discovered. It's our time in the sun, if you will."

The report shows that 36 of the country's top 100 biggest markets are expected to see price declines, according to Fortune's Web site. For 2008, that number is expected to rise to 37.
The continued increase in Albuquerque home values might be surprising to some, considering the saturated state of the local real estate market today. There were 4,363 homes available in the Albuquerque area as of Dec. 10 - nearly 93 percent more than the 2,263 from the same day one year ago.

Cathy Colvin, friend and Coldwell Banker Legacy Associate, who chairs the Albuquerque Metropolitan Board of Realtors, said home prices locally have risen gradually while hot spots like Arizona and Nevada saw meteoric increases. Because of that, it isn't likely Albuquerque area home values would suffer drastic drops in valuation, she said.

"We don't think we've peaked yet," Colvin said.

"I also agree, with markets like Rio Rancho & Los Lunas leading the way." William Staab.

(exerpts from article in Albuquerque Tribune 12/22/2006 by Erik Siemers)

Median Home Price for Albuquerque New Mexico

As of October 2006 the average median home price for the city of Albuquerque is $223,000 an increase of $39,010 or 21% from October of 2005. The same can be said for Rio Rancho's median home price for October 2006 is 271,650 an increase of $49,195 or 22% over the same period last year.

More Mortgages = Better Credit

Consumers carrying a mortgage have an average credit score of 713, 55 points higher than the average score of those with no mortgage, finds a study by credit reporting company Experian Consumer Direct. Consumers with two mortgages have an average credit score of 739, 81 points higher than the score of those without. Experian has not suggested a reason for the difference but said, "Although consumers with mortgages have on average...more debt...they seem to be keeping their credit in check despite the additional financial responsibility," Says Ty Taylor President.

New Mexico State Fair & Balloon Fiesta

It's that time of year again for the New Mexico State Fair, located right in the heart of Albuquerque, with the high inventory of exisiting homes now averageing 4900 per day (increase of 1900 in six months) it doesn't look like that number may do down anytime soon. Very hard time of year for open houses and marketing campaigns. However the Albuquerque Visitors and convention bureau still is averaging about 380 persons per month inquiring about moving to the Albuquerque metropolitan area every month. Have fun at the State Fair, and Don't miss the Balloon Fiesta!!

Albuquerque Blog Open Forum

I would like to have people respond to this blog to tell horror stories, ask questions and receive advise regarding the real estate market in Albuquerque, and surrounding areas. Hopefully as this blog grows, visitors and clients alike will gain helpful information, great tips and additional ways to save money! You can also join our Google Group at www.Google.com

Rio Rancho Homes

The number of new housing units available for the Rio Rancho houseing market is reaching an all time high in August of 2006. The overall picture of the greater Albuquerque houseing market still looks bright, even though it has temporarily cooled. With the addition of Mesa del Sol project getting under way 90,000 new residents will be added to the community over the next 50 years. Also the announcement of a new city being planned to the west of Albuquerque on the Rio Puerco will add an additional 70,000 people to the region. I will provide more information regarding this new community as I learn more about the master plan.

Albuquerque Houseing Market

Signs are all around us now that Albuquerque housing market has begun to slow. There are currently a daily average of 4600 homes on the market at any given time up 1400 from 3 months ago. Although some areas are slower than others, the recent rains we have had; have out of state home buyers rethinking about buying in Belen and Rio Rancho, and reconsidering such areas as four hills, and parts of the NE heights. Although I see this as a temporary slowdown the fact remains it is taking on average about 45-50 days to sell the average home another hike in the gas prices, and rise in interest rates the first time home buyer has to consider if they can afford a home or even a townhome condaminium for that matter.

Albuquerque Home Sales

Looks like the Albuquerque metropolitan area home sales are finally starting to cool off. The average weekly inventory of 2800 homes for June has swelled to about 4200 homes for July. The average number of days a home is sitting on the market has also been slowing. D.R Horton, Austin TX home builder announced lower earnings expectations from lack of demand in new home sales.

Houseing Market Balancing out.

The U.S. housing market has reached a balance in buyer and seller demand, according to a survey released Thursday, with 41 percent of participating real estate agents saying they had more buyers and sellers, 40 percent saying they had more sellers than buyers and 19 percent reporting a 50-50 balance.
The most notable exceptions are in the Northeast, the Chicago metropolitan area and in the Western states, according to the survey from HouseHunt. Home buyers outnumber sellers by considerable margins in Chicago and the West, while sellers outnumber buyers in the Northeast.
The second-quarter national survey also found:
Fifty-six percent of member agents said it is now taking, on average, more than 60 days from listing to contract to sell a house. This is up from 55 percent in the first quarter and 35 percent a year ago. Twenty-eight percent said it is taking more than 90 days to contract. Only 15 percent of existing homes are selling in 30 days or less.
Housing inventories are continuing to increase: 86 percent now report a good supply in virtually all price ranges. This is up from 81 percent in the first quarter and 38 percent a year ago.
Sixty-six percent of member agents reported that annual home-price appreciation is now 5 percent or less. This is down from 8-10 percent a year ago. Home-price appreciation of more than 10 percent is now 16 percent, on average.
The percentage of home sellers getting 95 percent or more of asking prices is currently 68 percent, compared with 90 percent a year ago. Three months ago it was 75 percent.
First-time buyers still account for one of three home sales nationwide. Repeat and move-up buyers are most active in higher priced markets. Recent home-price appreciation and rising mortgage interest rates has had only a minimal negative effect on first-time buyers, on average, with the exception of marginal qualifiers.

The Albuquerque Inventory of homes has risen from an average of 2800 homes in the first quarter of this year to 4100 homes as of july signaling a slight cooling off of the recent buyer frenzy.

Marketing Your New Mexico Home.

So, you have decided to sell your home. Should you sell it yourself or find a Realtor?

Selling your own home has several advantages, saving money on the listing commission and knowing who is coming into your home. But several disadvantages such as time, doing open houses, making yourself available to show. Cost of signs, advertising and other marketing, and possibly the expense of a real estate attorney. Do you really save all the money on the listing commission not really general "For Sale by Owner Buyers" bid well under the asking price, knowing you are not going to be paying a commission.

Discount Brokers are another option that will for a fee put your listing into a multiple listing service or discount a portion of their commission. From my experience you see alot of expired listings after the 90 contract or even six month contract expires because putting your home in the MLS system does not mean it will automatically sell. Why? although agents are required by law to show all potential buyers all potential properties for sale the properties that will get shown first are those that pay the agent the highest commission. Alot of discount brokers who take a listing just to get the listing try to pass on this lowered commission to the buyers agent. So in reality if there are 30 houses currently to show on the market, the listing paying the highest commission to the agent are going to be shown first.

Even Full Service Brokers can vary the amounts of products and services they offer, the more marketing and advertising the more chances to have multiple buyers and most important multiple offers. Take for example the for sale by owner that only places there sign in front of their home but does not advertise in any other way. The buyer must happen to pass buy that street, must actually stop to see the home, then decide to buy. This does not allow the buyer across town, across the state, or the country the ability to even know the home was for sale. On average we personally have been averaging $18,000 above the regular asking price of the home because we market aggressively.

However you decide to sell your home, the process should be profitable, painless, and easy.

Nations Home Inventories rising by 60%

The number of existing homes listed online for sale in the largest 100 metro areas in the nation grew 60 percent from May 2005 to May 2006, according to an analysis of homes listed online at the Realtor.com property-search site.

The survey, conducted by Corzen, a real estate research firm based in New York City, found that the inventory of homes listed in these metro areas grew from 1.3 million in May 2005 to 2.3 million in May 2006.

Median list prices were up 8.4 percent from May 2005 to May 2006, while "in some parts of the country … median asking prices showed steep declines, a clear sign of softening with the real estate market," Corzen announced today.

However markets like San Antonio, El Paso, & Albuquerque home sales continue to increase, current inventory for the Albuquerque metropolitan area is down about 300 units from the same time last year.

Albuquerque Homes market is HOT!!!!!!!!!!!!

Upon reading several news articals including CNN Money about the hot markets in the country Albuquerque, NM is among the top. for full article follow this link:

http://money.cnn.com/2006/05/12/real_estate/reguide_moneymag_albuquerque_0606/index.htm

Loan Applications Down - Not in New Mexico!

Mortgage application volume was down last week as interest rates declined on long-term mortgages, according to the latest survey from the Mortgage Bankers Association.

The market composite index, a measure of mortgage loan application volume, was 552.6, a decrease of 6 percent on a seasonally adjusted basis from 588 one week earlier. On an unadjusted basis, the index decreased 6.2 percent compared with the previous week and was down 23 percent compared with the same week one year earlier.

The seasonally-adjusted purchase index decreased by 7.1 percent to 396.4 from 426.7 the previous week whereas the refinance index decreased by 4.3 percent to 1480.5 from 1546.8 one week earlier