Eloise Gift, Albuquerque New Mexico Real Estate

All real estate is local so while we read the national news and stay abreast of what is happening in other states, we must remember that what is true of the markets in other parts of the country at any one point in time may not be not be true for Albuquerque, New Mexico.

The downturn wave in the real estate market reached the Greater Albuquerque area of New Mexico in the fall of 2007 almost a year later than several other states where the market heated up to bubble or near bubble proportions. In New Mexico, market appreciation started later, was gradual, and never quite reached bubble proportions. And while we recognize that more New Mexico homeowners than we would like, are adversely affected by the mortgage crisis, we are aware that our local market has weathered the downturn better than many others.

Market Recovery: Having entered the downturn cycle later, we expect our recovery to predictably lag behind in recovery also. Spring sales acceleration and news of market recovery already underway in some states are base-line indicators that our local market may already be on the road recovery.

Recovery started with the implementation of the homebuyer tax credit intended precisely for that purpose. The credit attracted first-time homebuyers and stimulated the resale market of homes below $250.000 resulting in consistent month over month increases in closed resale homes transactions particularly since September 2009.

February, a traditionally slow sales month, saw increased closed sales of existing homes. The increase was 10.8 percent above February, 2009. Sales revenue for the month increased 9.18 percent for a total of $78.5 million with the town of Rio Rancho leading the market.

March saw an increase of 36.34 percent in closed sales, with Bernalillo leading the way. The entire Greater Albuquerque MLS area sold 465 detached homes in March 2009 and in 2010: 634

April is almost over and the expiration of the homebuyer tax credit on the last day of the month looms large. Were the stimulus measures in place long enough to make a lasting, sustainable difference? Only time will tell.

Eloise Gift, Gift Realty NM
www.newmexicohomesbyeloise.com

Almost three years ago to the date, I wrote about a special recognition of the City of Albuquerque and Los Alamos as one of the 100 best communities for young people. The recognition came from America's Promise Alliance, an organization that recognizes communities for trying to live up to Five Promises to help children succeed:
• Caring adults
• Safe spaces
• Healthy start
• Effective education
• Opportunity to help others.

The first president of America’s Promise Alliance was retired General and former Secretary of State Colin Powell. His wife Alma succeeded him as president and together they have continued their advocacy on behalf of children. Today’s news that reminded me of my post is a joint announcement by America’s Promise Alliance leaders, Colin and Alma Powell along with the Secretary of Education, and the President of the United States. They are launching Grad Nation, a ten-year campaign to reverse the dropout rate in schools and propel the United States into the lead for highest proportion of college graduates in the world by 2010.

Relevance to Real Estate
What does this announcement by America’s Promise Alliance have to do with real estate, you may ask? Especially in light of our current economic downturn, it has everything to do with real estate. Individuals and businesses are attracted to communities where quality-of-ife especially as it relates to living, working and raising families has value. Where there are families, business will follow and commerce will flourish.

Albuquerque’s recognition by America’s Promise Alliance as a great place for young people three years ago is today even more valuable because of the Alliance’s credibility and enduring commitment to children's welfare, as evidenced by today’s announcement. The recognition influenced many people's decision to relocate to New Mexico.

However, in New Mexico schools, the dropout rate is considered high. According to research by America’s Promise Alliance, the state is not unique because 1 in 3 students nationwide fail to graduate from high school. In New Mexico, we also have a richly diverse culture, a significant proportion of which includes Native Americans and Hispanics. Research also shows that less than 50 percent of Native Americans and slightly more than half of African American and Hispanic students graduate from high school. Every 26 seconds a student drops out of school in America, adding up to more than 1.3 million per year.

Research also shows that young people who drop out of school are twice as likely as graduates to be unemployed, three times as likely to live in poverty, eight times more likely to end up in prison and twice as likely to be parents of children who drop out. With these statistics, it appears that we are already losing a significant proportion of people who could be clients in adulthood. If the trend continues, where will our future buyers of real estate come from? Certainly not from people outside the workforce, in prison or living in poverty. Besides, these lost clients with their attendant needs will be part of a society that will bear the cost of their disability, thus creating a drain on available resources. Not only the real estate industry but all of society will be adversely affected.

I know of several organizations and community grassroots efforts that are currently trying to grapple with improving the low graduation and high dropout rates. The announcement of Grad Nation is a step in the right direction towards solving a national problem. It gives the problem a high profile, broadens awareness, and seeks to unify and mobilize support for job security and quality of life not only for real estate professionals but the entire society.

Albuquerque has another name. The city has been fondly called the Duke City for years and now another name is becoming popular - The "Q." It has one advantage. It is easier to spell.

So what happened in the Q this week? Many of us in the real estate business are feeling hopeful about the market and are pleased that first-time home buyers in particular seem to be taking advantage of the large inventory and continuing low rates and other available incentives.

Of course, the housing market is only a barometer of the overall economy, so what indicators in the Q this past week are leading to positive real estate outcomes? Here are some.

The Q is still a popular destination for tourists, retirees, and job seekers.
Our stimulus package increased to more than $3 billion.
New Mexico's unemployment rate is well below the national average.
The weather was fantastic all week and Homeland Security held its first Advisory Meeting in the Q with Secretary Napolitano, Atty General Holder and other VIPs from Washington, DC.

The Q may just be inching its way up from the #2 spot on Kiplinger's Top Ten Cities.

Eloise Gift
June 5, 2009
www.eloisegift.com

Paradise East is a part of the Wetside Community of Greater Albuquerque. During the last three months, 19 homes sold in Paradise East. Currently, no homes are under contract awaiting escrow in the are. Seventy-two are actively listed for sale.

The homes that sold were on the market for an average of just over 75 days and sold at an average of 96% of their listed sales price. The average listing price of the sold homes was $230,000. The average selling price was $221,000. Homes currently listed are at an average price of $313,000.

Market Trends in the Greater Albuquerque Area

This Paradise East sub market reflects somewhat the market of the entire Albuquerque area that is seeing a decreasing inventory even though the number of new listings entering the market have increased. The combined total for active detached, single family homes, condos and town homes is just over 6,000. That's good! Also good is that we had more closed sales in February than in January but there are fewer pending sales (properties with accepted offers awaiting closing). In January we had 324 closings and in February, 343 - significantly less than at the same time in 2008. And not every market is seeing sales activity. The busiest areas of the Albuquerque Southwest Multiiple Listing Service community for the month of February were City of Albuquerque and Rio Rancho followed by the Los Lunas, Belen, Bosque Farms area.

Conclusion

It is difficult to evaluate the trend of the market based on current statistics. More new listings entered the market in February than in January but inventory is down and time on the market has increased. Average price decreased, but the median increased. Some Southwest Multiple Listing Service areas are seeing little or no sales activity. The mixed messages may be the result of seasonal adjustments or market conditions, or a combination of both. We hope the arrival of spring will bring a more clearly defined trend and help us clarify the direction of the market.

Reference: The Greater Albuquerque Association of Realtors - http://abqrealtors.com

Indicators for February's residential real estate market in the Greater Albuquerque Area were inconclusive as to whether the e. market was shifting upward or down. We had more new listings entering the market than in January but the inventory is decreasing. The combined total for detached, single family homes, condos and townhomes is just over 2,000. That's good! We had more closed sales in February than in January but fewer pending sales (properties with accepted offers awaiting closing). In January we had 324 closings and in February, 343; significantly less than at the same time 2008. Not every market area saw activity. The busiest areas for the month were City of Albuquerque and Rio Rancho followed by the Los Lunas, Belen, Bosque Farms area.

Average sales price continued its downward trend, but the median price showed a slight increase. The average sales price for single family homes was $209,515. The median was $184,900. The top selling price range for detached homes was $200,000 to $249,000, and for condos and townhomes $140,000-$159,000. The average number of days on the market increased to 96. We approximately a nine-month supply of homes listed for sale.

Content provided by: Greater Albuquerque Association of Realtors, http://abqrealtors.com