WHERE HAVE ALL THE BUYERS GONE????

The real estate market is dead, dead, dead. And the rates and deals are abundant. What's wrong with this picture???? Here's latest article from national association of realtors: Home sales and the job market - two key aspects to our continued recovery - are also areas we need to see change in an improving direction. Last week, the NAHB Housing Market Index came in a bit worse than expectations and showed housing to be at a 17-month low. It can be argued that the tax credits actually hurt the housing market by not adding any sales, just pushing them up. This has now resulted in a void or softer period in the market, potentially wasting billions of dollars. Housing Starts and Building Permits were also reported lower than expected last week. Clearly, demand for housing has slowed over the past few months, due to the expiration of the Home Buyer Tax Credit and persistently high unemployment.
Speaking of unemployment, awful is the only way to describe last week?s Initial Jobless Claims report. According to the report, 500,000 people filed to receive unemployment benefits for the first time, which was well higher than the lofty 475,000 expected and the highest reading since November 2009. In addition, between Continuing Claims and people receiving Emergency Unemployment Compensation or EUC, the combined total of people receiving unemployment benefits now equals 9.25 Million people.
The bottom line is this: The labor market is the foundation of our economy. Job growth and confidence is the best and most sustainable way for our economy to recover. The present anti-business regulatory environment is pushing Initial Claims, a leading indicator on the health of the labor market, in the wrong direction.
But home loan rates, meanwhile, continue to remain at historic low levels. Though keep in mind, inflation is the arch enemy of Bonds and home loan rates, which means it can cause both to worsen. Both the Producer Price Index (which measures inflation at the wholesale level) and the Consumer Price Index were recently reported hotter than expected. If rates do start to rise, they will likely do so quickly.

McEwan's "Solar" book set in NM

You may recognize him as the author of the book Atonement. He has written a thriller around the global warming issues called "Solar". He says it is mostly funny but presents his knowledge and passion about addressing global warming. He was interviewed on Tavis Smiley today. I think I'll go upload it to my Kindle. Should be a good read at many levels and then a movie......

"In Plain Sight" Renewed for Two Years

Here in Albuquerque, NM, we love that kind of news. The series has been a source of pride and shows off many parts of our city. I have worked with the site location scouts numerous times to find a location and it's always interesting. "Judy, I need a home that looks like it's in Cape Cod." Cape Cod in ABQ? ARe you kidding, but we have so much variety that we can come up with options. Also, our environment is so varied so we can show different environments. We are not all desert! We have a river with lush big trees for that East Coast look; a mountain area for the Montana mountain look. We have a typical University area with little old houses that could be anyplace. And we have gorgeous million dollar homes with views. The scouts love our variety and off course having 252 days of good weather makes a big difference. Congratulations to all the "In Plain Sight" production company. We love you too.

HOME UPDATES THAT ADD VALUE

Sellers are not happy campers. The market is still slow and the values have declined. Once under contract, deals fall through because of inspections or appraisals. Being one who sees the glass as half full, I thought maybe I would share some thoughts on what to do to make your home more valuable. The first thing to do is to DeClutter. We all have too much junk in our homes and buyers expect to see pristine spaces like in a model home. Rent a storage space or fill up your garage even. Recycling is IN! Next change fixtures and hardware. I need to do this as my home is 14 years old and the hardware yells Old! Old! Upgrading sinks, shower heads and faucets with water conservation models has double value. Then replace your appliances. White is out; red washer and dryers are in; brushed stainless steel is definitely popular. With energy efficient models you get a tax writeoff and add instant value. Then spiff up the landscaping. Are those landscape rocks full off debris? Are the plants woody and overgrown. Take them out! Shrink your lawn and there you have another cost savings on water. I just did mine and love it. Clean it inside and outside. Many forget to dust or touch-up the eaves, clean windows, or reseal windows for more energy efficiency. Might as well invest in adding value and saving money while you wait for this market to pick up. Call me for a free valuation. Lots of people spend too much and do the wrong things in getting a house ready. Put me to work!

STEALING FROM HOLLYWOOD

Today's ABQ Journal cites a study that claims the Calif. has lost 10,600 entertainment jobs since 1997 due to film and television productions going to other states and countries. New Mexico has benefited from some of that with major shows such as Terminator and TV series such as "Breaking Bad." While we offer 25% tax rebate incentives on direct in-state expenses, some argue that we are losing money for every dime we spend on that program. One wonders what the changes might be with a new governor since Richardson is clearly a big advocate of this program.

GREAT TIME TO BUY A HOME!

Now is the best time to buy in the last thirty years!!! And we are seeing more buyers. For one, the interest rates are in the mid-4% which is unheard of. The jumbo loans are back and even some equity lines to avoid the need to come up with 20% down. Secondly, there are some great houses at good prices. The Sellers who still have homes on the market have to sell so as we say are "motivated" to provide Buyers with good value. Those Sellers who don't have to sell are able to negotiate. And there are still some good Short Sales and Foreclosures for the Buyer who is not in a rush since those deals may take up to six months to close.
We are seeing more Buyer activity in all price ranges. ABQ and Rio Rancho's economic situation has stabilized and has even had some new job development which is raising everyone's confidence. Personally, I think the worst is over. We have hit bottom, are showing slight increases from that 50% drop in sales last year, and may even begin to see small appreciation on some homes. Life is good. Call me 220-9193 and we'll get you a great deal.

STRATEGIC DEFAULTS ON RISE

"Strategic" mortgage defaults (people who "walk away" from a mortgage they can afford to pay) are on the rise.This week FOX News did an interview with the CEO of HomeFlux and 1-800-CashOffer on the rise of strategic defaults, and how many of the people we talk to each month are considering it as an option. Most people doing "strategic" defaults would be much better off selling their home via a short sale through an experienced real estate agent. The banks are in much better position to expedite and approve short sales now. We haven't lost one approval! They would rather take a loss on your mortgage than to incur the expense of foreclosing and then selling it again. Give me a call if you are thinking of a strategic default or short sale.