True Grit in NM

Saw True Grit this weekend and really enjoyed it. The performances were excellent although I found the film slow. Somehow I remember the original one more suspenseful and entertaining. What I did love about this film was the New Mexico setting. Nothing beats the beauty of northern New Mexico which like a chameleon can become anything the film needs it to be from an 1800 site to a stark future-scape as in Denzel's film this last year.

How could someone not want to move here and explore our Enchanting state even more? Well, if you want to find some good vacation homes in Northern New Mexico with lake access, call me.

Real Estate Predictions for Albuquerque

Well, here goes....... my personal Crystal Ball for 2011. What is the good news? Prices will continue to stabilize and inch up month by month. Mortgage rates will go up to 5% which still is terrific. All and all, it will be a good time to buy because buyers can have some confidence that if they make an investment now, the value will hold and begin to appreciate over the next five years. Already, I have more buyers who want to purchase in this first quarter than I have had in the last two years. I sense that people are more secure in thier jobs as the mass layoffs have all but disappeared, and the stock market is positive so no more losses are expected in that arena. Retail sales are up and real estate is next, I think. For sellers, the time to sell will be better in 2011. Prices won't be up from the past two years, but the slide downward in value has largely stopped. There are foreclosures that will need to be sold this year and those are tough competition, but that too shall end. The thing I see is the return to a "Fair Market" value. Not that buyers won't still come in with low offers, but they quickly up the offer when the Seller counters at a reasonable price. Homes that are selling are selling at fair prices. Homes that are in good condition and fairly priced sell within 60 days. The days of wildly inflated prices, and profits, from real estate may be over, but property once again will be a good, reliable investment for the future. I am forecasting an improved market. There it is..... my Crystal Ball. Call me if you want to discuss your particular situation. 2011 will be the year to make a move!

The Avengers Comes to New Mexico

It's official!Marvel's The Avengers is in pre-production and will be shooting in New Mexico through 2011.While industry estimates vary, the production expenditure is projected to be at least $140 million dollars, making it the largest shoot in the history of New Mexico film.Productions of this size have a significant impact on our economy. They hire New Mexico crew, use our production services, and cast our talent. They stay at our hotels and furnished homes, eat our food, and shoot our locations. For several thousand individuals and hundreds of businesses, the economic impact is significant and evidence of how critical film has become to the New Mexico economy.

Thanks to Crew New Mexico for that announcement. And what a great time to buy a home if you are one of those on the crew for that film. Call me and I'll tell you about ABQ and show you some homes. Unlike California, we didn't go through a boom to bust so prices are great and home prices stable for the last six months. Call me at 505-220-9193.

New Mexico to Lead Job Growth

The jobs outlook is not rosy anywhere, but Moody's is projecting New Mexico to lead the nation in job growth over the next year with 2.6% increase. Click this link to see the story and interactive map:
http://www.usatoday.com/money/economy/2009-02-06-new-jobs-growth-graphic_N.htm

Mortgage Rates Inching Up

This just in from the Wall Street Journal: Mortgage rates rose again last week to their highest level since July.
The 30-year fixed-rate mortgage averaged 4.66% last week, up from 4.56% two weeks ago. That’s still below the year-to-date average of 4.74%, but it’s up from a low of 4.21% in October.
Rising rates are likely to further crimp refinance activity, which was down 1% for the week and down 8% from year-earlier levels.
But rising rates could encourage some fence-sitting buyers to close deals, and home-purchase mortgage applications jumped by nearly 2% last week, sending activity to its highest level since May.
Rates are closely tied to the 10-year Treasury, which has been on the rise over the past few weeks and jumped in recent days after the tax-cut compromise struck by the White House and congressional Republicans.

Where is the Real Estate Tipping Point?

I loved the book “Tipping Point” which speaks to a pivotal moment or event that will dramatically shift the course of a trend or behavior. For real estate, the tipping point was certainly the meltdown of the stock market and banking institutions resulting in loss of confidence and loss of jobs and investment nest eggs. The loss of confidence I think is still at the core of the issue. Buyers are not confident that they will continue to be employed or that their stocks or home will be good investments for the future. Of course, the fact that almost everyone had irresponsibly accumulated credit card debt is undeniable, and as those debts are reduced by paying them off or spending control, confidence in one’s own ability to manage money will return. The obvious indicators to look at to foresee a turnaround would be increased employment rates and improved home values and stock performance.
There are some other interesting trends contributing to the low volume of home sales. One is that the white-collar jobs are being reduced and these buyers were the “bread and butter” of a healthy market. Now we see first-time homebuyers, especially returning Veterans and higher end professionals but that range of $300,000 – 500,000 is like a never, never land recently.
Another factor of interest is the fact that home formation is way down. That would be people moving in together to buy a home and establish a home or family. Another indicator I follow is retail sales which was up this last week and even auto sales are up. Could a home purchase be next? I am hoping so because mortgage rates are at rock bottom so the opportunity is a once in a lifetime one.
What will be the tipping point to get people back into the housing market? I wish I could predict that and in fact what we may see is a slow turn of this Recession Ship as confidence returns to American homebuyers.

PROPERTY TAX ALERT

The Bernalillo County Assessors office is about to undertake a campaign to adjust the property taxes on non-owner occupied properties. The adjustments that have already been made have been quite discomforting. The way in which they will be determining "non-owner occupied" is by whether the property tax account does or does not claim "head of household". If the property does not claim "head of household", it will be assumed to be non-owner occupied. A protest option will be available if a property is designated incorrectly but who wants to go through that! Be sure to call the Tax Assessor to declare head of household or call me and I can check to see if you have that designation.