Earlier this month I did a quick update as well as the Q3 numbers. Here is a full Video Market Update Report including the HPI numbers for the 3rd quarter as well as a November 2016 update. Two big things I am watching… Home Price Index, and Supply vs. Demand ratio. The HPI has had a 4.49% increase through the 3rd quarter, largest move in 10 years, a healthy move. It will be interesting to see how Oct, Nov, and Dec come out. At this point it looks like we will end up at 5%+ appreciation for 2016 Y/Y. The Supply is low and if the demand trend continues, this could create some challenges. However, the fact the prices are going up will help some people who have been in the position of wanting to sell but having negative equity. As the negative equity goes away that can help bring more homes on the market.
We just received the latest Home Price Index numbers for Albuquerque and as expected… prices are up. For 2016 we have seen a 4.49% increase in the index through the 3rd quarter. The last time the ABQ housing market has had gains greater than this was 2006. The Albuquerque Home Price Index has averaged 3.9% since 1978.
These are Places that are taken on by a Bank inventory after a foreclosure. These are properties that have been acquired by financial institutions when a house owner does not make mortgage payments. Then are sold at discount prices by these establishments, or below market prices or below the current market prices for the existing homes. Several people in New Mexico have seen these type of Albuquerque foreclosures.
A Bank Owned Property is one where the lender takes back properties during foreclosures. Banks or lenders bid in a foreclosure and the one with the highest bid gains the rights to obtain the property. Bank Owners usually have low-interest rates and low down payments. These resources often are found on online services or through large lending institutions called Loss Mitigations departments that usually sell these properties.
Understanding Real Estate Short Sale.
When a bank decides it sells the property, usually termed as a real estate short sale. Is where the sale of the place or residence, generates less that the market value of the house. Restate short sales occur when the owner and Bank decide to sell the property, and absorb a moderate loss and sometimes is an alternative to a foreclosure.
The difference between a foreclosed Property and Bank Owned Property.
As you buy a property during a foreclosure sale, you might have to pay at least the loan balance plus any interest, including any other bonus fees amassed during the foreclosure process of the house. And also be prepared to pay in cash most of the times, so, in the end, the money spent to get the whole property is usually a lot.
As REO is a more attractive and tidy option to getting a property, the lender owns it and will see the elimination of tax liens as well as the eviction of the occupants where the need arises, as the buyer waits for the title insurance policy.
The following are things that you as a purchaser who is interested in REO properties should know before making an offer.
- As the Bank puts the on the market, it will have to make any major repairs to damages or any issues that make the house unsaleable of even unlivable. Because of it put in mind that the bank is now the Seller of the property and thus motivated with interest to make the room as saleable and liveable as possible for the new homeowner, but also minimize the cost as possible.
- Most banks tend to get professions who specialize in foreclosures, short sales and REO like a real estate agent or company so as to make a less of a loss as possible. Different house buyers usually get their agent to represent them in the negotiation process or work directly with the REO agent.
- Usually, the buyers have the option to go and inspect the residence or property before they make an offer for the REO, just as you would with a private homeowner or any other good you purchase.
- Always try to get pre-qualified or pre-approved advice before shopping or making an offer for the property, so as to understand what it takes to get the property or even make an offer you cannot hope to pay. So if you have an eye on an REO property, always get pre-approved by the Bank or Owner that owns it may give you an advantage.
- Most of the times once a bank acquires the residence or property becomes bank owned. The property is sold at a competitive market price to get it sold as quick as possible and won’t usually allow bargaining unless the residence has stayed on the market for quite some time.
- Usually, before making an offer after approval, compare the prices of different home online and find the floor and ceiling for REO properties so as not to make offers above what you cannot afford.
- Remember that with an REO property the more it sits in without being sold or without anyone making suggestions for the place. The bank is losing a lot of money on maintenance costs, so do not be afraid to make low bids for the properties and you might get yourself a house at a bargain price.
- Banks usually have a lot of people to answer to and different boards and committees such as shareholder, so they will attempt to sell an REO at competitive market price. So they will always make counter offers to any offer made. So the price is always negotiable and if you get your mortgage from the same bank their other aspects of the deal that can adjust in your favor like interest rates and closing costs.
- Most REO and Foreclosures need to have extensive repairs done to them When you make an offer, have a company or person inspect the property so as to get a good understanding of all the repairs that need should do to the place and the precisely required price of the repairs
- When trying to make repairs ask for a licensed contractor for quotes on any needed repairs, then include this costs as an addendum to the contract following the inspection. This I very useful thing to do when you inspect the house and before the initial bid for the house is made.
- Do not think that because the bank has put the house on sale the price of the property priced correctly. So before making your bids get an independent appraisal to determine the value of the house just like when you’re buying jewelry. Later the price given to from the assessment will determine how much you will offer regarding your mortgage to the bank.
- Always hire an independent company of to conduct research on the house and make sure that everything regarding taxes and debts is fine. As Most banks clear the title before putting an REO on the market.
- When you make an offer for a REOs, it takes longer for offers to be respond too as they have to evaluate the potential buyer of the house. So be patient, and the bank will always get back to you.
Albuquerque is among the populated towns of New Mexico, USA. With the headquarters of Bernalillo County in this town, it prides in excellent social amenities. This being a modernization of the Old Albuquerque, it has continued to develop in architectural and development designs. This high desert terrain poses a great site for real estate developers. While the Old town prides in ancient structures, the New Mexico is a representation of modern estates and residences. The development rates increase by the year, with inclusion of new homes for sale, to cater for the ever-increasing population.
With a population of close to one million residents, homes for sale in Albuquerque New Mexico have a niche in real estate. Most developers focus on the executive types of homes, especially due to the urban environment. However, the homes suit the different needs of potential buyers including size and inbuilt facilities. On the other hand, the financing options vary. Some home sellers will dictate on the specific modes of payments while others are open. For buyers, convenience and choice of location and prices determines the homes to buy. In real estate, both the buyers and sellers determine the value of homes in terms of pricing.
The Seller’s Guide
Properties for sale always have an equilibrium scale to balance. Sometimes the locality favors the sellers, as for the case of homes located at the hub of Albuquerque NM. For others, the prices come in from the home designs and built-in facilities. The conviction to a buyer to own your property depends on the following, especially for a densely populated area like this:
Marketing versus Reputation
A home is a valuable property for any buyer, and they need to trust sellers. The reputation ratings come from the genuinity in pricing and honesty in home description. Even for agencies dealing with brooking services, it is important to have the correct information all the time. On the other hand, how you market the homes determines the value of the property. With a good reputation, recommendations are possible especially to new homebuyers.
Pricing versus Quality
Generally, the locality defines the prices to some extent. Overpricing and under pricing are factors that reduce the value of homes for sale in Albuquerque NM. For an enlightened population such as this, the seller has to create a checklist, from which to range the prices. In addition, the real estate is a dynamic sector and the future depends on the current endeavors.
The Buyer’s Guide
For metropolitan cities, homes for sale cover many aspects. Buyers determine the direction of real estate, to some extent, depending on the common wants and needs. For a buyer in Albuquerque NM, you have a number of options to finance your purchase of homes. They include the following:
This includes personal assets or cash that you can use to purchase a home. Most homes for sale in Albuquerque NM have high pricing and personal financing are left for the few. However, this is the cheapest for a buyer since the price is lower when compared to paying through installments. Using this method, your budget defines your home.
They favor the middle-class population who want to own the lavish estates of Albuquerque NM. With the many mortgage companies around, you have a variety of choices in terms of terms and conditions. Although the eventual price is higher when compared to personal financing, you have a favorable payment method and room for home development. Some companies can however define the regions they cover which may limit your choice of homes.
Financing institutions have loans to finance purchases of homes. Some of them work with home developers to provide loans towards specific homes. The deposit and installments requirements should define this suitability of the loan for your home. Some home loans are flexible enough to cover the lavish homes and it can be an option for such targets.
The Residence Checklist
Homes for sale in Albuquerque NM pride in a number of common facilities that make the area suitable for living. The flat terrains enable development of strong structures and incorporation of modern designs. Some of the amenities accessible to all homeowners in Albuquerque are:
The area has been on the growth scales for many years. Accessibility of the area is cheap and reliable through road, air and rail services. The Albuquerque International Sunport and Double Eagle Airport open the region to the world while the Pan-American, Coronado and Paseo del Norte highways enable road movements in and out of the region. The railway is another option for transit to major destinations at cheaper prices.
This being a residential area, it enjoys a variety of institutions that range from kindergartens to colleges and universities. The metropolitan status of the town includes cultural schools such as Southwestern Indian Polytechnic and the Theological St. Norbert College. They come in both public and private based orientations to cater for people of all classes. For students who prefer to source educations in other areas, the transport routes are reliable. However, according to statistics, the schools in the regions are adequate for the population.
Most developers for homes for sale in Albuquerque NM use the available leisure destinations as a selling point for their property. Most of the hotels in the region have diversified to include meals from all cultures, in an effort to include all needs of the residents. The Indian Pueblo Cultural Park and Albuquerque Biological Park are among the destinations that residents enjoy in the region.
Flat Terrain and Climate
The terrains play a big role in defining the structures favoring a region. In addition, the suitability of a region for development determines the price ranges. The desert-like climate plus the flat orientation of land favors home real estate in this area. Although most homes for sale in Albuquerque NM are luxury homes & mansions, the terrain assures the buyers of strong structures and durability. With the hot climate, it favors most of the construction material, which makes the region pride in fantastic communal structures.
The Albuquerque real estate sector in New Mexico grows as the population increases. The increase in homes for sale in Albuquerque NM is an indication of continued population increase, and the suitability of the region for residence purposes.
The takeaway on the market… The number of homes sold continues to increase but at a moderate level. Supply vs. demand continues to be in favor of sellers in the median price ranges. Year over year price appreciation looks to be in the 3%+- range
I was looking at the home prices in the Albuquerque area and have this great chart that shows the Average Price per sqft. I like this number vs average or median price to get a better indication of appreciation/depreciation. Some takeaways… The avg price per sqft is at the same levels as Summer of 2006 and of Fall of 2010. The appreciation from 2012 to today is about 2.5% annually and from 2004 to 2008 it was about 7% annually. Tego
Here is the Housing market update video for May. Lots of info and here are some of my takeaways. The headline continues to be a restricting supply of available homes for sale. In May we had 19% of homes sell that were on the market, in comparison the average over the past two years has been 16%. The other data point we are watching is Months Supply of Inventory, of MSI. For May it’s at 3.5, that is also the lowest in two years.
A few data points for May 2015 vs. 2016.
- Homes sold. 1033 to 1110. +7.5%
- Homes going under contract. 1111 to 1292. +16%
- Homes on the Market. 6610 to 5809. 800 less homes for sale.
- Average Home Price. $208,000 to $219,000. +4.6%
- Average price per SqFt. $109 to $113. +3.7%
The takeaway is… The Albuquerque Housing market is healthy and it looks like we are tracking at about 3-4% appreciation at the moment. Some areas are much stronger than others and the price of a home compared to other homes in the neighborhood will have a big effect on whether a home will sell quickly. Meaning, it you have a $300,000 home in a neighborhood of $200,000 homes don’t expect a quick sale. However homes that are “in the range” for a neighborhood, are priced right, and look great may have an offer in a few days.