320 Cielito Lindo Place NW Albuquerque, New Mexico
4 Beds 3 Baths 2,481 SqFt
320 Cielito Lindo Place NW Albuquerque, New Mexico
4 Beds 3 Baths 2,481 SqFt
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
Buying a home is one of the major decisions we make in our lives and certainly a big step into securing the future not only for us, but our families as well. Many first time home-buyers in Albuquerque tend to be confused because of the many steps involved in the purchase of a home. Lots of decisions are involved from preferred locations all the way to monthly housing costs and everything in between. Knowing how to maneuver this process can get you the right home that you would be proud of.
Renting a house gives you a place to live for a month or so, but after the money is gone, renting repeatedly can be a challenge. This is why you need to secure your future and put the monthly cost of rent to a stop.
A home is an exceptional investment bearing in mind the vibrancy of the Albuquerque real estate market and the increase in value of homes over time. Your home becomes part of your equity and once the mortgage is paid off, your value will increase significantly putting you at a good financial position whether you sell the house or not. However, as a word of caution, not all homes appreciate in value. This is why you need to be careful on the location you buy the home particularly concerning its past and present performance on the real estate map. A real estate professional can help you decipher on what constituents a valuable home investment.
If you buy your home on a mortgage, you are likely to enjoy big tax deductions because the interest on the mortgage is deductible as well as the cost of improvement if any and tax credits on green technology.
Buying a home in Albuquerque also gives the opportunity to make it your own by customizing a number of things that you may not be able in a rented space. These customization can greatly enhance the value of your property.
Before you even start scouting for your ideal home in the various Albuquerque real estate listings, it is vital to know exactly what you want in your home. This calls for planning. The following is a snapshot of a typical guide into planning your home purchase.
When it comes to your home needs, you may want to look at the number of bedrooms, bathrooms, the location of the home, its nearness to school or work, the size of the garage and whether it is a single or multi-floor design. Your list of must haves may differ depending on your personal preferences including whether you are single or married and your family size.
Your list of needs and wants as far as home purchase is concerned should shape your imagination and give you clarity on how to go about searching for your ideal home. Remember resources are scarce and the more efficiently you allocate them, the better.
This is another decision point you must arrive at after you have developed your list of needs and wants. It is important to crunch the numbers and figure out exactly how much you can spend on your potential home. You need to look at the following:
As earlier pointed out, the process of buying a house for sale in Albuquerque can be hectic thanks to the lengthy procedures and endless options available. This is why you need a sound real estate agent who understands the real estate market in Albuquerque and probably the available homes even before they go up for listing.
These professionals also know who the best lenders are, the best neighborhoods based on your budget, the local ordinances and regulations, among other real estate details. As a matter of fact, a real estate agent is your guide to help you down the road to home ownership. In order to get a complete real estate professional that understands and puts your needs first, you ought to have a list of expectations for your ideal agent. Below are some of the things to consider when picking a real estate agent in Albuquerque.
After going through the above stages in owning a home in Albuquerque, you should now be ready to walk down the road to your new home.
This will require either a pre-approval or pre-qualification. For a pre-approval, the lender will review your finances and credit history in details as well as confirm your proof of down payment and a regular source of income. For a pre-qualification, the lender will do a preliminary check of your credit history and may be some basic documentation. You should note that a prequalification is not a guarantee for a mortgage loan.
You will also need to do walk-throughs in the properties you have shortlisted so as to determine whether they are suitable based on your list of needs and wants. Thereafter, before you make the commitment to buy, you may need a detailed professional home inspection and a lawyer to oversee the transaction and point out any legal loopholes.
Q1 2016 highlights…
Hi, it’s Tego Venturi with The Venturi Team and Keller Williams Realty with the quarter one 2016 market update. I used to do this monthly, I think it’s better to look at a from a quarterly standpoint, it really is where we can see the trends and what’s going on in the market. I’m starting off on this chart, this chart is the annual appreciation in Albuquerque since 1978 so it goes all the way back to 78 as you can see and I brought this up because this gives us the last quarter and these numbers are quarterly, no yearly excuse me, the market appreciation or depreciation in the greater Albuquerque area and when I say Albuquerque I’m always talking to Greater Albuquerque that does include all the surrounding communities. For 2015… we were watching this all year, was frustratingly slow in market appreciation, we ended up somewhere around one-and-a-half percent market appreciation for Albuquerque. II just wanted to follow up on that because these numbers just came out here about a month ago for the finals for 15.
Now what I am going to show you here is what’s going on in the first quarter of 2016 so let’s jump to that right now. Right now the first chart I want to show you is a supply and demand chart and that’s something we’ve been watching closely and are Albuquerque Market because we continue to have increase in demand, and a decrease in Supply as you can see here. The number of for sale homes is down 9%, the number of under contract homes in the first quarter is up 23%, homes that received a purchase agreement and went under contract in the first quarter of 16 vs 15, that’s a big jump up. Of course all those don’t translate into actual closing, some of those are going to fall out of escrow which is, which is not unusual, obviously we hate it when it happens but it does happen. Then we can see we are up 10% in the number of homes sold this year so far versus last year for the same period. So we are seeing the trend, again, to continue, the number of homes being sold continues to increase and the number of homes available for sale continues to decrease.
The other chart I want to talk to about in Albuquerque is affordability, I’m going to go to prices here in a second but let’s talk about affordability first. Affordability is basically a rating or a mathematical formula that tells you how affordability is in housing compared to other parts of the market. In Albuquerque… this is a chart and Analysis done by the National Association of Realtors, one of the great pieces of data they give us and for the end of 2015 Albuquerque was at 10%, is kind of what they’re saying is that 10% of your income, which is very low traditionally the u.s. it is 15%, historical in a New Mexico is 14%, u.s. is 19%, so we’re still trending below the national average as well as traditional and historical average for Albuquerque. With affordability… you know low interest rates obviously have a huge piece to do with that.
Let’s talk to the interest rate question. Interest rates 30 year fixed interest rate this is the first quarter interest rates again jumping back to 2015 starting at the end of the last year. Actually rates have come down in the first quarter of 2016. Now the projections are that they’re probably going to go up and so we’re watching it closely to see what’s going to happen. It’s strange because the FED raised the prime rate at the end of last year and rates actually went down. But, it has to do with oil, overall economy, it’s all of that big macroeconomic stuff that affect interest rates. This is a chart that just kind of showing your interest rate projections going through the year and into the beginning of next year and right now we’re at this kind of 3.9 and they’re projecting it will probably be up maybe a quarter, three quarters, 3 tenths, or 4 tenths of a point by the end of the year. But who knows what’s going to happen, we’ve been projecting raising interest rates for a long time and we still haven’t seen it. Needless to say it’s just that the point is it’s a good time from a market good time to buy because it’s really helping affordability. Talking about mortgages and interest rates, I did want to address one thing… there was a recent survey done by a bankrate, you can see it on the slide here. They asked people what size of down payment do you need? 45% of the people either said 20% or they didn’t know, which is surprising to me. I just wanted to put out there there’s two and a half percent down, 3 and a half percent down, 5% down loan programs, and in New Mexico we have this great thing called a Mortgage Finance Authority that has a $500 out-of-pocket program for first-time home buyers and another program it’s it’s similar to a hero program which is also a $500 out of pocket. If you want to learn about the different programs, talk to a good local lender, obviously we can always refer you to one. I want to emphasize talk with a local lender it it always really helps.
Let’s jump the prices, first quarter… The Average Price and the median price, what we’re looking at here is we’ve got 1st quarter 2015 versus 1st quarter 2016. Average price up 5%. 5 and a half percent, median price up 4%. Now I want to emphasize, that does not mean prices are appreciated 5% or 4%, that means that the average price and the median price went up that much. Actual appreciation is different than that and we don’t know 100%. I want to show you one other charge that makes me somewhat optimistic regarding the price appreciation. That is the average price per square foot. The average price in the first quarter of 2015 was $103, the average price in the first quarter of 2016 was $108. This kind of evens out the playing field a little bit so you don’t have the variations quite as much. We’ve got about a 5% increase as average price from 15 to 16. It’s going to take a while… we’re going to have to wait for the home price index numbers to come out to see if we’re actually tracking at 5% appreciation, but at this point it kind of looks like that.
A couple takeaways here… interest rates are still low, affordability is still good, there’s still a decent number of homes for sale, however that continues to decline every month, especially in some of the lower price points it’s getting much more competitive. The place where there’s really good value is in the higher end and if you get up in that five, six, seven, eight hundred, million dollar price range, there are some incredible values out there. I appreciate you listening all the way to the end and of course if you ever want some help you can reach us at welcomehomeabq.com on our website or call us at 933-6881. Oh yeah… and don’t miss us on radio. It make sure you listen to our radio show every week, I go through this stuff every week… we’re on 95.9 FM and ABQ.FM on the internet. We’re on at nine o’clock Saturday morning, thanks for watching bye bye.
Seven steps to buying your home
Deciding how much house you can afford
Making your home wishlist
Location, Location, Location
Opting for new home construction
How can a real estate agent help me?
10 things you should ask a real estate agent
Eight steps to selling your home
How can a real estate agent help me sell my home
How to price to sell and still make a profit
Practicing good seller’s etiquette
Understanding the buyer
Increasing your home’s appeal
Foreclosed home sales continue to make up a portion of all homes sold in the albuquerque area, currently about 10-12% of homes sold were bank owned. If you decide that foreclosed homes is something you want to consider in your home search here are some things to consider. You can visit our Albuquerque area Foreclosures page to search these homes for sale.
Albuquerque houses for sale in the Nob Hill and the University of New Mexico areas seem to be in demand. As well they should be with UNM & CNM starting up this month! We’ve seen quite a few home buyers looking in this area due to attending UNM. Many people seem to be looking for multi-family properties or homes for sale that work well with roommates. Guest houses and casitas are popular as they tend to work well when buying a home with the intent of renting out to multiple people. Many of the homes for sale are within walking or biking distance to UNM and CNM. The Albuquerque Rapid Ride system also has many bus routes in and around the University area, too.