adohomes

Did you get one of those door hanger thingies?

Gene Gaik — Sun, 20 May 2012 22:04:12 +0000

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April 2012 Albuquerque Real Estate Market Report

Gene Gaik — Wed, 16 May 2012 19:50:48 +0000

Here are the headlines (in bold, with my comments below):

- The median sales price for single family detached homes rose 5.92% from April 2011, the highest level since July 2011.

The median sales price is just barely rebounding to 2009 levels. (Still 11% below the peak in 2007)

The top selling price range was $200K-$249K, followed closely by $140k-$159k.

The median sales price is $174,775, the first increase in home values since April 2007.

The average is $211,186, the first increase since 2007 . (Still 13% below the peak in 2007)

There has also been a 25% increase in homes sold for more than $300k, over last April including five $1M+ homes

- Home sales for single family detached homes rose 6.53 % from the previous year.

Inventory also fell by 24% creating the lowest supply-demand ratio in the past twelve months.

There are currently 6.74 months supply of homes listed.

- April 2012 was the 2nd time in 2012 that Pending sales for single family detached homes passed the 1000 mark.

This was the 2nd month in row and the only two times in the past year.

- Gene’s Spin:

I believe this increase is driven by high demand by first time home buyers which has served to solidify housing prices under $200k and pent-up demand by first time move-up buyers (under $300k) who have been waiting for the economy to stabilize. The lowest interest rates in decades combined with the growing availabilty of distressed listings (short sales and foreclosures) has also helped. I think the luxury homes market has been spurred by more realistic pricing by sellers and the appearance of more than a few luxury distressed homes.

My best guess is that demand in all price ranges will continue to grow in the short term. Potentially spoiling conditions could be rising interest rates and the potential for more foreclsoures flooding the market.

- ADO Spin:

There were five closed sales in the ADO area in April, three below $200k, one between $200-$300k, and one over $300k. Buyers love the ADO area and will consider it for the right price. There are seven Pending sales in the ADO area, three below $200k, three bewteen $200-$300k, and one over $300k. With 13 active listings (six below $200k, four from $200-$300k, and three over $300k) it looks like our absortion rate (the number of months to sell all homes in the inventory is two months for sub $200k listings, four months for $200-$300k, and three months for over $300k) are well below the ABQ average.

As always, feel free to ask any questions!

Active, Pending, Closed, Last Eight Weeks

Gene Gaik — Wed, 09 May 2012 17:08:59 +0000

New Active Listings

7565 Prairie Rd NE, 1264 sf, $77,400 (Attached, Bank-owned)

7540 Lantern Rd NE, 1976 sf, $189,000 (Attached)

7457 Prairie Rd NE, 1400 sf, $120,000 (Attached, Short Sale)

7004 Prairie Rd NE, 1521 sf, $175,000

4715 Tierra Encantada Ct NE, 1301 sf, $165,000 (Attached)

7465 Prairie Rd NE, 1350 sf, $88,000, (Attached)

7316 Carriage Rd NE, 2674 sf, $325,000

6605 Arroyo Del Oso Ave NE, 2050 sf, $285,000

5020 San Pedro Ct NE, 1550 sf, $120,000 (Bank-owned)

Pending Listings (price is the list price at contract) (DOM = days on market)

5133 La Fiesta Dr NE, 1252 sf, $143,500, 85 DOM (Attached)

4801 Northridge Ct NE, 4497 sf, $219,000, 587 DOM

7700 Osuna Rd NE, 2711 sf, $299,500, 102 DOM

8208 Bart Ave NE, 1400 sf, $139,900, 111 DOM

6015 Whisperwood Ct NE, 1600 sf, $149,500, 1 DOM (Attached)

6121 Kingston Ave NE, 1600 sf, $129,900, 51 DOM

7616 Northridge Ave NE, 2769 sf, $250,000, 71 DOM (Short Sale)

Closed (original list price/contract sales price)

4205 Penelope Pl NE, 1869 sf, $219,900/$155,000, 383 DOM

4504 Kingston Ave NE, 1230 sf, $155,000/$145,000, 183 DOM

4244 Louisiana Blvd NE, 1842 sf, $255,000/$242,000, 21 DOM (Attached)

8221 Bart Ave NE, 1630 sf, $142,000/$120,000, 74 DOM (Bank-owned)

4713 Norma Dr NE, 1548 sf, $149,900/$149,900, 90 DOM

7427 Northridge Ave NE, 1744 sf, $190,000/$155,000, 294 DOM (attached)

4308 Topke Ct NE, 1708 sf, $179,900/$160,000, 48 DOM

7104 Vista Del Arroyo Ave NE, 2181 sf, $285,000/$271,900, 86 DOM

6704 Baker Ave NE, 1614 sf, $209,000/$151,000, 330 DOM (Attached)

4604 Downey NE, 1453 sf, $179,900/$168,000, 436 DOM

7308 Vista Del Arroyo Ave NE, 2490 sf, $341,265/$329,000, 110 DOM

6311 Driscoll Ave NE, 1897 sf, $200,000/$188,000, 27 DOM

4147 Alcazar St NE, 1700 sf, $185,000/$142,185, 216 DOM (Short Sale)

4704 Tierra Encantada Ct NE, 1300 sf, $170,000/$157,500, 204 DOM (attached)

4527 Downey St NE, 1640 sf, $180,000/$171,000, 113 DOM

HARP 2.0. Who Does it Help?

Gene Gaik — Mon, 05 Mar 2012 17:13:48 +0000

HARP 2.0 is the second version of the federal mortgage refinancing program.

According to the LA Times the following loans are eligible:

- Only loans owned or guaranteed by Fannie Mae and Freddie Mac are eligible. Underwater borrowers who have FHA, VA, or other types of mortgages are not. Both companies’ websites — http://www.fanniemae.com and http://www.freddiemac.com — offer “look up” features that tell you whether they own your loan.

- Your mortgage must have been purchased or securitized by either company no later than May 31, 2009, and must have a loan to value ratio in excess of 80%. This means that if you have more than 20% equity, you are not eligible and can refinance conventionally.

- You must be current on your loan with no 30-day late payments during the six months preceding application
and no more than one late payment during the last 12 months.

If you think you qualify, you can contact your servicer and ask how to proceed. There are still a couple of glitches which may jump up and bite you. For instance, not all mortgage insurance companies have signed on as of yet. The bottom line is if you are deeply underwater on your mortgage and you think you meet the above criteria, it’s worth a try.

ADO Homes Active, Pending, Closed, Last Six Weeks

Gene Gaik — Thu, 01 Mar 2012 20:28:43 +0000

New Active Listings

4308 Heritage Pl NE, 2246 sf, $269,900
4721 Tennessee St NE, 1255 sf, $149,900
4526 Sherwood St NE, 2076 sf, $250,000 (Team Listing! Call to see.)
5004 San Pedro Ct NE, 2006 sf, $204,900
4101 Constance Pl NE, 1800 sf, $180,000
8128 Florence Ave NE, 1502 sf, $159,900
5000 La Fiesta Dr NE, 2055 sf, $169,900 (Attached)
6311 Driscoll Ave NE, 1897 sf, $190,000
6023 Whisperwood Ct NE #2, 1242 sf, $156,900 (Attached)
5012 La Fiesta Dr NE, 1980 sf, $200,000 (Attached)
7616 Northridge Ave NE, 2769 sf, $275,000

Pending Listings (price is the list price at contract) (DOM = days on market)

4205 Penelope Pl NE, 1869 sf, $169,500, 383 DOM
4504 Kingston Ave NE, 1230 sf, $150,000, 183 DOM
6021 Brenda Ave NE, 1826 sf, $99,900, 105 DOM (Bank Owned)
4801 Northridge Ct NE, 4497 sf, $219,000, 586 DOM
4713 Norma Dr NE, 1548 sf, $149,900, 90 DOM
8221 Bart Ave NE, 1630 sf, $125,000, 74 DOM (Bank Owned)
7427 Northridge Ave NE, 1744 sf, 168 DOM (Attached)
7104 Vista Del Arroyo Ave NE, 2181 sf, 85 DOM
4244 Louisiana Blvd NE, 1842 sf, 21 DOM (Attached)
4147 Alcazar St NE, 1700 sf, 216 DOM (Short Sale)

Closed Listings (original list price/contract sales price)

7635 Arroyo Del Oso NE, 2485 sf, $339,900/$307,450, 315 DOM
4213 Whisperwood Pl NE, 1231 sf, $159,500/$143,000, 113 DOM (Attached)
4113 Constance Pl NE, 1749 sf, $189,900/$155,000, 284 DOM (Short Sale)
7908 Northridge Ave NE, 2771 sf, $368,000/$340,000, 114 DOM
4825 Northridge Ct NE, 3000 sf, $325,000/$280,000, 88 DOM (Bank Owned)
4824 Vista Del Oso Ct NE, 1864 sf, $200,000/$160,000, 160 DOM (Attached)
6412 Baker Ave NE, 2434 sf, $319,000/$280,000, 224 DOM
4801 Vista Del Oso Ct NE, 1936 sf, $235,000/$224,000, 55 DOM (Attached)

Pending Sales Up Again. So What?

Gene Gaik — Wed, 18 Jan 2012 20:49:07 +0000

So, what does the continuing rise in Pending sales signal? Good question. I know almost everybody in the real estate profession hope it means that the good old days are right around the corner, that soon we will return to normalcy. Well, I’ve got news for them: the good old days are probably gone forever, just as they always have been. So what does the future hold?

For Buyers: In my humble opinion we probably have two more years before housing begins to appreciate again. I think that we probably are about 60% of the way through the foreclosure bubble so I’m guessing that we have one more year of falling values (maybe 5%) and then a year of plateau, before we head back up. These artificially low-interest rates can’t last forever (can they?). We’ve been saying that “interest rates are at historic lows” for what seems like three years. Sooner or later that has to end. All in all, it’s a great time to buy. Foreclosures and short sales are providing incredible opportunities for buyers in all price ranges and in the past six months are finally beginning to affect the sales prices of non-distressed homes. The one thing I would caution buyers about is that short sales and bank-owned properties are now listed fairly close to the amount that banks will approve, so the value is built-in to the price. I would guess that this is the case in about 75% of all “distressed” listings today. A good Realtor can help you determine if that is the case. The bottom line is that buyers who take advantage of these low rates/prices today will be very happy with their investment in 5-10 years.

For Sellers: If you read the above advice for buyers, you can extrapolate what that means to you. I have spoken to many folks who were willing to sell, but were horrified with “what their house is worth today”. “I’ll just wait awhile until prices come back,” they say. What I have begun tell sellers is that that’s fine, if they want to wait ten years. As a I detailed above, I believe we are two years away from appreciating house prices and when they start back up, they aren’t going to just snap back, it will take time. It’s important for sellers to understand what they want to accomplish and if that doesn’t include living in their current home for the next ten years, biting the bullet and doing what they need to do while they can buy their next home at a great price with a great rate may be the right move today. (A final thought for sellers: If you are behind on your payments whether you want to stay in your home or not, DO NOT suffer foreclosure. There are alternatives and foreclosure should be a last, last, last choice. Contact a Realtor with distressed property experience. )

For Investors: If you have a longer horizon (say ten years) and don’t mind getting into the rental game, you can find very desirable property in great neighborhoods. The rental market is exploding at present and at the very least you can find properties which will be revenue neutral for the first couple of years, then give you some cash flow, and finally appreciate enough over the next ten years to really be a good investment.

The bottom line for next year is that the lower price ranges should continue to prosper while higher price properties (say over $300k) will sell if they are priced properly. Out of adversity comes great things, for those that willing to move now.

ADO Homes Active, Pending, and Closed, Last Six Weeks

Gene Gaik — Thu, 12 Jan 2012 19:06:51 +0000

Active

7104 Vista Del Arroyo Ave NE, 2181sf, $285,000
4604 Downey NE, 1453sf, $179,900
8221 Bart Ave NE, 1630sf, $134,900 (Bank-owned)
8208 Bart Ave NE, 1400sf, $149,900
4527 Downey St NE, 1640sf, $180,000
5133 La Fiesta Dr NE, 1252sf, $148,500 (Attached)
7700 Osuna Rd NE, 2711sf, $317,500

Pending (price is the list price at contract) (DOM = days on market)

4713 Norma Dr NE, 1548sf, $149,900, 84 DOM
4213 Whisperwood Pl NE, 1231sf, $144,500, 113 DOM (Attached)
6412 Baker Ave NE, 2434sf, $299,900, 224 DOM
4504 Kingston Ave NE, 1230sf, $150,000, 176 DOM
4824 Vista Del Oso Ct NE, 1864sf, $175,000, 160 DOM (Attached)

Closed (original list price/contract sales price)

6421 Katson Ave NE, 2178, $285,000/$255,000, 200 DOM
4809 Vista Del Oso Ct NE, 2048sf, $255,000/202,600, 152 DOM (Attached)
6100 Osuna NE, 1275sf, $149,900/$143,800, 18 DOM (Attached)
7008 Lantern Rd NE, 2480sf, $325,000/$315,000, 192 DOM

Is it a Good Time to Sell My Home?

Gene Gaik — Tue, 03 Jan 2012 22:33:07 +0000

I do a lot of online home market evaluations for people all over the Albuquerque Metro Area. Some of these folks I know and others I have never met. Many folks who follow the news have an idea that their home may not be worth what they thought it once was. Others seem to be genuinely shocked and some seem to want to “kill the messenger”. (All I do is interpret the data folks.)

Some people can afford to sell because at least here in ABQ, we haven’t dipped much below 2006 home values, so if a homeowner purchased before then and didn’t put a second mortgage on the home during the run-up, or refinanced and took significant cash out, we can normally get them clear after all the closing costs.

What it comes down to is your reason for selling. If you have to sell because you are moving or you want to sell to buy a bigger home, (see my post http://wp.me/p1ByQA-B for good reasons to buy) selling now is unavoidable. If you can wait maybe that is a good idea, but nobody really knows how long it’ll be before housing prices start back up or how long it will be before your house reaches a price range acceptable to you. Personally, I think we are about 50% of the way through the foreclosure bubble here in ABQ. With housing prices for non-distressed homes just starting to be affected by foreclosures and short sales we could still see maybe a 5% drop and that assumes an economic recovery this year. Say maybe a year of plateauing before things start back up and you are looking at another 24 months at the levels we are at now. Then you have to look at how long to will take to get back to early 2007 levels and all told it could be ten years before you could feel good about selling. Do you have ten years to wait? Then don’t sell now. And for goodness sakes if you are behind with mortgage payments and really don’t have any hope of renegotiating your mortgage, don’t suffer foreclosure. A good short sale specialist can advise you on how to avoid foreclosure and at least save your credit (see my post http://wp.me/p1ByQA-1k ).

Don’t think there aren’t buyers out there. There are buyers in every price range. Your home just needs to be the “prom queen” in its price range. There were 7615 buyers out there last year. Yes 1/3 of them bought distressed properties, but 5085 bought non-distressed properties.

The bottom line is this, if you can’t or don’t want to wait, you don’t have to, but the truth is nobody knows when this market will come back, but almost nobody thinks it’ll be very soon.

ADO Homes Active, Pending, and Closed, Last 60 days

Gene Gaik — Mon, 28 Nov 2011 19:12:02 +0000

Active

4713 Norma Dr NE, 1548 sf, $149,900

4625 Sherwood St NE , 1800 sf, $230,000

7459 Prairie Rd NE, 1200 sf, $112,000 (attached)

6021 Brenda Ave NE, 1826 sf, $123,900 (Bank-owned)

4825 Northridge Ave NE, 3000 sf, $325,000 (Bank-owned)

7527 Northridge Ave NE, 1630 sf, $198,000

5001 La Fiesta Dr NE, 1400 sf, $165,000 (attached)

6004 Del Campo Pl NE, 1219 sf, $145,000 (attached)

7308 Vista Del Arroyo Ave NE, 2490 sf, $341,265

4801 Vista Del Oso Ct NE, 1936 sf, $235,000

Pending Sale (price is the list price at contract) (DOM = days on market)

6100 Osuna NE, 1275 sf, $149,900, 18 DOM (attached)

6421 Katson Ave NE, 2178 sf, 265,000, 200 DOM

7635 Arroyo Del Oso NE, 2485 sf, $319,900, 315 DOM

4809 Vista Del Oso Ct NE, 2048 sf, $214,700, 152 DOM (attached)

7008 Lantern Rd NE. 2480 sf, $315,000, 192 DOM

4113 Constance Pl NE, 1749 sf, $159,500, 284 DOM (short sale)

7513 Vista Del Arroyo Ave NE, 2372 sf, $280,000, 97 DOM (short sale)

4147 Alcazar St NE, 1700 sf, $149,000, 202 DOM (short sale)

Sold (original list price/contract sales price)

7556 Prairie Rd NE, 1200 sf, $119,900/$107,000, 68 DOM, (attached)

4216 Indian Springs NE, 2073 sf, $280,000/$267,500, 27 DOM

4803 Erin St NE, 1510 sf, $160,000/$177,500, 62 DOM (attached)

4506 Overland St NE, 1500 sf, $145,000/$125,000, 93 DOM

7113 Prairie Rd NE, 1552 sf, $198,000/$181,000, 61 DOM

7560 Prairie Rd NE, 1370 sf, $109,900/$109,900, 15 DOM (attached)

4320 Brand Ave NE, 1500 sf, $174,000/$168,000, 7 DOM

6105 Katson Ave NE, 1275 sf, $150,000/$145,000, 9 DOM (attached)

6509 Katson Ave NE, 1756 sf, $234,000/$200,000, 103 DOM

6209 Loftus Ave NE, 2035 sf, $210,000/$192,000, 75 DOM (Bank owned)

4256 Indian Springs Dr NE, 1400 sf, $169,000/$169,000, 5 DOM

We Can’t Afford the Down Payment – What Down Payment?

Gene Gaik — Tue, 22 Nov 2011 17:11:19 +0000

Buyers continue to think that they can’t afford the down payment they need to buy a home in today’s economy. I hear all the time about tight credit slowing the housing market and while things aren’t the way they used to be (thank goodness), potential buyers with a good credit score can still find lenders happy to lend. There are still zero or low down payment loans available. For instance:

New Mexico Mortgage Finance Authority (NMMFA) offers first time home buyers with credit scores 640 or above a zero down mortgage. All a buyer needs to do is bring $500 to the closing table and have one month reserve in their account. The seller can pay all the other closing costs. Or, if their credit scores are 620-639, they must bring $1500 to closing with one month reserve in their account.

VA Loans Qualifying Veterans can get a VA loan with zero down and no monthly mortgage insurance.

USDA Loans In rural areas qualified buyers can get zero down loans with a small monthly mortgage insurance payment.

Native American 184 Program is a 2.250% down program with no monthly mortgage insurance. No monthly mortgage insurance and some tribes will provide cash grants to qualified buyers.

The key is good credit. Many mortgage officers are happy to coach buyers in getting their credit scores up and there are a host of credit repair programs out there. Most buyers need a plan which combines credit score maintenance with good old-fashioned savings. If you are currently renting and think that you want to get in on the American dream of home ownership, get started today.