Stabilization and Recovery in Commercial Markets

"Back from the Brink… But What Next?" a new report issued by CB Richard Ellis sees some stabilization and recovery for the much of the worlds' commercial real estate markets at the mid-point 2009, with one notable exception: The U.S. The report notes the obvious indicators of weak market conditions but also identifies some positive developments, including initial signs of regional recovery. Highlights include an uptick in investment sales volume in Asia where the market has adjusted quickly and pricing may have hit bottom in some cities; stabilization of property markets in the Pacific region after 18 months of turmoil; and activity in the EMEA (Europe, Middle East and Africa) investment market inching up to €13 billion, from €11.6 billion in Q1 2009, with some expectation for further improvement in Q4 '09. Unfortunately, the CBRE report sites no signs of recovery for the U.S., where vacancy rates in the office, industrial and retail property markets continued to rise in Q2 2009. Read more details in the CBRE press release or download full report.

A Bright Real Estate Outlook

The stock market may be jumping around and jittery, but housing numbers are headed in just one direction, and at least for the time being, that's better and better. Pending home sales jumped again. They were up by 3.2 percent for the month of July, according to the National Association of Realtors. That's the sixth straight month of increases. The pending sales index is now at its highest level since June of 2007, and is 12 percent above a year ago...
Continue reading "Real Estate Outlook: A Bright Market"

August 2009 Market Report for Albuquerque and Rio Rancho

Monthly Highlights
• Pending sales for single-family, detached homes are up 12.69% from the previous month and increased 36.38% from the previous year.
• Single-family, detached homes sales for Albuquerque show an increase of 0.7% from the previous year.
• Single-family, detached home sales for Rio Rancho are up 8.33% from the previous year.
• Home sales for condos/townhomes in the Southwest MLS market areas are up 34.38% from the previous year...
Continue reading "August 2009 Market Report"

Strong Gain in Home Sales

For the first time in five years, existing-home sales have increased for four months in a row, NAR says. The monthly increase in July is the largest in 23 years, rising 7.2 percent to an annual rate of 5.24 million units.

Tips for Painless Appraisals

Although much of what needs to be done before the closing is the responsibility of others - appraisers, loan processors, and inspec­tors. Your remaining involved helps ensure that others do their jobs promptly and correctly and that the closing isn’t jeopardized. This article will give you some great tips for avoiding appraisal problems, five common flaws in residential appraisals, and five helpful strategies on what to do if you appraisal comes in too low. Click here to read.

Assuring Accurate Appraisals

An appraisal of a home is always supposed to be a fair, impartial and professional evaluation of a prop­erty's true value and not under pressure from special interests. The risk-management tool is designed to assure the owner gets a fair price, the buyer pays the right price and the lender's risk in making the loan is commensurate with the property's true value. Appraisers are typically hired by the lender to protect its stake in a home buying transaction. However, both the seller and the buyer can play a role in the appraisal process through a process of due diligence known as looking over the lender's shoulder. Continue reading.

First-Time Buyer Tax Credit Extension Possible

Congress is considering a measure that would extend the first-time home buyer tax credit and potentially raise the maximum credit to $15,000. Read more...

Strong Gain in Existing Home Sales

Existing-home sales increased for the fourth month in a row, the first time in five years that's occurred. Read more...

Short Sales: The Basics

Due to current economic conditions, the number of short sale properties on the market is rising. Clicking here will show you more information on: short sales and their challenges, the government's efforts to address these challenges, and tools to help you navigate the short sale process.

Uptrend Continues in Pending Home Sales

Pending home sales are up for the fifth consecutive month. NAR's forward–looking Pending Home Sales Index for June indicates signed contracts rose 3.6 percent to an index level of 94.6 from an upwardly revised reading of 91.3 in May. The last time there were five consecutive monthly gains was in July 2003. "Historically low mortgage interest rates, affordable home prices, and large selection are encouraging buyers who've been on the sidelines," says Lawrence Yun, NAR chief economist. "Activity has been consistently much stronger for lower priced homes." Yun says households thinking about buying should act soon to take advantage of the $8,000 tax credit for first-time buyers, because they must close on the sale by November 30, which is when the credit expires. Watch and link to a video interview with Yun on the latest index reading

5 Tips when Shopping for a Mortgage

Click here

Tips for Getting a Good Appraisal

The owner of an appraisal firm has some suggestions for getting an accurate assessment of a property's value. Read more >

Tracking Global Housing Prices

Housing prices are a bellwether of economic conditions. The Global Property Guide tracks house price changes for the year ending with the latest quarter for which they have data, compared with price changes for the equivalent previous year-long period. They publish both inflation-adjusted and nominal data. Current data available covers 2008 and through 1Q 2009.

High Risk; High Reward Markets

For those with a high tolerance for risk with the potential for reward, Overseas Property Mall has published a list of five markets identified as among the most lucrative for long-term property investors. They are: Albania, Panama, Brazil, Tunisia and Philippines. For REALTORS® and their clients looking long term, the following countries may offer the best opportunity for a big pay-out. To be selected for this list by Overseas Property Mall, the destination had to have a growing economy, a stable investment environment, and be a great place to vacation. Read more about these growing markets.

July 2009 Real Estate Market Report

Pending sales for detached homes sales in all the Southwest Multiple Listing Service market areas are up .46 percent from the previous year. Closed sales are up 13.25 percent from June 2009 and 4.40 percent from July 2008. Dollar volume of closed sales indicates a -2.89 percent decrease from July 2008, which is a signficant reduction from the -15 to -40 percent range seen over the last 23-months.
Read the full July 2009 Monthly Market Report

FHA Program to Help Struggling Home Owners

The newly enhanced FHA Making Home Affordable Loan Modification program will help cash-strapped home owners reduce their monthly mortgage payments and stay in their homes, NAR says. Read more >

Home Sales Still Rising!...

Pending U.S. home sales rose in June for the fifth straight month, another encouraging sign of life for the embattled U.S. housing market, the National Association of Realtors reported Tuesday.
For June, the Realtors group said its pending home sales index rose 3.6 percent to 94.6, from an upwardly revised reading of 91.3 in May. The last time there were five consecutive monthly gains was July 2003.
The results were far better than analysts expected. Economists surveyed by Thomson Reuters expected the index to come in at 91.2.
The report tracks signed contracts to purchase previously owned homes and is considered a barometer for future home sales. Typically there is a one- to two- month lag between a sales contract and a completed deal.
The jump in pending home sales coincides with other positive trends in the residential real estate market.
"The housing market is healing and the patient is getting healthier at an accelerating pace," said economist Joel L. Naroff, president of Naroff Economic Advisors Inc.
For the first time in five years, home resales have risen for three months in a row, increasing almost 4 percent in June. Low prices, attractive mortgage rates and a first-time homebuyers tax credit of up to $8,000 have kick-started sales.
"Because housing is so affordable in today's market, job security and the first-time buyer tax credit are bigger factors in influencing home sales," said Lawrence Yun, the Realtors group's chief economist, in a statement.
Also Tuesday, homebuilder D.R. Horton Inc. said its fiscal third-quarter losses shrank from the year-ago period, as it took smaller charges against the falling values of its land and unsold homes.
D.R. Horton's results followed similar numbers from Pulte Homes Inc. and Centex Corp., which reported quarterly earnings Monday that showed new-home orders picked up during the first half of the year.
Yun said he expects existing home sales to gradually rise over the balance of the year, with conditions varying around the country.
"It appears home sales are on a sounder footing and inventory is gradually being absorbed," he said.
Regionally, the pending home sales index jumped 7.1 percent to 100.7 in the South and 2.9 percent to 100.4 in the West. The index inched up 0.4 percent to 81.2 in the Northeast, and up 0.8 percent to 89.9 in the Midwest.
Copyright © 2009 The Associated Press.

Deed of Trust or Mortgage?

When someone borrows against a piece of Real Property using a Mortgage, they (the borrower) maintain Title to the property, and the Mortgage is a Lien on that property.

When someone borrows against Real Property using a Deed of Trust, the property is deeded to a neutral third party called a Trustee. This Trustee holds title to the property, and distributes title to the property under the terms of the Deed of Trust. If the borrower (called the Trustor) pays off the loan, title is given to the borrower. If the borrower fails to pay as agreed, the Trustee has the power to hold a public auction, and sell the property for the benefit of the lender (called the beneficiary). Just as with the Mortgage, the funds from the sale would go first to paying off the beneficiary (lender) and anything above that would go to the borrower, if there are no junior lien holders (2nd mortgage, ect.).

To foreclose on a mortgage takes 6 months and thousands of dollars, where as a Deed of Trust takes 3 months and an attorney.

2009 2nd Quarter Home Sales Report

Click here to read the full 2009 2nd Quarter Sales Report.

Rio Rancho Offers up to $5,000 for First Time Buyers

- Read about Rio Rancho’s Commu­nity Development Block Grant and how it could help you get into your first home. Click here.

Better Than New!

Finally, here's the one! Better than new with mature landscaping including lush grass, and upgrades throughout this gorgeous home: Deep Soak Tub, Seperate Shower, Premium Sinks, Tile, Carpet and Cabinets, Center Island, Granite counter tops, Upgraded Lighting and Fixtures, Custom Paint, Insulated Garage Door, Refrigerated Air, Walk-in closets all rooms, and a Balcony with stunning Sandia views! This home shows better than a model! PLUS ALL APPLIANCES INCLUDED!.. Doesn't get any better than this.
Click here for all the details.

Now Vacant and Back on the Market

Great income property in the re-developing Downtown area!
Click here to see all the details!

"The worst of the housing recession ... is now behind us,"

New home sales in June posted the fastest increase in more than eight years as buyers took advantage of bargain prices, low interest rates and a federal tax credit for first-time homeowners.
While home prices are still falling, the figures released Monday were another sign the housing market is finally bouncing back. Earlier this month, the government reported that new home construction rose to the highest level since last fall. And data out last week showed home resales rose almost 4 percent in June, the third straight monthly increase.
"The worst of the housing recession ... is now behind us," said David Resler, chief economist at Nomura Securities. "We're turning the corner toward increased activity in housing."
New home sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000, the Commerce Department reported Monday.
Shares of big homebuilders soared on the news, with Beazer Homes USA up by more than 13 percent and Hovnanian Enterprises rising 8 percent in afternoon trading. But with home prices still falling, these companies won't be making much money anytime soon.
The median sales price of $206,200 was down 12 percent from $234,300 a year earlier and off nearly 6 percent from $219,000 in May.
In addition to lower prices, buyers are rushing to tax advantage of a federal tax credit that covers 10 percent of the home price or up to $8,000 for first-time buyers. Home sales need to be completed by the end of November for buyers to take advantage.
"The window of opportunity is closing," said Bernard Markstein, senior economist for the National Association of Home Builders.
June's results were the strongest sales pace since November 2008 and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 360,000 units. The last time sales rose so dramatically was in December 2000.
There were 281,000 new homes for sale at the end of June, down more than 4 percent from May. At the current sales pace, that represents 8.8 months of supply — the lowest level since October 2007. If that number falls to just over 6 months, analysts say, builders will feel more comfortable ramping up construction.
Fallout from the housing crisis has played a central role in the U.S. recession, now the longest since World War II. Foreclosures have spiked, homebuilders have slashed construction, and financial companies have lost billions.
But it will still be a while before homebuilders turn into an engine for the economic recovery. Construction levels are still weak because builders still have too many unsold homes sitting vacant.
Copyright © 2009 The Associated Press

Housing market starting to recover!

The U.S. housing market has started to recover from the most far-reaching crisis since the Great Depression, data released Thursday show.
Sales of previously occupied homes rose for the third month in a row in June, the National Association of Realtors reported. That hasn't happened since early 2004, during the boom.
"The turnaround in the housing market appears finally to be here and indeed may be gaining some speed," wrote Joel Naroff, president of Naroff Economic Advisors Inc.
Stocks jumped on the news, with the Dow Jones industrial average rising above 9,000 for the first time since early January.
Home sales rose 3.6 percent to a seasonally adjusted annual rate of 4.89 million last month, from a downwardly revised pace of 4.72 million in May. Sales were up in all four regions of the country.
It was the highest level of sales since last October and beat economists' expectations. Sales had been expected to rise to an annual pace of 4.84 million units, according to Thomson Reuters.
In another encouraging sign, the share of foreclosures on the market is shrinking. About one out of three homes sold in June was foreclosure-related, down from nearly half earlier this year.
And the glut of homes up for sale dwindled to 3.8 million. That's a 9.4-month supply at the current sales pace and another important sign of a recovery. When the market balances at a 7-month supply prices should begin to stabilize, the Realtors's group said.
That probably won't happen until next year because of a backlog of foreclosures that have yet to come on to the market. The median sales price was $181,800 in June, down 15 percent from year-ago levels but up slightly from $174,700 in May.
Nevertheless, prices have risen for three straight months in about half of the 55 major metropolitan areas tracked by the Associated Press-Re/Max Housing Report, also released Thursday.
Copyright © 2009 The Associated Press. All rights reserved.

Dow tops 9,000 as home sales rise for 3rd month!

The Dow Jones industrials rose back above 9,000 for the first time since early January.
Investors snapped up a broad range of stocks Thursday, sending major indexes up more than 2 percent, after existing home sales jumped for the third straight month in June.
The 3.6 percent increase in home sales has investors excited that the hard-hit housing market might be improving. The National Association of Realtors said sales came in at 4.89 million, above the 4.84 million analysts had been expecting.
Another batch of corporate profit reports also helped boost the market's mood. Stronger-than-expected earnings and more optimistic forecasts have pushed stocks up more than 8 percent in less than two weeks. The jump has restarted a rally that began in early March, lifting the Dow and other market barometers up from 12-year lows.
Ford Motor Co. surprised the market with a second-quarter profit of $2.3 billion due mainly to a huge gain for debt reduction, while cigarette maker Philip Morris International Inc. and candy maker Hershey Co. raised their profit forecasts for the year.
John Merrill, chief investment officer of Tanglewood Wealth Management in Houston, said forecasts are crucial because companies have done well to cut costs during the recession, but investors will be looking for increased revenue to add to earnings.
"If the outlook is at all positive, it means revenue will increase," Merrill said. With costs already trimmed, revenue will quickly boost profits, he said. It would also indicate economic activity is strengthening.
After a month of wayward trading, stocks began climbing again at the start of last week as companies like Goldman Sachs Group Inc. and Intel Corp. posted solid earnings.
"Things are getting much better and the market is pricing it in," said Phil Orlando, chief equity market strategist at Federated Investors.
In midafternoon trading, the Dow rose 177.97, or 2 percent, to 9,059.23. The blue chips last traded and closed above 9,000 on Jan. 6. The Standard & Poor's 500 index rose 21.97, or 2.3 percent, to 976.04. It hasn't traded or closed above 1,000 since early November.
The Nasdaq composite index rose 47.04, or 2.4 percent, to 1,973.42, its 12th straight advance.
About seven stocks rose for every one that fell on the New York Stock Exchange, where volume came to 679 million shares, compared with 579.5 million traded at the same point Wednesday.
Bond prices tumbled, pushing their yields higher, as money flowed back into the stock market and out of safe-haven investments. The yield on the benchmark 10-year Treasury note, which is closely tied to home mortgage rates, jumped to 3.69 percent from 3.55 percent late Wednesday.
Investors looked past a bigger-than-expected rise in weekly unemployment claims. The Labor Department said the number of new claims for unemployment benefits rose by 30,000 last week to 554,000, slightly above analysts' estimates. However, a Labor Department analyst said the report was distorted by the timing of auto plant shutdowns. And total unemployment benefit rolls fell to the lowest level since mid-April.
In downturns in the past 60 years, the S&P 500 index has hit bottom an average of four months before a recession ended and about nine months before unemployment reached its peak.
A flurry of dealmaking also supported stocks. Investors look to companies' willingness to make acquisitions — and part with cash or take on debt — as a sign of confidence.
Bristol-Myers Squibb Co. said it plans to acquire Medarex Inc. for about $2.1 billion, the latest in a string of acquisitions by the drug maker. Medarex surged $7.46, or 89 percent, to $15.86, while Bristol-Myers rose 62 cents, or 3 percent, to $20.90.
Amazon.com Inc. agreed to buy Zappos.com Inc., a privately held online shoe store, in a deal worth about $850 million. Amazon rose $5.19, or 5.9 percent, to $93.98.
Ford's profit was a huge improvement over the record $8.7 billion loss the company reported the same quarter a year earlier. Without one-time gains, the car maker would have lost $424 million, or 21 cents per share. That is still smaller than the loss of 50 cents per share analysts had been expecting. Ford rose 55 cents, or 8.6 percent, to $6.92.
Philip Morris said earnings fell 9 percent as the stronger dollar shrank profit earned in other currencies. The stock jumped $2.56, or 5.8 percent, to $46.44.
And Hershey said its quarterly profit leapt 72 percent thanks to a price hike and a new advertising effort. The shares rose $2.76, or 7.1 percent, to $41.71.
The dollar mostly fell against other major currencies, while gold prices dipped.
Oil prices rose $1.77 to $67.17 a barrel on the New York Mercantile Exchange.
The Russell 2000 index of smaller companies gained 17.86, or 3.4 percent, to 546.58.
The gains in U.S. stocks pushed markets overseas to sharp gains. Britain's FTSE 100 rose 1.5 percent, while Germany's DAX index jumped 2.5 percent and France's CAC-40 rose 2.1 percent. In Japan, where markets closed before U.S. stocks began trading, the Nikkei stock average rose 0.7 percent.
Copyright © 2009 The Associated Press. All rights reserved.

2009 2nd Quarter Home Sales Report

Our 2nd quarter 2009 report features homes sales statistics for homes that were listed or sold from April 1, 2009 through June 30, 2009. We also provide a comparison to 2nd quarter numbers from the same date range in 2008. The data is for existing homes sales for single-family homes and condos/townhomes in the Greater Albuquerque market area.
Read the full 2009 2nd Quarter Sales Report

June 2009 Monthly Market Report

Monthly Highlights
• Pending sales for single-famlily, detached homes are up 9.00% from the previous month and up 8.86% from the previous year. (page 4)
• Pending sales for Rio Rancho single-family, detached homes are up 35.25% compared to June 2008. (page 11)
• Home sales for single-family, detached homes in the SWMLS Market Area are up 14.66% from last month. (page 5)
• New Page! Market snapshot for Valencia County and East Mountains. (page 12)
Read the full Report here.

Still Rising...

NAR's forward-looking pending home sales index, released for May, posted its fourth consecutive monthly gain, suggesting sales could be poised for an uptrend. The index is based on signed contracts and increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008, when it was 85.0. "Closed existing-home sales have improved but are coming in lower than expected because some contracts are falling through from the application of appraisal rules for many transactions," says NAR Chief Economist Lawrence Yun. Learn more in a video interview with Yun on REALTOR.org.

Existing Home Sales Continue to Rise

Sales of existing homes showed another gain in May, benefiting from favorable affordability conditions and a first-time buyer tax credit, NAR says. May's increase was the first back-to-back monthly gain since September 2005. Existing-home sales, including single-family, townhome , condominium, and co-op – rose 2.4 percent to a seasonally adjusted annual rate 1 of 4.77 million units in May from a downwardly revised level of 4.66 million units in April, but remained 3.6 percent below the 4.95 million-unit pace in May 2008.

May 2009 Monthly Market Report for Albuquerque area

Monthly Highlights• Single-family, detached homes sales increased 4.4% from the previous month. (page 5)• The average sales price of single-family, detached homes in the SWMLS market area is at its highest since October 2008. (page 8)• The days on market for single-family (detached) homes dropped for the third consecutive month. (page 8)• For the second time this year, Pending homes sales for Rio Rancho single-family, detached homes exceeded the previous month and the previous year’s (May 2008) totals. (page 11)
Read the full May 2009 Monthly Market Report

How to Use the Tax Credit with FHA Loans

US Department of Housing and Urban Development (HUD) announced a program that allows borrowers to use the first-time homebuyer tax credit for a down payment or closing costs on a FHA-insured mortgage. Currently, 10 state housing finance agencies, INCLUDING NEW MEXICO, offer a product buyers can use that will effectively monetize the tax credit for down payment purposes. For information on how a first-time homebuyer can use the tax credit for a down payment in New Mexico, please consult the New Mexico Mortgage Finance Authority webpage: use the tax.

Home Sales Up for 3rd Consecutive Month

Record low mortgage interest rates boosted NAR's forward-looking pending home sales index 6.7 percent in April to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5. "Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market, too," says NAR Chief Economist Lawrence Yun. The index in the Northeast shot up 32.6 percent to 78.9, and in the Midwest it rose 9.8 percent to 90.4. In the South it slipped 0.2 percent to 93.0, and in the West it rose 1.8 percent to 94.8. Read more

The Economy

NAR: Existing-Home Sales Jump
April home sales rose 2.9 percent from the prior month, with markets in the Northeast and West showing the strongest gains. Read more from NAR's latest housing report. Read more >

Home Prices Fall in First Quarter; Pace of Decline Lessens Considerably
RISMEDIA, June 1, 2009—U.S. home prices fell in the first quarter of 2009 according to the Federal Housing Finance Agency’s (FHFA) seasonally-adjusted purchase-only house price index (HPI). The previously announced, but revised January and February indexes showed increases in house prices, which were Continued

Almost Half-Million First-Time Buyers in First Quarter

Some 455,000 first-time buyers took advantage of low prices and interest rates to close transactions in the first quarter of the year, latest NAR statistical data show. Anecdotal evidence suggests the first-time buyer tax credit played a role in bringing out buyers, too. Other data show that the large number of distressed sales continues to hold down prices, with 134 of 142 markets tracked by NAR showing price declines for the quarter. Total state sales activity for the quarter put sales on a 4.59-million unit sales pace. Read more from the latest issue of Real Estate Insights.

Tax Credit Guidance for FHA Loans

In his speech at the National Association of REALTORS® Housing Summit on May 12, 2009, US Department of Housing and Urban Development (HUD) Secretary Shaun Donovan announced a program that allows borrowers to use the first-time homebuyer tax credit for a down payment or closing costs on a FHA-insured mortgage. The details of the program were announced in Mortgagee Letter 2009-15. Government entities and instrumentalities of government may provide a second mortgage. Currently, 10 state housing finance agencies (including New Mexico) offer a product buyers can use that will effectively monetize the tax credit for down payment purposes. Get information on New Mexico’s programs at housingnm.org. Read the HUD Mortgagee Letter. For information on FHA contact Jerry Nagy at 202.383.1233, jnagy@realtors.org.

10 Best Places to Live and Work

Where’s the best place to hide during this economic downturn?
Kiplinger’s Personal Finance magazine evaluated U.S. cities for their growth potential, analyzing their ability to hold onto jobs even if the economy softens further. With assistance from Kevin Stolarick of Martin Prosperity Institute, the magazine concluded that cities where there are a lot of white-collar jobs are surviving the downturn better than areas where much of the workforce is employed in manufacturing or service jobs. Stolarick says these creative-class jobs tend to help generate new businesses and that increases the vibrancy of the areas where they hold sway. This employment analysis combined with data about income growth and cost of living led Kiplinger’s to choose these 10 cities as the best places to live and work in today’s challenging economy:

1. Huntsville, Ala.
2. Albuquerque, N.M.
3. Washington, D.C.
4. Charlottesville, Va.
5. Athens, Ga.
6. Olympia, Wash.
7. Madison, Wis.
8. Austin, Texas
9. Flagstaff, Ariz.
10. Raleigh, N.C.

Source: Kiplinger’s Personal Finance (07/2009)

Making Home Affordable Program

The Obama Administration has announced updates to its Making Home Affordable program that include a more uniform process for handling short sales. It is another step in helping more people stay out of the foreclosure nightmare. A summary of these changes can be found on REALTOR.org. Information about Making Home Affordable can be found at: http://makinghomeaffordable.gov/.

Credit Crunch, Economy Hurt Commercial Real Estate

The economic downturn, complicated by a severe credit crunch, is dampening commercial real estate activity, NAR says. In addition, a forward-looking index indicates commercial real estate sectors will remain weak for the remainder of the year. "Significant job losses have reduced the demand for commercial space, while a lack of credit has stalled transactions and refinancing activity," says Lawrence Yun, NAR chief economist. "It is critical for the Federal Reserve to increase liquidity by purchasing commercial mortgage-backed securities. Because commercial real estate always lags an overall economic recovery, it will take some time for the commercial real estate market to rebound." The Commercial Leading Indicator for Brokerage Activity fell 4.8 percent to an index of 103.5 in the first quarter from a downwardly revised reading of 108.7 in the fourth quarter, and is 12.9 percent below the 118.8 recorded in the first quarter of 2008. The weakening index means commercial real estate activity, as measured by net absorption and the completion of new commercial buildings, can be expected to decline over the next six to nine months.

Chinese Drywall Problems

Chinese-manufactured drywall has caused problems in approximately 25 states nationwide. The drywall could potentially cause an electrical fire in homes and is alleged to cause certain respiratory health problems. For more on Chinese Drywall click here.

Real Estate Economy Watch

Recon Advisors has created a new web site that monitors the real estate markets like never before: Real Estate Economy Watch.
This site reports and analyzes 18 housing indicators when they are released and offers the latest data, analyses and insights on today’s residential real estate markets and the housing crisis and its symptoms, including foreclosures, consumer confidence, trends in financing and the new government initiatives.

Homes May Be Undervalued Today

Distressed sales, which today comprise about 50 percent of transactions nationwide, are creating market distortions in otherwise stable neighborhoods. Read more >

Hope Seen for Troubled Commercial Real Estate

Until investors show an appetite for commercial loans again, property owners face a severe credit crunch. But the Federal Reserve plans to take action to improve the lending climate. Read more >

Foreclosures, Short Sales Weigh Down Prices

NAR has released its first-quarter report on median home prices in 152 metropolitan statistical areas, showing that prices dropped 13.8 percent from the year earlier. Read more >

Buyer Tax Credit Loan Guidance Coming Soon

HUD is expected to offer detailed guidance on the federal government's plan to provide short-term loans to borrowers using the First-Time Homebuyer Tax Credit. Read more >

Bargain Prices Lure Investors Back to the Market

Double-digit price declines of the past two years combined with the renewed strength of the dollar against foreign currencies has made buying overseas more affordable for Americans. While financing is still hard to come buy, cash buyers have a world of bargain-priced properties to choose from as developers cut prices to sell excess inventory housing stock. These market conditions are attracting investors back into the market, according to an April 27 Business Week story, not only to exotic locales, but also to traditional U.S. investment destinations such as Florida and the Southwest. Read which markets are most worth considering according to multinational market analysts, or view a slide show of Business Week's best global buys.

Looking to the Future - Pending Home Sales, Affordability Rise

One likely reason for the increase is the $8,000 first-time home buyer tax credit, which is increasing buying power and getting buyers off the fence. NAR’s Pending Homes Sales Index is a forward-looking indicator based on contracts signed in March. Read more from NAR's latest report on the housing market. Read more >

Commercial Real Estate Likely to Look Different

Many factors are and will impact Commercial Real Estate: Increasing vacancies, property price declines, and the impact that new tax laws and government actions will have on the economy and banks as well as lending guidelines. According to the New England Business Bulletin, these and other factors will shape the new CRE market, and eventually stabilize this sector. Exactly when this will happen is the question, but it will likely take a year or more longer than the recovery of the residential market. Read more...

Housing Market Sends Stocks Soaring!

Click link for AP article > http://tinyurl.com/dd2gt6

New Flood Of REOs Poised To Hit The Market

3 Things You Need To Know

“Hope” may be on its’ way, but there’s continued pain in the current forecast as well. Prior to the Obama Administration taking office, lenders were asked to put foreclosures on hold in anticipation of the much touted Economic Recovery Package promised by the new president.

Read more or comment »

Written by Carl Medford, Agent in Fremont, CA

Where to Get Foreclosure Help

With so many dubious and fraudulent programs preying on home owners, here's a list of legitimate places that provide assistance to troubled borrowers. Read more >

National Foreclosure Activity Increases 9% in First Quarter

According to an article printed by RISMEDIA, RealtyTrac®, one of the leading online marketplaces for foreclosure properties, released its U.S. Foreclosure Market ReportTM for Q1 2009, which shows that foreclosure filings were reported on 803,489 properties in the first quarter, a 9% increase from the previous quarter and an increase of nearly 24% from Q1 2008. Continued

Top Economists Say Recovery Has Begun

Some experts believe that rising home sales and stock market gains are key indicators that the economy is turning around. Read more >

Jumbo Loans Getting Easier to Find

Creditors including Bank of America are now offering 30-year fixed rate jumbo mortgages at less than 6 percent interest. Read more >

Is FHA Key to Housing Turnaround?

FHA loans now account for 20 percent of new mortgages. Some of the benefits being touted of these loans include low rates and easy loan modifications for borrowers who fall behind. Read more >

Tax Break Available for New Car Purchases This Year

If you have purchased, or are thinking about purchasing a new vehicle in 2009, take advantage of the temporary tax incentive for the purchase of a new car, light truck, motor home, or motorcycle. The deduction is available for the cost of all state and local sales and excise taxes paid on up to $49,500 of the purchase price. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers. The vehicle must be purchased after Feb. 16 and before Jan. 1, 2010. For more info contact Bob McNamara, 202/383-1268.

Are We at the Bottom?

Many see the housing market as the key to economic recovery but acknowledge that until its pereceived that the market has hit bottom, many would-be buyers will sit on the sidelines. A March 24 Good Morning America (GMA) segment suggests that maybe we're there. GMA reported on a influx of foreign and domestic "professional buyers" (investors who buy homes--sometimes in bulk and sight unseen--at bargain prices to later sell at a profit). Their presence typcially signals the market bottom, or near to it, and thus the beginning of a recovery. Read the story, or search the GMA site for "Real Estate Vultures" to locate the original video report.

2009 Global Market Report

Published annually, NAI’s Global Market Report provides an overview of market conditions in 213 commercial real estate markets throughout the U.S., Canada, Latin America, Europe, Middle East, Africa and Asia Pacific, with statistic-rich reports, easy-to-read charts and graphs. Snapshot market reports of key global cities are available online at no cost.

Is BRIC Still Poised to Lead Us to a Recovery?

The BRIC (Brazil, Russia, India and China) countries have been much ballyhooed as integral to global recovery. Their fast growing economies and sheer number of people (40% of the world's population), positions these economies to drive the market. Thought by some to be immune from the global recession, this was not the case, but Jones Lang LaSalle (JLL) forecasts that the BRIC real estate markets will recover faster than European and U.S. markets, with India and China leading the way. JLL predicts India’s property sector may begin recovery as early as year-end, and attract as much as $12 billion in real estate investment over five years. Billionaire investor Li Ka-shing predicts China will lead a global economic recovery and suggests investors buy shares and real estate (Bloomberg, March 26). As BRIC consumers flex their new-found muscle, retail investors are eyeing BRIC markets. Download NAI Global's report on the economic impact of the consumer consumption across the BRIC markets.

Albuquerque foreclosures lower than U.S.

Foreclosure rates in Albuquerque grew in February to 1.1 percent, an increase of 0.4 percentage points compared to February 2008 when the rate was 0.7 percent, according to First American CoreLogic, the leading collector of national, state and local data on home prices, foreclosure and delinquency activity.
Foreclosure activity in Albuquerque is lower than the national foreclosure rate, which was 1.7 percent for February 2009. The nation’s repossession rate stood at 0.8 percent that same month, while New Mexico’s was just 0.2 percent.
The mortgage delinquency rate also has increased in the Duke City as 2.8 percent of mortgage loans were 90 days or more delinquent compared to 1.9 percent for the same period last year, representing an increase of 0.9 percentage points. Job losses and the resetting of adjustable rate mortgages have caused foreclosures and delinquency rates to increase.

WHAT IS THE TAX CREDIT LOAN PROGRAM?

In many instances, the biggest barrier facing first-time homebuyers is saving the money for the down payment and closing costs. Because the federal first-time homebuyer credit can only be claimed after the homebuyer purchases the home, the credit cannot be used to cover the down-payment and closing costs associated with the purchase of a home.Because of the need for down payment and closing cost assistance to purchase a home, MFA has created the “Tax Credit Loan Program”. The Tax Credit Loan Program provides a first-time homebuyer with a loan of 8 percent of the sales price or $6,500, whichever is less, to cover the down payment and closing costs associated with purchasing a home. After loan closing, the homebuyer may file for the federal first-time homebuyer tax credit and use the tax refund to pay off the Tax Credit Loan.As long as the homebuyer pays off the Tax Credit Loan prior to June 30, 2010, the homebuyer will not have to pay any interest on the loan. If the borrower chooses not to pay off the Tax Credit Loan by June 30, 2010, the loan will convert to a 30 year, fixed rate second mortgage that requires a modest monthly payment. The Tax Credit Loan Program is paired with a safe, 30 year fixed rate MFA first mortgage loan, which provides long-term, sustainable homeownership. The Tax Credit Loan Program is available statewide to first-time homebuyers who have not owned a home for the past three years. The program is available through a statewide network of Participating Lenders, which are listed on the back of this fact sheet. The Participating Lender will coordinate the loan process and answer any questions you may have regarding the program.

WHAT IS THE FIRST-TIME HOMEBUYER TAX CREDIT?

In 2008, Congress created the first-time homebuyer tax credit as a method of encouraging new homebuyers to purchase a home. The program provides up to an $8,000 tax credit for first-time homebuyers who purchase a home before December 1, 2009. The homebuyer must live in the home for at least 36 months, or they will be required to repay the tax credit to the IRS. Additional information regarding the federal first-time homebuyer tax credit can be found at www.federalhousingtaxcredit.com

IRS Provides Filing Guidance on First Time Homebuyer Tax Credit

The IRS has released additional information to help homebuyers understand the ways they can file to receive the homebuyer credit. It is important for taxpayers to know that they must complete the purchase and close or take up residence in the case of new construction in order to be eligible to file for the credit. Here are the four main options listed by the IRS: 1) File an extension; 2) File now, amend later; 3) Amend the 2008 tax return; or 4) Claim the credit in 2009 rather than 2008.
There are a number of entities working on ways to advance money to be used for down payment in anticipation of receiving the credit. NAR is working to provide guidance on these options and how they might work. However, there is no legal way to receive the credit itself from the IRS prior to closing since closing on the purchase is a prerequisite to eligibility for the credit. Click here for IRS Release outlining options in more detail.

First-time Home Buyers Drive February Sales

First-time buyers accounted for half of all home sales last month. Read more from NAR's latest report on existing-home sales. Read more >

Scammers Target Troubled Borrowers

Scam artists are proliferating, targeting troubled borrowers trying to take advantage of the President's foreclosure-prevention plan. Here are four tips to pass along to your customers to avoid trouble. Read more >

10 Priciest Cities to Own a Home

In the doom and gloom of today's economic and property market news, it's easy to loose sight of the fact that there remain the really wealthy for whom money is no object. Couple that with the softening in prices, and you have the potential for a mini boost in high-end sales. Monte Carlo is off the charts at $47,578 per sq. m. More reasonably, Moscow and London are just over $20K per sq. m. New York City is the only U.S. city on in the top ten at $14,898 per sq. m., making Mumbai a relative bargain in the #10 spot at $9,163 per sq. m. See the full list, along with additional market information.

Latin America Still Looking Strong

With much of the world in a downward spiral, Latin America remains a relatively good value. According to the Global Property Guide, many currencies within the region have partially followed the dollar down, but GDP growth has risen in select markets, and is up .1% in 2009, thus far, over 2008 for the entire 20-country region. Factors cited for the growth include globalization, which has put pressure toward adoption of sound economic policies; and retirees--many from the U.S. Get a detailed profile of the region and learn which markets are viewed as key picks.

Chinese Bargain Hunting in U.S.

Chinese people are signing up to come to the U.S. with the single aim to buy homes on the cheap. Tours are being organized by Soufun.com, one of China's largest real estate portals, for investors who want to take advantage of slumping U.S. real estate prices. But it's not cheap. Fees equal a one-year annual income for some, plus airfare, but the Chinese see this a long-term investment. Investors seek housing for young children who may wish to study in the U.S., to use while here on business trips, and/or to lease. Investors are also looking at commercial properties. Trips are being focused largely on east and west coast cities where there are large Chinese immigrant populations. Aside from bargain prices, Chinese investors are drawn to the U.S. due to limited investment options at home where real estate and stock prices peaked in Oct. '07. Economists estimate that tens of billions of dollars began leaving the country during 4Q 2008 as Chinese investors began bargain-hunting.

Albuquerque Area 2/09 Home Sales Market Report

February 2009 Monthly Sales Report

President's Homeowner Affordability and Stability Plan

On March 4, 2009, The Obama Administration announced new U.S. Department of the Treasury guidelines to enable servicers to begin modifications of eligible mortgages under the Administration's Homeowner Affordability and Stability Plan – announced by President Barack Obama on February 28, 2009. NAR has reviewed these policies and has developed a summary of the plan. You can also get more information from the brand new website set up by the Treasury Department: www.financialstability.gov.

WHERE'S THE BOTTOM ?

Susan Wachter, a professor of real estate at the University of Pennsylvania, is watching the backlog of unsold homes. At January's sales pace, it would take about 9 1/2 months to rid the market of all those properties. A more normal pace would be six months.
Once foreclosures level off and the backlog is cleared, Wachter says, the housing market can begin to recover. But even with the Obama administration directing $75 billion in bailout money to stave off foreclosures, most economists don't expect home prices to bottom out before the first quarter of 2010. And don't expect an explosive rebound: Price increases will probably be modest when they come.
By ALAN ZIBEL, CHRISTOPHER LEONARD and TIM PARADIS

Meltdown 101: Will Obama's housing plan help me?

By J.W. ELPHINSTONE
A: How do I know if I qualify for the refinancing plan?
Q: Only homeowners in good standing whose loans are held by Fannie Mae or Freddie Mac qualify.
The property must be owner-occupied and the borrower must have enough income to make payments on the new mortgage debt.
Borrowers can't owe more than 105 percent of their home's current value on their first mortgage. For example, if your home is worth $200,000, your first mortgage can't exceed $210,000. Borrowers with a second mortgage still can qualify as long as their first mortgage isn't more than 105 percent of their home's value.
Homeowners can't take cash out during the refinancing to pay other debt.
Borrowers have until June 2010 to apply for the program.
Q: How do I know if my mortgage is owned by Fannie Mae or Freddie Mac?
A: Call your current lender or mortgage servicer. You can find the phone number on your monthly mortgage statement or coupon book.
You can also contact Fannie Mae at 1-800-7FANNIE and Freddie Mac at 1-800-FREDDIE from 8 a.m. to 8 p.m. EST. Or, go to and and fill out the online request forms.
http://www.fanniemae.com/homeaffordablehttp://www.freddiemac.com/avoidforeclosure
Q: What borrowers qualify for the modification program?
A: You don't have to be behind on your mortgage payments to qualify. Delinquent borrowers and current borrowers who are at risk of imminent default are both eligible.
The program applies to mortgages made on Jan. 1 or earlier. The mortgage payment including taxes, insurance and homeowners association dues must exceed 31 percent of the borrowers' gross monthly income.
The property must be the homeowner's primary residence. It can't be investor-owned, vacant or condemned. Home loans for single-family properties that are worth more than $759,750 don't qualify.
The program is voluntary, relying on a $75 billion subsidy to encourage mortgage companies to participate. Lenders must agree to reduce the loan payments to 38 percent of a borrower's monthly income. After that, the government and lender split the cost of bringing the payment down to 31 percent.
Eligible borrowers will have to provide their most recent tax return and two pay stubs, as well as an "affidavit of financial hardship" to qualify for the loan modification program. In the affidavit, applicants will have to cite the reasons behind their financial woes, such as job loss or a drop in income. The government will then take steps to verify the information.
Borrowers are only allowed to have their loans modified once. The program runs through Dec. 31, 2012.
Q: What if I'm in bankruptcy or in active litigation over my mortgage?
A: That doesn't necessarily keep you from qualifying for the modification program. And borrowers in active litigation can modify their home loans without waiving their legal rights.
Q: What do I do to get help?
A: For the modification program, call your lender or mortgage servicer to see if you're eligible. For the refinance program, first find out if your mortgage is held by Fannie Mae or Freddie Mac. Then contact your lender, mortgage servicer or a mortgage broker for refinancing options.
Q: How soon can I get help?
A: Both the modification and refinancing programs start immediately.
Q: What if I don't qualify for either program - is there any other way to get help with a mortgage?
A: Contact your lender or mortgage servicer regarding other modification programs or refinance options. Alternatively, contact a local housing counselor to negotiate with your lender or servicer, to help locate other local resources like rescue grants or loans, or to facilitate a short sale or deed-in-lieu of foreclosure if staying in the home isn't possible.
A short sale is where homeowners sell houses for less than the amount owed on them, and the lender then considers the debt paid off. A deed-in-lieu of foreclosure is where the borrower gives the property to the lender to satisfy a delinquent loan and to avoid foreclosure proceedings.
Local housing counselors can be found at the U.S. Department of Housing and Urban Development's Web site at .http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
Q: Do FHA, VA or USDA home loans qualify for modifications under Obama's plan?
A: Mortgages backed by the Federal Housing Administration, Veterans Administration or the U.S. Department of Agriculture are being modified under other programs. The Obama Administration and Congress are working on legislation that would allow modifications of these home loans consistent with the Making Home Affordable program.
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Housing plan aims to help 9M, but leaves out many

By ALAN ZIBEL
WASHINGTON (AP) - The Obama administration's housing plan is intended to help 9 million struggling homeowners avoid foreclosure, but it leaves out tens of thousands of borrowers in the most battered housing markets who won't qualify because their homes have lost too much value.
The program detailed Wednesday offers refinanced mortgages or modified loans with lower monthly payments. Yet its refinancing plan is limited to borrowers who owe up to 5 percent more than their home's current value. Loan modifications, supported by $75 billion in federal funding, are unlikely for severely "underwater" borrowers.

In the California cities of Stockton, Modesto and Merced, more than one out of every 10 homeowners with a mortgage won't qualify for any help because they owe more than 50 percent more than their house's current value, according to data from real-estate Web site Zillow.com.
The plan doesn't help homeowners in states "that are at the epicenter of the housing debacle," said Greg McBride, a senior financial analyst at Bankrate.com.

The ineligible households are concentrated in California, Florida, Nevada and Arizona, but can also be found in struggling cities such as Detroit and Grand Rapids, Mich. Even houses in the outlying suburbs of the nation's capital, where the economy is relatively healthy, have dropped substantially in value.

For a homeowner who borrowed $380,000 and now has a house worth $270,000, "I just don't know what you do with that," said Jared Martin, a mortgage broker in Bethesda, Md.
Government officials acknowledge that the initiatives are only a partial fix for a sweeping problem that has helped plunge the U.S. economy into the worst recession in decades.
"This is not going to save every person's home," said Robert Gibbs, the White House press secretary. "The plan is not intended to ... augment somebody's loan for a house that they couldn't afford under any economic situation, good or bad."
Of the nearly 52 million U.S. homeowners with a mortgage, almost 14 million, or nearly 27 percent, owe more on their mortgage than their house is now worth, according to Moody's Economy.com. Nearly half of all borrowers in Nevada were "under water" on their home loans as of December, according to First American CoreLogic.
In troubled Stockton, nearly one in five borrowers owe more than 50 percent above what their home is now worth, making it unlikely that they will qualify for any aid.
Though banks such as JPMorgan Chase and Wells Fargo & Co. (WFC) issued statements praising the plan, there was also skepticism that banks would be willing to participate.
"I've just seen so many of the programs not work," said Pava Leyrer, president of Heritage National Mortgage in Randville, Mich. "It gets borrowers' hopes up. They call and call for these programs and we can't get anybody to do them."
The program has two parts: one to work with lenders to modify the loan terms for up to 4 million homeowners, the second to refinance up to 5 million homeowners into more affordable fixed-rate loans.

For the modification program, which runs through 2012, borrowers who are eligible will have to provide their most recent tax return and two pay stubs, as well as an "affidavit of financial hardship" to qualify. In the affidavit, applicants will have to cite the reasons behind their financial woes, such as job loss or a drop in income. The government will then take steps to verify the information.
Borrowers are only allowed to have their loans modified once, and the program applies for loans made on Jan. 1, 2009, or earlier. Mortgages for single-family properties that are worth more than $729,750 are excluded.
Lenders could reduce a borrower's interest rate to as low as 2 percent for five years. Rates would then rise to about 5 percent until the mortgage is repaid.

The refinance program is only offered to homeowners with loans held by Fannie Mae (FNM) or Freddie Mac. (FRE) They have until June 2010 to apply.
Consumers should contact their loan servicer - the company that sends out their monthly bill - to find out if their mortgages are held by Fannie or Freddie. The two mortgage finance companies own or guarantee almost 31 million home loans, more than half of all U.S home mortgages, and say they are lowering some fees to allow more borrowers to qualify.
In Seattle, home prices are down about 13 percent from a year ago, compared with about 30 percent in Las Vegas, Miami and San Francisco.
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On the Net:
http://www.FinancialStability.gov

Albuquerque ranked in top 5 cities to build wealth

Top 5 Cities to Build Wealth
by Maura Pallera - Salary.com Contributing Writer
Is your paycheck not stretching far enough? Are you considering moving to a new town? Are you just
looking to change jobs? If so, it may be time to look at one of the cities at the top of Salary.com's 2008
Salary Value Index. The compensation experts at Salary.com uncovered the top US cities for building
personal net worth by taking into account local salaries, cost of living and unemployment relative to the
national average.
This year's list also factors in qualitative measures, including diversity of industry, education level of the
cities' population, proximity to post-secondary institutions, percent of the population below the poverty
level and median travel time to work.
Below are the top five Salary Value Index cities with links to salary ranges for an accountant,
administrative assistant, nurse and software developer in each city. Compare the differences between the
cities and use the Salary Wizard to see what you could earn in these locales or others.
1. Plano, Texas
Located within the Dallas-Fort Worth-Arlington metropolitan area, Plano is the ninth-largest city in Texas.
A frequent destination for business travelers, it is home to many corporate headquarters, including
JCPenney, Frito-Lay and Perot Systems. The city has a reputation for being one of the best places in the
country for employers to do business and for families to live and work. Plano has a nationally acclaimed
public education system and well-educated, diverse residents.
2. Aurora, Colorado
Aurora is part of the Denver-Aurora metropolitan area and is the third most-populous city in Colorado.
Once a budding frontier town of farmers and ranchers, Aurora is now a largely suburban city with over
450 neighborhoods. Aurora has a booming economy and is a business leader in such key growth
industries as biotechnology, aerospace and high technology.
3. Omaha, Nebraska
Part of the Omaha-Council Bluffs metropolitan area, Omaha is the largest city in Nebraska. Omaha has
been racially and ethnically diverse since its founding and continues to boast a rich cultural background.
Omaha's economy has grown dramatically since the 1990s, largely due to diversification in several
industries, including banking, insurance, telecommunications, architecture/construction and
transportation.
4. Minneapolis, Minnesota
Part of the Minneapolis-St. Paul metropolitan area, Minneapolis is the largest city in Minnesota. The
economy is based on commerce, finance, rail and trucking services, and healthcare.
5. Albuquerque, New Mexico
This fast-growing city at the center of the New Mexico Technology Corridor is the largest city in New
Mexico. Boasting a newly revitalized downtown area, Albuquerque has a diverse population and some of
the leading high tech research facilities in the country.
Salary Value Index - Top 25 Cities
City* Rank
Plano, TX 1
Aurora, CO 2
Omaha, NE 3
Minneapolis, MN 4
Albuquerque, NM 5
Wichita, KS 6
Indianapolis, IN 7
St Paul, MN 8
Oklahoma City, OK 9
Seattle, WA 10
Colorado Springs, CO 11
Tulsa, OK 12
Austin, TX 13
Lexington, KY 14
Charlotte, NC 15
Nashville, TN 16
Raleigh, NC 17
Virginia Beach, VA 18
Anchorage, AK 19
Louisville, KY 20
Kansas City, MO 21
Denver, CO 22
Memphis, TN 23
San Antonio, TX 24
San Jose, CA 25

5 Tips for Homebuyers Seeking a Mortgage

Here's a warning for potential borrowers: Nervous lenders have tough new rules and are paperwork crazy. Here are some tips for home buyers. Read more >

News from Fannie Mae and Freddie Mac

FHA and Conforming Loan Limits Released
For many areas, last year's loan limits are staying in place. Read more >
Home Valuation Code of Conduct (HVCC) Effective May 1
On December 23, 2008, New York State Attorney General Andrew M. Cuomo, Fannie Mae and Freddie Mac announced the final agreement of the Home Valuation Code of Conduct (HVCC). The agreement establishes standards on solicitation, selection, compensation, conflicts of interest and appraiser independence. The HVCC is effective May 1, 2009, for any mortgage that will be sold to the GSEs. Federal Housing Administration (FHA) and Federal Home Loan Bank (FHLB) mortgages are not covered in the agreement. For more about the HVCC, click here.
Fannie Instructs Its Servicers Not to Cut Commissions on Short Sales
On February 24, 2009, Fannie Mae sent Announcement 09-03 to its servicers instructing them not to negotiate commissions on short sales below the amount negotiated by the listing agent (unless the commission exceeds 6 percent). The requirement took effect March 1, 2009. Fannie Mae recognizes that
(a) negotiating commissions for short sales is unfair because getting a short sale to closing requires intensive work over many months, often requiring working with numerous buyers, and (b) compensating real estate agents fairly benefits Fannie Mae because agents play a crucial role in short sales.
The Announcement reminds servicers that third party approvals (i.e., private mortgage insurers) may be required and can affect commissions. NAR has asked both Fannie Mae and Freddie Mac to strengthen their policies against reducing short sales commissions, welcomes Fannie’s announcement, and has urged Freddie to follow Fannie’s lead.

Pending Sales Down, Affordability at Record

NAR reports pending home sales declined on the heels of a weakening economy and with some buyers waiting for clarity on housing stimulus provisions, according to the NATIONAL ASSOCIATION OF REALTORS®. Read more >

HB 521: Domestic Well Permits

(Varela – Santa Fe)
It seems that each session, legislation is introduced to expand the authority of the state engineer over domestic wells. RANM opposes the expansion of that authority. This year’s HB 521 provides that an application for domestic well use may be made by a person, firm or corporation only for the purpose of household or other domestic use, eliminating the use allowed under current law of irrigating less than one acre of noncommercial trees, lawn or garden. The bill was assigned to committees in the House a month ago, but no hearings have been held nor are any scheduled.

HB 539: Rental Property: Uniform Assignment of Rents Act

(O’Neill – Albuquerque)
Those of you who are carrying the loan on rental properties you have sold may be interested in HB 539. This bill constitutes the adoption of the Uniform Assignment of Rents Act promulgated by the National Commission on Uniform State Laws. Its purpose is to make it clear that any mortgage, deed of trust or the like that provides a creditor an interest in a piece of real estate will also provide a security interest in the rental income of that property, all enforceable in the event there is a default on the debt. This bill passed the House unanimously and is now in the Senate waiting for committee hearings. RANM supports this legislation.

Economic Stimulus Package in Perspective

The modified home buyer tax credit and the restoration of last year's high-cost conforming and FHA loan limits of $729,750 could boost 2009 home sales by 450,000, NAR Chief Economist Lawrence Yun estimates. When combined with the historically low mortgage interest rates stemming from NAR-backed actions taken by the Federal Reserve and U.S. Treasury Department earlier this year, the boost in home sales could total 850,000.

Details on What's in the Stimulus Package

Here are the provisions in the American Recovery and Reinvestment Act, signed into law by President Barack Obama, that will help residential and commercial real estate:
1) Home buyer tax credit: increased to $8,000 and repayment requirement eliminated
2) Conforming and FHA loan limits: last year's high-cost limits of $729,750 restored
3) Neighborhood stabilization: $2 billion in new funds authorized
4) Commercial real estate: tax credits allocated for business investment, green building, and energy efficiency
5) Rural housing development: $500 million in funds authorized
6) Low-income rental housing: Treasury grants authorized
7) Tax-exempt housing bonds: tax rules eased
8) Energy efficiency: grants and credits authorized
9) Transportation: $47 billion in infrastructure development and rehabilitation funds authorized
10) Broadband: $7 billion authorized to expand and upgrade infrastructure.

How the $8k first time homebuyer tax credit works

I have been getting a lot of phone calls on the $8,000 first time homebuyer tax credit. Here is how it works,

New Stimulus Plan Passed
Officially titled the American Reinvestment and Recovery Act of 2009, it is the largest spending free-for-all in history. But does it do anything for housing?There are really only two provisions that address housing. First it allows the temporary increases in conventional loan limits for high cost areas to remain. Secondly, it expands the First Time Homebuyer Tax Credit. The First Time Homebuyer Tax Credit was already in effect last year but was set to expire July 1, 2009. It has now been extended to December 31, 2009. Here is how it works: - Up to an $8,000 tax credit for a first time home buyer that purchases a primary residence. - A “first time home buyer” is someone that has not purchased a home in the past three years but they are allowed to have owned a home prior to that. - There is an income cap of $95,000 for a single filer and $170,000 for those filing jointly (modified adjusted gross income). - You can decide to apply the tax credit to your 2008 return or your 2009 return. - This is not free. You have to pay the money back by getting a smaller refund each year until it is repaid. - There is the ability to Request a Waiver of Requirement to Repay the tax credit if you meet certain conditions and you occupy (not just own) for at least 36 months. - Uncle Sam is not going to be mailing anyone an $8,000 check that buys a home. - State housing loans are now eligible for this program.

It used to be that if you used MFA you could not get the tax credit. The stimulas package now allows people who use MFA to get the tax credit. I am verifying that the local office agrees.

Metro Home Prices Down on Distressed Sales

Short sales and foreclosures account for almost half of sales nationally. Read more >

New Appraisal Regulations Under Fire

Under new federal regulations beginning May 1, mortgage brokers and loan officers won't be able to directly order appraisals. Read more >

Japan one of the Cheapest Investment Destinations

Japanese government officials are talking about eliminating a 40% capital gains tax for most foreign investors, with an eye towards attracting some much-needed foreign investment capital. According to Bloomberg News, the government is planning talks with state-owned sovereign wealth funds from Saudi Arabia, UAE, Qatar and Kuwait to discuss more favorable investment conditions in Japan. Japan has one of the highest capital gains taxes, which has impeded foreign investment, contributing to the down climate. Only 4% of the funds managed by Japan’s private-equity and venture-capital comes from abroad, as compared to the 75% in the UK, 60% in the EU and 20% in the U.S., reports The Wall Street Journal. The economic news from Japan, as like other world regions, has been gloomy. In Q4 of 2008, Japan’s unemployment jumped from 3.9% to 4.4% as consumption fell 4.6%. As consumers abroad pull back on consumer spending, Japan’s population is unable to consume enough to offset the losses. The tax alteration could come as early as April 1 and boost investment from foreign funds by as much as 400% in the next few years, says Japan's Ministry of Economy, Trade and Industry (METI). If the Parliament passes the measure, the lack of a capital gains tax would make Japan, which is the 2nd largest economy in the world, one of the cheapest places to invest. While the METI website does not yet speak specifically to this plan, there is extensive English language information on inbound FDI.

Real Estate on the Rise in Select Emerging Markets

While much of the world's property markets are grappling with a drop in prices and the global credit crisis, a few markets, among them Brazil, Mexico and Turkey, are on the rise, according to a recent series of Knowledge@Wharton (KW) reports. Markets that tend to be less dependent on credit are faring better with the global credit crisis, whereas much of Western Europe, the U.S. and Japan, where there was easy access to debt, are being most hard hit. Investors should not assume, however, that all markets with a low debt ratio are good for investment. A lack of transparency and corruption both ranked high as reasons to avoid particular markets by participants in the 2009 KW Real Estate Emerging Markets Forum. Other factors included poor infrastructure, unhealthy regulatory environment, bureaucracy and a deficient legal environment. Knowledge@Wharton is an online resource providing access to the thinking of some of the top business minds on issues including finance, marketing, business ethics, and real estate. Read comments by participants on markets to avoid as well as healthy markets, or read a summary article from the Forum on Where the Deals are in Emerging Real Estate. Regardless of opportunity, Forum participants agree that investors should not try to enter a market without a trusted local partner who understands the local environment and business norms. Search for a Certified International Property Specialist (CIPS) in more than 50 countries to assist with outbound investments.

France Retains Top Place in the World to Live

For the fourth year, France has earned International Living magazine’s top spot as best places to live in the world on its Quality of Life Index. The retirement and relocation publication compared about 200 countries in nine categories including, cost of living, culture, economy, environment, freedom, health, infrastructure, safety and risk, and climate. Information was combined from official government sources, the World Health Organization and The Economist. Then editors asked for opinions from knowledgeable people around the world. France scored high marks across the board, but its main appeal is its culture and leisure activities. For Americans seeking a European retirement home or investment opportunity, France is a relative bargain compared to six months ago when the exchange rate made the euro worth nearly $1.60. Currently the euro is worth roughly $1.30, a difference which translates into a more than a $50,000 savings. Following France on the list of top places to live are Switzerland, United States, Luxembourg, Australia, Belgium, Italy, Germany, New Zealand and Denmark. See the complete list of countries in order of overall rankings. Click on any country to view individual category rankings.

Foreign Investors Prepared to Spend More in 2009

Foreign investors in real estate expect to spend significantly more in '09 than they did in '08, according to the 17th annual survey of members of the Association of Foreign Investors in Real Estate (AFIRE). Compared to transactions completed by October 2008, foreign real estate lenders say they plan to increase lending by 54% globally and by 58% in the U.S. Equity investors plan to increase investment activity by 40% globally and by 73% in the U.S. Survey respondents hold approximately one trillion dollars of real estate, including $371 billion in the U.S. Respondents again ranked the U.S. as the country providing the most "stable and secure" real estate investments, by a wide margin at 53%. Germany and Switzerland tied for second most stable at 11.3%, Tied for 3rd were Australia and Canada, each with 4.8%. Half of the top 10 global cities favored by foreign investors are in the U.S., a shift from last year's survey where half of the top 10 cities were in Asia. Washington, D.C. reclaimed it status as the top global city for foreign investors' real estate dollars, deposing New York City, which was third is a close ranking with second-ranked London. Tokyo and Shanghai ranked fourth and fifth, respectively. When asked about best opportunity for asset appreciation, the U.S. was also named first with 37% of the votes. Brazil jumped 10 places into the #2 spot, replacing China, which dropped to #3, followed by the U.K. (up from 9th) and India (which fell from 3rd). Other key findings included that apartments were the preferred U.S. investment property, followed by office, industrial, retail and hotel, a shift from office being most preferred the past two years. Also, nearly 75% said a U.S. property’s “green” features influenced their purchase decision and were worth a rental premium. Survey respondents reported that finding attractive U.S. investment properties is becoming less difficult. Read a detailed summary of the findings.

January 2009 Monthly Sales Report

Here is the January 2009 Monthly Sales report for the Southwest MLS Market Area.
Read the full January 2009 Monthly Sales Report

Lack of Credit Threatens Commercial Sector

"Most lenders have withdrawn from the market and there is no secondary market for commercial mortgages," says NAR President Charles McMillan. Read more >

Fannie Loosens Refinancing Rules

Fannie Mae plans to eliminate some credit-score requirements, scale back income-documentation standards, and waive the need for appraisals in some cases, starting on April 4. Read more >

Fannie Mae Announces REO Rental Policy

Qualified renters in Fannie Mae-owned foreclosed properties can stay in their homes under a national real estate owned (REO) rental policy the company released in mid-January. The policy applies to renters occupying a property at the time Fannie Mae acquires the foreclosure. Renters occupying any type of single-family property are eligible, including residents of two- to four-unit properties, condos, co-ops, single-family detached homes, and manufactured housing. Eligible renters are offered a new month-to-month lease with Fannie Mae or other assistance for their transition to new housing should they choose to vacate the property. The properties must meet state laws and local code. For more info contact Jeff Lischer, 202/383-1117.

Commercial Real Estate Toughing It Out in 2009

Since commercial property performance usually tracks economic conditions, it will come as no surprise that 2009 looks like a challenging year for commercial real estate owners, brokers, and managers. Any way you look at it 2009 will be a tough year, but multifamily could be a bright spot. Read NAR’s Commercial Outlook.

Pending Home Sales Show Healthy Gain

NAR’s forward-looking index, based on contracts signed, rose 6.3 percent in December. Big gains in the South and Midwest offset modest declines elsewhere, according to the latest NAR report. Read more >

2008 Year End Home Sales Report

Greater Albuquerque Area Housing Trends - 2007 vs. 2008
Click here to continue reading "2008 Year End Home Sales Report"

Home Sales Show Surprising Gain

Existing-home sales rose in December while inventory declined, led by a surge of sales in the West, according to NAR's latest report. Read more >

Tax Credit Changes Could Unleash Home Sales

More than half a million additional sales could result from an expanded and improved home buyer incentive. Read more >

Obama Adviser Sees Stimulus Effects Next Month

RISMEDIA reports President-elect Barack Obama's top economic adviser said Sunday that the incoming administration's proposed $825 billion stimulus package will pass within a month and will have some immediate effects. Continued

2008 4th Quarter Report Home Sales Report

Click here for the full report.

Quarterly Homes Sales for 2001-2008

Click here for the full report.

Freddie Extends Foreclosure Moratorium

Freddie Mac is extending the suspension of foreclosure sales and evictions on occupied single family and two- to four-unit properties covered by mortgages it owns until Jan. 31. Read more >

Fannie Tries Short Sales Over Foreclosures

Fannie Mae launched a pilot project in Phoenix and Orlando that sets out to reduce the number of foreclosures by pre-approving short sales. Read more >

Bill Aims to Stabilize Housing, Stem Foreclosures

A bill (H.R. 384) that embraces the need for righting the housing market was introduced Friday in the U.S. House of Representatives. "Housing has always led this country out of economic downturns, and this bill recognizes that the key to bolstering the overall economy is creating stability in the real estate markets," NAR President Charles McMillan says. Read more >

December 2008 Home Sales Report

For December there were 917 new detached residential listings added to our market. This number is down 18.2% from last month, and down 13.8% from December of last year. New homes on the market tend to decrease in the winter months. Despite the decrease in new listings, the overall market inventory remains over 5,200, only 5% lower than the same period last year. December 2008 shows a combined total of 899 Pending and Closed Sales in the Greater Albuquerque market area. This total is down from last… Continue reading December 2008 Home Sales Report" href="http://www.gaar.com/market_statistics/report/december_2008_home_sales_report1/">Continue reading "December 2008 Home Sales Report"

Signs of Letup in Home Price Slide

The decline in residential property prices appears to be slowing, according to preliminary data from First American CoreLogic. Read more >

Not All Borrowers Need 20 Percent Down

NAR last week issued an educational brief to news reporters to curb inaccurate reporting on the amount of down payment home buyers must come up with in today's mortgage climate. Although lending standards have tightened, a wide range of down-payment requirements are in effect today, depending on the borrower's financial situation and the type of product applied for. The minimum FHA down payment requirement, for example, is 3.5 percent.

Top 10 U.S. Rental Markets

Grubb & Ellis released its 2009 forecast this week. See what they say will be the top rental markets from 2009-2013 and what challenges are in store for commercial real estate. Read more >

Happy New Year!

2009 has got to be better.

How Much are Home Prices Dropping?

It depends on the indicator you're looking at, NAR Research says. Among the main indicators are those provided by NAR, Freddie Mac, the Federal Housing Finance Agency (Formerly OFHEO), and Case-Schiller. Each one is different because it looks at different data sets and uses different assumptions. An explanation of the differences, which will help you interpret news and other reports on home price trends, is available online from NAR.

Commercial Real Estate Is at a Standstill

Lending is nearly frozen and job losses are curtailing demand for commercial space, though default rates remain low, says NAR. Read more >

NAR International Real Estate Transactions Report

International transactions in the production and consumption of goods and services are expanding. In calendar year 2007, the U.S. exported $1.15 Trillion of goods and $0.5 Trillion of services; and the U.S. imported $1.97 Trillion of goods and $0.378 Trillion of services. With the expansion of international trade, the flow of people across borders has also increased rapidly, and, therefore, the demand for real estate in both residential and commercial sectors in conjunction with international transactions has been on the rise. The New Mexico report presents recent economic and demographic data related to international business activity directly associated with the state.

Deadline Nears for Dropping Jumbo Loan Limits

As of January 1, the maximum for loans that Fannie Mae and Freddie Mac are willing to buy will decline from $729,750 to $625,500 in the nation's priciest areas. Read more >

Study Shows Housing Values Have Climbed

A recent government report shows that housing values have actually increased over the last 5 years. Find out which markets have gained the most, some by nearly 80 percent.Read more >

Pending Home Sales Hold in Stable Range

NAR's forward-looking pending home sales index eased against a deteriorating economic backdrop but remains in a stable range, the association says. The index, based on contracts signed in October, slipped 0.7 percent to 88.9 from an upwardly revised reading of 89.5 in September, and is 1.0 percent below October 2007, when it was 89.8. "Despite the turmoil in the economy, the overall level of pending home sales has been remarkably stable over the past year, holding in a generally narrow range," says Lawrence Yun, NAR chief economist. "We did see a spike in August when mortgage conditions temporarily improved, which underscores two things: there is pent-up demand, and buyers will enter the market when they have access to safe, affordable mortgages."

Is Your Property Tax Bill Too High?

Income tax, sales tax, estate tax, excise tax, alternative minimum tax...and just when you thought you'd paid them all...along comes your property tax bill as a homeowner. But did you know that the National Taxpayers Union estimates that as many as 60% of homes are assessed for too high of a value, resulting in an incorrectly larger property tax bill? Chances are good you might be in that group of people paying too much, so taking the time to review your property tax bill could save you a nice chunk of change.
The good news is that it's easy.
First, contact your local tax assessor's office and ask for someone in the reassessment area. Find out when appeals are heard, and how the process for submitting a property tax appeal works. Additionally, ask for a copy of your property card. Review the card and confirm that the basic information about your property is correct. For example, is the square footage and number of rooms for your home accurate? If the number is incorrect, the county may change the assessment without a formal appeal. If everything on the property card is correct but the assessed value still seems too high, your next step is to gather the following documentation to support an appeal. And don't be surprised if the assessed value is lower than what you think the market value for your home is--many counties use a formula which uses a percentage of market value to determine assessed value. Ask what the formula is, because an assessment which is less than market value still might be too high.If you have a current appraisal that supports the value being lower using recent market-value information, many counties will accept a copy of the appraisal with the appeal. If the appraisal is outdated, you can order a new one--just call me for a referral to a great appraiser. You can also visit the local assessor's office or search online, and look through the public records for other homes that have similar features to yours, but have lower assessments. Additionally, contact me to get in touch with a great Realtor who knows your area. They will be able to give you current market information for your neighborhood, and help you see how your market value and assessed value stacks up against your neighbors'.

November 2008 Home Sales Report

For November there were 1,121 new detached residential listings that entered the market. This number is down 20.5% from last month, and down 18% from November of last year. New homes on the market tend to decrease in the winter months. Despite the decrease in new listings, the overall market inventory remains over 5,700, only 3.5 % lower than it was this time last year. There were a combined 904 Pending and Closed Sales in the Greater Albuquerque market area for November 2008. This total is down… click here for more.

Albuquerque Included in Safe Havens in Real Estate List

According to an article posted on Kiplinger.com, Albuquerque is one of six cities classified as a real estate safe haven. Using data from Fiserv Lending Solutions, a home-price research company, six U.S. cities were found with slow, steady growth. These cities' local economies have kept unemployment and foreclosure rates below average. Plus, their affordability index (a measure of home prices versus family income) is low. To read more, click HERE.