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Home Sales Record Big Gains

Home sales are up and listings are down, thanks in large part to the home buyer tax credit.

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See how New Mexico trends stack up to national numbers.

Realtors Help Buyers Attain Short Sales Success

San Diego, CA - November 16, 2009 - (RealEstateRama) — Not all buyers are suited for a short sale. This was one of the messages delivered at “Short Sales from the Buyer’s Perspective” during the 2009 REALTORS® Conference & Expo today.

According to the latest Realtors® Confidence Index, one out of 10 recent buyers purchased a home through a short sale. The survey also showed that Realtors® are concerned about the hurdles buyers face in short sales.

Primary reasons that short sales fail, include an incomplete short sale package, an offer that is too low, and inaccurate appraisals. Buyers who are good candidates for short sales are very patient – it can take some lenders four months or longer to approve a short sale – have their financing in order, and don’t have any contingencies in their purchase offer.

“Short sale buyers need to have the time to be able to wait for the lender’s approval; some lenders get several hundred contacts every day. Buyers must also be willing to make an offer that has a reasonable chance of closing and take guidance from their agent. If the offered price is too low, there is a good chance the lender won’t respond or approve the contract.”

“As short sales become more commonplace, both buyers and sellers need the help of seasoned, experienced professionals to help them navigate the complexities of a short sale transaction,” said National Association of Realtors® President Charles McMillan. “As the first, best source for real estate information, Realtors® provide valuable insights and experience that can help buyers realize their homeownership goals, whether through a short sale or other means.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

2010 Home Sales to Rise 15 Percent

Home sales will increase 15 percent next year, NAR Chief Economist Lawrence Yun predicted in his residential economic update during NAR Annual Conference and Expo. Read more >

Foreclosures Decline for Third Month

Foreclosures fell 3 percent from September to October, but are up nearly 19 percent from October 2008. Read more >

Commercial Real Estate Encouraging News

Commercial real estate owners got some encouraging news recently. Economic reports showed promising signs, and the FDIC made clear how it is looking at commercial real estate loans sitting on the books of banks. Their 33-page policy statement is aimed at easing concerns over souring commercial real estate loans sitting on banks' books. The best news may be for borrowers and banks struggling with a matured loan in which the borrower is strong and the collateral has sustained a loss in value or tenants, but there's good and sufficient cash flow to cover debt service. In that case, the FDIC allows the bank to continue to carry the debt without a negative classification, even though the loan-to-value could be more than 100 percent. Read more...

October 2009 Market Report

Monthly Highlights

• Single-family home sales in the Greater Albuquerque market areas are up 10.59 % from the previous month and increased 43.05 % compared to October 2008.
• October 2009 is the 2nd highest sales month for this year and the 3rd highest sales month since September 2007.
• Pending sales for single-family homes in the Greater Albuquerque market areas rose 56.52 % when compared to October 2008. This is also the 4th time this year pending sales have been 900 or higher.

Read the full October 2009 Market Report

States See Surging Sales, Moderating Prices

Total state existing-home sales, including single-family and condos, increase 11.4 percent in third quarter.

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Albuquerque Area Spotlights

Looking for information about a particular Albuquerque Area?

GAAR creates and posts Area Spotlight articles that include boundaries, statistics, school information and more.

Click here to view a list of MLS Area Spotlight articles.

Home Buyer Tax Credit Extended !!!

In a major victory for NAHB that will boost the fledgling housing recovery and help struggling business owners nationwide, Congress today approved legislation that will extend the first-time home buyer tax credit beyond its Nov. 30 deadline and expand it to a wider group of home buyers. The bill also provides relief to cash-strapped home builders by providing broader tax benefits for businesses with net operating losses (NOLs).

The legislation, which will be signed into law shortly by President Obama, will extend the $8,000 credit for first-time home buyers for sales contracts entered into by April 30, 2010 and closed by June 30. Further, it has been expanded to include a new $6,500 credit for owners of existing homes who are purchasing a new primary residence. An existing home owner can claim the $6,500 tax credit if they have been residing in their primary residence for five consecutive years out of the last eight.

In more good news, the income eligibility limits to claim the full credit amount for both groups of home buyers have been raised from $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return to $125,000 for individuals and $225,000 for married couples. NAHB’s consumer-oriented Web site,www.federalhousingtaxcredit.com, will provide complete details on the enhanced home buyer tax credit after the bill is signed into law by the President.

For NOLs, the new law will allow all businesses -- regardless of size -- with operating losses in 2008 or 2009, not both, to claim refunds on taxes paid up to five years ago. Businesses can offset 100% of taxable income with NOLs carried back in years one through four and offset 50% of income in year five. Small businesses with less than $15 million in gross receipts would be able to claim a five-year carryback for 2008 losses under the American Recovery and Reinvestment Act and for 2009 losses under the new law. The new net operating loss provisions will throw a lifeline to struggling businesses, allowing them to continue making payrolls, paying business loans and otherwise keep their doors open until the economic recovery takes hold.

Last Action on the Home Buyer Tax Credit

Even as Congress neared completion on the legislation, proponents made it perfectly clear that the home buyer tax credit would not be extended when it expires next year. Sen. Johnny Isakson (R-Ga.), a long-time champion of the home buyer tax credit, said: "This is the last extension of the home buyer tax credit. Tax credits like this only work by creating the sense of urgency to take advantage of it, and to bring the market back."

On the floor of the Senate, Finance Committee Chairman Max Baucus (D-Mont.) said that, “It’s important that this tax credit does not become a permanent fixture in the tax code. Our amendment would end the credit on April 30 of next year. This extension would get us through the winter – traditionally the worst season for real estate. Our amendment would jump-start the housing market as it enters the summer months of 2010.” Baucus added that the seven-month extension of the tax credit would be “long enough to encourage home buyers to buy homes, but it’s short enough to remain fiscally responsible.” ...
Joe Robson, 2009 NAHB Chairman

More information on the tax credit and what it means to you:

Changes to the Homebuyer Tax Credit Law
Frequently Asked Questions About the New Bill
In Depth: 2009 First-Time Homebuyer Tax Credit

Home Sales Continue to Rise

Hitting a record eight straight months, pending home sales have seen the longest gain since recording started in 2001. Read more >

FHA 203(k) Loans on the Rise

The FHA loan has become increasingly popular for buyers looking to buy fixer-uppers, especially foreclosures. Read more >

Also, the FHA, Fannie and Freddie Loan Limits at the $729,750 level through December 31, 2010 was passed by the Senate and is now being sent to the President for his signature into law. Since the provision is part of the Continuing Resolution, which is necessary to keep the government operating, it is expected to be signed into law quickly.