Housing inventory in Albuquerque and Rio Rancho

Often, people will ask me "How is the Market?".  They have read about the national housing marketing, but they want to know about their house, and their neighborhood. 

While I can't cover every neighborhood in the Albuquerque and Rio Rancho market, I can give you a general idea in this blog.  If you want a more specific look at the market related to your home, please call me at 505-350-0911 and I will be glad to run the numbers for you.

As the chart below states the market is considered a sellers market if there is less than 5 months of inventory of the market.  Sellers will see appreciation, and buyers will see the price they need to pay for a house going up.

 

If the market has more than 7 months of inventory, it is considered to be a buyers market, and prices will generally be going down.

So where does Albuquerque and Rio Rancho stand at the end of March:

• Albuquerque has 4.6 months of inventory (SELLERS MARKET)
• Rio Rancho has 5.03 months of inventory (NORMAL MARKET, MOVING TOWARDS SELLERS MARKET)

 

What's happening with New Home Construction

2013 should be a record year for home sale with interest rate so low, and the only thing that is standing in the way of making this a record year in the level of inventory.  Meaning we don't have enough houses to sell to satisfy the thirst of the people who want to purchase a home. See the chart below for an example of what is happening with housing inventory.

 New home construction is starting up again with an increase of 28.9% over January 2012. Movement in the new home construction industry will provide good jobs for construction workers who have been struggling for the past six years, and a boost for the economy.

So if you want a new home, now is the time to start looking - it takes time to pick your lot, and your floorplan, and make all your selections.  Remember interest rates are going up so you want to select your home and get the process moving.

If you need help finding that perfect home please call me at 505-350-0911. 

I appreciate all the comments I receive on my blog, so please keep posting them.

Why a Real Estate EXPERT?

You need to work with someone who is an expert in the Real Estate field - you are making probably the largest investment you have ever made.  You need a person that understands the market, understandings how all the pieces it together, and can simply and effectively explain it to you so that you can make the best decision for yourself and your family.

I am ready to be that expert.  Carol Skees www.albuquerquenmhomesearch.com

Move Up Buyers - How to Save $100,000 over the Life of Your Loan

According to the Mortgage Bankers Association, interest rates that have been bumping against the bottom for awhile - are projected to rise to 4.4 percent by the end of the year, compared to 3.4 percent right now.

If the Buyer delays the purchase of the home until the end of the year, the price will be 3.1 percent higher.   Which along with the higher interest rate means that the buyer will be paying $262.09 more per month, or $3,384 more per year, or $101,520 over a 30 year mortgage.

Those a pretty massive savings for buying a home today verses waiting until the end of the year.

Financial Considerations for the Move-Up Buyers

Let's look at a scenario for Move-Up Buyers.  If we take a look at the 2006 price right here on the table - back in 2006, their house was worth 300,000.  They were thinking about moving to that house down the block - that really beautiful house with the built-in pool with the extra accrage.  But that house was $450,000 and they couldn't afford to buy it back in 2006.

They bought the $300,000 house instead.  Well now both of those house have dropped 20 percent. As the chart shows while their house dropped $60,000, the other dropped $90,000.  

So making your move now to the home of your dreams, you saved $30,000 by buying the house now and not in the crazyiness of 2006. Buyers know that prices have bottomed out, this is the time to move up.

Remember the recent Home Price Expectation Survey, 105 of the leading housing analysts call for a 3.1 percent increase in home values by the end of 2013.

Move Up Buyers

There are studies out there that Move-up buyers are entering the market, they are now saying "You know what? I have some equity in my house".  Negative equity is shrinking as prices are going up.  I feel a little bit more confident about housing right now.  They are thinking "Maybe I shouldn't wait to move up to that house of my dreams.

Why are these people moving forward? Well we can see that 49 perce say that they want a significently bigger house.  17 percent say they want the same size, they just want to live in a different neighborhood in the same town.  8 percent want the same size, but a nicer home.   Three percent are looking for a same size but more affordable.  Some of these sellers are moving across the country for a different job.

 Next we are going to the financial considerations of the move up buyer.

I appreciate any comments on this or my other blogs.

Finances - The Cost of Waiting to Purchase a Home.

We already know from the Home Price Expectation Survey that prices are going to go up 3.1 percent between December 2012 and January 2013   Looking at a house that costs $210,000 now, that means by year end that same house will cost $216,510. That is the 3.1 percent price increase.

We also know that the Mortgage Bankers Association projects that interest rates are going to inch up to 4.4 percent by the end of the year.

As the chart below shows, what that means to a buyer purchasing a $210,000 home today, that the purchase price of the house will be $216,510 by the end of the year.  And if they buy now their monthly principal & interest charge will be $931.31; but if they wait until the end of the year to purchase a home they will be paying $1,084.20  for their housing.

Buying now verses later is going to save them $153 a month; or a savings of $1,800 a year.  Over a 30-year mortgage, they will save over $55,000.  Yes that is right, the difference between buying now and buying a year year from now is $55,000 to the buyer.

Buyers - this is the impact on your pocketbook, and your financial future.

Tomorrow I am going to talk about MOVE-UP Buyers.

All comments are appreciated.