Real Estate Information Archive

If you are thinking of moving up to a larger home or moving to a better area, now is the time to sell.

According to an article called Not Your Father’s Housing Market by Trulia, which is about housing affordability over the last 40 years:

“Nationally, homes are just about the most affordable they’ve been in the last 40 years… the median household could afford a home 1.5 times more expensive than the median home price. In 1980, the median household could only afford about 3/4 of the median home price.

Despite relatively stagnant incomes, affordability has grown due to the sharp drop in mortgage rates over the last 30 years – from a high of over 16% in the 1980s to under 4% by 2016.

Of the nation’s 100 largest metros, only Miami became unaffordable between 1990 and 2016. Meanwhile, 22 metros have flipped from being unaffordable to becoming affordable in that same time frame.”

Except for the housing crash in the past 10 years, the graph shows that homes are more affordable now than in the past 40 years.

Now is the time to sell and purchase a new home if you’re thinking about it. With home prices and mortgage rates rising, affordability will also go down. Time is of the essence.

If you’ve been monitoring the market and have been waiting for the right time, this is it.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers and Seller Representative who can help you navigate thru the process and get the job done for you. He can provide you with a Free Market analysis when you are ready. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at [email protected].

He has a great website full of the latest information at www.NMElite.com

Here are also some Free Sellers resources. VIP-Seller-Resources

ABQ housing market ends 2017 on a high note

from GAAR News

Albuquerque, N.M. — The metro Albuquerque housing market closed out 2017 on a high note, according to the Greater Albuquerque Association of Realtors.

The association said there were 11,477 single-family home sales in 2017, a nearly 7 percent increase over the previous year. The median house price rose almost 4 percent, reaching $196,900.

The association said the number of days homes sat on the market fell from 72 days in 2016 to 54 days in 2017 in the metro area, which encompasses Bernalillo, Valenica, Sandoval, Torrance and parts of Socorro and Santa Fe counties.

Total dollar volume from single-family home sales was $2.7 billion last year, a 12 percent rise from the previous year.

Association President Danny Vigil says last year’s market was difficult for buyers because many homes sold as soon as they were listed, a situation that clearly favored sellers.

“While it’s true that inventory has remained tight all year — a little over a two-month supply at this time — buyers still were not deterred from jumping into the market and were attracted by the area’s variety of price points and property types,” especially new construction, Vigil said.

Homes that were priced right sold fast in popular locations in Albuquerque and Rio Rancho, like the Northeast Heights and the Paradise Hills and Taylor Ranch neighborhoods.

“An area that’s coming on strong is Valencia County,” particularly new housing communities in Las Lunas and Belen, said Vigil, an associate broker with Coldwell Banker Legacy. “Young families get really excited about affordable new construction; they only want to worry about landscaping.”

Condominium sales rose more than 11 percent year over year, while the median sales price of condos sold in 2017 increased almost 1.5 percent to $142,000.

While there are about 3,000 properties currently on offer in the metro area, Vigil expects that number to grow appreciably in the next few months and more “for sale” signs will pop up in yards in the spring. “I have five clients teeing up to sell,” said Vigil. “They’re painting, installing carpeting, clearing out the clutter so they can get top dollar.”

Buyers looking to start the new year with a new home will encounter rising interest rates. Rates have been trending up since mid-September, though they remain just barely under 4 percent.

Source: By Steve Sinovic / Journal Staff Writer

The following new limits will be effective for loans in 2018:

• FHFA (Federal Housing Finance Authority)—Conventional Loans. The Federal Housing Finance Agency (FHFA) has announced that it has increased the 2018 maximum conforming and high-cost area loan limits for mortgages acquired by Fannie Mae and Freddie Mac. Conforming loan limits for one-unit properties in the contiguous U.S. will be $453,100. High-cost area loan limits for one unit will be $679,650.
• FHA (Federal Housing Authority) FHA has updated its list of the maximum mortgage limits for FHA-insured forward mortgages, effective for case numbers assigned on or after January 1, 2018, through December 31, 2018. FHA loan limits will increase in 3,011 counties and stay the same in 233 counties.
• VA (Veterans Affairs) VA Loans will also have new limits; however, for pricing purposes, keep in mind that any amount over the conforming lending limit of $453,100 will be considered high balance for VA on or after January 1, 2018.

Buying or selling a home is one of the biggest decisions you’re going to make in your life. What most people don’t realize is the amount of work that is involved and also the amount ok knowledge that is required to help you get your home sold. There are rules and regulations to follow and laws to comply with. There are disclosure issues, contingencies to deal with many key steps to negotiate. This is why realtors are licensed and area required to take continuing education.

Hiring a realtor to help you will not only make that decision easy, it will also make the home buying or home selling process flow smoothly. You also need to make sure you just don’t hire any realtor. Look for an experienced agent who has a good track record, is a full time agent and designations are very important such as ABR and CRS certifications.

With their knowledge, experience and tools, the will be able to provide you with all that is need for a successful transaction.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist, SRES – Senior Real Estate Specialist who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

You can contact him by calling 505-362-2005 or by emailing him at [email protected].

He has a great website full of the latest information at www.NMElite.com

Albuquerque Real Estate Market has shifted into a sellers markets. Home inventory has dropped another 19% from last month. We are seeing multiple offers in some areas but sellers still need to pay close attention to the comparable sales for proper pricing. If you would like a quick home valuation go to www.ABQPrice.com or call Pete Veres, Certified Residential Specialist to schedule your Free Detailed Market Consultation. 505-362-2005

It is summer time and buyers are out in full force. Normally, homeowners would take advantage and list their homes for sale and look for a new home that would better suite their needs, but not this year.

Inventory is at its lowest in over 30 years. According to Frank Nothaft, Chief Economist for CoreLogic, “The growth in sales is slowing down because of lack of inventory and not because of affordability. As of Q2 2017, the unsold inventory as a share of all households is 1.9 percent, which is the lowest Q2 reading in over 30 years.”

With the low inventory, prices have continually increased over the years. According to CoreLogic’s President & CEO, Frank Martell, until the housing supply challenge has been resolved, affordability will likely become a much bigger challenge in the years ahead. Low mortgage rates help keep homes affordable on a monthly payment perspective.

For the 25^th consecutive month, inventory has been low and is at a 4.3-month supply based on a report from the National Association of Realtors. Locally in Albuquerque we our inventory is -18% from last year this time with our inventory being at a 3.2 month supply. To track your local homes sales in your neighbour go to: www.ABQMarketinfo.com

Luxury and Premium homes are taking a blow from the current situation and are staying longer in the market which suggests a buyer’s market. This also holds true in Albuquerque with homes in the $500,000+ range. While starter and trade-up homes are staying within the median US figures and in some areas of Albuquerque selling very fast with multiple offers taking place.

Now is the time to sell. Inventory is low and buyers are ready to buy. Buyers are competing for available homes and this could be what you’ve been waiting for.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist, SRS – Senior Real Estate Specialist who can help you get your home sold. He can provide you with a Free Market analysis when you are ready. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

You can contact him by calling 505-362-2005 or by emailing him at [email protected].

Here are also some Free Sellers resources. VIP-Seller-Resources

You probably have an idea on where you would want to retire. It could be where you are now or someplace you’ve always wanted to retire to. It could be in a few years or more, but it’s not too early to plan it right.

Listing your home now and selling it is one of the best ways to get you to where you want to be in the future. Home equity is on the rise. Just this past year, the average homeowner has gained about $14,000 in equity with the West Coast gaining twice the amount according to Corelogic’s Equity Report.

By selling your home now, you would be able to purchase a condo that is much easier to maintain than a house. The amount left from the purchase of your condo can then be used as a down payment for your retirement home. What’s good about this is that you can rent out the vacation/retirement home and use the money for your mortgage and pay it faster.

It’s a seller’s market right now and it’s time to take advantage of the current situation and the equity that you’ve built.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist, SRS – Senior Real Estate Specialist who can help you get your home sold. He can provide you with a Free Market analysis when you are ready. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

You can contact him by calling 505-362-2005 or by emailing him at [email protected].

Here are also some Free Sellers resources. VIP-Seller-Resources

NAR Associate Counsel Jessica Edgerton shares risk management tips for buyers purchasing a home featuring devices connected to the internet, such as the heating system or security cameras. Pete Veres with RE/MAX as also seen more of these devices. recently we had a client buy a self-programming smart home  and it drove the new buyers crazy. They ended up taking the system out and putting in timer controlled digital thermostats.

Gallup conducts a survey every year which asks Americans which long term investment they prefer. The choices are real estate, savings accounts, bonds, gold or stocks/mutual funds.

The number one choice for long term investment based on the survey is real estate at 34% and it’s been the top answer for 4 straight years. It is followed by stocks at 26%. Pete Veres, local Real Estate Investment Specialist states “ Real Estate continues to be one of the best long term investments. Look at guys like Trump and Buffet”

Here’s the full report:

The study aims to show the contrast of the sentiment over the last 4 years as compared to the 2011-2012 survey, which shows gold taking the top spot. This was the time of the recovery from the recession.

With the recovery of the real estate market, people have grown confident and have seen the potential of a long term investment in real estate.  

The only problem is that most people don’t understand how to properly invest in real estate and set it up in a way that others pay for your investment. Contact a specialist like Pete Veres with RE/MAX so he can explain how real estate investing works.

Pete Veres, CRS – Elite Asset Mgt. Team RE/MAX Elite 505-362-2005 email: [email protected]

There are a large number of mortgage programs available to buyers that allow them to purchase a home with a down payment below 20%.  Knowing the facts is crucial for a stress free home buying experience and here are some about Private Mortgage Insurance (PMI).

According to Freddie Mac, PMI is:

An insurance policy that protects the lender if you are unable to pay your mortgage. It's a monthly fee, rolled into your mortgage payment,  that is required for all conforming, conventional loans that have down payments less than 20%.

Once you've built equity of 20% in your home, you can cancel your PMI and remove that expense from your mortgage payment.”

The monthly premiums are paid by the borrower, and the lender is the beneficiary.

Freddie Mac also states that:

 “The cost of PMI varies based on your loan-to-value ratio – the amount you owe on your mortgage compared to its value – and credit score, but you can expect to pay between $30 and $70 per month for every $100,000 borrowed.”

Down payment for homes last year for all buyers was at 10%. It dropped to 6% for first-time home buyers.  For repeat buyers it was at 14%. From this data, it seems that buyers were not fazed by PMI and were able to buy the home they wanted.

Example of the cost of a mortgage on a $200,000 home with a 5% down payment & PMI, compared to a 20% down payment without PMI:

Larger Down Payment = Low Monthly Housing Cost

“It's no doubt an added cost, but it's enabling you to buy now and begin building equity versus waiting 5 to 10 years to build enough savings for a 20% down payment.” – says Freddie Mac

“The other thing you need to remember that home prices are going up so by the time you save up enough down payment it could cost you much more to buy the home including higher monthly payment and even perhaps higher interest rates.” says Pete Veres – RE/MAX

It’s best to meet with a professional like Pete Veres – Certified Residential Specialist who can help you make a decision whether to hold off on buying and save up for a bigger down payment or purchase now while the market is hot.

“One last thing to remember is that as home values go and your principal goes down your PMI may only be around for a few years.” Pete Veres –RE/MAX

Pete Veres – Elite Asset Management Team RE/MAX Elite 505-362-2005 email: [email protected].