All real estate is local so while we read the national news and stay abreast of what is happening in other states, we must remember that what is true of the markets in other parts of the country at any one point in time may not be not be true for Albuquerque, New Mexico.

The downturn wave in the real estate market reached the Greater Albuquerque area of New Mexico in the fall of 2007 almost a year later than several other states where the market heated up to bubble or near bubble proportions. In New Mexico, market appreciation started later, was gradual, and never quite reached bubble proportions. And while we recognize that more New Mexico homeowners than we would like, are adversely affected by the mortgage crisis, we are aware that our local market has weathered the downturn better than many others.

Market Recovery: Having entered the downturn cycle later, we expect our recovery to predictably lag behind in recovery also.  Spring sales acceleration and news of market recovery already underway in some states are base-line indicators that our local market may already be on the road recovery.

Recovery started with the implementation of the homebuyer tax credit intended precisely for that purpose. The credit attracted first-time homebuyers and stimulated the resale market of homes below $250.000 resulting in consistent month over month increases in closed resale homes transactions particularly since September 2009.

February, a traditionally slow sales month, saw increased closed sales of existing homes. The increase was 10.8 percent above February, 2009. Sales revenue for the month increased 9.18 percent for a total of $78.5 million with the town of Rio Rancho leading the market.

March saw an increase of 36.34 percent in closed sales, with Bernalillo leading the way. The entire Greater Albuquerque MLS area sold 465 detached homes in March 2009 and in 2010: 634

April is almost over and the expiration of the homebuyer tax credit on the last day of the month looms large. Were the stimulus measures in place long enough to make a lasting, sustainable difference? Only time will tell.

Eloise Gift, Gift Realty NM
www.newmexicohomesbyeloise.com

First-time and repeat homebuyers profited from the homebuyrer tax credit offered as part of the American Recovery and Reinvestment Act (ARRA) initiatives designed to help jump start the economy. That package helped sustain the residential real estate market through the past two years and has been particularly helpful to first-time home buyers, many of whom felt left out during the protracted increases in home prices up to 2007.

If the real estate market doesn't recover soon, it won't be for lack of trying on the part of President Obama's administration. The first homebuyer tax credit extended initially only to first-time homebuyers, expired in 2009 and was extended and expanded to include repeat homebuyers. As we approach the expiration of the extended/expanded version, April 30, not only industry insiders but savvy consumers, doubting the feasibility of another extension have been wondering what would be the next best thing that would give some support a real estate market still in need of crutches.

Crutches Still Needed
The evidence of the need for continuing support is all around us, even in New Mexico that seemingly weathered the downturn better than many other states, based on national trend reports.

1. The value of many homes, especially those bought in the four years immediately preceding 2007, is much lower than their mortgage balances, and homeowners are trying a variety of solutions to alleviate the burden they feel. According to the news I get from clients, some approach lenders seeking restructuring or modification. Some say they wait months and receive no response. Others say the responses they receive make their situation seem more arduous. 

2.Restructuring or modification becomes even more crucial when homeowners are faced with reduction in earnings because of job loss or other financial setbacks.

3.Unable to reach agreement with lenders some homeowners simply choose to walk away to homelessness or rental at a price more affordable than mortgage. 

4.Some homeowners try to sell but are unable to sell at a price high enough to pay off the mortgage balance.  The alternative is to seek agreement for a short sale in which the lender agrees to accept an amount short of what is actually owee. Currently this is a long process with uncertain outcome.

Short Sale Outcomes
If and when the short sale is executed, beleaguered homeowners may face additional challenges.
1. They may be required to sign a promissory note for the difference between the amount owed and the amount of the sale 
2.They incur a tax liability for the amount forgiven by the lender.

Given the scenario described, the announcement of new measures by President Obama to tweak the previously agreed upon Home Affordable Modification Program (HAMP) is welcome news to many hoping for a reprieve. It is hoped that the revised FHA- HAMP program, in providing principal reduction, will bring relief to homebuyers where it is needed most. It will also fill the gap that the expiration of the tax credit will leave, and so continue to support an industry that is still fragile and  still in need of stimulus.

The world's largest professional organization,the National Association of Realtors (NAR) with 1.2 million members, recently launched a web site, HouseLogic, with industry relevance just for consumers. It has searches, naturally, and tons of ideas and tips that buyers are able to store and retrieve online. Homeowners and prospective homeowners are accustomed to visiting websites only for for searching for properties will find a whole new world opened up to them..

HouseLogic ...empowers homeowners who want to get more actively engaged in shaping community life and advocate neighborhood and home ownership issues that matter most to them. The site provides users with the tools and know-how to effect change and address concerns, like establishing a neighborhood watch program, building a community playground, or participating in city or county planning efforts.

NAR has been an advocate for real estate professionals and a champion of consumers for well over 100 years starting with the Code of Ethics.  HouseLogic is a continuation of NAR's tradition of advocacy.

Lovely 8620 Hatteras Place NW in Albuquerque, New Mexico is two houses away from a small, neatly kept neighborhood playground and only about five minutes form the main East-West I-40 highway that almost disects the city in half.

Built in 2004, the home is well-cared-for, still looks new and is in move-in condition. The four bedrooms are all upstairs. So are the two full baths. The half bath serves the downstairs living area.

Like the low-maintenance, xeriscape garden that surrounds it, the house is of a manageable size.

Visit this 9620 Hatteras Place NW, online to see why it would be perfect for you. The airy, light-filled, open floor plan, refrigerated air, ceiling fans, and other amenities add to the charm and comfort of the home. Making an offer and closing in a month would allow a buyer to act just in time to take advantage of the home-buyer tax credit tax that is set to expire April 30. Call me up and I'd be delighted to take you on a tour of the house anytime.

Three Albuquerque, NM REALTORS attended RainCamp in Denver today as ActiveRainers turned out in full force for a day of technology tips and updates. It was fun to finally meet iseveral rainers in person.

Now if I can only use one tenth of all the great ideas I got for enhancing my work online, I'd be very happy. This post in no way reflects anything I learned. The day at RainCamp was well worth the effort. I only wish I could have cleared my calendar so as not to miss the last hour.  

Almost three years ago to the date, I wrote about a special recognition of the City of Albuquerque and Los Alamos as one of the 100 best communities for young people. The recognition came from America's Promise Alliance, an organization that recognizes communities for trying to live up to Five Promises to help children succeed:
• Caring adults
• Safe spaces
• Healthy start
• Effective education
• Opportunity to help others.

The first president of America’s Promise Alliance was retired General and former Secretary of State Colin Powell. His wife Alma succeeded him as president and together they have continued their advocacy on behalf of children. Today’s news that reminded me of my post is a joint announcement by America’s Promise Alliance leaders, Colin and Alma Powell along with the Secretary of Education, and the President of the United States. They are launching Grad Nation, a ten-year campaign to reverse the dropout rate in schools and propel the United States into the lead for highest proportion of college graduates in the world by 2010.

Relevance to Real Estate
What does this announcement by America’s Promise Alliance have to do with real estate, you may ask? Especially in light of our current economic downturn, it has everything to do with real estate. Individuals and businesses are attracted to communities where quality-of-ife especially as it relates to living, working and raising families has value. Where there are families, business will follow and commerce will flourish.

 Albuquerque’s recognition by America’s Promise Alliance as a great place for young people three years ago is today even more valuable because of the Alliance’s credibility and enduring commitment to children's welfare, as evidenced by today’s announcement. The recognition influenced many people's decision to relocate to New Mexico.

However, in New Mexico schools, the dropout rate is considered high. According to research by America’s Promise Alliance, the state is not unique because 1 in 3 students nationwide fail to graduate from high school. In New Mexico, we also have a richly diverse culture, a significant proportion of which includes Native Americans and Hispanics. Research also shows that less than 50 percent of Native Americans and slightly more than half of African American and Hispanic students graduate from high school. Every 26 seconds a student drops out of school in America, adding up to more than 1.3 million per year.

Research also shows that young people who drop out of school are twice as likely as graduates to be unemployed, three times as likely to live in poverty, eight times more likely to end up in prison and twice as likely to be parents of children who drop out. With these statistics, it appears that we are already losing a significant proportion of people who could be clients in adulthood. If the trend continues, where will our future buyers of real estate come from? Certainly not from people outside the workforce, in prison or living in poverty. Besides, these lost clients with their attendant needs will be part of a society that will bear the cost of their disability, thus creating a drain on available resources. Not only the real estate industry but all of society will be adversely affected.

I know of several organizations and community grassroots efforts that are currently trying to grapple with improving the low graduation and high dropout rates. The announcement of Grad Nation is a step in the right direction towards solving a national problem. It gives the problem a high profile, broadens awareness, and seeks to  unify and mobilize support for job security and quality of life not only for real estate professionals but the entire society.

I spent last evening and the better part of today at a Summit for early childhood education in Santa Fe (invited in my capacity as  a business owner) . On the surface the summit seemed to have noting whatever to do with real estate, but in a profound way, it did. The New Mexico Summit on Early Childhood Investment brought together business and community leaders to create awareness and support for early childhood development. I saw this intervention as a benefit to the next generation of home buyers.

Research has shown that early investment in childhood developoment, produces healthy, educated productive adults. As a matter of fact, is is being seen as the best investment any society could make. One quote: Quality early education for at-risk children can produce an annual rate of return as high as 16% -  higher than most stock portfolios.  Children, given a great start in life create the most skilled employees now and in the future , because parent of well children are not distracted by concerns about their well-being, and children given a great start are most likely to grow up to become capable, educated, responsible members of the workforce.  My aha moment was: these children born today with the best prospects for success will be the next generation of homebuyers. Neglected, they are likely to become instead, costly casualties looking for handouts and incapable of providing for their basic needs. 

So I left the summit wondering why it has taken so long for us to recognize what  needs to be done. and a commitment to be counted among the individuals working towards providing good nutrition,  health care, enlightened parenting and quality education for children 0 to 5 years.

As one of  speaker explained, the status quo creates a moral problem with practical implications. The current state of neglect of early childhood development with its social and economic consequences is immoral. The practical solution lies in understanding the fundamental cause of the maladies, recognizing what needs to be done and doing it.

To find out more about how we can encure that the babies born today can grow up to be great clients, go to www.partnershipforsuccess.org.

Eloise Gift
www.EloiseGift.com

Buyers and sellers of real estate always have numerous questions, as they should. Buying or selling a house is the single largest financial transaction most individuals are likely to undertake in a lifetime.

Questions relate to traditional concerns that include pricing, marketing, funding and financing, negotiations, property condition and preparation, repairs, and escrow. more recently, as if we did nor have enough that needed explaining, current economic conditions have added additional terms and conditions that need definition and explanation. Clients are now asking about inventory, days on the market, short sales, foreclosures, and stimulus (American Recovery and Reinvestment Act) funds.

And since as real estate service providers, we are always seeking new and improved ways to communicate with and educate our clients, we are happy when we get our hands on some new tool or training materials that will help us in this endeavor. I am happy to have received recently, a link to a delightful, short video on YouTube, compliments of Keller Williams, that helps explain the availability of a great government incentive for first-time home buyers. Learn who qualifies for the new tax credit:  New Tax Credit- Who Qualifies?

Eloise Gift

Your Gift For Real Estate-Your Gift For All Seasons

Albuquerque has another name. The city has been fondly called the Duke City for years and now another name is becoming popular - The "Q." It has one advantage. It is easier to spell.

So what happened in the Q this week? Many of us in the real estate business are feeling hopeful about the market and are pleased that first-time home buyers in particular seem to be taking advantage of the large inventory and continuing low rates and other available incentives.

Of course, the housing market is only a barometer of the overall economy, so what indicators in the Q this past week are leading to positive real estate outcomes? Here are some.

The Q is still a popular destination for tourists, retirees, and job seekers.
Our stimulus package  increased to more than $3 billion.
New Mexico's unemployment rate is well below the national average.
The weather was fantastic all week and Homeland Security held its first Advisory Meeting in the Q with Secretary Napolitano, Atty General Holder and other VIPs from Washington, DC.

The Q may just be inching its way up from the #2 spot on Kiplinger's Top Ten Cities.

Eloise Gift
June 5, 2009
www.eloisegift.com

The news media are full of chatter about the American Recovery and Reinvestment Act, more often referred to as the stimulus package, and how they are being used. Almost everyone has an opinion. Lawmakers in some states have rejected the funds.  In others, they welcome whatever money is available with open arms. Most have a need to make the shortfall brought about by the worldwide economic downturn and are even critical of the way the money is being spent. A recent article in the local newspaper criticized the spending of money allocated for transportation because buses and trains were bought in Canada and in another state. The government had to justify the expenditure. The  city bought buses and trains with earmarked for transportation in the same way it always has. We have known even before the first trains arrived last year, that the Rail Runner Express was manufactured in Canada. New Mexico does not build or manufactire buses and trains.

In our city, the mayor integrated ten implementation teams to  track and bid on the available federal funds. I assume that all states except for those that are in the enviable position of not needing the funds, have made similar arrangements for their proper management and distribution. I consider it an honor and a privilege to have been selected to serve on one of the teams. I hope to be able to look back soon on a flourishing state and national economy with pride for having played a part in working with the governor of our state, the mayor of our city and the members of all the stimulus teams to help in the economic recovery and smooth transition from bad to better times.

Eloise Gift is Associate Broker at Keller Williams Realty in Albuquerque, NM. She was appointed by Mayor Martin Chavez to serve on the Stimulus Implementation Team for the City of Albuquerque. She can be reached directly at 505-363-5156 or at her office at 505-897-1100. You may network with her on facebook and linkedIn, orfollow her on twitter.