Buyers and the Media

This was the year that buyers in our area were to a large extent confused by the news media. Newspaper headlines, more often than not, carried news that reflected average conditions around the country.  They failed to make distinctions between regions or between the new and the resale home sales. Consequently, buyers, caught between imprecise news and the fear engendered by the sub prime mortgage challenges became indecisive when faced with a rising inventory of homes that grew to be larger than they were accustomed to having over the past 3 -4 years.

Real estate is Local

The truth of the matter is that real estate is local and housing market conditions in New Mexico in 2007 did not reflect the national trend. In the same way that home prices in New Mexico increased but did not reach the bubble proportions of many other areas, so too, they did not reach bubble-bursting capacity. Consequently our market remained relatively vibrant.

2006 Predictions

The prediction at the end of 2006 was that New Mexico would be one of the few states to continue to have real estate success in through 2008 as long as the job market and the economy continued to thrive. That prediction has been a good one. Our economy continues to do well and despite some layoffs from three of our major employers in the Greater Albuquerque area: INTEL and the Sandia and Los Alamos National laboratories, the region has kept up its employment rate by the arrival of new employers.

Positive Reports

According to second quarter statistics provided to the REALTORS® Association of New Mexico (RANM) by member boards and multiple listing services, and the New Mexico Multi-Board MLS, 15 of 18 reporting markets showed an increase in average sales price from second quarter 2006 to second quarter 2007.  Five areas showed an increase in number of homes sold second quarter 2007 as compared to second quarter 2006. (RANM Bulletin)

In November, according to official reports from the Greater Albuquerque Association of Realtors, home prices increased by 75%.  We also know that at year's end, the inventory of resale homes has receded from a high of almost 8000, homes on the market at mid year to below 7000 at year's end.

The new homes industry took steps to reduce their build up of inventory by offering incentives and cutting back in production. By no means, however, was the building of new homes at a stand still in 2007. Many housing developments are under construction all across the city, from luxury custom homes to elegant patio homes; from Mesa del Sol on the southern tip of Albuquerque to Mariposa in north Rio Rancho; and SunCal of California continues to aggressively pursue tax incentives for one of the largest real estate developments ever planned in the area.

The latest news reports suggest that the Greater Albuquerque area real estate market will perform in with the original 2006 predictions and be viable through 2009.

Eloise Gift
Albuquerque, New Mexico Real Estate
www.eloisegift.com