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State of the Greater Albuquerque / Rio Rancho New Mexico Foreclosure Market

By
Real Estate Agent with Southwest Elite Real Estate

For 2007 Albuquerque ranked as one of the lowest cities for foreclosures.  However despite that fact, our local MLS inventory tripled over the last 12 months and sales are down at least 25% monthly.  To me the greatest reason for that despite a 6% appreciation rate for 2007 is all the negative press being spread around about the housing industry.  If the first two months of 2008 are any indication of where we are heading 2008 may rank us as one of the highest cities for foreclosures.  My team is only one of two brokers that list HUD homes in New Mexico and our business has almost doubled just in January and February 2008 from the previous two years.  We also work with several other REO companies and the number of BPO's we are doing in a given week has almost tripled.  An REO company will usually order a BPO (Broker Price Opinion) when they expect to be taking back a property.  In 2005 and the early part of 2006 the phone would ring off the hook from investors seeking to buy homes in Albuquerque (When we were at the very peak).  I now ask myself, now that the prices of homes are beginning to drop and where are all the investors now that there are actually some properties priced below market????   As the average Days on Market continues to increase prices will drop and there will be even better deals this year.  I am very optimistic about where the market is heading especially if the first two months are any indication and I am not just talking about foreclosures!!!!