The trend continues as closed real estate transactions are down for the fourth year in a row in the first quarter in Valencia County New Mexico. The latest figures show that in 2010 there were 104 closings, down 8% from 2009, and down 61% from it's peak in 2006 when there were 262 transactions closed during Q1 in Valencia County. When comparing March sales over the past few years you will see similar results with 2010 claiming last place once again with 43 sales compared to 44 in 2009 and 47 in 2008.
As the nation's economy begins to show signs of recovery all eyes in this county look toward similar results. It seems that, after studying the trends in the numbers, that Valencia County may haver reached the "bottom" when it comes to home sales. Steady sales numbers over the past few months are in indicator that things may not get worse. Most Real Estate Professionals in this area have adjusted their approach to reflect the current conditions and are ready for the long haul.
As we move forward, the general feeling is that Valencia County is in need of permanent jobs. The job base in the area in the past few years relied heavily in building trades and industries that revolved around the housing market. As we can plainly see from the current fallout, diversity in our workforce will lead to more sustainable prosperity.
Monday, April 5, 2010
Monday, March 8, 2010
February Sales Down in Valencia County
Financing seems to be the biggest reason for a lack of closed transactions heading into 2010. Sales for February 2010 (31)were down 50% from the same month 2007 (61), and down 14% from 2009 (36) for Valencia County. The excitement of this year being a turn around year for real estate sales is beginning to wear off.
Maybe an even more significant number is the Median home price for Valencia County homes that sold is down 16% from $142,500.00 last year to $118,000.00. This is an indicator that short sales, foreclosures and distressed sales are impacting the value of homes. Time and time again we see a lack of suitable comparables necessary for accurate and favorable appraisals, making it even harder to get to the closing table.
FHA loans continue to be the top choice of financing, leading the way with 10 of the mentioned closed sales, Conventional loans accounted for 8 of the closings, VA with 4, NMREC with 4 and a total of 5 cash sales.
Interest rates are holding in the high 5's and it is a really great time to buy. Belen, Los Lunas, Bosque Farms, and Peralta all offer some great investment opportunities.
Maybe an even more significant number is the Median home price for Valencia County homes that sold is down 16% from $142,500.00 last year to $118,000.00. This is an indicator that short sales, foreclosures and distressed sales are impacting the value of homes. Time and time again we see a lack of suitable comparables necessary for accurate and favorable appraisals, making it even harder to get to the closing table.
FHA loans continue to be the top choice of financing, leading the way with 10 of the mentioned closed sales, Conventional loans accounted for 8 of the closings, VA with 4, NMREC with 4 and a total of 5 cash sales.
Interest rates are holding in the high 5's and it is a really great time to buy. Belen, Los Lunas, Bosque Farms, and Peralta all offer some great investment opportunities.
Thursday, January 7, 2010
Valencia County Sales Struggle in 2009
After a dismal 2008, real estate sales in Valencia County had only one way to go, right? Wrong. Not too far off the pace set in 2008 closed transactions of residential properties in Valencia County in 2009 came in just under the previous year. The sentiment after 2008 by local Real Estate Professionals was that things will be better in 2009.
The bright side of this equation is that the last 1/4 of the year was the strongest. Typically November and December will bring the sleepiest months of the year in terms of sales, but this time around numbers were right in line with the best months of 2009. As we ease into 2010 with that momentum and the extension and expansion of the Buyer Tax Credit we may be in line to have a strong spring, something that has eluded our area for the past two years.
As you will note from our graph the sales in Valencia County have returned to the levels of 2001. All data is courtesy of SWMLS.
Tuesday, December 8, 2009
Valencia County Sales Steady In Late 2009
For the third month in a row closed residential sales were fairly strong in Valencia County. Total closed sales in Valencia County for residential homes for Belen, Los Lunas, Bosque Farms, Peralta and the balance of the county was 55 in the month of November. That is up from 32 in November 2008. Part of the reason the county had stronger sales numbers for September, October, and November this year is due to the crunch to get closed before the end of November to qualify for the first time buyer credit, which ended up being irrellivant since that program has been expanded and extended until mid 2010. I anticipate that this will have same type of affect early next year.
All things considered 2009 will not be an outstanding year for closed transactions in Valencia County, however, it seems we have bottomed out in volume and possibly price. Most likely we will end up with less closings than 2008.
All things considered 2009 will not be an outstanding year for closed transactions in Valencia County, however, it seems we have bottomed out in volume and possibly price. Most likely we will end up with less closings than 2008.
Thursday, December 3, 2009
Short Sale Guidelines Announced by Treasury
What is a Short Sale? In a nut shell it is a situation where a seller can not sell a home for enough money to pay off the mortgage. Currently, there are many homeowners in the Belen and Los Lunas area that are in this situation. As professional Realtors, we have be troubled with a long and arduous process to get Short Sale offers approved. Some deals taking as long as 6 or more months to get to closing.
You might think that it would be out of the question for your lender to accept less money than what is owed, right? Well, in many cases the lender will benefit from a Short Sale as opposed to Foreclosure. Once a lender has foreclosed on your home they now have to maintain, secure, and market the home for sale, not to mention pay their attorney for handling the foreclosure. A typical foreclosure in the State of New Mexico, when dealing with a Mortgage as the security instrument, will take any where from 7 to 12 months from the day the borrower makes their last payment.
The announcement that the Treasury has created and released long-awaited guidelines to streamline Short Sales is big news. This will have a huge impact on the homeowner that is backed up against the wall without many options. The most significant points in this guideline are the following: Short Sale requests must be responded to by the lender within 10 business days, Seller will be released from all liability for repayment of the mortgage debt, and the seller is entitled to a relocation incentive of $1,500.00 at closing.
You might think that it would be out of the question for your lender to accept less money than what is owed, right? Well, in many cases the lender will benefit from a Short Sale as opposed to Foreclosure. Once a lender has foreclosed on your home they now have to maintain, secure, and market the home for sale, not to mention pay their attorney for handling the foreclosure. A typical foreclosure in the State of New Mexico, when dealing with a Mortgage as the security instrument, will take any where from 7 to 12 months from the day the borrower makes their last payment.
The announcement that the Treasury has created and released long-awaited guidelines to streamline Short Sales is big news. This will have a huge impact on the homeowner that is backed up against the wall without many options. The most significant points in this guideline are the following: Short Sale requests must be responded to by the lender within 10 business days, Seller will be released from all liability for repayment of the mortgage debt, and the seller is entitled to a relocation incentive of $1,500.00 at closing.
Thursday, November 19, 2009
Preserving The Past In Valencia County
Los Lunas
Recently the efforts of the Torres family paid off in successfully having the Luna Mansion Wall recognized as a integral part of the property that they recently purchased. It is comforting to drive down Main Street and see that old rock and metal wall doing it's job. In recent years it has been wonderful to see other buildings that have been renovated and preserved with the "feel" of old. The Heritage Arts Museum on Main Street in Los Lunas is a great example of the efforts of the group headed by Patty Guggino.
Often times it is hard to find a balance between modernizing the world we live, while protecting the things that stand as a tribute to our heritage. You do not have to go far in Los Lunas to find someone that will complain about the bottle neck at Main Street as it nears HWY 314 (hopefully someday soon we can have an alternate route through town). The old buildings in and around Valencia County are examples of unique architecture, that in many cases, is not seen anywhere else in the world.
Recently the efforts of the Torres family paid off in successfully having the Luna Mansion Wall recognized as a integral part of the property that they recently purchased. It is comforting to drive down Main Street and see that old rock and metal wall doing it's job. In recent years it has been wonderful to see other buildings that have been renovated and preserved with the "feel" of old. The Heritage Arts Museum on Main Street in Los Lunas is a great example of the efforts of the group headed by Patty Guggino.
Often times it is hard to find a balance between modernizing the world we live, while protecting the things that stand as a tribute to our heritage. You do not have to go far in Los Lunas to find someone that will complain about the bottle neck at Main Street as it nears HWY 314 (hopefully someday soon we can have an alternate route through town). The old buildings in and around Valencia County are examples of unique architecture, that in many cases, is not seen anywhere else in the world.
Thursday, November 12, 2009
Tax Credit Extension-All The Hype
By now most folks know that the tax credit offered to first time buyers has been extended. It gives buyers some more time to take advantage of the "free" money that is being offered. I have mixed feelings about the whole idea. Ultimately in the end that money has to come from somewhere, so for now the Government is content to borrow it and give it to those that can purchase by the deadline.
The original deal was only for first time buyers, but has now been expanded to those that have owned in the past. It really did not create a huge demand for the Valencia County real estate that has been on the market. In my estimation it caused a few people to "pull the trigger" but for the most part just reassured some buyers and gave them a few bucks for furniture after tax time. Belen, Los Lunas, Peralta, and Bosque Farms have all seen a decrease in closed transactions over last year.
At this point I encourage all sellers to hang in there, it will get better. I am hopeful that the spring of 2010 will usher in some new deals and get things moving again.
The original deal was only for first time buyers, but has now been expanded to those that have owned in the past. It really did not create a huge demand for the Valencia County real estate that has been on the market. In my estimation it caused a few people to "pull the trigger" but for the most part just reassured some buyers and gave them a few bucks for furniture after tax time. Belen, Los Lunas, Peralta, and Bosque Farms have all seen a decrease in closed transactions over last year.
At this point I encourage all sellers to hang in there, it will get better. I am hopeful that the spring of 2010 will usher in some new deals and get things moving again.
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