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.
Monday, March 8, 2010
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