Real Estate Information Archive

Albuquerque / Rio Rancho Monthly Highlights

The median sales price for detached, single-family homes in April was $165,000, rising 1.85 percent from the previous month; the first positive increase in the median sale price since December.

• The top selling price range of detached, single-family homes went from $120K - $139K in March to $200K -$249K in April.
• April was the 2nd consecutive month this year that properties going under contract exceeded 900.

To View the Complete April Albuquerque Metro Market Report!

Source: Greater Albuquerque Board of Realtors – 10 May 2011

Albuquerque / Rio Rancho

Quarterly Highlights

1st QTR 2011 Market Recap for the Greater Albuquerque Metro Area

• Compared to 1st QTR 2010 the average sale price of a home has decreased 1.81 percent and the median sale price dropped 3.49 percent.
• When compared to 1st QTR 2010, closed sales decreased by 2.41 percent along with an increase of days on market of 7.59 percent.

To View the Complete Albuquerque Metro 1st Quarter Market Report!

Source: Greater Albuquerque Board of Realtors – 16 April 2011

WASHINGTON (April 13, 2011) – A new bill to improve the process for approving short sales may soon bring relief to distressed home owners who are unable to keep their homes and hope to avoid foreclosure. The bill, introduced in the U.S. House this week, would impose a deadline of 45 days on lenders to respond to short sale requests.

“The current short sale process can be time-consuming and inefficient, and many would-be buyers end up walking away from a sale that could have saved a home owner from foreclosure,” said NATIONAL ASSOCIATION OF REALTORS® President Ron Phipps.

The short-sale process has frustrated buyers because lenders are unable to decide whether to approve a short sale, he added. “After many months of delays, and with no response from lenders, potential buyers are losing patience and cancelling their contracts, often resulting in the property entering foreclosure. A short sale minimizes the negative impact on sellers and generally costs the lender less than a foreclosure,” said Phipps.

About 13% of recent home sales are short sales, according to NAR data. “Streamlining short sales transactions will reduce the amount of time it takes to sell the property, improve the likelihood that the transaction will close, and reduce the overall number of foreclosures. This benefits sellers, lenders, buyers, and the entire community,” Phipps concluded.

Source: NATIONAL ASSOCIATION OF REALTORS® 14 April 2011

Read more at: www.Houselogic.com

Albuquerque / Rio Rancho

Monthly Highlights

• Closed sales for detached single-family homes in March increased 39.02 percent from the previous month.
• Of the 570 detached, single-family homes reported sold in March the top selling price range was $120,000 - $139,000.
• Sales in the City of Rio Rancho increased 1.68 percent from the previous year and 101.67 percent from previous month.

To View the Complete March Albuquerque Metro Market Report!

Source: Greater Albuquerque Board of Realtors – 12 April 2011

Despite a historic real-estate market upheaval that sent foreclosure rates skyrocketing, Americans still have a deep attachment to home ownership.

Furthermore, they consider home ownership an integral part of an American Dream in which they still believe, according to poll results announced today by The Allstate Corporation and National Journal.  

The Allstate-National Journal Heartland Monitor Poll revealed that nearly nine out of 10 home owners say they would buy their homes again. That percentage held true even among home owners who said their home values had declined.

Seven of 10 Americans say they would advise a friend or family member to buy a home as a long-term asset.

“Owning a home continues to be the bedrock of the American Dream—even as incomes are down, jobs are scarce, and families struggle to make ends meet,” said Thomas J. Wilson, Allstate chairman, president, and chief executive officer. “Home ownership is viewed positively by the vast majority of Americans as both a place to raise a family and a sound investment. As a result, financial institutions and the government must work together to ensure that those who can afford their homes stay in them and this opportunity remains a viable alternative for all Americans.”

Other key findings:

• Asked to name the best investment, 24% of Americans say “buying a home,” which ranks behind “investing in retirement savings” (38%), but ahead of “saving money in the bank” (20%), and “investing in the stock market” (6%).

• Most Americans (63%) believe that the current housing crisis is temporary and will improve over the next several years.

• Surprisingly, 58% of those who believe the housing crisis will remain a serious problem would still recommend buying a home.

• Most Americans (59%) say they are living the American Dream.

• 58% of Americans believe that the ability to achieve the American Dream is affected more by their own skills and hard work than by the state of the economy. This belief in hard work cuts across every demographic and socioeconomic subgroup.

• More than half of Americans (52%) blame the housing crisis on banks and lending institutions for misleading borrowers and approving bad loans, while 32% blame people who bought homes and took out mortgages they couldn’t afford, and only 12% blame government policies that encouraged too many people to try to own their own homes.

Source: The Allstate Corporation - 18 March 2011

Too many Americans mistakenly believe that the coverage limits of their home owners insurance policy are linked to the market value of their home. 

In the Insurance Information Institute’s 2011 Insurance Pulse Survey, conducted by the Opinion Research Corporation, nearly half (48%) of survey respondents came to that incorrect conclusion.

“The real estate value of a home, that is the price you can buy or sell it for, has absolutely nothing to with the amount of insurance needed to financially protect the home owner in the event of a fire or other disaster,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “Reducing insurance coverage because the market value of a home has decreased can result in being dangerously underinsured.”

One out of three respondents to the Pulse Survey reported that they purchased less home owners or auto insurance as a way to save money. A better strategy would be to take a higher deductible, which can substantially reduce insurance costs. Home and car owners can then put the savings into a purchasing the right amount and type of insurance for their specific needs, pointed out Salvatore.

Another way to save money is to comparison shop, something that seven out of 10 Pulse Survey respondents said they did to save on both their home and auto insurance needs.

I.I. I. says three biggest insurance mistakes home owners can make are:

1. Insuring a home for its real estate value rather than for the cost of rebuilding. When real estate prices go down, some home owners may think they can reduce the amount of insurance on their home. But insurance is designed to cover the cost of rebuilding, not the sales price of the home. You should make sure that you have enough coverage to completely rebuild your home and replace your belongings.

• A better way to save: Raise your deductible. An increase from $500 to $1,000 could save up to 25% on your premium payments.

2. Selecting an insurance company by price alone. It is important to choose a company with competitive prices, but also one that is financially sound and provides good customer service.

• A better way to save: Check the financial health of a company with independent rating agencies and ask friends and family for recommendations. You should select an insurance company that will respond to your needs and handle claims fairly and efficiently.

3. Dropping flood insurance. Damage from flooding is not covered under standard home owners and renters insurance policies. Coverage is available from the National Flood Insurance Program (NFIP), as well as from some private insurance companies. Many home owners are unaware they are at risk for flooding, but in fact 25% of all flood losses occur in low risk areas. Furthermore, with the significant snow fall this winter, spring related flooding may be particularly severe, thus increasing the importance of purchasing flood insurance.

• A better way to save: Before purchasing a home, check with the NFIP to determine whether the property is situated in a flood zone; if so, consider a less risky area. If you are already living in a designated flood zone, look at mitigation efforts that can reduce your risk of flood damage and consider purchasing flood insurance. Additional information on flood insurance can be found at www.FloodSmart.gov.

Source: Insurance Information Institute - 17 March 2011

Owning your own home opens the door to many tax opportunities.

CCH, a Wolters Kluwer tax information company, suggests these 12 ways to save on your tax return:

• If you bought a home last year, you may benefit from a refundable first-time home buyers’ credit of 10% of the purchase price of a new home—up to $8,000. The credit is available for homes purchased before October 1, 2010 and you must have entered into a binding agreement to buy the home before May 1, 2010. You can’t have had an ownership interest in a principal residence during the three years before the purchase.

• A refundable repeat home buyers’ credit is available is you entered a contract to buy a home by April 30, 2010 and closed on the sale of the home before October 1, 2010. The credit is 10% of the purchase price with a limit of $6,500. To claim the credit, you have to have owned and used the same home as a principal residence for five straight years within a time period that may go back a maximum of eight years. You also must be at least 18 years old and your home purchase price must be under $800,000.

• You can exclude up to $250,000 of gain on the sale of your home (up to $500,000 for joint filers) if you have owned and lived in the home as your principal residence for two out of the five years prior to the sale, although a partial exclusion may be available for sales due to a change of employment, health, or unforeseen circumstances. The periods of ownership and occupancy do not have to be identical.

• You can take the interest on your mortgage indebtedness of up to $1 million as an itemized deduction. The interest can be on your principal residence and one additional residence.

• For ordinary income purposes, up to $100,000 in home-equity loan interest can also be deducted. In regards to the alternative minimum tax, interest on home-equity loans is deductible only if the loan is used to acquire, build, or substantially improve a home.

• The points you paid on a mortgage loan you used to buy or improve your principal residence are deductible in the year you paid them, as long as the points represent a customary practice in your area. Points paid on a refinancing loan must be deducted over the term of the loan.

• Through 2010, you can deduct mortgage insurance premiums as mortgage interest. However, the mortgage insurance had to be originally acquired on or after January 1, 2007.

• You can take the state and local property taxes you pay as an itemized deduction. An option to take up to $500 ($1,000 for joint filers) as an additional standard deduction for real estate taxes expired at the end of 2009 and is not available for 2010.

• If you rented your home for fewer than 15 days during the year, you don’t have to include that rental income in your gross income, but you can’t deduct any expenses related to the rental either.

• If your lender forgave your mortgage debt of up to $2 million on your principal residence, as in a write-down or foreclosure, the transaction won’t be treated as “cancellation of debt income.” This special relief is temporary and is available for six years, retroactively for taxpayers filing amended returns, from January 1, 2007 through the end of 2011.

• If you own a home and installed qualifying energy-efficient fixtures or systems by December 31, 2010, you may claim a 30% tax credit—up to a maximum of $1,500 for both the 2009 and 2010 tax years. The American Recovery and Reinvestment Act of 2009 created energy tax credits for installing insulation, energy-efficient exterior windows or doors, heat pumps, furnaces, central air conditioners, or water pumps.

• A separate 30% credit is available to home owners who installed alternative energy equipment such as fuel cells, solar water heaters, solar electric equipment, small wind energy projects, or geothermal heat pumps. Although the tax credit is more likely to apply for businesses, it’s also available for home owners.

Read more at: www.houselogic.com

Source: CCH, a Wolters Kluwer business - 12 March 2011

Albuquerque / Rio Rancho Monthly Highlights

• Closed sales for detached single-family homes in February are up 7.89 percent from the previous year and up 12.95 percent from previous month.
• The median sale price for detached homes in February increased 1.06 percent from the previous year. Condo/townhome sales saw the median sale price increase 8.65 percent from the same period.
• Dollar volume for single-family homes sales was at $90.3 million for February 2011, up 6.60 percent from the previous year.

To View the Complete February Albuquerque Metro Market Report!

Source: Greater Albuquerque Board of Realtors – 7 March 2011

U.S. and state officials are still debating possible settlements in the national foreclosure scandal, a spokesman for Iowa’s attorney general said.

“We’ve finalized nothing, and we’re still working on some very complicated issues,” said Geoff Greenwood, a spokesman for state Attorney General Tom Miller, who is leading a challenge by all 50 states that alleges banks used fraudulent processing to foreclose on homes, the Los Angeles Times reported Saturday.

Among the accusations, banks are accused of short-changing the system by having documents signed without a thorough review—a system called “robo-signing.”

Several major banks were forced to suspend pursing foreclosures last year to review their processes. The reviews further stalled an already slow housing market.

Federal and state authorities are now looking at a settlement of between $5 billion and $20 billion to make amends. But authorities disagree on how to use whatever settlement they win on behalf of home owners.

One proposal would have banks reduce principal payments on troubled home loans by $20 billion, but some fear that would cause more home owners to stop making payments to qualify for a payment from the settlement. Other options include a cash payment to those who have lost their homes.

In either case, many feel $20 billion is not enough to cover the damage from the foreclosure crisis.

“This settlement is too small and will likely have one of two results: Either borrowers will receive insignificant principal reductions or reductions will only be available to a small subset of troubled borrowers,” said U.S. Rep. Maxine Waters, D-Calif.

Read more at: www.houselogic.com

Source: Homelogic.com  28 February 2011