Forecast for 2014

I know everyone is wondering about how the real estate market is going to perform in 2014. Can you give us your predicted forecast?

My real estate crystal ball remains cautiously optimistic for 2014! I predict that we will see the Greater Albuquerque areas continue to slowly stabilize. We will continue to be in a price war and a beauty contest with realistically priced homes selling well. I expect inventory will increase dramatically in the first and second quarters, which may create downward pressure on pricing as supply and demand drives home values either up or down. Overall, 2014 should see a higher number of sales than the previous year. I predicted 2013 to increase over 2012, and the final yearend figures should show an increase of over 1,000 sales. I’m optimistic that we may even experience home value appreciation.

Stabilizing sounds good. What about all of these foreclosures we’re hearing about?

As part of the market stabilization, we expect to see a continued decrease in bank controlled sales in 2014. A bank controlled sale is a home that either is bank owned through a foreclosure action or bank controlled through their willingness to accept a short sale whereby they’re accepting less than the homeowner owes on the property. In 2012, 30-35% of sales were bank controlled. As I predicted last January, the 2013 bank controlled sales dropped to approximately 25% of all sales.

Your crystal ball tends to be really clear! Cheryl, tell us a bit about mortgages and interest rates in 2014.

When historically low interest rates are enjoyed for an extended period of time, the only way to go is up. Interest rates will continue to slowly increase. This is a great motivator to buy now, instead of paying more later! Momentum continues to build in the housing market and there are still many opportunities to take advantage of the past few years of lower home prices and unbelievably affordable interest rates. These favourable conditions will not last.

Overall, you’re prediction is positive?    

                     

Again, I’m cautiously optimistic about the Albuquerque real estate market for 2014. For many reasons, New Mexico is a great place to live and own real estate. Whether you are a seller, a first-time buyer, or a move-up buyer, there are great opportunities in this market to take advantage of. Call me today and let’s get started. 

Short Sale vs. Foreclosure

We get a lot of questions about short sales, so I thought I would share some information this morning. A short sale is when the bank allows a payoff "short" of their lien amount in order to get the home sold. I appreciate the allure of the short sale from a buyer's perspective, in that you can often get a great deal on a home. However, we also have to remember that a short sale can be a very long, drawn-out process. We jokingly refer to them as "long sales" because bank approval on offers sometimes takes weeks, and usually months, of waiting. It's even possible you may not receive any response from the banks, especially if you really low-balled your offer. So you have to be patient,a and wait it out, and not be in a hurry to move.

What if a seller is in financial trouble? Why should they go through a short sale, and endure a foreclosure?

The primary benefit of going the short sale route is that typically with a foreclosure, the bank will pursue a deficiency judgment against you for the unpaid balance of the mortgage. With a short sale, your debt is often forgiven, and the seller will also avoid the devastating effects on their credit that comes from a foreclosure. A short sale damages your credit, a foreclosure destroys it.

So what all goes into buying or selling a short sale?

Most importantly, you need agents on both sides of the deal that are knowledgeable in the short sale process. If they don't have experience, the sale will be compromised and could end up falling through. As an agent with a lot of experience in working with short sales, I can tell you that it is imperative to have someone representing you that knows how to do the job. In all reality, your success in a shorts ale deal is almost 100% dependent upon the ability of your agent. They should know how to deal professionally with the banks, as well as the other agents. But remember, even experienced agents like myself are, unfortunately, still at the mercy of bank employees. As a short sale expert, please call me today so we can help you get your home sold quickly or find you the right home!