Existing home sales at highest level since 2007

Existing home sales rose 10.1% last month. Good overview of the market and statistics below.

Have a Great Holiday!

Nancy Harville

Qualifying Broker

Existing home sales at highest level since 2007
Sales activity rises more than expected in October, by 10.1%, to 6.1 million annual units.

NEW YORK (CNNMoney.com) -- Existing home sales surged in October to the highest level in more than 2-1/2 years, according to a real estate industry report issued Monday.

The National Association of Realtors reported that existing home sales rose 10.1% last month to a seasonally adjusted annual rate of 6.1 million units, up from the downwardly revised rate of 5.54 million in September.

The sales beat forecasts of 5.7 million annual units, according to a consensus estimate of analysts compiled by Briefing.com, and were 23.5% above the 4.94 million-unit pace of 12 months ago.

Sales activity is the highest since February 2007, when the annual rate was 6.55 million.

The gain was likely due to an influx of buyers looking to take advantage of an $8,000 tax credit that the Obama administration made available for qualified first-time home buyers, the report said.

The tax credit was scheduled to expire at the end of November, but it has been extended to April 30 and expanded to include more home buyers.

"Many buyers have been rushing to beat the deadline ... and similarly robust sales may be occurring in November," NAR chief economist Lawrence Yun said in a statement.

Click Here to Read the Full Article at CNNMoney.com

Homebuyer Tax Credit Would Expand to Owners Under Senate Plan

Senators Agreed to extend tax credit through April 2010. The Credit was due to expire at the end of November. This agreement will let homeowners who buy a new home and have lived in their residence for five years qualify for a $6500 Tax Credit. Read the article below for all of the details. Great news for the Real Estate industry as well as the overall economy in my opinion.

Nancy

Homebuyer Tax Credit Would Expand to Owners Under Senate Plan

Oct. 29 (Bloomberg) -- The $8,000 tax credit for first-time homebuyers would be extended and some people who already own residences could claim a benefit under a proposal by Senate Democrats.

An agreement reached yesterday by the Democrats would let homeowners who buy a new home qualify for a $6,500 credit if they have lived in their prior residence for five years, according to Regan Lachapelle, an aide to Senate Majority Leader Harry Reid.

“The compromise we have now would expand the credit beyond first-time homebuyers,” Lachapelle said. Lawmakers expect to consider the measure as part of a bill to extend unemployment benefits, she said. That measure has been held up by a disagreement with Republicans over other proposed amendments.

Click Here to Read the Rest of the Article

Attention Investors/ First time home Buyers

Good afternoon to all. I wanted to share the news if you have not heard.
The Federal Reserve announced late yesterday that they are keeping the interest rates low, these are among the lowest levels we have seen in years.
This is great news for first time home buyers who can still take advantage of the $8000.00 Tax Credit and the low interst rates. This is also a great time if you are an Investor and do not want to use all of your cash flow and would like to finance properties. I work with a couple of great lenders and would be happy to refer any Investor or First time home Buyer to them. The article below details the Feds decision and why. Very interesting Read in Today's Wall Street Journal.
Best Regards,
Nancy

Home Buyers Get a Reprieve
The Wall Street Journal - September 24, 2009

By Sudeep Reddy and James R. Haggerty

The Federal Reserve, in a move aimed at keeping interest rates low for home buyers through early next year, decided to extend and gradually phase out its purchase of mortgage-backed securities.

The Fed's action signals its belief that the economy, while in recovery, remains fragile and that housing, which has seen some improvement in recent months, has only started to pull out of its slump.

"We definitely need help from the government," says Lee Barrett, president of Century 21 Barrett, a real-estate brokerage firm in Las Vegas. "I don't think the market can make it on its own." He also ... Click Here to Read the Rest of this Article at Wall Street Journal.com

More than $150 Billion in Commercial Loans to Come Due

Good Morning,
This article appeared in Today's Wall Street Journal, thought it important enough to share.
The Treasury has relaxed the restrictions on refinancing in response to the growing pain occurring in the Commercial Real Estate Industry. The restructuring of these loans has a big impact on our economy and the Real Estate industry.

New Rules Ease the Restructuring of CMBS Loans
Treasury Relaxes Restrictions on Refinancing in an Effort to Stave Off Commercial Mortgage Defaults

Wall Street Journal - September 16, 2009
BY LINGLING WEI

The Treasury, responding to the growing pain in the commercial real-estate industry, released new tax rules that make it easier for distressed property owners to restructure loans that were packaged by Wall Street firms and sold as securities.

Most in the real-estate industry, which lobbied intensely for the move, applauded the action. But some warned it has opened a Pandora's box, especially for servicers of the securities who will likely come under new pressure from borrowers and competing classes of investors.

The move is the first round of "additional guidance" the Treasury is weighing to stave off what many fear ... Click her to continue article on WallStreetJournal.com

Forclosures Holding Steady

New Mexico reported 736 properties with some sort of Foreclosure related filing in August 09. This reported by RealtyTrac. This number is a jump of 50% over reported numbers in 2008. On a positive note, this is a 16% decrease from July 09.
This should give First Time Home Buyers incentive to get out there and buy, there are so many good deals out there right now. Short Sales included. The $8000.00 tax incentive expires December 1st 2009. So get out there and Buy!!!
Read the full article below, featured in Friday's Albuquerque Journal.
Have a great weekend.
Nancy

By Adrian Sainz /The Associated Press Thursday, 10 September 2009 18:02 MIAMI - The number of U.S. households threatened with losing their homes held steady last month, a sign that lenders' efforts to help distressed borrowers may be having a gradual impact.
More than 358,000 foreclosure-related filings were recorded in August, meaning one in 357 U.S. homes received a filing, RealtyTrac Inc. reported Thursday. That number, up 18 percent from a year ago, includes default notices, scheduled auctions and bank repossessions.
New Mexico, ranked 36th in the report, had 736 properties with some sort of foreclosure-related filing in August, a jump of nearly 50 percent from August 2008 but a 16 percent improvement over July. Only one household in every 1,171 statewide saw a foreclosure filing in August, dramatically less than the nationwide ratio.
Mortgage companies are ramping up efforts to help troubled borrowers modify their loan payments to make them more affordable, data showed. And RealtyTrac said bank repossessions dropped 13 percent from July.
The problem is the economy. The unemployment rate continues to rise, despite a new Federal Reserve survey that suggested the recession is over.
More than 138,000 households received a default notice in August. Another 144,113 received a notice scheduling the house for public auction.
"The August report demonstrates that there is still an ample supply of properties filling the foreclosure pipeline," said James Saccacio, CEO of Irvine, Calif.-based RealtyTrac.
Despite an 8 percent monthly decline in foreclosure activity in August, Nevada had the nation's highest foreclosure rate for the 32nd straight month. Florida, California, Arizona, Michigan, Idaho, Utah, Colorado, Georgia and Illinois completed the top 10 states for foreclosure filings.

NM Pending Sales Drop in July but increase across the US

I am expecting Home sales to rally in September and October with the deadline for the $8000.00 Tax incentive to end November 30Th. This is a great time to buy if you are a first time home buyer. Prices have not been this good in years and the incentive is the best I have ever seen offered. Below is the full article featured in the Albuquerque Journal today. If you know of a first time home buyer, please make them aware of the incentives offered. This is a one time deal and folks should really take advantage of it. Feel free to contact me, I will be happy to assist you in your new home purchase.
Best Regards,
Nancy
The article below appeared in the Albuquerque Journal and I wanted to share it with you.

Wednesday, September 02, 2009

N.M. Bucks U.S. Home Sales Rise

By Alan Zibel
The Associated Press
WASHINGTON — Pending home sales in most states — but not New Mexico — rose more than expected in July as first-time buyers rushed to take advantage of a tax credit that expires this fall.
The National Association of Realtors said on Tuesday that its seasonally adjusted index of sales contracts signed in July for previously occupied homes rose 3.2 percent to 97.6. It was the sixth straight increase and 12 percent above the same month last year.
Economists surveyed by Thomson Reuters expected the index would edge up to 96.5.
In the Albuquerque metro area, July produced the first recent decrease in pending sales, down to 875 from 933 in June. Local real estate officials had been hoping for another month of growth but since that did not happen, “that means that June was the peak,” said Don Padilla, chairman of the Greater Albuquerque Association of Realtors.
Pending sales could rebound, he said. “What we might see for August or maybe even September, we might see a spike (in sales) because of the deadline for the first-time homebuyer tax credit that expires Nov. 30.”
Typically there is a one- to two-month lag between a contract and a done deal, so the national index is a barometer of how sales completed this month and next will turn out. However, delays in getting mortgages approved and appraisals completed have lengthened the time it takes to close a deal.
In a separate report, the U.S. manufacturing sector grew in August for the first time in 19 months as new orders from customers jumped to the highest level since late 2004. The better-than-expected reading Tuesday by the Institute for Supply Management showed the highest number for its manufacturing index since June 2007.
The ISM, a trade group of purchasing executives, said its manufacturing index rose to 52.9 in August, from 48.9 in July. It's the first reading above 50 since January 2008.
Journal staff contributed to this report.

Are you Ready to Go Solar?

It's time to Go Green. Solar energy is the way to go and with over 300+ days of Sunshine here in the Land of Enchantment, it is time we all look at converting to Solar panels etc. This is a great article that appeared in the Albuquerque Journal on Sunday talking about how local builder, Artistic Homes have developed an energy series of homes. Let me know what you think. Are you ready to go Solar?
Nancy

Artistic Homes' Zero Energy series designed to dramatically reduce electricity consumption
By Jane Mahoney
For the Albuquerque Journal

Every month, Miguel and Miriam Reyna write an extra check for about $120 toward the principal on their home mortgage. The payment reflects the amount they receive each month from PNM for producing more electricity than they use in their solar home in Rio Rancho.
"We've never gotten a regular electrical bill," said Miguel Reyna, who, with his wife and young child, moved into an all-electric home in March. "So far, we've gotten back between $110 and $130 every month."
Participation in PNM's net metering program is just one of the perks that Reyna likes about the family's new Zero Energy home by Artistic Homes, a production builder with a goal of bringing affordable solar homes to buyers.
Artistic's Zero Energy series opened its first model home about a year ago, and now offers buyers several options. Top of the line in efficiency is a true Net Zero Energy all-electric home with rooftop-mounted photovoltaic (PV) solar panels to generate electricity and a solar thermal system to heat water. Other home packages include a smaller, introductory solar option in which about a third of a home's electricity is generated by the PV system.
The base price of Artistic homes (without solar panels) ranges from about $149,000 to more than $260,000 depending on size and location. A photovoltaic system to produce electricity and a solar thermal system to heat water can add upwards of $60,000 to a home, although federal and state tax incentives and rebates have softened the blow. Artistic Homes builder/co-owner Tom Wade said that any floor plan offered by the company can support a solar option installed as the home is being built.
Click Here to View Full Article at AlbuquerqueJournal.com

Home Prices Rise Across U.S.

Good Friday to my Real Estate followers. Looks like home prices are stabilizing across the country. This is a good sign for the housing industry. Hope you enjoy the read.

Nancy

Home Prices Rise Across U.S.

Bargain Hunting, Low Rates Drive First Gain in 3 Years; Double Dip Still Possible

WallStreet Journal, July 29, 2009

By: Nick Timiraos and Kelly Evans

Home prices in major U.S. cities registered the first monthly gain in nearly three years, according to a new report that provided fresh evidence that the severe U.S. housing downturn could be easing.

Standard & Poor's Case-Shiller index, which tracks home prices in 20 metropolitan areas, rose 0.5% for the three-month period ending in May, compared with the three months ending in April. It marked the index's first increase after 34 straight months of decline, and came after a variety of housing indicators has shown glimmers of hope for the past several months.

Click Here for the Full Article at WallStreetJournal.com

Historic North Valley Adobe Homes For Sale

If you did not catch the Sunday Real Estate section, there is a great article about 9 Old Adobe Homes for sale in the North Valley. One of the most unique for sale is the Historic Los Candelarias chapel. This is a must read article if you are into the old adobe style architecture. Call me if you have an interest in a complete list of all the Old Adobes Homes for sale.

Sunday, July 05, 2009

Pieces of the past

By Story By Jane Mahoney
For the Journal
If you've ever dreamed of owning an old adobe home in Albuquerque's scenic North Valley, the time might be right.
Nine historic residential properties, each home to an adobe house, are now on the market after the death last fall of Jane Batten, one of Albuquerque's most unique preservationists. After her move to Albuquerque in 1959, Batten spent decades buying and fixing up old adobes as rental properties. Shoring up sagging timbers and replacing rotting century-old wood floors, Batten managed to keep these vestiges of Albuquerque history from the wrecking ball long before such rehabilitations were in vogue.... Click Here to View Full Article from the ABQ Journal

Housing Market Stabilizing

I read this on MSNBC.com this morning and wanted to share it with you. Looks likes stabilizing home prices will stem from the foreclosure crisis, this according to data released Tuesday.
Read the article below...

Home Sales Climb, but at a Sluggish Pace
Median Price for existing homes off almost 17 percent from a year ago.

updated 6:27 p.m. CT, Tues., June 23, 2009

Nationwide home sales may have finally hit bottom, new data show, but a host of thorny problems are hindering any recovery.

Sales of previously occupied homes rose by 2.4 percent from April to May — the third monthly increase this year — but the results missed analysts' expectations.

Home sellers are still competing against a growing number of bargain-priced foreclosures, buyers are paying higher mortgage rates and new rules for property appraisers are delaying or scuttling many deals...

Click Here to Read Full Article on MSNBC.com

Builders Returning to the Lot Market

This article in the Big Builder News says that Home Builders are back in the game but at a lower price point. They need land that's less expensive than the stock of lots they have so that they can bring more affordable home communities to market during the earlier stages of housing recovery.

Builders Returning to the Lot Market

Source: BIG BUILDER News
Publication date: June 11, 2009
By John McManus

Even before the jury's fully in on whether the nascent uptick in new-home sales is sustainable, reports from high-level home building company executives in a number of markets indicate that home builders are back in the land game with a vengeance.
"In the past four to six weeks, we've seen a sea change," said the CEO of a leading publicly traded home building company. "Until then, most of the interest in lots was coming from financial investor players. Now it's home builders. There's eight or 10 home builders aggressively in the lot market right now."
Investment "land opportunity funds" have been trolling the residential landscape all along, trying to snap up prized lots for a song. But as the global credit crisis unfolded, many of these vulture funds either went dark or remained on the sidelines, not knowing when to pounce.
Meanwhile, home builders were scarcely able to underwrite new land acquisition, given that their balance sheets needed every bit of cash in the event of another year of sales paralysis. What's occurred in the past few months is that everybody's witnessed that if prospective buyers are given enough incentives, a healthy complement of them will show up looking to buy.
Home builders who've pursued an asset-light land strategy have actually done well enough at working through their dirt inventory since the turn of the new year to reach a point where they need to replenish.
Other builders may not be so fortunate, but they still need land. They need land that's less expensive than the stock of lots they've got so that they can bring more affordable home communities to market during the earlier stages of a housing recovery. So these companies represent as urgent a demand for cheaper lots as those who are running low on lots.
All told, the strategic demand for lots from builders is putting pressure on land prices, even before they settle at the low cents-on-a-dollar level that many expected they would. Experts who are involved in land deals nationally estimate that prices for lots have reverted to about 2002 prices, which is a higher number than many would have guessed a few months ago.
"Where we thought we'd be paying $35,000 a lot, we're paying more like $45,000," the head of one large national home builder said. "Prices didn't come down as far as we thought because there are more builder buyers for these lots than we thought there'd be."
Two of real estate's most vaunted new-home residential development entities--LandSource/Newhall Ranch &Farm and what is known as the Lehman Brothers' SunCal--are still considered bellwethers for resetting land prices. But they're currently slogging through complex and drawn out bankruptcy proceedings.
Word from the field is that the most exuberant land acquisition market right now is Phoenix, but that California (excluding Southern California) and Texas have also seen the reemergence of home builder buyers for residential lots.

This Article is located at: http://www.bigbuilderonline.com/industry-news.asp?sectionID=363&articleID=991450

160 Homes valued at $1 Million or more on the Market in ABQ - One Sells

This is a really good article about the housing market. Folks have really shifted their views of what is really important in a home and it may not be keeping up with the Jone's anymore...........

Also, note * $8,000.00 tax credit for first time buyers expires Dec. 1,2009.

View this Article Below from: The Albuquerque Journal July 14, 2009
http://www.abqjournal.com/homes/14214819homes06-14-09.htm

Looking for value

By Michael Hartranft
Journal Staff Writer
Still thinking about that dream home?
To be sure, there are plenty on the market to dream about, especially if your ideal domicile is of the upper-end, luxury variety.
"When people hear dream home, they think luxury houses which tend to have higher prices," said David Murphy, who analyzes home trends for SalesTraq of New Mexico, a database of new housing. "And right now, the market is very much overloaded with dream homes."
Murphy said glancing at recent resale data for the Albuquerque area, there were 160 homes valued at $1 million or more.
"But in the first quarter of 2009, there was one sale in that price range," he said.
One reason for that, of course, is that buyers don't have the access to credit they once had, he said. But Murphy also is among those who thinks the concept of a dream home is changing, becoming perhaps "more or less a home you can be happy with and live within the means you have."
"People are just looking to basic housing anymore," said Jim Folkman of the Home Builders Association of Central New Mexico, noting that he has seen more demand at the lower end of the market. Whereas the median price for a home was $212,000 three years ago, it has slipped to about $175,000 "and will probably inch down in a year or two," he said.
"High-volume production builders are offering homes under $150,000 and I think that trend will continue," Folkman said. "In the case of more expensive homes — in terms of over 3,000, 2,500 square feet, semi-custom, I think you're going to see fewer features, (like) granite countertops, few extras and less total cost. That trend will continue some time into the future."
Folkman said carpet is being used more often now for flooring instead of tile and wood, and appliances are "pretty basic." Folks are apt to be more interested these days in what's "behind the walls," he said.
"There is a very strong focus on green features and energy conservation," he said. "And there is an increasing amount of code and legislation that is driving the industry in that direction."
Over the past seven or eight years, he said, there has been a trend in the industry to accommodate a still-emerging market: aging baby boomers with lots of equity looking to move into smaller homes with nice features and less maintenance, and somewhat insulated from the downturn in the economy.
"It will continue after the economy starts ratcheting back and continue into the future," Folkman said.
To be sure, Albuquerque builder Scott Bealhen, owner of Bealhen Construction Inc., began building subdivisions targeting buyers fitting that description eight years ago, building four in the Northeast Heights and the 37-lot Candelaria Village being developed near 12th and Candelaria NW.
The market at the time, he said, didn't offer much by way of a move-down product for people with two-story homes and children who had moved out of the nest.
"They want to a place to go outside and read the paper, but don't really want to maintain a large yard, a large house with utility bills and taxes that are going to eat not only into their retirement funds, but their time because of the maintenance necessary on a traditional home," he said.
Bealhen builds what are called courtyard homes, featuring side entries that allow better use of space in the home and patios with privacy, he said. Homes in Candelaria Village are three-bedroom, single-story and range in size from 1,600 square feet to 2,000 square feet and in price from $380,000 to $417,000. So far, it has 17 residents, he said.
"Our sales did slow down, but they did not stop. Typically the buyers we have pay cash for their home or take a very small mortgage," Bealhen said.
Nowadays, he avoids labeling his potential buyers as boomers, or anything else, for that matter. In fact, another group of folks buying homes in the subdivision are single professionals, he said.
"People don't like (labels), " he said. "They don't want to be baby boomers, they just a want to be normal, like you and me."
And it is normal to desire that dream house.
For now, though, "The best dream house for many is the one that is paid for," Murphy said.
This is part of a series the Journal is producing in partnership with the N.M. Mortgage Finance Authority, Home Builders Association of New Mexico and the Realtors Association of New Mexico.
Tax credit deadline looms
The deadline to take advantage of the $8,000 tax credit for first-time homebuyers expires Dec. 1. For buyers building a new home and planning to use the tax credit, that deadline is now.
"It generally takes 120 days to break ground and complete a house. If you add on an extra 30 days to get the plans approved by the city ... June is your deadline," said Don Padilla, chairman of the Board of Greater Albuquerque Association of Realtors. "If you're considering a new home but plan to hold out until August or September, you'll miss out on the tax credit."
New-home builders are well aware of the impending deadline.
"New-home construction continues to expand, especially eco-friendly construction, and now would be the time to consider the incentives being offered by new-home construction companies," Padilla said.

May 2009 Home Sales Report

It's a busy Monday, business is starting to pick up as Summer draws closer, now it's not a huge increase, but more activity that we have seen in awhile.
Thought you might be interested in the Sales for May 2009, click on the link below for a full Report :
http://www.gaar.com/
Talk to you soon!
Nancy

Custom Home Tour / June 6 & 7 and 13 & 14, 2009

There is a Custom Builders Home tour this weekend and next. June 6 & 7 and 13 & 14.
The Houses are spread out throughout the City, NE Heights, North Valley, Corrales, and the West side of town. They are always great fun to see and you may end up buying one. You never know. (call me before you do). I like to look at the new architecture and decorating ideas, new appliances, gadgets etc........The hours are 12-5. And if you get the ABQ Journal the Supplement with Builders, elevations and map is in there. If you go, let me know what you think of the homes, I am always interested in your feedback.
Here is the link to their website. NMCustomBuilders.com
Have a great weekend!
Nancy

Builders See Signs of Stabilization

Good Afternoon,

In Today's Wall Street Journal, homebuilders Toll Brothers and Hovnanian posted smaller losses amid signs of stabilization in the housing market. Looks like the market is starting to loosen up a bit. Worth the read.
Nancy


Click here to read:
Builders See Signs of Stabilization - Wall Street Journal June 4, 2009

New Website - Harville Estates.com

Dear Friends & Clients,

We just launched our new website!
Our first website, www.newhomesabq.com was created in 1996. We have come along way since that time and decided to update. This new Site was created for you the Consumer, to be more innovative and user friendly. The goal is to make searching for properties and viewing our current Real Estate Listings, easy and informative.

Whether you are searching for a new home, vacant land, a Ranch or a commercial piece of property we are able to accommodate your Real Estate Investment needs in New Mexico.
Links to current Real Estate statistics well be at your finger tips.

I would like to commend my daughter Crystal Pierre for working so hard with me to develop and create this new Real Estate Website for The Harville Estates. Thank you Crystal!!!! Great Job.

I will be blogging weekly about the the local and National Real Estate markets, providing you, the consumer with information of what is really happening here in the Land of Enchantment and abroad.

I am here to answer all of your Real Estate questions, so feel free to write to me often.
I look forward to working with you and as always, Thank You for your Business.

Nancy Harville