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