Monday, February 11, 2013
Albuquerque's Housing Market Turns a Corner
Yes, that's the title of the front page of the Albuquerque Business Outlook for February 11, 2013!
Could it truly be? Have we turned a corner? Let's take a look at some statistics:
1. Albuquerque home sales have posted a modest increase of 1.7% in sales price moving from $201,513 in 2011 to $204,513 in 2012. This is the first "real" improvement since the housing bubble burst.
2. This price increase was in-spite of the fact that 1 in 10 homes closed in 2012 were short sale transactions. These short sales will soon go way of the dinosaur as this inventory slowly drys up.
3. Albuquerque home investors have entered the market once again as they sense the market is moving upward as well.
4. The Albuquerque Board of Realtors has stated the inventory is going down. There are less homes to buy than there was a year ago by about 33%.
5. The Albuquerque Board of Realtors spokesperson has stated the market is beginning to norm
This all points to positive conclusions. But a threat remains. If the government eliminates the mortgage interest rate reduction, a valuable tax break that encourages home ownership in America, real estate prices will plummet, home sales will plummet, and investors will leave the housing market for more lucrative sources for their money.
All this will be decided by our lawmakers soon. Encourage your lawmakers to vote against the reduction or elimination of the Mortgage interest deduction. Do that today!
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