Current real estate market in Albuquerque (best city, for sale, foreclosure)

[raysgal]

My family will happily be moving to Albuquerque from College Station, TX as soon as school is out for the summer. We are currently trying to decide whether to buy or rent for a while first. With the price of gas what it now is, we know we want to live in the NE area to keep our daily commute to a minimum. Coming from TX we know that we're going to pay significantly more for a house in Albuquerque than we did here, so we want to try to time it right to get the best deal we can.

My main question: Is the market in Albuquerque currently a buyers market or a sellers market? Of course, if someone has a crystal ball and wants to tell me what the local market is going to do over the next year, I'd be happy to listen to that too

[abqsunport]

First off, I want to welcome you to Albuquerque and New Mexico, the Land of Enchantment!!!!

The current market is definitely a buyers market. The housing market was flooded with homes, and even more homes are being built, which means it the forecast looks good for you!!!

Right now, I am thinking about buying a few houses and renting them because the market is so strongly favored toward buyers now.

Anyway, best of luck with your move. Keep in mind that the North East refers to pretty much 40% of the city. The further north and east you go, the nicer the neighborhoods are (price wise). 87122, in the far northeast heights, is the most affluent zip code in Albuquerque, and 3rd in the state. This is something else to keep in mind.

[mortimer]

raysgal is looking for a place to live:

> We are currently trying to decide whether to buy or rent for a while first.

Rent and store some of your stuff if you need to.

Buying without good specific knowledge of an area is a good recipe for heartaches later.

What people end up liking is very personal, so suggestions from people about what's good for them might not be good for you.

> ... want to live in the NE area to keep our daily commute to a minimum.

That's very smart. If you already know where you will be working, you can really minimize it. You can further minimize it by locating close to places that you know you will want to shop.

> ... we want to try to time it right to get the best deal we can.

It is likely that your timing window will be years long.

If you miss out on one specific deal, another equally good one will come along later to one with patience.

The people getting their homes foreclosed on today nationwide had one thing in common; they all needed to move on a piece of real estate before it was too late (before the market got away from them).

[GregW]

Speculators rush to buy when the prices are rising and rush to sell when they are dropping. Housing prices have been inflated by speculation in many places and are now dropping like a safe off a parking garage roof with the speculator attached. Rentals are available. Rent for a while and buy the right house when you can. BTW - good luck selling your present house if you have one.

[trappedinNM]

Originally Posted by GregW

Speculators rush to buy when the prices are rising and rush to sell when they are dropping. Housing prices have been inflated by speculation in many places and are now dropping like a safe off a parking garage roof with the speculator attached. Rentals are available. Rent for a while and buy the right house when you can. BTW - good luck selling your present house if you have one.

The irony is that rental prices are actually going up as people bail out of homes they could not afford to buy. Combine that with the tightented credit market, and its a real nightmare. The rental market in Abq is getting tighter, even though the supply of homes for sale has increased.

[ChasP505]

Originally Posted by mortimer

The people getting their homes foreclosed on today nationwide had one thing in common; they all needed to move on a piece of real estate before it was too late (before the market got away from them).

No, sir... The people getting their homes foreclosed on financed more than they could afford, more than they technically qualified for. The operative words are GREED and STUPIDITY. Greed on the part of mortgage underwriters who approved all the adjustable rate mortgage loans (ARMs) for marginally qualified buyers and stupidity on the part of the buyers who accepted the loans beyond their ability to pay. These buyers knew that their payments could/would increase, but they were ALREADY maxed out, just to initially get into the home. It has NOTHING to do with "having to move on a piece of real estate". It's ALL about personal financial responsibility!

Now there is talk about "bailing out" these stupid people. No matter who is elected President, if that person uses MY tax money to bail out these stupid irresponsible homeowners facing foreclosure, my head is gonna explode!

[ChasP505]

Originally Posted by GregW

Speculators rush to buy when the prices are rising and rush to sell when they are dropping.

And intelligent, experienced INVESTORS do just the opposite... except, they never "rush".

[mortimer]

ChasP505 proposed:

> The people getting their homes foreclosed on financed
> -- more than they could afford,
> -- more than they technically qualified for.
> -- accepted the loans beyond their ability to pay.

> It has NOTHING to do with "having to move on a piece of real estate".

It [had] EVERYTHING to do with "having to move ..."
I guarantee this was something in common with all those South-moving purchases.

That is why they rationalized financing

-- more than they could afford,
-- more than they technically qualified for.
-- accepted the loans beyond their ability to pay.
------------------------
Main Entry: ra·tio·nal·ize
... to create an excuse or more attractive explanation ...
-------------------------------------------------------

I was paying attention back then and this was the mantra.

Ooooommmmmm: Buy NOW! The price is getting away from you.
If you don't do it NOW, it will be to late. You need to move NOW!

Listen carefully. Even now, this is being said:
"Buy NOW!" "If you don't do it quickly, interest rates will rise and [it] will get away from you.

Sometimes, you have to step back and listen.

[mortimer]

There is an article from USA Today on the Albuquerque real estate situation:

Close to Home: Opportunities in Albuquerque - USATODAY.com

The house featured as the "highest-altitude house in Albuquerque" is on Paseo del Puma, NE which is off the Sunset Canyon Dr, NE and Cedarbrook Ave, NE area at the terminus of Montgomery. It's a trophy house, but nothing like the monstrosity just under it. It's a realy eyesore from the Embudito trailhead.

Some of the things said in the article:

... Albuquerque ... sixth-best city in the country in which to buy foreclosed homes, ... foreclosure rate is enough to offer deals without presenting too many risks," ...

... when people have moved to Albuquerque, they've sometimes been unable to sell their homes elsewhere ...

[raysgal]

Thanks for the info--I'm glad to hear that the concensus is that it is a buyers market. Of course all our plans for buying vs renting depend on being able to sell our house in TX. If we can't sell what we already have we might end up renting for a long time!

At this point all we really want is a decent home in a safe neighborhood. Housing prices in Albuquerque are reasonable by nationwide standards, but we're coming from one of the least expensive markets in the country so to us they seem a bit scary. Everything I have read seems to say that as long as we stick to the NE we can't go too far wrong, especially considering that I already know that is where I will be working. Would y'all agree with that or am I way off target?

When I look at the map, I have sort of been using Albuquerque Academy as a reference point--perhaps areas east and north of there?