Real Estate Information Archive

Whether you’re looking to buy or sell a home in Albuquerque it’s good to know what to expect in real estate trends. The spring months are always exciting and interesting in the real estate industry, so what are analysts expecting us to see in the near future?

Increasing Mortgage Rates

It appears that mortgage rates could continue to rise, depending on how well the economy recovers. Rates have been rising for weeks, whereas earlier in the year, they were holding under 3%. With the expectation that rates will continue to tick upward throughout the year, borrowers are advised to lock in low rates now. 

According to Fannie Mae, 30-year fixed-rate mortgages are expected to average 3.1% through the spring months, while they were averaging 2.9% in the first quarter of the year.

Many economists agree that as more Americans are immunized, there will be a larger economic recovery, thus a rise in mortgage rates.

Even with the slowdown compared to the hot market that has combusted the past year, there’s no major crash forecast. Prices could slow down a bit, and new homes might get built a bit more.

So that means if you plan to buy a home in Albuquerque, now is the time to act, despite stiff buyer competition.

Inventories Could Increase

The past year has been frustrating for home buyers and would-be homebuyers. It has been near impossible to find homes available, and when something comes on the market, it will often sell within just a few days or just an hour.

Today, however, more people have been vaccinated, so there will be less fear of catching COVID-19 from people coming into their home.

Although inventory levels are expected to rise, there could remain a shortage of options, particularly in some markets.

Millennial Movement

More than five million millennials will turn 30 on this year, and they are now the biggest segment of buyers in the real estate market. In 2018, millennial homeownership was at record lows, but that looks like it may be changing.

Around 86% of younger millennials and 52% of older ones are buying first homes, and some are buying luxury properties that are well beyond what you think of as a starter home.

Millennials will likely continue to dominate the market in 2021. According to a survey from the National Association of Homebuilders in the fourth quarter of 2020, 27% of millennial respondents intend to buy a home in the next 12 months, a significant jump from only 19% previously.

The Online Trends Are Growing

The popularity of real estate services online continues to grow, and that will probably not change regardless of the pandemic's state.

It has become increasingly possible to buy or sell a home without leaving the comfort of your current location. Virtual showings, the use of fully virtual agents, or mobile or online closings are just a few ways technology made real estate easier this past year.

What does all this mean for home buyers and sellers in Albuquerque? Whether you plan to buy or sell your home, now is the time to act. For home buyers, you’ll want to get your mortgage rates locked in before they rise any further. For home sellers, there’s never been a better time to sell your home, with stiff buyer demand raising prices and making homes sell fast. Talk to Sandi Pressley and her team soon to buy or sell a home in Albuquerque today!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

HOT HOME LISTING OF THE WEEK!

1004 NOVAK Lane NW, Albuquerque, NM 87114  $898,000

4 Bedrooms / 4 Bathrooms (3 full, 1 half) / 4235 Square Feet

North Valley Renaissance Custom Masterpiece! Situated in a gated community close to Rio Grande/Alameda. Highlights include a well thought out floorplan with both formal & casual living spaces. Exceptional features include wood beam raised ceilings; travertine floors; quality wood doors; wood trimmed windows; custom paint; floor to ceiling fireplace; & more! Well appointed Kitchen w/Wolf & Subzero appliances; Alderwood cabinets; gorgeous granite counters; kitchen island; large walk-in pantry; kitchen nook; & eat at bar. Privately located Master Suite offers portal access, luxurious en suite w/snail shower, jetted tub, ample walk-in closet w/built-ins. Three additional bedrooms-one could be In-law Suite. Large covered portal w/relaxing spa & cozy fireplace. See Feature Page for more details!!

Contact the Sandi Pressley team for additional details! 

Get your Morning Inspiration with the Sandi Pressley Team

Living in this time of uncharted waters can cause much anxiety, frustration and confusion. As a homeowner you may be concerned about the ability to pay your mortgage. According to Computershare Loan Services in the U.S., currently 8% of homeowners have filed for forbearance. Even if your current loan servicer offers forbearance under the CARES Act, much confusion still exists about the program requirements & impact.

Here’s what you need to know:

Forbearance does not mean Forgiveness

This program was initially offered for 90 days for those impacted by COVID 19 for financial hardship but can be extended up to 1 year. However, once the forbearance period is over, the amount will need to be repaid. Meaning it is not forgiven. Options for repayment are being reviewed at this time for all mortgage lenders. The FHFA issued a statement today that mortgages serviced under Fannie Mae & Freddie Mac will not have a lump sum due at the end of the forbearance- but that only covers mortgage loans held by Fannie Mae & Freddie Mac. It is critically important that you discuss these terms with the servicer of your mortgage so you will not be in an even more difficult situation following the forbearance.

The statements below are directly from Freddie Mac (mortgagenewsdaily.com)

“Homeowners with a hardship can have up to 12 months of forbearance although servicers will typically start with a shorter timeframe, reassessing it over time. Once the hardship has been resolved the homeowners will have the following options.

• Full repayment or reinstatement. Missed payments are repaid, putting the loan back on track

• A repayment plan which allows borrowers to pay their regular monthly payments and an additional amount so they can catch up gradually.

• Payment deferral or modification. This would keep the monthly payments as originally agreed. The missed payments are added to the end of the loan.

• Loan modification. Changing the interest rate, loan term, or some other feature to lower the original payment amount.”

Will the forbearance impact my credit score?

In accordance with the CARES Act, a forbearance will not affect your credit score. However, any missed payments before the forbearance period, or an inability to repay the amount owed after the end of the forbearance, will negatively affect your credit score.

Can I refinance my loan after a forbearance?

While forbearance will not affect your credit score, the one little known fact that is extremely important is that it will affect your ability to refinance. Any two missed consecutive payments in a 12-month period will show a gap in your payment history…and this will affect the underwriting of the loan. Therefore, you would not qualify to refinance until after a 12-month period of timely payments has been established after the forbearance.

Will I be able to do a future home purchase after a forbearance?

Just as in the refinancing of a loan, your payment history will be affected and impact your ability to purchase a home after forbearance. The simple act of applying for forbearance, will be on your record and will prevent you from qualifying for a new mortgage- even if you decide not to go through with the forbearance and make all your monthly payments on time, the record will show the forbearance. Once the approved forbearance period is over, you will need to show 12- months of timely consecutive payments to eventually qualify for a new home mortgage.

What is the impact on Private Loans vs Government Secured Loans?

At this time approximately 30% of homeowners utilize private loans, which are NOT included in the CARES Act! All government secured loans are eligible. The option does exist for local governments to offer their borrowers payment suspensions. This, however, would be on a state to state basis and should be discussed with your lender.

If I start the forbearance process, can it be cancelled or reversed?

It is extremely important that you evaluate all aspects of the forbearance program and its affect on you prior to choosing the option. While you may be able to cancel your request and continue paying your mortgage monthly, the documentation to your credit file will be noted and will impact your refinancing and buying activity moving forward. With loan servicers inundated with calls and requests, getting personal assistance with removal of this from your record may prove to be difficult.

It is always recommended to speak with your servicing lender before making these decisions.

The bottom line is this: If you can afford to make your monthly mortgage payments, make them! This will ensure you have all options available to you in the future for refinance or purchase of a new property.

Here at the Sandi Pressley Team we have adapted and created successful virtual and high-tech tools that are allowing our clients to successfully buy and sell homes during this unique time.

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

HOT HOME LISTING OF THE WEEK!

6038 DEL CAMPO Place NE, Albuquerque, NM 87109  $165,000

2 Bedrooms / 2 Bathrooms (1 full, 1 half) / 1271 Square Feet

Lovingly tended and cared for charming townhouse! Courtyard with gate for privacy. New furnace and refrigerated air unit. New carpet and tile in bathrooms! Large living area with lots of natural light. Backyard has covered and open patio. New Roof 2019, HOA Covers Exterior of Residence- Roof, Stucco, Pool, Club house Etc!

Contact the Sandi Pressley team for additional details! 

Get your Morning Inspiration with the Sandi Pressley Team

Disclaimer: The information contained herein has been researched but is evolving on a daily basis. Each consumer should always do their own research and speak with their lender before making any decisions. Coldwell Banker Legacy/ Sandi Pressley, Inc/Sandi Pressley Team are not liable for the content contained in this blog.

According to the latest US Census Bureau report, it turns out that for the first time since 2006, more people chose to purchase a home over renting in the first quarter of this year.  There were 1.22 million new households formed in the first quarter, and of those, 854,000 were first-time buyers.  That makes the home ownership rate among new households a whopping 70%!

This is great news as the rate of homeownership nationwide is currently 63.6%.  The last time the rate came close to this figure was in the 2^nd quarter of 2004, when it was at the all-time high of 69.2%.

Recently, a Wall Street Journal article had this to say about the reason for the jump in first-time buyers:

“The return of first-time buyers is accelerating. In all, they have accounted for 42% of buyers this year, up from 38% in 2015 and 31% at the lowest point during the recent housing cycle in 2011, according to Fannie Mae, which defines first-time buyers as anyone who hasn’t owned a home in the past three years.”

According to Trulia’s Chief Economist, Ralph McLaughlin:

“Strong renter household formation is one of the reasons why the homeownership rate has continued to drop since the onset of the housing crisis, so any sign this trend is reversing is something to take note of. We look forward to future releases of these data to determine whether this is a statistical blip or a trend.”

What does this all mean? Basically, this indicates that as more people who can buy for the first time realize their ability to buy a home without renting first, then the overall economy will benefit.

HOT HOME LISTING OF THE WEEK!

4401 Pershing Avenue SE, Albuquerque   $499,000

3 Bedrooms/ 1 Bathrooms / 3 Partial Baths / 4100 Square Feet

INCREDIBLE Custom single story Home-In the heart of ABQ. 2CAR garage, open floorplan showcases 3 exceptional LG living areas, all in whopping 4100 sq ft!

Contact the Sandi Pressley team for additional details! 

Get your Morning Inspiration with the Sandi Pressley Team

We've been asked recently about the effect Brexit will have on the US housing market. Initial reactions say the stock market responded negatively. This puts pressure on the Fed who might, in turn, keep interest rates low. There might even be a temporary, slight drop in rates as the market adjusts.

The reality is, we won't see much change at all until things settle over in Europe. If other countries in the UK follow suit, this could all change, and quickly. The reality is, now is still a great time to buy or sell a home.

If you're ready to buy or sell, contact The Sandi Pressley Team today!

Have An Awesome Week!

Sandi's Hot Home Listing

1104 Indiana St SE, Albuquerque

Price: $145,000 Beds:3 Baths: 2 Square Feet: 1,236

STYLISH REMODEL! 3BDR/2BATH, so many updates! New windows, new evap cooler, new water heater, new light fixtures, new tile flooring, newly painted, updated baths! Remodeled kitchen includes new cabinets, new tile flooring, new granite countertops, new backsplash, new SS sink, spacious and still room to add a table, island or baker’s rack

View This Listing

NAR has released their predictions for the 2016 housing market. Click the link below to see what the experts are predicting for 2016.

National Association of Realtors 2016 Predictions

Have An Awesome Week!

Sandi's Hot Home Listing

6812 Vista Del Sol Drive NW, Albuquerque

Price: $375,000 Beds:4 Baths: 2+ Square Feet: 3,860

Exquisitely Appointed Home in desired Montecito Estates! With over 3700SF, this open floorplan shows like a model-featuring cozy living area with fireplace, 4 bedrooms, 3 bath plus loft & computer area! Gourmet kitchen offers upgraded cabinetry, corian countertops, upgraded appliances, cooktop, double ovens, pantry, breakfast bar.

View This Listing

This may be the best time to purchase a home.  There are many reasons but below we’ll highlight the top 6.  If you’re considering a purchase, here are a few great reasons to make that move now!

Reason No. 1 to buy now: Rates are low
"Low mortgage rates continue to keep ownership less expensive than renting," said Investopedia. "Even a small change in interest rates has a significant effect on what you'll pay each month and over the life of a 30-year mortgage.
Take a $172,000 30-year mortgage, for example ($172,000 is 80% of the median sales price for existing homes of $215,000 after a 20% down payment). With an interest rate of 4%, you would pay $821.15 each month. At an interest rate of 5%, the monthly payment would be $923.33, and at 6%, the payment rises to $1031.23."

Reason No. 2: Renters Feeling the Squeeze
A recent article from the National Association of Realtors explains that renters are “feeling the squeeze” as rental costs increase nationwide at a pace greater than income increases.

Reason No. 3: It’s Easier to Qualify
When the real estate market hit its recent low around 2006, lending institutions increased their lending standards, making it harder to qualify for a loan.  During this time, lending standards were raised and only prime applicants could get a decent loan.  Today, those standards have loosened slightly, making it easier to find loans and get qualified.  New FHA minimums include a 620 credit score and 3.5% down payment.   

Reason No. 4: PMI Costs Less
When a buyer puts a down payment of less than 20%, there is often an additional monthly fee called PMI or Private Mortgage Insurance.  Early this year the Feds lowered those fees on FHA loans which can add up to over $900 a year in savings.  

Reason No. 5: It’s Still a Good Investment
Perhaps even a great investment.  Experts say that affordability is still at an all-time high, making home ownership a great option for those investment dollars.  As an asset, homeownership stands up, especially when buyers make smart decisions. 

"The largest measurable financial benefit to homeownership is price appreciation," said Investopedia. "Price appreciation helps build home equity, which is the difference between the market price of the house and the remaining mortgage payments."

Reason No. 6: Pride of Ownership
Pride of ownership is a real thing!   Having the freedom to make it your own, painting walls, upgrading kitchen items and not having to worry about higher rent payments coming with your next lease term, make owning your own home a great idea.  Add that to watching your equity grow and the tax benefits of homeownership and this is a no-brainer!

Have An Awesome Week!

Sandi's Hot Home Listing

2700 Vista Grande Dr. NW 114, Albuquerque

Price: $595,000   Beds: 3   Baths: 2.5  Square Feet: 3,970

INCREDIBLE & RARE BLUFF LOT RESIDING ALONG THE RIVER W/Unobstructed views of the City,Bosque,Rio Grande & Mountains. This bluff lot offers unsurpassed sensational views-will not find more breathtaking views anywhere ceiling to floor windows from living, dining, kitchen & Master-Suite showcases phenomenal Views! View This Listing

Here's Your Morning Coffee

Have you been thinking about buying a new home? Now might be just the time to make that move.  The current low rates we are seeing in the real estate market today are likely not going to stick around.  

Here’s the great news, mortgage interest rates are still at historic lows which is fantastic for this hot spring housing market.

Our advice for people considering a home purchase is lock your rate now.  “This is the last call before the bar closes at these historically low levels,” said Jonathan Smoke, chief economist at realtor.com®.

Rates are still low but experts believe they are about to rise.  The Feds are expressing that the economy is becoming more stabilized so rates will likely rise in the next few terms.  Since late 2008, the Fed has been helping with this stabilization by keeping rates low.  Once things are settled, and consumer confidence rises, those rates will begin to rise.  Some experts say that could happen as soon as June.
 
“From here, rates should go up more than down, which means affordability declines rapidly,” Smoke said. “It also means that navigating mortgage choices becomes simultaneously more important, but also more complex as higher rates would cause qualifications to be harder and some options will fall off the table.”

Affordability goes down as rates go up.  That’s the way the market works.  Rates rise and prices increase.  Take advantage of your buying power now and lock your rate today.  

Have a great week!

Sandi's Hot Home Listing

 4 Cinco Circle, Placitas

 Price: $450,000  Beds: 3  Baths: 3  Square Feet: 2,740

 View This Listing

EXCEPTIONAL Placitas Custom Home offers a Private 2 Acre Sanctuary w/ breathtaking MTN views. This 3Bdrm/3Bath/3Car garage NM Pueblo home showcases spacious floorplan featuring a dramatic entry way into a cozy living space w/Kiva FP & exposed vigas, T&G ceilings + wooden shutters thru-out. Gorgeous upgraded Gourmet Kitchen w/custom cabinetry, Granite countertops w/beautiful backsplash accents. Relax in Private Master-Ste With stunning Kiva FP & lovely Master Bath Jetted tub, sep shower & LG walk in closets.Gorgeous front/backyard courtyards, beautiful low maintenance landscaping & unobstructed views. Horses are Welcome!Immaculate, warm & inviting property with its highly sought after location-Directly across street from National Forest Loop RD Trl Head-Fabulous access to hiking & biking!

Here's Your Morning Coffee!