Many people who plan to buy or sell a home in Albuquerque fear that as we head into a recession, that this will lead to a housing crash. But will that be the case with this recession? The thing to keep in mind is that a recession and a housing crash are two different things.

What is a recession?

The National Bureau of Economic Research defines a recession this way:

“A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”

The Coronavirus restrictions hit the American economy in March. According to Goldman Sachs, JP Morgan, and Morgan Stanley are all indicating that there will be a deep dive in the economy in the second quarter of this year. 

Does that mean we’re headed for another housing crash?

Home buyers and sellers in Albuquerque and around the nation fear that we're going to see a repeat of the housing crash that happened during the Great Recession of 2006-2008. Yet if we look at past recessions, we can see that most do not impact home values adversely.

Doug Brien, CEO of Mynd Property Management, explains:

“With the exception of two recessions, the Great Recession from 2007-2009, & the Gulf War recession from 1990-1991, no other recessions have impacted the U.S. housing market, according to Freddie Mac Home Price Index data collected from 1975 to 2018.”

What are the experts saying this time?

This is what three economic leaders are saying about the housing connection to this recession:

Robert Dietz, Chief Economist with NAHB

“The housing sector enters this recession underbuilt rather than overbuilt…That means as the economy rebounds – which it will at some stage – housing is set to help lead the way out.”

Ali Wolf, Chief Economist with Meyers Research

“Last time housing led the recession…This time it’s poised to bring us out. This is the Great Recession for leisure, hospitality, trade and transportation in that this recession will feel as bad as the Great Recession did to housing.”

John Burns, founder of John Burns Consulting, also had this to say, based on his firm's research:

“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices).”

What does all this mean for home buyers and sellers in Albuquerque? It means that if you had plans to buy or sell a home in Albuquerque before the pandemic, there's no reason to derail your plans. These are uncertain times for sure. The Sandi Pressley Team is adapting to these changing times and are ready to help you realize your real estate goals. Contact us today to see how we can help you continue on your plans 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!

9214 REDMONT Road NE, Albuquerque, NM 87109  $435,000

4 Bedrooms / 3 Bathrooms (2 full, 1 half) / 2695 Square Feet

This beautiful light filled Family Home in a fabulous NE Heights location has been meticulously maintained! Two living areas, cathedral ceilings, bright kitchen with large breakfast area, plenty of cabinets and a pantry. Kitchen is open to the family room. The master suite is spacious and truly a retreat. Enjoy the views from the balcony! Wonderful home and gorgeous landscaped yard for entertaining.

Contact the Sandi Pressley team for additional details! 

Get your Morning Inspiration with the Sandi Pressley Team

Moving into a new home in Albuquerque may have seemed like a daunting task before the COVID-19 pandemic. But now we have to take extra steps to make sure we stay safe and protect others as well when moving into a new home. 

If you can postpone your move, that would be ideal. But you may not have that luxury. And if you can move without a moving company, that's also ideal. But if you do need to hire movers, what steps can you take to move safely during this pandemic and protect everyone involved?

Before the Move

Contact your movers

Talk to your moving company about the safeguards they are implementing and best practices for moving day. Make sure you're both on the same page so that the move goes mor smoothly.

Buy all of your supplies in one go

You will want to limit how many times you go out to get supplies and how many stores you go to. Try your best to plan for what you need and get it all in one trip. You can use this packing calculator to get an estimate of what you’ll need based on the number of rooms and people in your house. Buy extra if in doubt.

Clean as you pack

Cleaning items before you pack has the dual effect of protecting yourself and others, as well as making less work when you unpack in your new home. Use disinfectant, and if you don't have any, make your own with a solution of one tablespoon bleach to one gallon water.

Finish packing at least 24 hours before the movers arrive

Coronovirus can last up to 24 hours on cardboard boxes. Even though your movers will be wearing gloves, it's an extra precaution to take to finish packing 24 hours ahead of the move and leave boxes untouched.

During the Move

Let your mover know right away if you or anyone in your family is experiencing coronavirus symptoms. 

Letting you movers know that someone is experiencing coronavirus symptoms won't necessarily cancel the move. But it will give your moving company the opportunity to put additional protocols into place to protect their workers. Also let them know if you or a family member are isolating due to exposure, as the same protocols will apply.

Provide hygiene products for your movers. 

Your moving company will most likely have all the hygien products the movers will need. But it won't hurt for you to have extra products on hand just in case, such as soap and paper towels by the sink, and hand sanitizer by the door. 

Don’t use free or recycled moving boxes. 

The virus can live on cardboard for as long as 24 hours, so picking up used boxes from stores or other sources outside your home is not a good idea. Your moving company may be able to provide new boxes, or you can purchase them yourself.

Postpone or cancel your move if you're high risk. 

If you are over 60 or have a pre-existing respiratory and cardiovascular condition, you should reconsider moving if at all possible. 

If traveling for your move, plan accordingly. 

Need to book flights or hotels for your move? Make refundable reservations and/or only work with companies that offer free cancellations. Ask about cancellation policies before you book so that you don’t end up wasting money later on.

Above all, use common sense when you move and stay safe.

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!

9214 REDMONT Road NE, Albuquerque, NM 87109  $435,000

4 Bedrooms / 3 Bathrooms (2 full, 1 half) / 2695 Square Feet

This beautiful light filled Family Home in a fabulous NE Heights location has been meticulously maintained! Two living areas, cathedral ceilings, bright kitchen with large breakfast area, plenty of cabinets and a pantry. Kitchen is open to the family room. The master suite is spacious and truly a retreat. Enjoy the views from the balcony! Wonderful home and gorgeous landscaped yard for entertaining.

Contact the Sandi Pressley team for additional details! 

Get your Morning Inspiration with the Sandi Pressley Team

Many home sellers are understandably concerned about a looming recession and how it will impact their ability to sell their home in Albuquerque. But just because there may be a recession doesn't mean your home won't sell. It just means there are things to consider to make sure your home is as competitive on the market as possible. Right now, we are in what's considered a buyer's market, which means you'll need to do mare to attract buyers.

Here are 3 main factors to look at:

Pricing

Strategically pricing your home for sale in Albuquerque means the difference between making and breaking the sale. In a buyer’s market, getting the price right is critical.

While market value is based on the sales prices of similar homes in your neighborhood, in a buyer’s market it pays to be aware of your competition. This means looking at homes for sale in your area online. If you find one that is priced comparable to yours, you’ve found your main competitor. If it’s in far better condition than yours, you have two choices, upgrade your home similarly, or adjust the price of your home. We can help you decide which of these two choices would be more advantageous.

Flexibility

Due to new rules regarding social distancing, you will need to be more flexible when it comes to showing your home. No matter what, you home should always be kept clean. Photos will need to be taken to show your home online, as more people will be using our website to look at your home. And in the event that your home will be shown in person, you need to be able to make it ready to view and have arrangements to be safely away from your home during a showing.

Concessions

Home buyers can become unreasonable when they know they are in the driver’s seat. They may ask for personal property to be included in the sale, such as furniture or play equipment. They may ask for credit for carpet or vinyl replacement even if there’s not a thing wrong with the existing floorcovering except that the buyer doesn’t like the color or pattern.

There is no rule about how to handle these situations, since just about everything in a home sale is negotiable when it comes to concessions. If it will pave the way to a smooth and quick closing, many homeowners are more than happy to accommodate the buyers’ requests, as long as they’re reasonable.

Unfortunately, you may need to sell your home when the market is stacked against you. Get your price right, be flexible and have plenty of patience and you’ll get through it.

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. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Contact us today to help you buy or sell your next home in Albuquerque.

HOT HOME LISTING OF THE WEEK!

10647 SUMMERCREST Drive NW, Albuquerque, NM 87114  $310,000

4 Bedrooms / 3 Bathrooms (2 full, 1 half) / 2820 Square Feet

VIEWS of the Sandia Mountains!! Beautiful 4BBDR/3BA/3CG home with 3 living spaces! Light, bright and open floor plan with living room, family room and large LOFT!! REFRIGERATED AIR! NEW ROOF! NEW CARPET! Updated flooring! Under stair storage! Kitchen features upgraded raised panel cabinetry with crown molding, granite countertops, LG appliances, tile flooring, recessed lighting, island, walk-in pantry & breakfast nook! Family room features cozy fireplace. Master suite features double door entry, walk-in closet with built-in shelving, dual sink vanity, sep shower and garden tub. Huge backyard with open patio and pergola covered outdoor space for entertaining! Terrific location close to Cottonwood Mall, shopping, restaurants, Rust Medical Center, schools and parks!

Contact the Sandi Pressley team for additional details! 

Get your Morning Inspiration with the Sandi Pressley Team

As our world is changing so rapidly with the spread of the COVID-19 virus, many people are wondering how long this will last and what impact it will have on the economy. As such, many who were thinking about buying a home in Albuquerque may think they should put that goal on hold. But should you suspend your home search now? The short answer is "no." Here's why.

Despite all the unsettling changes happening and the effect it's having on the economy right now, it will very likely be followed by economic expansion like we’ve seen play out in the U.S. economy many times over.

What are experts saying about an economic rebound? It starts with a forecast of U.S. Gross Domestic Product (GDP).

According to Investopedia:

“Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health.”

Based on the GDP, three leading financial institutions state that the economy will see a projected sharp decline followed by a steep rebound in the second half of this year. A recent study from John Burns Consulting also notes that past pandemics have also created V-Shaped Economic Recoveries, and they had minimal impact on housing prices. This certainly gives hope and optimism for what is to come as the crisis passes.

Keeping this history in mind, many business owners are being optimistic about the economy making a strong return. A recent survey by PricewaterhouseCoopers shows that 66% of business owners feel that their companies will return to business as usual within a month of the passing of the pandemic. A solid 90% feel that within 1-3 months, things will be back to normal. 

From expert financial institutions to business leaders across the country, we can clearly see that the anticipation of a quick return to normal once the current crisis subsides is not too far away. 

With these things being considered, if you had been wanting to buy a home in Albuquerque, there's no reason to stop your progress on searching for a home.

One thing you can do to stay on top of your home buying process is to get pre-approved for a mortgage, which you can do from home. Getting pre-approved will hep you get a better idea of what you can afford so that you can move forward with confidence in buying a home in Albuquerque.

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. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Contact us today to help you buy or sell your next home in Albuquerque.

HOT HOME LISTING OF THE WEEK!

5910 HANNETT Avenue NE, Albuquerque, NM 87110  $208,000

3 Bedrooms / 2 Bathrooms (1 full, 1 half) / 1885 Square Feet

Terrific location close to Uptown, shopping, dining, parks, UNM! 3BDR/2BA/1CG! Versatile floor plan with 3 living spaces; combined living & dining space, separate hobby/office/bdr, plus large family room/den with cozy wood fireplace. NEW ROOF (2017-1018) Updated furnace (2017) Newer water heater! Lots of light, skylights, ceiling fans, separate utility room! Kitchen features new gas stove, lots of cabinets, tile floor, breakfast bar and is open to the dining room. Outdoor living space with covered patio and walled for privacy and storage shed.

Contact the Sandi Pressley team for additional details! 

Get your Morning Inspiration with the Sandi Pressley Team

Everything is changing in our lives, and the real estate market is no exception. They way buyers work with agents, lenders, and all of the people involved in buying a home in Albuquerque are changing to the virtual world. But through it all, one thing is not changing: the need for people to buy homes. Buying a home can drive the local economy here in Albuquerque.

Everyone is being affected differently by the effects of this virus on the economy. If you're in a position to buy a home, you are a major economic force in your neighborhood in Albuquerque. Even though we don't know how long it will take for this pandemic to pass, there are still things right now to keep your search for a new home in Albuquerque going.

Every year the National Association of Realtors (NAR) shares a report that notes the full economic impact of home sales. This report makes the following statement:

“The total economic impact of real estate related industries on the state economy, as well as the expenditures that result from a single home sale, including aspects like home construction costs, real estate brokerage, mortgage lending and title insurance.”

That means that when you buy a home in Albuquerque, you make an impact on the local economy. While it fulfills your need for a having a roof over your head, it also generates income for appraisers, loan officers, the title company, your real estate agent, and anyone else who contributes to the process of buying a home. These people also have teams that they work with that benefit from the purchase. And when you buy a new construction home, that impact almost doubles. According that same report, the economic impact of a home sale in New Mexico is $66,912. That's a lot of people in Albuquerque who benefit from just one home sale.

When you buy a home in Albuquerque, you become an economic driver. Even if you're not ready to buy a home right now, there are things you can do to keep your own process moving forward so you’re set when the time is right for you. Contact us today to keep your home buying process on track.

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. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Contact us today to help you buy or sell your next home in Albuquerque.

HOT HOME LISTING OF THE WEEK!

5910 HANNETT Avenue NE, Albuquerque, NM 87110  $208,000

3 Bedrooms / 2 Bathrooms (1 full, 1 half) / 1885 Square Feet

Terrific location close to Uptown, shopping, dining, parks, UNM! 3BDR/2BA/1CG! Versatile floor plan with 3 living spaces; combined living & dining space, separate hobby/office/bdr, plus large family room/den with cozy wood fireplace. NEW ROOF (2017-1018) Updated furnace (2017) Newer water heater! Lots of light, skylights, ceiling fans, separate utility room! Kitchen features new gas stove, lots of cabinets, tile floor, breakfast bar and is open to the dining room. Outdoor living space with covered patio and walled for privacy and storage shed.

Contact the Sandi Pressley team for additional details! 

Get your Morning Inspiration with the Sandi Pressley Team

Let's say you just bought a new two-story home in Albuquerque. As you unpack upstairs, you realize there's no water coming from the faucets. In fact, there's no running water at all on the second floor. Somehow this went unnoticed when you were viewing the home.

What's even worse is that the owner knew the whole time and didn't disclose that issue. But was the seller required by law to disclose all the issues with the home, including the fact that you have no water running upstairs? And what legal action can you take to have the seller fix any major issues such as this that were not disclosed?

Disclosure Laws in New Mexico for Home Sellers

The state of New Mexico requires sellers to disclose defects in a home to buyers. Albuquerque home sellers are required to provide buyers with a written disclosure of all material defects on the property of which they have knowledge of. This disclosure should be given to the buyer before the contract is signed. Usually the seller's real estate agent will take care of this.

The seller is also required by state law in New Mexico to disclose tax burden information. According to New Mexico Statutes § 47-13-4, the seller must “(1) request from the county assessor the estimated amount of property tax levy with respect to the property and… specify the listed price as the value of the property to be used in the estimate” and “(2) provide a copy of the assessor’s response… in writing to the prospective buyer or the buyer’s broker.” 

New Mexico is somewhat unique when it comes to requiring both of these disclosures. It helps buyers to avoid unpleasant surprises from home defects or having a huge tax bill they didn't expect.

What Are Your Rights as a Home Buyer in Albuquerque?

If you buy a home in Albuquerque and it turns out that the home has issues that were not disclosed, what can you do? Here are some details about the disclosure form that will shed light on your rights as a buyer.

The bottom of the disclosure form contains important language. It states that: “This is not a contract.” That means the seller isn't guaranteeing anything. They are only required to disclose defects that they know about. And the seller is not required to hire a home inspector to check the before checking the “no” box on the disclosure form.

There is also a second important statement on that form: “The law does not protect a Seller who makes an intentional misrepresentation.” In other words, if the seller knows that the AC doesn't work and doesn't disclose that fact, then they could be charged with fraud.

Furthermore, to continue with the AC example, if the contract promises that the AC would be in good working order, and it's not, this would cause a breach of contract.

So if you as a buyer find yourself in this situation, you need to immediately write to the seller, broker, or both, stating the problem and outlining your damages. You can also send a demand letter to the seller, and this may persuade them to settle the dispute. But before you take legal action, you should weigh the cost of litigation against simply fixing the issue yourself. Suing someone is probably going to cost more than fixing a refridgerator.

In the end, when you buy a home in Albuquerque, you have a measure of protection against dishonest sellers. And as a seller, it's a good idea to fully disclose any defects in your home that you have knowledge of, or it could come back to get you later.

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. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Contact us today to help you buy or sell your next home in Albuquerque.

HOT HOME LISTING OF THE WEEK!

12906 ALICE Avenue NE, Albuquerque, NM 87112  $172,000

3 Bedrooms / 2 Bathrooms (1 full, 1 half) / 1443 Square Feet

This wonderful townhome has newer carpet & fresh paint in 2019. Refrigerated Air, Custom Brick fireplace and Banco (hearth). The great room is wonderful for entertaining, and an enclosed atrium opening to kitchen (window) and great room, great for dining or planting. Oversized garage, enclosed courtyard makes this your next home. Close to shopping and fwy. Don't wait!

Contact the Sandi Pressley team for additional details! 

Get your Morning Inspiration with the Sandi Pressley Team

If you plan to sell your home in Albuquerque, there's good news. Home prices are increasing, not only in Albuquerque, but in 94% of the major metro areas in America. Here in Albuquerque in the fourth quarter, appreciation climbed by 11%. This was higher than the average gain of 6.6% for the rest of the nation during that same period.

According to a report by the NAR, home buyers in general could more easily afford a mortgage due to lower mortgage rates, which on average was 3.76% for a 30-year fixed mortgage. When you combine those two factors, that means that more home buyers can afford to buy a home, even though prices are appreciating. That's a great combination for home sellers in Albuquerque!

First-time home buyers also have good news, as they also saw an expansion in affordability last quarter, according to the same report. The average monthly mortgage payment for first time buyers went down to $1,006, provided they had a 10% down payment.

The Albuquerque housing market forecast ending with the 3rd Quarter of 2021 is also positive. LittleBigHomes.com estimates that the probability for rising home prices in Albuquerque, NM is 82% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 4th Quarter of 2019.

The bottom line is that if you plan to sell your home in Albuquerque, now is as good of a time as any. But if you're not ready to sell, there's also a good chance that your home's value will continue to increase over the next couple of years, if predictions hold true. 

What about buying a home in Albuquerque? This is also a great time for Albuquerque home buyers, as this is a good time to buy a home before prices increase. Again, if prices continue to increase, that means your home equity will increase as well.

If you're thinking about buying or selling a home in Albuquerque, call Sandi Pressley and her team today. Their unmatched knowledge of the Albuquerque real estate market will help you benefit from this current market trend, and to make a solid investment to benefit from the growing Albuquerque real estate market.

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. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Contact us today to help you buy or sell your next home in Albuquerque.

HOT HOME LISTING OF THE WEEK!

100 BROADWAY Boulevard NE, Albuquerque, NM 87102  $150,000

1 Bedrooms / 1 Bathrooms (1 full, 0 half) / 730 Square Feet

Urban Living at it's finest! Loft is located in the historic Classroom Building(built in 1935) of the old Albuquerque High School. Large west facing windows flood the loft with natural sunlight. Original wood floors. Kitchen Island, all appliances convey. Open floorplan, 14 foot ceilings, original chalkboard. Full bath. 3 Lockers for storage. Laundry and elevator in building.

Contact the Sandi Pressley team for additional details! 

Get your Morning Inspiration with the Sandi Pressley Team

Albuquerque is a city rich in history, dating back hundreds of years. As such, if you're looking to buy a home here, you might come across a home for sale that's over 50 years old. There's certainly nothing wrong with buying an older home, as they offer styles and features from the past that may not be found in newer homes.

When you buy an older home in Albuquerque, there are some things to consider before making a decision to buy.

Plumbing

Many older homes have galvanized steel water piping. This kind of pipe was used originally in the 1970's because it was thought to have a longer shelf life. Now, after several decades, it's been discovered that these pipes can rust inside, leading to dirty water and blockage.

A specialized plumber can help you decide what needs to be repaired with this type of plumbing. New plumbing technology will give you cleaner water and reduce leaking.

Energy Efficiency

Older homes were not built to be as energy-efficient as they are today. Energy was cheaper back then, and insulation was not always used in home construction. If insulation wasn't installed or upgraded since the home's original construction, then you should assess how insulated your home is and make any needed upgrades.

Single-paned windows were also used in older homes, which can add up to a huge heat loss. If you're looking to buy an older home in Albuquerque that still has this type of window, you should decide if you plan to replace them, and how much that will cost if you do so. You may also see if you can negotiate having those windows replaced as part of the sale.

Floor Plans

Older homes in Albuquerque may not have as much floor space as newer homes. The bedrooms in older homes tend to be smaller, and master bedrooms were not as popular. 

If you're considering an older home, but want more open space, you can do so by adding additions, redoing your kitchen, or removing walls to add to your open floor plan. Of course, these improvements will cost a good deal of money. Make sure you factor in these costs when looking to buy an older home in Albuquerque.

Lead

All the way up to the 1970's lead paint was used in the interior of homes. The government banned lead paint in 1978. But even with that ban, lead paint was still used on occasion. Make sure that the house you plan to buy has been tested for lead. If a wall has been painted over, there still could be lead paint underneath the tops layer.

If the paint does test positive for lead, make sure it's removed and repainted by a professional. Professional painters are better equiped to deal with unhealthy paint and make sure it's removed in a manner that won't cause any health issues.