All real estate is local

Once again, January figures show sales down all over the country. But, Albuquerque and Rio Rancho continue to defy the national statistics. Yes, this market is slower but it remains far more stable than others. I'm still assuming we will dodge the worst of the problems. And that most of what hits us will be due to the national psychology more than local conditions.

No Change on Limits

The economic stimulus package now in place will not make a difference in Albuquerque and Rio Rancho, since all the loan 'caps' are based on local prices.

FHA limit is still $200,160
Conventional remains $417,000

Even for those areas that will see a rise, it will take a couple of months for the agencies to work out the numbers.

Albuquerque at Year's End

Just finished writing my Market Update for the whole of '07. Looking forward, the big questions remain:
Will our local economy trump all the bad news from everywhere else?
Will the loss of loan programs (the good ones!) significantly reduce the number of buyers?
As the time-to-sell stretches out, will sellers start reducing their prices?

I've been selling housing for more than 18 years now and I have never seen a market that is so contrary to local conditions.

It's the Psychology...

The famous mantra from the '92 election was, "It's the economy." Remembering that on every occasion propelled Clinton to the White House. Now, we have a screwed up national economy but a more-than-ok local economy in Albuquerque and Rio Rancho. It still remains to be seen which is more compelling in buyers' minds.

After 'The Game' -- the Market?

Bad years or good, traditionally the Albuquerque & Rio Rancho markets are slow from late fall to the end of the Super Bowl. So, now we will find out if a good local economy and very low interest rates will be enough to counter the national credit problems.