Will Albuquerque Abandon Impact Fees?

Westside Construction Presbyterian Hospital

The debate continues. Should the City of Albuquerque impose impact fees? How much?  Who should pay? The City of Albuquerque spelled out the reasons for impact fees back in 2004. Impact fees help fund critical major infrastructure in the building industry.  So the city government of Albuquerque requires builders of new commercial and residential buildings "pay impact fees that represent a fair, proportionate share of the cost of the parks, roads, drainage facilities and public safety facilities necessary to serve that new development."

The Albuquerque City Council imposed impact fees effective mid 2005, at the height of the local housing boom when builders could hardly build fast enough to meet the demand for new homes for people moving to the area from across the nation. The added fees were imposed gradually, to reach 100% imposition in 2007 for all homebuilders except green builders who would be exempt.

But the downturn came. Home builders, unhappy from the beginning with the imposition of the fees, have never stopped lobbying for the abolition or reduction of the fees.  After three years of real estate and economic downturn building sites are still largely quiet. Therefore, it was welcome news this week that the City Council voted to cut impact fees in half , extend the exemption for green building, and explore ways of making fees more equitable across the city. (Greater Albuquerque Association of Realtors)

A reduction or abolishment of impact fees, many think, could be one of the essential incentives the city needs for building activity to resume. Much restructuring has taken place during the past three years brought about by the extended pause in new home construction, the tax incentives, continuing low interest rates, falling home prices, and the mix of short sales and bank-owned properties. But all this seem insufficient for the jumpstart, so far. Who knows, the reduction and of  the impact fees may be just what's needed to give a added push to recovery of the housing market in the City of Albuquerque.

Greater Albuquerque Market Report

Second Quarter 2010

With respect to number of new listings and closed sales, the Greater Albuquerque, NM Second Quarter 2010, Housing Market Report reflects overall improvement over performance during the corresponding period in 2009. Like the turtle inching its way across the road at the Open Space Center, the market is gradually inching its way up again.

Not surprisingly, sale prices have fallen, but not as much as some might have anticipated. Average price changes showed only a 2.69% decline as eleven areas in Albuquerque and Rio Rancho reported not only increased sales but increased prices. North Albuquerque Acres, Albuquerque Acres West, Foothills North, Academy West, UNM, Uptown, Northeast Heights, Foothills South, Fairgrounds, Southeast Heights, Downtown, Valley Farms, Pajarito, Far North Valley, Northwest Heights, Rio Rancho South, Rio Rancho Southwest, Rio Rancho North and Bernalillo/Algodones all reported varying levels of sales and price increases.

New listings entering the market increased 8.01% and closed sales increased by 20.55%. Of significance is that the market did not shut sown or freeze. The Homebuyers Tax Credit empowered buyers to write contracts; and sellers faced the harsh realities of a changed market, adjusted prices.

(Market data is provided by the Southwest Multiple Listing Service of the Greater Albuquerque Association of REALTORS®. Analysis is by Eloise Gift, Managing Broker of Gift Realty NM, Albuquerque New Mexico. Data is deemed reliable but not guaranteed.)

It's Almost International Balloon Fiesta Time

A Special Shape

It is almost that time of year again when people will flock to Albuquerque from all over the world for the International Balloon Fiesta, and we will all have to drive more carefully as we watch out for the out-of-town drivers distracted by oddly shaped, floating objects most of us natives and almost-natives take for granted. (Albuquerque has been hosting the fiesta since 1972!)  

Dawn Patrol

The state of New Mexico is called the Land of Enchantment  foer a good reason. Somewhere, all around the state, there is always magic in the air. If you have any doubts, when you visit for the fiesta, don't just look at the balloons as they drift overhead.  Look also at the sky during daylight hours and at night. Observe the drama that plays out over the landscape of the mountains to the east and on the high mesa to the west.  Even more magical is hitching a ride on a balloon. Doing so adds a whole new dimension to the enchantment of this land.

The 2010 International Balloon Fiesta takes place October 2  to October 10. It is one event I don't miss and neither should you.

New Mexico Real Estate: Tomé - Destination of Pilgrims

New Mexico Real Estate: Tomé - Destination of Pilgrims

This Land Can Be Your Land

Rio Rancho is the fastest growing city in New Mexico but you can still buy vacant in just about any of the four quadrants of the city. The 1-acre lot shown here on 13th Avenue (Unit 7 Block 59 Lot 14) is centrally located and easily accessible from the intersection of two major cross streets – Rainbow and Northern – major arteries that place both the new city center and Northwest Albuquerque only minutes away.

This lot is close to a major residential development that is under construction at the corner of Rainbow and Northern, an indication that utilities - water and electricity - are in the area. Wide open spaces with unobstructed views of eastern southern and northern mountain ranges surround the lot. This and many other vacant lots are available alongside elegant, reasonably priced homes throughout Rio Rancho.

Albuquerque, New Mexico Real Estate Market

Market Update

Real Estate Market Statistics provided by the Greater Albuquerque Association Of REALTORS®, for May, 2010 show  that 731 single-family detached homes sold in the greater Albuquerque area, compared to 678 in April. This was the highest sales record for the month of May since 2007. (You may remember that 2007 was the year of the start of market decline in our area.) The May statistics also reflect an increase in sales of 28.09 percent in sales for the city of Albuquerque over May 2009, and similarly for Rio Rancho, an increase of 37.08 percent over the same period.

The median sale price for single-family detached home sales remained $175,000 for the 3rd consecutive month. Average sale price, however, continued to decline. In 2008, the average sales price for single-family detached homes was $210,406; in 2009, it was $247, 795, and in May, $210,406. Nevertheless, both median and average sales prices are still above those of 2005 when the annual average was $205,731 and the median $166,500. In analyzing the figures, it may also be useful to bear in mind that the highest selling price ranges are currently between $160,000 and $179,000 for single-family detached homes. (Single-family detached home listings and sales represent approximately nine times those of attached homes listings in our market area.)

What drives our Market?

Continued low interest rates, declining home prices, and FHA loans seem to be the current driving forces behind our market. According to several reliable sources, in recent weeks, contrary to what many expected, the 30-year fixed-rate mortgage remained comparatively, low averaging 4.72% - 4.79%, down from 5.59% a year ago. Also, average rates on 15-year fixed-rate mortgages were 4.17%, falling from 4.2% to 5.06% in previous weeks and 15-year rates set a new low in recent weeks. First-time homebuyers still have a resource in FHA loans. .

The Million dollar Question

The question still remains. Is our market recovering? In one form or another, that’s the question I hear most often. My answer is that our market has not fallen as much as it could have. Our average and median prices are still better than they were 2005. I think the market is on the threshold of recovery. If the buyers sitting on the fence were to get off, it could be advantageous to them (the convergence of favorable conditions will not last indefinitely). That one act on their part might just prove to be the little extra push that the market needs to be on its way to recovery.

The Homebuyer Tax Credit Ended - Now What?

In Albuquerque, New Mexico as in many other parts of the country, April saw a flurry of homebuying activity because those with the will and the means made an effort to sign purchase agreements before the end of April so as to get the federal homebuyer tax credit before ended at the April 31. For many who signed contracts, closings may not take place for another month or two so we are still experiencing the effects of the tax credit which may last through the summer.

People in and outside of the real estate industry are watching with interest to see what will happen next in  the residential real estate. It's as if we are all taking a deep breath and are waiting to exhale as soon as we feel that we are completely out to the woods with respect to market recovery.  Will the market maintain the momentum developed over the pasr few months?  Almost one month later, there are no significant changes to report and many remain cautious and hesitant to predict the future. In the meantime, we continue to add listings, hope for improved employment figures, and that buyers will find lenders able and willing to provide loans. neIt will be interesting to see what next month's update. will offer us.