My New Blog

Seems like everywhere you look, there is "news" and "data" on the real estate industry.  Unfortunately, much of it is not applicable to Central New Mexico, or, even worse, outright misuse of fact, resulting in incorrect conclusions.

One of my "most hated" conclusions in error involves assuming a decrease in average or mean value of homes sold translates to a decrease in value of any particular home.  If fewer high priced homes are selling (or more lower priced homes are selling), the average and mean price goes down, while the actual value of any individual home could be increasing.

An increase in foreclosures has been big in the news.  However, most of the "trouble" is in only 5 states.  California, Florida, Michigan, Nevada, and Arizona seem to be having real problems.  There are other areas with soft markets, but the Albuquerque-Rio Rancho area has not seen any significant increases in foreclosures.  Of course only time will tell how extensive the problems may become, and how much effect we will see on the local market.

Local market is slow, but keeps showing promise of recovery.  There has not been any measurable erosion of value in the lower price ranges, although higher priced homes have seen some pressure.  It’s too soon to tell where we are now.