If you've been putting off a much needed kitchen or bathroom remodel, or are living with drafty windows and a leaky roof because you don't think you can afford to fix them, good news! The source of your headache may also hold the key to the solution. If you have equity in your home, you can tap into that money to pay for repairs and upgrades. All you need to do is set up a cash-out refinance. Rates are at historic lows right now and in most cases, you can lock in a lower rate for the new mortgage than you had for the old one. Say, for example, you took out a mortgage for $100,000 at 8.5 percent on January 1, 1990. Your payments are currently $768.91. If you haven't paid down the principal, your balance as of January 1, 2007, would be $72,458.41. When you transfer your debt to a new lender, you will be offered the option of taking cash out. If you secure a new $100,000 loan at the current rate of 5.96 percent, your payments would drop to $596.98 and you'd have a check for $27,541.59 in your pocket.You could do a lot with that money. According to Remodeling Magazine's 2005 Cost vs. Value Report, a mid-range bathroom remodel costs $10,499, a mid-range kitchen remodel runs around $14,913, a new roof costs approximately $11,164 and new windows $9,684. You may still want to wait a while to take on the kitchen and bathroom remodels, but you'd certainly have enough cash on hand to replace the roof and windows.Ready to find out what kind of deal you can qualify for if you refinance? Log on to www.LowLender.com and fill out their quick, free online form. You'll receive quotes back from several lenders interested in doing business with you. Copyright © 2007, ARAnet, inc.
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Monday, February 11, 2008
A Foreclosure Buyer's Guide to Property Repairs
A Foreclosure Buyer's Guide to Property Repairs By Rick Sharga, Vice President of Marketing for RealtyTrac
One of the most overlooked and underestimated expenses involved in the purchase of a home is the cost of repairs. Whether the problem is a defective part in an appliance, a structural problem overlooked by the home inspector or just Murphy’s Law making its presence felt, it’s rarely the case that someone can buy a property and move in without spending at least a few dollars to fix, repair or replace something.
While these types of expenses are generally minimal in new homes and well-kept resale properties, they can be fairly significant when the home in question is a foreclosure property.
As housing prices have escalated over the past few years, more and more people have started to look at foreclosure properties as an affordable alternative to more traditional real estate purchases. It’s not unusual for a buyer to acquire a foreclosure property for 10 – 20% less than full market value, and sometimes at much more dramatic discounts of 40 – 50% or more. And online sources such as RealtyTrac make it easier than ever to find foreclosure properties. But while the savings possible on foreclosure properties are real—and really attractive—there are sometimes hidden costs involved.
One of these hidden costs is the cost of repairs. Foreclosure properties come in all shapes and sizes—from run-down mobile homes to palatial estates overlooking the ocean. But they all have at least one thing in common: their owner was in some state of financial difficulty. Generally, this means that a property in foreclosure may not have been kept up as well as a home buyer might like. It’s nearly a certainty that the typical foreclosure property hasn’t benefited from the type of pre-sales “fix-ups” that many homeowners perform to increase the sales price of their homes. And, as a rule, most foreclosure properties are offered “as is,” leaving it up to the buyer to find anything physically wrong with the property.
Is it worth saving 1% on a home purchase if it means doing extensive repairs? Probably not, for most people. On the other hand, saving $20,000 on the purchase may make it worth your while to invest in home repairs.
Determining the degree of disrepair can be something of a challenge as well. Early in the foreclosure process, when an owner is in Notice of Default (NOD), he or she may not be interested in discussing the sale of the home, making it impossible to do a thorough inspection. At the auction, or Notice of Trustee Sale (NTS) phase, bidders are generally required to buy the property as is, at the courthouse. And once the home has been foreclosed on by the bank, becoming a Real Estate Owned (REO) property, arrangements to inspect the property often need to be made with the lender.
“Foreclosure properties certainly present an attractive bargain, and often the amount of money needed to repair a foreclosure home is inconsequential compared to the possible savings. In fact, many successful investors have made a career buying, rehabbing and then selling these types of properties at a significant profit,” says Jim Saccacio, chief executive officer for RealtyTrac, the leading online marketplace for foreclosure properties. “But buyers do need to be diligent about determining the repair costs that will be incurred after the purchase. A property isn’t really a bargain if the cost of repairs equals or outweighs the savings on the purchase.”Many investors routinely budget 10% of the purchase price of a foreclosure home for repairs. In a typical scenario, where a property with an estimated market value of $150,000 might be sold during the foreclosure process for $120,000—a 20% discount—that would amount to a repair budget of $12,000. In this scenario, the homebuyer still saves $18,000 on the purchase price, and likely increases the value of the home by doing the repairs. Each property, and each situation, is different. But it’s important to note that a difference of 10% in either the discount or repair costs would dramatically alter the financial outcome.
Example 1Estimated Value: $150,00020% Discount: $ 30,000Purchase Price: $120,00010% Repair Budget: $ 12,000Total Cost: $132,000Total Savings: $ 18,000
Example 2Estimated Value: $150,00010% Discount: $ 15,000Purchase Price: $135,00010% Repair Budget: $ 13,500Total Cost: $148,500Total Savings: $ 1,500
Example 3Estimated Value: $150,00020% Discount: $ 30,000Purchase Price: $120,00020% Repair Budget: $ 24,000Total Cost: $144,000Total Savings: $ 6,000
If you’re interested in buying a foreclosure property, the following tips should help ensure that you’ll really get your money’s worth.
1. Physically Inspect the Property It’s imperative to physically inspect the property if at all possible. In some cases, such as auctions, there is little or no possibility of an inspection. However, if you are able to negotiate a deal with the property owner directly during NOD, or pre-foreclosure, it may be possible to set up a walk-through prior to conducting the sale. During the pre-foreclosure period, the owner has a chance to sell the property or pay off the amount owed before the property is sold at public auction or repossessed by the bank. You’ll also be able to set up a physical inspection if you purchase the property directly from the foreclosing bank after the property has been repossessed. You can locate pre-foreclosures, auctions and bank-owned properties by checking with the local recorder’s office or through online services like RealtyTrac, which maintains the nation’s largest database of foreclosure properties.
If you’re not able to physically inspect the inside of the property, assess the property’s condition as much as possible by driving by and looking at the exterior. Add extra padding into your repair budget for unexpected problems. When there is no physical inspection of the interior, most experts recommend that you cap your purchase price at no more than 70% of the property’s estimated market value. You can determine a property’s estimated market value using Comparable Sales, which are available through MLS listing from your real estate agent or online through RealtyTrac.
You should never assume the property is in move-in shape simply because the owner says it is. Even if the home owner is being completely honest, he or she probably isn’t as accurate or objective in assessing the condition of the home as most real estate professionals would be. And an owner may be completely unaware of a major problem with the home. The bottom line is that you need to do your own research and be as thorough as possible. It’s wise to hire a professional inspector to come along with you. The trained eye of a professional inspector is priceless in this case because, regardless of how diligent you are in previewing the property yourself, you will undoubtedly miss items an inspector would catch. Make sure the inspector checks the electrical wiring and moisture levels, as well as asbestos, lead and carbon monoxide levels, especially in homes built prior to the 1990s.
2. Note Every Detail that Needs to be Fixed and the Estimated Cost for Each RepairHave your inspector provide a list of all necessary repairs and, if possible, a ballpark estimate for what each of the repairs might cost. You can also ask the inspector for professional referrals for each individual problem area (roofing, plumbing, etc.). You can check with those professionals for approximate costs. Either way, you’ll know the true cost of the property you are buying.
If you find that your repair list is quite lengthy, you may want to reconsider whether the property is actually worth purchasing. If you’re dealing with home owners in default, you can’t expect them to have the resources to pay for any repairs before they sell the house, but you can use the cost of repairs to negotiate a lower purchase price. That’s why it’s imperative that you accurately document every single repair cost. If you buy a bank-owned property, the bank will have the resources to make repairs, but they will roll their repair costs into the price of the house. And the bank may not be as motivated as you to get the best prices for the necessary repair work. If you want the best bargain, you’re often better off agreeing to buy the house “as is” from the bank.
3. Distinguish Between Cosmetic and Structural RepairsWhile you may be completely correct that the property could use a new coat of paint and some fresh carpeting, your first concerns should be structural. For most people, this can be tough because it’s inherently difficult to look beyond a home’s aesthetic appeal when deciding whether or not to purchase it. Beyond that, most people don’t really know how to determine the structural integrity of a property, unless the defect is so obvious that the home probably shouldn’t even be considered for a purchase. This is yet another reason why it’s imperative to hire the services of a professional inspector: to keep you on task when determining what repairs the property actually needs to make it suitable for living.
Critical Items to Look for in a Home Inspection: Evidence of pests such as termites. Water damage such as flaking or rippled paint, stains or musty smells. Dry rot, a fungus that causes wood to become brittle and crumble. Faulty plumbing such as non-operational taps and toilets or signs of rust in the water. Old and outdated electrical wiring like knob and tube, which are fire hazards.
Especially with older properties, another point to consider is that homes do require a certain amount of ongoing maintenance. It’s expected that any home will at some point need a new roof or appliances. Don’t let this cloud your judgment or turn you off. Instead, focus on signs of necessary repair such as leaks in the roof or other damage. Make sure all appliances are at least in working order and not emitting dangerous fumes. Overall, you should be more concerned with damage than age.
This is not to say that cosmetic repairs shouldn’t be taken into consideration. However, they should be prioritized properly, so that any repairs that make the property safe and livable are taken care of first. Your goal should be to prioritize a list of repairs from most to least crucial. You can use the information for negotiation and keep yourself on track for what should be handled first when you purchase the property.
The bottom line: know what your priorities are. Remember, while that gold-colored crown molding might be an eyesore, replacing it won’t make you sleep any better on a rainy night under a leaky roof.
4. Get as Much Information from the Owner as Possible about the Property’s HistoryAside from the tips mentioned, it’s a good idea to get some history on any home you are thinking about buying. Actually talking with the owner of a property about what has been done to it over time is a great way to learn about potential flaws or concerns to look out for. You should ask what repairs have been made and when, as well as whether any structural changes have been made and whether these changes were permitted under the local building codes. Inquire whether the seller has paperwork to back up repairs that have been made. This information may alleviate suspicions you have about repairs that have supposedly been made and may also be helpful when applying for home insurance for the property.
Of course, you’ll only have the opportunity to talk with the owner if you’re purchasing pre-foreclosure. If you buy at the auction or from the bank, you’re buying from a third party who has no knowledge about the history of the property.
It’s important to estimate the cost of repairs when you purchase a foreclosure property, but your strategy for estimating those costs will vary depending on the status of foreclosure. You’ll usually have the most accurate estimate when you buy directly from the owner during pre-foreclosure because you’ll be able to conduct a complete physical inspection and find out information about the property’s history from the owner.
If you buy a bank-owned property, you’ll still be able to perform a complete physical inspection, but you should allow for a little extra room in your repairs budget because you won’t be able to find out about the property’s history. You’ll need to pad your repairs budget even more if you purchase a property at public auction, where you usually won’t be able to physically inspect the inside of the property.
When you properly account for the repair costs when buying a foreclosure, you’re much more likely to realize a great bargain on your next home or investment property.
One of the most overlooked and underestimated expenses involved in the purchase of a home is the cost of repairs. Whether the problem is a defective part in an appliance, a structural problem overlooked by the home inspector or just Murphy’s Law making its presence felt, it’s rarely the case that someone can buy a property and move in without spending at least a few dollars to fix, repair or replace something.
While these types of expenses are generally minimal in new homes and well-kept resale properties, they can be fairly significant when the home in question is a foreclosure property.
As housing prices have escalated over the past few years, more and more people have started to look at foreclosure properties as an affordable alternative to more traditional real estate purchases. It’s not unusual for a buyer to acquire a foreclosure property for 10 – 20% less than full market value, and sometimes at much more dramatic discounts of 40 – 50% or more. And online sources such as RealtyTrac make it easier than ever to find foreclosure properties. But while the savings possible on foreclosure properties are real—and really attractive—there are sometimes hidden costs involved.
One of these hidden costs is the cost of repairs. Foreclosure properties come in all shapes and sizes—from run-down mobile homes to palatial estates overlooking the ocean. But they all have at least one thing in common: their owner was in some state of financial difficulty. Generally, this means that a property in foreclosure may not have been kept up as well as a home buyer might like. It’s nearly a certainty that the typical foreclosure property hasn’t benefited from the type of pre-sales “fix-ups” that many homeowners perform to increase the sales price of their homes. And, as a rule, most foreclosure properties are offered “as is,” leaving it up to the buyer to find anything physically wrong with the property.
Is it worth saving 1% on a home purchase if it means doing extensive repairs? Probably not, for most people. On the other hand, saving $20,000 on the purchase may make it worth your while to invest in home repairs.
Determining the degree of disrepair can be something of a challenge as well. Early in the foreclosure process, when an owner is in Notice of Default (NOD), he or she may not be interested in discussing the sale of the home, making it impossible to do a thorough inspection. At the auction, or Notice of Trustee Sale (NTS) phase, bidders are generally required to buy the property as is, at the courthouse. And once the home has been foreclosed on by the bank, becoming a Real Estate Owned (REO) property, arrangements to inspect the property often need to be made with the lender.
“Foreclosure properties certainly present an attractive bargain, and often the amount of money needed to repair a foreclosure home is inconsequential compared to the possible savings. In fact, many successful investors have made a career buying, rehabbing and then selling these types of properties at a significant profit,” says Jim Saccacio, chief executive officer for RealtyTrac, the leading online marketplace for foreclosure properties. “But buyers do need to be diligent about determining the repair costs that will be incurred after the purchase. A property isn’t really a bargain if the cost of repairs equals or outweighs the savings on the purchase.”Many investors routinely budget 10% of the purchase price of a foreclosure home for repairs. In a typical scenario, where a property with an estimated market value of $150,000 might be sold during the foreclosure process for $120,000—a 20% discount—that would amount to a repair budget of $12,000. In this scenario, the homebuyer still saves $18,000 on the purchase price, and likely increases the value of the home by doing the repairs. Each property, and each situation, is different. But it’s important to note that a difference of 10% in either the discount or repair costs would dramatically alter the financial outcome.
Example 1Estimated Value: $150,00020% Discount: $ 30,000Purchase Price: $120,00010% Repair Budget: $ 12,000Total Cost: $132,000Total Savings: $ 18,000
Example 2Estimated Value: $150,00010% Discount: $ 15,000Purchase Price: $135,00010% Repair Budget: $ 13,500Total Cost: $148,500Total Savings: $ 1,500
Example 3Estimated Value: $150,00020% Discount: $ 30,000Purchase Price: $120,00020% Repair Budget: $ 24,000Total Cost: $144,000Total Savings: $ 6,000
If you’re interested in buying a foreclosure property, the following tips should help ensure that you’ll really get your money’s worth.
1. Physically Inspect the Property It’s imperative to physically inspect the property if at all possible. In some cases, such as auctions, there is little or no possibility of an inspection. However, if you are able to negotiate a deal with the property owner directly during NOD, or pre-foreclosure, it may be possible to set up a walk-through prior to conducting the sale. During the pre-foreclosure period, the owner has a chance to sell the property or pay off the amount owed before the property is sold at public auction or repossessed by the bank. You’ll also be able to set up a physical inspection if you purchase the property directly from the foreclosing bank after the property has been repossessed. You can locate pre-foreclosures, auctions and bank-owned properties by checking with the local recorder’s office or through online services like RealtyTrac, which maintains the nation’s largest database of foreclosure properties.
If you’re not able to physically inspect the inside of the property, assess the property’s condition as much as possible by driving by and looking at the exterior. Add extra padding into your repair budget for unexpected problems. When there is no physical inspection of the interior, most experts recommend that you cap your purchase price at no more than 70% of the property’s estimated market value. You can determine a property’s estimated market value using Comparable Sales, which are available through MLS listing from your real estate agent or online through RealtyTrac.
You should never assume the property is in move-in shape simply because the owner says it is. Even if the home owner is being completely honest, he or she probably isn’t as accurate or objective in assessing the condition of the home as most real estate professionals would be. And an owner may be completely unaware of a major problem with the home. The bottom line is that you need to do your own research and be as thorough as possible. It’s wise to hire a professional inspector to come along with you. The trained eye of a professional inspector is priceless in this case because, regardless of how diligent you are in previewing the property yourself, you will undoubtedly miss items an inspector would catch. Make sure the inspector checks the electrical wiring and moisture levels, as well as asbestos, lead and carbon monoxide levels, especially in homes built prior to the 1990s.
2. Note Every Detail that Needs to be Fixed and the Estimated Cost for Each RepairHave your inspector provide a list of all necessary repairs and, if possible, a ballpark estimate for what each of the repairs might cost. You can also ask the inspector for professional referrals for each individual problem area (roofing, plumbing, etc.). You can check with those professionals for approximate costs. Either way, you’ll know the true cost of the property you are buying.
If you find that your repair list is quite lengthy, you may want to reconsider whether the property is actually worth purchasing. If you’re dealing with home owners in default, you can’t expect them to have the resources to pay for any repairs before they sell the house, but you can use the cost of repairs to negotiate a lower purchase price. That’s why it’s imperative that you accurately document every single repair cost. If you buy a bank-owned property, the bank will have the resources to make repairs, but they will roll their repair costs into the price of the house. And the bank may not be as motivated as you to get the best prices for the necessary repair work. If you want the best bargain, you’re often better off agreeing to buy the house “as is” from the bank.
3. Distinguish Between Cosmetic and Structural RepairsWhile you may be completely correct that the property could use a new coat of paint and some fresh carpeting, your first concerns should be structural. For most people, this can be tough because it’s inherently difficult to look beyond a home’s aesthetic appeal when deciding whether or not to purchase it. Beyond that, most people don’t really know how to determine the structural integrity of a property, unless the defect is so obvious that the home probably shouldn’t even be considered for a purchase. This is yet another reason why it’s imperative to hire the services of a professional inspector: to keep you on task when determining what repairs the property actually needs to make it suitable for living.
Critical Items to Look for in a Home Inspection: Evidence of pests such as termites. Water damage such as flaking or rippled paint, stains or musty smells. Dry rot, a fungus that causes wood to become brittle and crumble. Faulty plumbing such as non-operational taps and toilets or signs of rust in the water. Old and outdated electrical wiring like knob and tube, which are fire hazards.
Especially with older properties, another point to consider is that homes do require a certain amount of ongoing maintenance. It’s expected that any home will at some point need a new roof or appliances. Don’t let this cloud your judgment or turn you off. Instead, focus on signs of necessary repair such as leaks in the roof or other damage. Make sure all appliances are at least in working order and not emitting dangerous fumes. Overall, you should be more concerned with damage than age.
This is not to say that cosmetic repairs shouldn’t be taken into consideration. However, they should be prioritized properly, so that any repairs that make the property safe and livable are taken care of first. Your goal should be to prioritize a list of repairs from most to least crucial. You can use the information for negotiation and keep yourself on track for what should be handled first when you purchase the property.
The bottom line: know what your priorities are. Remember, while that gold-colored crown molding might be an eyesore, replacing it won’t make you sleep any better on a rainy night under a leaky roof.
4. Get as Much Information from the Owner as Possible about the Property’s HistoryAside from the tips mentioned, it’s a good idea to get some history on any home you are thinking about buying. Actually talking with the owner of a property about what has been done to it over time is a great way to learn about potential flaws or concerns to look out for. You should ask what repairs have been made and when, as well as whether any structural changes have been made and whether these changes were permitted under the local building codes. Inquire whether the seller has paperwork to back up repairs that have been made. This information may alleviate suspicions you have about repairs that have supposedly been made and may also be helpful when applying for home insurance for the property.
Of course, you’ll only have the opportunity to talk with the owner if you’re purchasing pre-foreclosure. If you buy at the auction or from the bank, you’re buying from a third party who has no knowledge about the history of the property.
It’s important to estimate the cost of repairs when you purchase a foreclosure property, but your strategy for estimating those costs will vary depending on the status of foreclosure. You’ll usually have the most accurate estimate when you buy directly from the owner during pre-foreclosure because you’ll be able to conduct a complete physical inspection and find out information about the property’s history from the owner.
If you buy a bank-owned property, you’ll still be able to perform a complete physical inspection, but you should allow for a little extra room in your repairs budget because you won’t be able to find out about the property’s history. You’ll need to pad your repairs budget even more if you purchase a property at public auction, where you usually won’t be able to physically inspect the inside of the property.
When you properly account for the repair costs when buying a foreclosure, you’re much more likely to realize a great bargain on your next home or investment property.
Wednesday, January 30, 2008
New Mexico defies U.S. numbers in Foreclosures
While foreclosure activity in the U.S. was up 75 percent in 2007, for a total of 2,202,295 foreclosure filings, from those of 2006, foreclosure filings in New Mexico were down 26 percent from 2006, with 3,893 filings.
The figures come from RealtyTrac's year-end data compiled in its 2007 U.S. Foreclosure Market Report. RealtyTrac provides a national database and reports of real estate statistics. It was founded in 1996.
The report defines foreclosure filings as default notices, auction sale notices and bank repossessions.
More than 1 percent of U.S. households were in some stage of foreclosure in 2007, up from about half a percent in 2006.
Nevada had the nation's highest foreclosure rate, with 3.4 percent of households in some stage of foreclosure, which was three times the national average. California had the highest number of filings, with 481,392.
Colorado and Arizona were among the top 10 in posted foreclosure rates. Texas, Colorado, Arizona and Nevada were among the top 10 in total foreclosures filed.
With its 26 percent decrease in foreclosure filings, New Mexico joins just four other states, Oklahoma, Pennsylvania, South Carolina and Utah, with foreclosure numbers that were lower than the year previous.
The figures come from RealtyTrac's year-end data compiled in its 2007 U.S. Foreclosure Market Report. RealtyTrac provides a national database and reports of real estate statistics. It was founded in 1996.
The report defines foreclosure filings as default notices, auction sale notices and bank repossessions.
More than 1 percent of U.S. households were in some stage of foreclosure in 2007, up from about half a percent in 2006.
Nevada had the nation's highest foreclosure rate, with 3.4 percent of households in some stage of foreclosure, which was three times the national average. California had the highest number of filings, with 481,392.
Colorado and Arizona were among the top 10 in posted foreclosure rates. Texas, Colorado, Arizona and Nevada were among the top 10 in total foreclosures filed.
With its 26 percent decrease in foreclosure filings, New Mexico joins just four other states, Oklahoma, Pennsylvania, South Carolina and Utah, with foreclosure numbers that were lower than the year previous.
Sunday, January 27, 2008
New Home Permits slide by 60%
Permits for the construction of new homes in the Albuquerque metro area declined nearly 60 percent in December 2007 compared to the same month in 2006, according to research firm DataTraq.
There were 390 permits issued in December 2006. The 161 permits issued this past December were down by just nine permits from the previous month. Although home building traditionally slows during the colder weather months, the decline in the number of permits issued is significantly lower year-to-year.
DR Horton Homes was issued the most permits in 2007, with 586. Following Horton as the builders with the most permit activity last year were: Pulte Homes, Centex Homes and KB Home, each of which had more than 300 permits issued for the construction of new homes.
The figures come from DataTraq's January Albuquerque New Housing Market Letter. DataTraq supplies housing permit data to several homebuilder organizations in New Mexico, including the Home Builders Association of Central New Mexico.
There were 390 permits issued in December 2006. The 161 permits issued this past December were down by just nine permits from the previous month. Although home building traditionally slows during the colder weather months, the decline in the number of permits issued is significantly lower year-to-year.
DR Horton Homes was issued the most permits in 2007, with 586. Following Horton as the builders with the most permit activity last year were: Pulte Homes, Centex Homes and KB Home, each of which had more than 300 permits issued for the construction of new homes.
The figures come from DataTraq's January Albuquerque New Housing Market Letter. DataTraq supplies housing permit data to several homebuilder organizations in New Mexico, including the Home Builders Association of Central New Mexico.
Saturday, January 26, 2008
Balloon Fiesta & NM Ski Resorts
http://www.balloonfiesta.com/ Albuquerque International Balloon Fiesta
http://www.skinewmexico.com/ Ski New Mexico
http://www.skinewmexico.com/ Ski New Mexico
Friday, January 25, 2008
ABQ named one of ten retail metro areas to watch
Albuquerque was named one of 10 retail metro areas to watch in Sperry Van Ness' just-released retail edition of its "2007 Top 10 Markets to Watch." U.S. cities like New York, Miami and Los Angeles did not meet key growth criteria to make the list this year. Cities in the Mid-Atlantic and Southwest regions had a strong showing. Other Southwest cities that made the list are Las Vegas (Nev.), Phoenix, Tucson, Dallas/Fort Worth and Houston.
The annual report by the Irvine, Calif.-based commercial real estate firm focuses on future trends rather than current data to forcast commercial real estate growth.
"We have a weekly sales meeting by conference call with brokers coast-to-coast, so everybody gets a pretty good idea of what's going on around the country," says Larry Ilfeld, a senior broker with one of Sperry Van Ness' four Albuquerque/Rio Rancho area offices.
Half of all new jobs in New Mexico will be based in Albuquerque in 2007, says the report, accounting for a 2.2 percent employment growth in the city, which should be attractive to anchor type tenants (typically the larger retailers operating in most shopping centers, like grocery or drug stores, department or discount shops).
The report foresees 1.3 percent retail construction growth through 2007, a continued vacancy rate of less than 10 percent and, because of the demand for space, a 2 percent increase in rents.
"If you look at what had been the amount of retail here two or three years ago compared to the population and job growth, the area didn't have enough retail to support the population," says Ilfeld. "But with the new retail that's been shooting up, when the developers do those big deals, they obviously do the market research."
Ilfeld says that while some markets around the country have become sluggish, "Albuquerque is not one of those. I think it has the underpinnings for continued growth."
The annual report by the Irvine, Calif.-based commercial real estate firm focuses on future trends rather than current data to forcast commercial real estate growth.
"We have a weekly sales meeting by conference call with brokers coast-to-coast, so everybody gets a pretty good idea of what's going on around the country," says Larry Ilfeld, a senior broker with one of Sperry Van Ness' four Albuquerque/Rio Rancho area offices.
Half of all new jobs in New Mexico will be based in Albuquerque in 2007, says the report, accounting for a 2.2 percent employment growth in the city, which should be attractive to anchor type tenants (typically the larger retailers operating in most shopping centers, like grocery or drug stores, department or discount shops).
The report foresees 1.3 percent retail construction growth through 2007, a continued vacancy rate of less than 10 percent and, because of the demand for space, a 2 percent increase in rents.
"If you look at what had been the amount of retail here two or three years ago compared to the population and job growth, the area didn't have enough retail to support the population," says Ilfeld. "But with the new retail that's been shooting up, when the developers do those big deals, they obviously do the market research."
Ilfeld says that while some markets around the country have become sluggish, "Albuquerque is not one of those. I think it has the underpinnings for continued growth."
Albuquerque - Recent Rankings
Albuquerque, New Mexico Recent Rankings
• New Mexico Ranked 4th in Small Tech Industry, Small Times Magazine, October 2006
• Albuquerque Named Among Best Cities for Relocating Singles, Primacy Relocation & Worldwide ERC, October 2006
• Albuquerque Ranked High for Data Centers, The Boyd Company, September 2006
• Albuquerque Ranked 3rd Best Metro for Hispanics, Hispanic Magazine, July 2006
• Albuquerque Named One of World's Five Best Vacations, Orbitz, July 2006
• New Mexico Only 1 of 3 States to Receive an "A" in Entrepreneurial Activity, Edward Lowe Foundation, July 2006
• Old Spice Ranks America's Sweatiest Cities; Albuquerque Not at the Top of the List, Old Spice, June 2006
• Albuquerque 39th Fastest-Growing City in the Nation, Census Bureau, June 2006
• Albuquerque Ranked Among Top 10 of America's Brainiest Cities, BizJournals.com, June 2006
• Albuquerque Ranks 8th Best for Lifestyle Options for Relocating Families, Primacy Relocation & Worldwide ERC, May 2006
• Albuquerque Best in Nation for Business and Careers, Forbes, May 2006
• Albuquerque Named a Five-Star Knowledge Worker Metro, Expansion Management, May 2006
• Albuquerque Ranked 3rd Smartest City to Live, Kiplinger's Personal Finance, May 2006
• Albuquerque One of the Top Metros in U.S. Overall for Public Schools, Expansion Management, May 2006
• Albuquerque Ranked 8th Mid-Size Metro in Nation for Top Public Schools, Expansion Management, May 2006
• Albuquerque Ranked #2 Arts Destination, AmericanStyle Magazine, April 2006
• New Mexico Has Sixth Highest Concentration of Tech Workers in the Nation, American Electronics Association, April 2006
• New Mexico 6th in Generation of Wind Power, American Wind Energy Association, March 2006
• Albuquerque Ranked on Milken List of Top 200 Best Performing Cities, Milken Institute, March 2006
• Albuquerque One of America's 50 Hottest Cities, Expansion Management, January 2006
• USA Today Picks Albuquerque as One of the Top 6 Destinations to Travel for 2006, USA Today, January 2006
• Albuquerque Named as the 13th Fittest City in Nation, Men's Fitness, January 2006
• Yahoo! Names Albuquerque Among Cities With Good Work and Life Balance, Yahoo!, October 2005
• Albuquerque Featured as Best Community for Young People, Newsweek, October 2005
• Albuquerque Named 5th Best Real Estate Market and 4th Lowest City for Purchase Costs, Expansion Management, August 2005
• NM Ranked 3rd Best State for Cost of Labor and 5th Best State for Manufacturing Growth, Business Facilities, July 2005
• Albuquerque Inexpensive for Corporate Office Location (PDF), Expansion Management, July 2005
• Albuquerque Featured on MSN as a Best City to Start a Business or Career, MSN, May 2005
• Forbes Magazine Ranks Albuquerque as 5th Best Metro Overall and Lowest Cost City for Doing Business, Forbes, May 2005
• Albuquerque 11th Best City for Relocating Families (PDF)
• National Magazine Names Albuquerque a Five-Star Knowledge Worker Metro, Expansion Management, May 2005
• Albuquerque Ranked 2nd in Poll of Favorite Art Destinations, AmericanStyle Magazine, April 2005
• New Mexico Ranks 3rd on Top 10 Small Tech Hot Spots List for the Third Consecutive Year, Small Times Magazine, March 2005
• Albuquerque One of Top MSAs in the Nation That Saw Its Count of Businesses Grow, infoUSA, March 2005
• New Mexico 6th in Nation for Generation of Wind Power, American Wind Energy Association, March 2005
• Albuquerque International Sunport Voted One of the Top Five U.S. Airports for Wireless Access, Microsoft Small Business Center, February 2005
• Albuquerque Ranks 20th on List of Top Metro Areas for Job Growth and High Tech Output, Business Development Magazine, February 2005
• New Mexico Ranked 5th in Nation for Economic Development from Nanotechnology, Lux Research, January 2005
• Albuquerque Named 10th Fittest City, Men's Fitness Magazine, January 2005
• Albuquerque Ranks 7th on America's 50 Hottest Cities List, Expansion Management, January 2005
• New Mexico Ranked 4th in Small Tech Industry, Small Times Magazine, October 2006
• Albuquerque Named Among Best Cities for Relocating Singles, Primacy Relocation & Worldwide ERC, October 2006
• Albuquerque Ranked High for Data Centers, The Boyd Company, September 2006
• Albuquerque Ranked 3rd Best Metro for Hispanics, Hispanic Magazine, July 2006
• Albuquerque Named One of World's Five Best Vacations, Orbitz, July 2006
• New Mexico Only 1 of 3 States to Receive an "A" in Entrepreneurial Activity, Edward Lowe Foundation, July 2006
• Old Spice Ranks America's Sweatiest Cities; Albuquerque Not at the Top of the List, Old Spice, June 2006
• Albuquerque 39th Fastest-Growing City in the Nation, Census Bureau, June 2006
• Albuquerque Ranked Among Top 10 of America's Brainiest Cities, BizJournals.com, June 2006
• Albuquerque Ranks 8th Best for Lifestyle Options for Relocating Families, Primacy Relocation & Worldwide ERC, May 2006
• Albuquerque Best in Nation for Business and Careers, Forbes, May 2006
• Albuquerque Named a Five-Star Knowledge Worker Metro, Expansion Management, May 2006
• Albuquerque Ranked 3rd Smartest City to Live, Kiplinger's Personal Finance, May 2006
• Albuquerque One of the Top Metros in U.S. Overall for Public Schools, Expansion Management, May 2006
• Albuquerque Ranked 8th Mid-Size Metro in Nation for Top Public Schools, Expansion Management, May 2006
• Albuquerque Ranked #2 Arts Destination, AmericanStyle Magazine, April 2006
• New Mexico Has Sixth Highest Concentration of Tech Workers in the Nation, American Electronics Association, April 2006
• New Mexico 6th in Generation of Wind Power, American Wind Energy Association, March 2006
• Albuquerque Ranked on Milken List of Top 200 Best Performing Cities, Milken Institute, March 2006
• Albuquerque One of America's 50 Hottest Cities, Expansion Management, January 2006
• USA Today Picks Albuquerque as One of the Top 6 Destinations to Travel for 2006, USA Today, January 2006
• Albuquerque Named as the 13th Fittest City in Nation, Men's Fitness, January 2006
• Yahoo! Names Albuquerque Among Cities With Good Work and Life Balance, Yahoo!, October 2005
• Albuquerque Featured as Best Community for Young People, Newsweek, October 2005
• Albuquerque Named 5th Best Real Estate Market and 4th Lowest City for Purchase Costs, Expansion Management, August 2005
• NM Ranked 3rd Best State for Cost of Labor and 5th Best State for Manufacturing Growth, Business Facilities, July 2005
• Albuquerque Inexpensive for Corporate Office Location (PDF), Expansion Management, July 2005
• Albuquerque Featured on MSN as a Best City to Start a Business or Career, MSN, May 2005
• Forbes Magazine Ranks Albuquerque as 5th Best Metro Overall and Lowest Cost City for Doing Business, Forbes, May 2005
• Albuquerque 11th Best City for Relocating Families (PDF)
• National Magazine Names Albuquerque a Five-Star Knowledge Worker Metro, Expansion Management, May 2005
• Albuquerque Ranked 2nd in Poll of Favorite Art Destinations, AmericanStyle Magazine, April 2005
• New Mexico Ranks 3rd on Top 10 Small Tech Hot Spots List for the Third Consecutive Year, Small Times Magazine, March 2005
• Albuquerque One of Top MSAs in the Nation That Saw Its Count of Businesses Grow, infoUSA, March 2005
• New Mexico 6th in Nation for Generation of Wind Power, American Wind Energy Association, March 2005
• Albuquerque International Sunport Voted One of the Top Five U.S. Airports for Wireless Access, Microsoft Small Business Center, February 2005
• Albuquerque Ranks 20th on List of Top Metro Areas for Job Growth and High Tech Output, Business Development Magazine, February 2005
• New Mexico Ranked 5th in Nation for Economic Development from Nanotechnology, Lux Research, January 2005
• Albuquerque Named 10th Fittest City, Men's Fitness Magazine, January 2005
• Albuquerque Ranks 7th on America's 50 Hottest Cities List, Expansion Management, January 2005
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