Albuquerque foreclosures expected to increase rapidly according to an article this morning by Les Christie a staff writer for CNN Money. The report stated the Albuquerque foreclosures rate in Albuquerque is one in 46 homes and represented a 60.32% increase in 2010. Albuquerque foreclosures is ranked the 67th highest rate among the 206 areas reported by RealtyTrac. Zillow reported this morning that 27% of homeowners in America are underwater on their homes. There are several reports with wide ranging estimates of the number of homes in the foreclosure pipeline. I thought it would be interesting to look at the distressed property sales in the Albuquerque metro area. The analysis is based on residential sales of attached and detached homes in 2009 and 2010 and the results are shown in the tables below. You can see the number Albuquerque foreclosures has experienced a significant increase. The important numbers are color coded for easy interpretation, green is a positive trend, red is a negative trend. You will see most of the trends are red or negative.
What does all this mean? Well no one can predict the future and neither can I. It is clear that the housing market is still in trouble and my guess is the market will most likely remain challenging for the remainder of 2011. Albuquerque home prices rose less than 1% from 2009 to 2010 which may be the only good news in this real estate market. In my opinion, home prices in the Albuquerque metro will remain flat or most likely will decrease in 2011. It is my opinion that housing will not recover until employment rates return to historical averages.
|Total Homes Sold||5776||5400||-7%|
|Albuquerque Short Sales||151||385||154%|
Albuquerque foreclosures and short sales made up 8.5% of the total market in 2009. Albuquerque foreclosures and short sales made up 24% of the total market in 2010.
Rio Rancho Foreclosures
|Total Homes Sold||1323||1275||-3.7%|
|Rio Rancho Foreclosures||88||315||261%|
|Rio Rancho Short Sales||53||120||126%|
Rio Rancho foreclosures and short sales made up 10.6% of the total market in 2009. Rio Rancho foreclosures and short sales made up 34% in 2010.