Yesterday's widely publicized Mortgage Monitor Report by Black Knight Financial Services revealed a number of significant statistics about the national picture on the housing market, as well as some data on price appreciation that's of particular interest to New Mexico residents.
The report stated that no less than 425,000 borrowers moved out of negative equity in the first quarter of this year. This means that the national rate for negative equity is now down to just 5.6% (2.8 million borrowers), compared with 29% at the close of 2012. In just a year, the number of borrowers in negative equity has fallen by 13%!
In fact, some 38 million borrowers can now boast having at least 20% equity in their homes, an individual average of $116,000.
While the current overall situation still lags behind the pre-crisis years before 2006, it's really good to see the general direction in which things have been headed for some time now.
More locally, we are of course seeing the effects of better confidence in the Albuquerque area and New Mexico as a whole. This has only been amplified by the very recent announcement that construction is about to begin on a new $35 million, six-story, 160,000 sq.ft. Innovation Centre for UNM at Central and Broadway Downtown, which will include facilities for business startups and the creation of a new high-tech business zone (click here to read more).
Better confidence in jobs and the economy in general has of course been augmented by the continuance of very low mortgage rates, still dropping following the Brexit fallout.
We've enjoyed a great year so far of incredible buyer sentiment, high demand and steadily rising home prices. But where does New Mexico sit in the national picture as far as home prices are concerned?
The Mortgage Monitor Report shows that, with the exception of West Virginia and Missouri, all states are showing annual home price appreciation.
New Mexico has performed quite strongly, in a national context, with an annual appreciation level of 4.6%, the 23rd highest figure.
Another good measure of how things have recovered since the years of recession is whether or not home prices in a state have yet surpassed pre-crisis (2006) peak levels. New Mexico hasn't passed that mark yet, but we can all see that it is heading in the right direction. In fact, there is almost a 50/50 split of states that have/haven't moved ahead of 2006 levels, so we are in good company. Taken as a whole, America is now just 3% off the peak.
Perhaps the key message of these latest statistics is that while the overall picture is far, far better than it was, many parts of the nation, including ours, are still in the recovery phase. The really good news is that all the signs point to further improvements and, all things remaining equal, we should expect to see continued growth.
Why not call us today and talk with us in detail about how to make the most of the current very positive market trends.