The Albuquerque Housing Inventory number is now under 5,600 – that’s down 35% from the peak two years ago. Pending sales, our primary leading indicator, has increased 9 straight months. Historically low mortgage rates are starting to climb. Unemployment has flattened out. Loans are becoming more readily available as requirements ease.
The $/sf rate was $150-200/sf at the market peak but is now down around $100-150/sf and some DISTRESSED BARGAINS can be had easily under $100/sf. These are all indicators of an improving economy. I can’t stress this enough…We’re heading out of the dip. Buy now or you’ll be leaving money on the table!
My Profit Formula and Track Record
There are no magic secrets to my system, but the days of the quick-flip are gone for now. There are a lot of well priced distressed bargains available for home-buyers, but I also advise investors to buy with the intention to hold and rent their properties for 1-2 years until the market recovers enough to resell. Most investors use some version of the following PROFIT formula:
Net profit = Sales price minus closing costs minus fix-up cost minus purchase price minus holding costs.