Foreclosures continued to surge in Albuquerque in April, increasing opportunities for buying fixer upper homes in the area.
For investors or owner occupant buyers with experiences and deeper knowledge in repairs, these types of foreclosures will result in more profits as they are priced much lower than distressed properties in move-in conditions.
Based on data from a market research firm, the foreclosure rate in Albuquerque in April was 2.4 percent, up sharply from 1.75 percent in April last year and up slightly from 2.3 in March. This resulted in more repossession homes in Albuquerque.
In contrast, statewide foreclosures slowed down in April. The rate was 2.1 percent, much lower than that of Albuquerque and the 3.2-percent national rate. The number of New Mexico repossession homes in April, based on another report, was 159, down by a stunning 44 percent from 286 in March. All in all, the total repo properties for sale in the first four months of this year statewide was 824 units.
Those looking for fixer upper homes can find them in Albuquerque as this city is where foreclosures are still increasing and nearby areas where homeowners used adjustable rate mortgages and where jobs became scarce during the crisis.
State housing analysts are hoping that the 5.9-percent mortgage default rate statewide would not translate into more foreclosures. Their hopes would come true only if more jobs are created and if more mortgages are modified significantly by lenders.
One positive development in Albuquerque in April was the surge in home sales. As buyers rushed to beat the federal tax credit deadline, closed house sales increased to 678 units, the highest number for the metro area since April 2007. The number of pending sales also surged to 1,271, the most in four years.
More foreclosures and more fixer upper homes are expected in the coming months in Albuquerque as the mortgage default rate spiked to 6.7 percent in April, up from 3.9 percent in April last year.
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