Good morning New Mexico!
I have done a lot of research too in regards to the local economy. I have noticed a lot of new construction going up and it appears that about 85% of theÂ REOÂ properties are either Fannie, Freddie, HUD or VA. Interest rates are low, Aimloan.com is offering 3% Â and 0 points with 20% down on owner occupant 30 year lock (http://realtormag.realtor.org/daily-news/2012/12/10/whats-really-behind-housing-recovery#.UMZaFoANdLc.twitter). There is a serious interest that our government has in improving the market. All of the hostile bank takeovers have been accomplished and it appears the money is back in the hands of the powerful. There are still a lot of properties that are vacant andÂ FNMAÂ appears to have a dark shadow inventory (http://www.kcmblog.com/2012/12/14/time-it-takes-to-complete-a-foreclosure-infographic/)Â but the media pundits appear to be pouring on the good cheer which is somewhat believable. I find the foreclosure info graphic referred to in the previous site important because it shows the states like Illinois have a long foreclosure process and they are currently still experiencing a sluggish recovery due to large influx of foreclosures. I have always estimated a turn in the market when renting is less profitable than owning. I have also noticed that there are a healthy number of luxury estates being sold. Overall I would say that it is a good time to buy real estate wisely as a long term investment of 10 years or more although there are always theÂ occasionalÂ good flipping prospects.
My concern is how the government is going manage the fiscal cliff through this balancing act to recover the housing market in relation to maintaining a quasi good national reputation. There is an enormous amount of pressure on the government to cut spending and there is a lot of cutting that can be performed toÂ FNMA'sÂ involvement in the lending sector of our American economy. This is a very dynamic issue in of itself and I don't foresee this creating another downturn in housing prices for another few years at the least.
Christmas and a Happy New Year
PS: My twitter account, www.twitter.com/Arthur_F_Miller, Â has some interesting real estate posts, local news and other tidbits that I find interesting.