The Downturn Contains The Seeds Of Recovery
It’s Friday desk clearing time for this blogger. “Prices in the majority of Sydney suburbs were down compared with three years ago. The inner-west suburb of Homebush West, and Casula in Sydney’s south-west were both down 42 per cent compared with early 2004. Liverpool, Monterey, North Parramatta, Fairfield, Hinchinbrook and Cabramatta were all down by more than 25 per cent.”
“John Dabassis recently sold his Sylvania Waters riverside mansion for $300,000 less than he wanted. ‘We all know the market is down … but eventually an offer came in and that’s what you are selling it for. It’s a decision you make,’ he said.”
“The (Irish) construction economist, Jerome Casey has warned that the current downturn in the housing market could become a housing bust unless competitive issues in the economy are addressed through Government policy. Mr Casey says structural difficulties in the economy, in relation to competitiveness, energy and healthcare, have been unmasked by the tailing off in the housing boom.”
“For some, the visit and all its staged hoopla felt as unlikely in this city as Mr. Trump’s gleaming $850 million, 1,392-foot tall hotel and condominium tower, which has shot out of the ground in recent months complete with banners proclaiming his name along the edge of the Chicago River.”
“‘We want to give people really good deals,’ he said, as gusts of wind buffeted his trademark hair.”
“Some pondered what so many changes ahead might mean for the city’s skyline. ‘Well, it’s shiny,’ Doug Strubel said, gazing over at the building. Then, as an afterthought, he added, ‘I guess this is what a television game show gets you.’”
“North Carolina saw 45,512 foreclosures in 2006. Take a look around your neighborhood or out your car windows on your way to work or school. Chances are you’ll see quite a few homes with ‘for sale’ signs spiked in the front lawn, some of which have been there for a year.”
“The market is seemingly glutted while new construction continues and many homeowners are unable to maintain their current mortgage payments.”
“In a presentation, hedge fund president Bill Ackman focused on the shakeout in the subprime mortgage sector and which companies and investors might be hurt most by the trend.”
“Ambac has $18.7 billion in subprime exposure through guarantees of MBS or CDOs, according to Ackman’s presentation. That’s a little over 284% of the company’s statutory capital, he noted. The customers of Ambac and MBIA believe they have transferred credit risk to highly-rated guarantors.”
“But when subprime mortgage losses hit, these guarantees ‘will have no value’ and the policyholders will be ‘left holding the bag,’ Ackman’s presentation concluded.”
“More than 2,100 people who own houses, townhouses, condominiums or co-op units were surveyed between April 26 and 30 by a market research firm. The survey found that 65 percent of homeowners believe that, given the current state of the real estate market, there are many advantages to renting.”
“‘In the past, people who own their homes have generally seen renting an apartment as a stepping stone to homeownership. That phenomenon has by no means disappeared, but, across the nation, we’re seeing more and more consumers opting to rent instead of own,’ says Douglas Culkin, NAA president.”
“One of the biggest astonishments to me has been how the Federal Reserve has played down the residential sector slowdown and its possible impact on the entire economy. Even when it was obvious that the homebuying binge had burst, Fed economists and officials were saying not to worry.”
“Local Fed economists are sometimes more direct in their assessment. Last week, Mine Yucel, senior economist at the Federal Reserve Bank of Dallas said that ‘clearly, this housing bust is having some effect on the national economy.’”
“The inconsistent housing market in Oregons’ Rogue Valley has left some homeowners in a very tough situation. The Josephine County Recorder’s Office has reported 111 notices of mortgage delinquency in the first quarter of 2007. Those numbers are up from just 34 notices last year and 36 in 2005.”
“‘Well it’s a nation wide phenomenon and if it wasn’t a nation wide phenomenon we wouldn’t be feeling it as bad as we are now,’ said broker Mike Burns.”
“Could something good come from the Treasure Valley’s housing slump? Shaun Tracy thinks so. All of 2005 and the first six months of 2006 were boom times for (Idaho) home builders, who were putting up homes at a record pace.”
“Some say the downturn contains the seeds of recovery. ‘We don’t need a turnaround,’ Tracy said ‘The last two years were an aberration.’”
“For now, though, sellers find their hopes and patience tested. Among the homes that have failed to find a buyer is one purchased and newly remodeled by Rod Palmer of Golden Brook Properties, a company that buys, renovates and resells homes.”
“Palmer dropped the asking price on a home in Meridian by $12,000 to $238,000. Asked if the price cut lured buyers, he said, ‘Not really,’ conceding that another cut could be in the offing.”
This week showed the spring bounce is officially a thud! My thanks to those who support and donate to this blog. Please check back this weekend for news, your market observations and topics.
Herd psychology. What a wonderful thing from the primordial swarm. Could always count on it to drive things either way.
This blog is the only thing that has kept me sane — and gratefully renting. Thanks!
“spring bounce is officially a thud!”
Talked to several business contacts and REIC members are crying about bills for services, literally stating they are broke. LMAO…
Remember this:
“I just don’t think we have what it takes to prick the bubble… I don’t think prices are going to fall, and I don’t think they’re even going to be flat. ”
- Diane C. Swonk, chief economist at Mesirow Financial in Chicago, New York Times, Trading Places: Real Estate Instead of Dot-Coms, 3/25/05
“South Florida,” he said, ”is working off of a totally new economic model than any of us have ever experienced in the past” according to a realtor who predicted that a land shortage will support higher prices indefinitely.”
- New York Times, Trading Places: Real Estate Instead of Dot-Coms, 3/25/05
I started to squirrel more money than usual away in 2003. Thought about 2 years but now have enough to live for 6 (including 6% inflation) with no income. Then I found this blog. Thanks all.
Thanks Ben. This HBB blog is only one of the 3 or 4 I read daily like Little Green Footballs, iTulip, Anti-Strib. With these you can gain some semblance of the world and what it is becoming without the filter of mainstream media, pressure groups and trade associations.
Things are rapidly unraveling is the consensus I have been reading with some hope on the future and a different way of life.
1) Reminds me of my favorite bubble quote: “Mr. Trump wouldn’t put his name on a project unless he knew it would be a good investment.”
2) The Donald should consider shaving his head. Would be a lot less maintenance, especially in the wind.
3) “This week showed the spring bounce is officially a thud!” Alas, not on the SF Peninsula. If anything prices for desirable properties are increasing. The convergence of rents and property values seems to be driven more by increasing rents than decreasing property values.
Trump was nearly bankrupt previously. maybe this time he wont be so luckly
Trump started with $20 million of his father’s money.
He’s nothing more than an arrogant big mouth.
“Mr Casey says structural difficulties in the economy, in relation to competitiveness, energy and healthcare, have been unmasked by the tailing off in the housing boom.”
“unmasked”… I like that. The greater unmasking is yet to come. Stay tuned.
I’m waiting for the un-diapering.
Any for anybody who changed a smelly diaper you usually know what’s waiting…
It is interesting to see how far prices fell in Australia since their bubble burst. Not to worry it is different here. I wonder if the 42% quoted is the actual average price drop, or the “median” drop?
Remember when Australia was used as evidence that the bubble wouldn’t collapse?
The Sydney Morning Herald has handpicked their data here. All of those suburbs are very ordinary places to live, had huge price run-ups, and a lot of overbuilding of apartments (which in Oz can also mean condo’s, we call them “strata-title apartments”).
In general, the RE market in Australia is still bouyant.
The Australian dollar is up around 49% in the last 5 years, now 82 cents vs. 55 cents. So the US dollar value of the Sydney house is almost the same as it was. hmm.
Try 48 cents in 2001. Trust me, I was buying US$ at that rate then for my holiday in US/Canada.
Can someone tell me what the lag time is between US and Australian housing market?
‘ Even when it was obvious that the homebuying binge had burst, Fed economists and officials were saying not to worry.”
- On Tuesday there was an interview with one of the Fed Govenors on PBS .. he was not worried and remarked that as long as the ‘Consumer’ is spending we should be fine. These guys are totally out of touch with the man on street.
Exactly.
First the Street, and now the Fed, have revealed they are completely oblivious to Brazil America.
My gosh - they must be blind - for it’s right in front of them.
[as well, an acknowledgement to Russ Winter for using one of his terms once again...]
Big as the slowdown in the RE market is already, this could be the proverbial straw that breaks the camel’s back.
thehttp://www.usnews.com/usnews/biztech/capitalcommerce/070524/free_trade_under_siege.htm
A trade war with China, that just what we need…
Yummy….Walmart will finally be cutoff and become a glorified farm store again finally.
mid may was 799,000
6/10/06 was 836,471
6/14/06 was 840,935
6/17/06 was 846,120
6/20/06 was 850,317
6/22/06 was 855,892
6/24/06 was 860,647
6/29/06 was 866,037
7/01/06 was 858,675
7/09/06 was 870,854
7/11/06 was 882,239
7/13/06 was 886,055
7/14/06 was 890,896
7/18/06 was 895,022
7/21/06 was 900,000
7/25/06 was 905,170
7/28/06 was 910,001
8/01/06 was 903,718
8/12/06 was 915,336
8/19/06 was 920,755
8/26/06 was 925,176
8/29/06 was 951,242
9/15/06 was 955,352
12/1/06 was 925,170
12/2/06 was 915,258
1/01/07 was 857,760
1/20/07 was 900,302
2/14/07 was 932,055
4/21/07 was 1,148,456
4/27/07 was 1,171,189
5/11/07 was 1,192,290
5/18/08 was 1,202,413
5/25/08 today 1,238,121 active homes national wide
http://www.ziprealty.com/maps/index.jsp?usage=search&cKey=74rbwvlk
Yes, these numbers might contain added states or who knows what. One thing is certain. They keep getting higher except in zips 90274 and 90275 which is a mystery to me.
Like I commented last week, the numbers I’ve been watching, which have no added regions, have been rocketing up. I’m still calling for June to be the inventory tsunami.
Pass the popcorn, Neil.
NNV, I found a graph that has the inventory numbers over the last 25 years, see my most below.
while these numbers appear to be high, 4.2 million is a lot higher than a miserly 1.2 million above. see below. If all these home were lined up side by side they would reach from New York City to Beijing. Just a guess on my part.
Existing home sales fell 2.6% in April to 5.99 million units on a seasonally adjusted annual basis, the slowest sales pace in four years, the National Association of Realtors said. The fall in April sales was larger than expected. Economists had forecast that sales would dip a slight 0.2% to 6.11 million units. On a year-on-year basis, existing home sales were down 10.7%. The median national sales price was down 0.8% year on year to $220,900 in April. Inventories of unsold homes rose 10.4% to 4.20 million, a 8.4 month supply, the highest in 15 years.
What is the discrepancy between the two numbers?
if 4,200,000 homes are truly for sale and each home was on a 70 foot wide lot that would be 294000000 feet divided by 5280 is 55681.8181818182 that’s way past Beijing if each was lined home was next to another. It would a line of homes stretching from new york city going west, past Beijing and back to new york and around once again and then some. This proves nothing except 4.2 million homes is a lot of US homes for sale.
This number is somewhat misleading as new geographical areas are added, increasing the total number of inventory viewable to ziprealty.
A better graph can be found here (from Calculated Risk), pretty close to parabolic:
http://bp2.blogger.com/_pMscxxELHEg/RlcHoEEpiGI/AAAAAAAAAis/5CbtU26DGRQ/s1600-h/Existing+Inventory+Mearures+April07.jpg
That looks to me like the inventory correction of a lifetime…
Interesting how the inventory declined from 91 to 94 while prices in the West continued to decline. Suggesting once again that we are in early innings of the price decline.
Exactly. And what happens if/when sales go down another 20%? Ouch
Wait. Nevermind. There is no national bubble
and this in one of the stongest export economies in the world
Sydney’s south-west were both down 42 per cent compared with early 2004. Liverpool, Monterey, North Parramatta, Fairfield, Hinchinbrook and Cabramatta were all down by more than 25 per cent.”
Yes but I thought they only export raw materials. Guatemala probably has an awesome trade surplus (Does United Fruit Company still own them?) Thank God that can never happen in the mighty USA.
I will admit Pontiac GTO’s (left hand drive Monaro’s) were pretty raw . . .
“One of the biggest astonishments to me has been how the Federal Reserve has played down the residential sector slowdown and its possible impact on the entire economy.”
That has been one of my biggest astonishments, and a source of concern, as I have assumed the Fed realized how bad the bust was and had some bailout plan in the works or already in place behind the scenes to right the market. But in light of this post, I realize that it is also possible the Fed simply has no clue about the scope of the problem.
“Last fall, Mr. Greenspan was even predicting the worst of the housing slowdown was over. Hardly.”
Thanks for the reminder on that failed prediction! I had completely forgotton that AG tried his hand at bottom-calling last fall…
We need a way to easily see past comments from these jokers.
Yes, I’m definitely in favor of a “Hall of Shame” of sorts.
Greenspan is calibrated about 3 years early from the 1996 irrational exuberance call on stocks.
“Local Fed economists are sometimes more direct in their assessment. Last week, Mine Yucel, senior economist at the Federal Reserve Bank of Dallas said that ‘clearly, this housing bust is having some effect on the national economy.’”
I can’t recall Ben Bernanke referring to the housing situation as a bust; in fact, the only thing I recall him saying on the topic recently is “subprime is contained.” There appears to be dissension in the ranks at the Dallas Fed.
The Chairman of the Fed is not allowed to say “bust” except when speaking of historical figures rendered in stone. Ben Bernanke has talked about continued weakness in housing being a major factor keeping growth low, now and in the near future expected to be around two percent. Having recently come from academia it isn’t reasonable to expect him to have mastered the art of speaking only in short and consistent sound bites, so one needs to take in more of what he says in order to understand. Fortunately there are transcripts available.
I would not assume that their comments mean they don’t realize how bad the bust is and will be.
Instead, I would chalk this up to their usual pattern of trying to “talk the market off the ledge”. One of the things I’ve learned in watching the Fed is that their statements are carefully scripted for effect. In cases where they want to tighten, but don’t want to change the rate, they’ll “talk tighten” with some hawkish comments, to have the same effect without changing the FFR.
The Fed seems convinced that there is no real economy out there — just a bunch of easily-manipulated fools running around with unlimited budgets who can be psychologically herded into doing the Fed’s bidding through the use of sufficiently obfuscatory language and well-placed helicopter drops.
The fed? Hell, I’m convinced there is no real economy, just a bunch of easily manipulated fools.
That is not consistent. The Fed has been sounding serious alarms about the budget, about our personal savings rate or lack thereof, the impending explosion of entitlements and more. Your statement is pouty nonsense that assigns to the Fed powers it simply does not have. Why would the Fed be inflation averse to any degree if they believed this? Your assertion would have the Fed lowering rates again now in order to boost the economy, but there is no sign of that. These bad arguments don’t help your cause.
GetStucco is famous for not including appropriate emoticons when he is overstating his case to make a point.
Like Darrell, I’m beginning to wonder if there really is a real economy out here
I had a bad week dealing with two companies that are so dysfunctional that I wonder why they are still in business. 
The Fed governor, like the President, is just a simple civil servant, with no more powers than the guy behind the desk at the DMV. There are no laws that prevent this putz from saying, “We’re going back to the days where people make an honest living and save cash in savings accouts and make 9% interest, and we’re moving away from the credit binge circle jerk we’ve been engaged in for the last 30 years, and we’ll get there in incremental steps in the next 4 years.” Now who here would be opposed to that?
“The market is seemingly glutted while new construction continues and many homeowners are unable to maintain their current mortgage payments.”
Despite the claim of some pundits that ‘all real estate is local,’ this description of the North Carolina housing market could easily pass off as a description of the San Diego housing market.
and NC is probably has highest import rate of wealthy Yankees as FL is now pooh poohed
And Phoenix….
“Some say the downturn contains the seeds of recovery.”
I say the downturn contains the seeds of a protracted bust.
But they’re actually correct–a good long protracted bust WILL sow the seeds of recovery, by pushing the market back into equilibrium with fundamentals! The only thing they’re wrong about is by assuming that will happen soon or without significant blood-letting.
Spot on. It is all about timing. I tend to think that 2012 would be the earliest possible recovery, and I expect the REIC bottom callers to keep making failed predictions on a regular basis right up until the day the market actually bottoms out.
You think there is a possibility rents will go up far more than prices will come down, percent wise. We are probably not going back to 2000 prices. At the same time rents will probably take off. In essence, the next leg down in quality of life for America. Everything is expensive and people just learn to live with less, and work a lot more. Actually not much different than a lot of 3rd world countries.
I hope I am wrong.
Personally, I don’t think so. There’s just too much inventory. Plus when people lose their homes they can (try to) move in with relatives or friends that are on better financial footing.
When I lived in CO, the city I was in hadn’t seen a huge run-up in prices but there was still plenty of overbuilding and easy credit. The rental market was so soft that 2005 rental prices were lower than 2002 (I found an old flyer for my building). In 2006 they still weren’t up to the 2002 levels, though my rent did increase by $10.
I agree for the same reasons.
Plus, if rents skyrocket, it’ll be recognized as an opportunity to make money and you’ll see more building but in the form of apartments.
“Palmer dropped the asking price on a home in Meridian by $12,000 to $238,000. Asked if the price cut lured buyers, he said, ‘Not really,’ conceding that another cut could be in the offing.”
You want to catch a big fish? Get rid of the bobber and fish straight off the bottom!!
Deflation, like what happend in Japan?
Wouldn’t bother me in the least. A little deflation is good for the soul and ultimately, the pocketbook. Japan survived it, so can we.
Of course we’ll survive, but I doubt it’ll be as nice and orderly as has been Japan’s experience.
Japan wasn’t a debtor nation and had a massive savings rate.
Exactly, Exactly, Exactly…
Deflation kills investment and favors the old over the young. It won’t take much deflation to rip this society apart. It has happened before, but it will be worse this time because we have so little savings.
Normally, I would agree, but not this time.
House price inflation has already massively favoured the old over the young. Deflation would redress the balance a little.
After all, even the most overstretched top-of-the-bubble young buyer can walk away and still have time to build up their wealth. An old person that gets burned or wiped out is in real trouble.
Reactions from Economists at WSJ Online:
http://tinyurl.com/36ckst
A few of them:
great comments
“The customers of Ambac and MBIA believe they have transferred credit risk to highly-rated guarantors. But when subprime mortgage losses hit, these guarantees ‘will have no value’ and the policyholders will be ‘left holding the bag,’”
Nightmare. Mr. and Mrs. mainstreet who had nothing to do with any of this take a big financial hit. By higher taxes to cover pension fund losses. By higher premiums to cover insurance losses. In GICs, if the insurance companies are sunk by these dealings. Etc.
Then the future windows and orphans will be taxed to bail out today’s.
this won’t end well, now where’d I put my popcorn?
Here’s a little goodie for the weekend to celebrate this week’s news:
Really dont mind if you sit this one out.
My words but a whisper — your debt a work-out.
The news makes you feel but it cant make you think.
Your score’s in the gutter — your price in the drink.
So you ride yourselves over the fields and
You make all your Serinesque deals and
Your loan men don’t know how it feels to be thick as a brick.
And the sand-castle values are all swept away in
The tidal destruction
The moral melee.
The seismic retreat rings the close of play as the last wave uncovers
The unsuited prey.
But your hummers are worn at the wheels and
Your credit card’s starting to squeal and
Your loan men dont know how it feels to be thick as a brick.
A little Jethro Tull updated. Cool.
Do you take requests, sm landlord? See, there was a little intergenerational bashing over in the Bits Bucket or Weekend Topics thread, I forget which. But I thought, in order to provide a little comic relief for the GenXers who think boomers caused the bubble and would like to euthanize us, you could maybe do some updated lyrics to “Blame it on the Bossa Nova”. Something about “Blame it on the (fill in the blank) Boomers”.
From Canadian MSN……….
“Analysts are concerned that the glut of unsold homes will further depress prices in coming months.
But Lawrence Yun, senior economist for the Realtors, said the small year-over-year price decline of less than one per cent was still modest when compared to the 50 per cent rise in home prices that occurred during the five boom years that ended last year.
Yun said some of the weakness in April reflected a weather payback after sales had shown gains at the beginning of the year, reflecting warmer-than-normal winter weather.
He also blamed the rising troubles in the subprime mortgage market, the area of the market designed for borrowers with weaker credit histories. Rising mortgage foreclosures are causing banks and other lenders to tighten up on their lending standards while curtailing their more risky loan business.
“We’ve been anticipating slower home sales because many subprime loan products are no longer available,” he said. “Fortunately, a wide availability of conventional mortgage products and the 4.5 million jobs created over the past 24 months will help stabilize the market going forward.”
He said the big rise in unsold homes on the market could be an indication that sellers are testing the market in hopes of selling their homes and moving up to larger units, which he said would be a positive early sign of a rebound in housing.”
http://finance.sympatico.msn.ca/investing/news/businessnews/article.aspx?cp-documentid=4919858
It never seems to end! His last comment takes the cake.
erin burnett shows how USA-centric the average CNBC host is at the end of this interview. I paraphrase.
“peter, your clients probably aren’t doing so well.” guess what, US stocks are laggards over the last few years.
http://www.cnbc.com/id/15840232?video=341737097&play=1
give em’ hell peter.
The Downturn Contains The Seeds Of Recovery
“From the ashes of disaster grow the roses of success!”
-Grandpa Potts
And in most locations?
Those roses won’t be seeing daylight until 2012 at the earliest.
Finally starting to get good. Here’s a real estate worker in Ft Myers desperate to unload their ‘01 Porsche Boxster S for $20k. That’s a few grand under BB, and probably could be had for less.
http://fortmyers.craigslist.org/car/331301268.html
unless it has under 20k miles and mint, that is not a stellar deal- not enough to make me think fire sale.
talk to me at $15k or less - that is a deal
I was thinking the same thing, wake me up at 10k or less.
ok - I’ll fight you for it at $8k!
Excellent! Realtors are starting to jettison their toys. We are not there on price yet but as we all know first comes the inventory and then comes the price adjustment.
Screwed flipper on Orlando can’t decide to walk away from 20k deposit…
http://www.fatwallet.com/t/52/734289/
http://phoenix.craigslist.org/rfs/338530690.html
“Home Raffle You could win this home for 500.00″
This has to be illegal, YES?
This a scam . They will take the money and run . Notice how they want a money order sent to them .
I guess it depends on state laws. That technique has been used here a few times. There are certain rules that apply here. I don’t remember them. But it’s not illegal in California.
No worry about Albuquerque here. It is different here. Monica outlined 7 reasons. And, now everyone in the outside world knows about Albuquerque. I guess before we were invisible. Now, everyone is getting rich buying ABQ real estate. This was published in yesterday’s edition of the Albuquerque Journal.
Thursday, May 24, 2007
Get Off the Couch and Learn About Wealth
By Monica Youngblood
GUEST COMMENTARY: In 1897, Italian economist Vilfredo Pareto discovered a revolutionary principle that still proves true to this day. Simply put, Pareto discovered that in any society, in any economy, at any given time, 20 percent of any population will always control 80 percent of the total wealth. Today this is commonly known as Pareto’s Law or The 80/20 Principle.
Recent research reveals to us that those individuals who have created wealth for themselves, Pareto’s 20 percent, have really only done one thing differently than the other 80 percent. That one thing? They have simply made the conscious decision to educate themselves on the matters of finances and money. End of story.
This doesn’t mean they had to earn a college degree— far from it, as there are so many simple ways to earn this education. But sadly, as a society, we choose to spend so much of our time engrossed in escapist novels and reality TV, when all we need to do is dedicate a fraction of this time toward educating ourselves on the simplest and most basic principles of wealth-building.
Wealth-building can be defined as creating the unearned income required to finance our life mission. And there should be no greater financial mission in life than to fund our retirement. However, current research reveals the following sobering statistics: 67 percent of Americans today spend more time planning their vacations than they spend planning their retirement; 50 percent of all working Americans have no retirement savings at all; and 52 percent of all working Americans over the age of 55 have less than $50,000 in retirement savings. The majority of Americans are clearly choosing the escapist route, hoping that it will all just take care of itself somehow.
But there is good news. Within the next several decades, there will be millions of dollars of wealth created right here in the Land of Enchantment through the appreciation of real estate. The bad news is that a large amount of this wealth is going to out-of-state investors who continue to buy up our commercial and residential properties. New Mexico residents can choose to participate more actively in this wealth build-up by simply making the conscious decision to educate themselves.
And the first lesson to learn is why Albuquerque and why now?
The answer is that it’s finally Albuquerque’s time, and for seven very specific reasons: (1) Population growth, (2) a thriving local economy, (3) a low cost of doing business (with a favorable tax climate), (4) a low cost of living, (5) housing that is affordable, (6) a great quality of life, and (7) incredibly strong economic development at the state level and locally.
At an estimated population of just over 800,000, the Albuquerque metropolitan area has finally surpassed the first of two key population thresholds that are indicative of explosive business growth, and current projections indicate we will reach the second and even more critical population threshold of 1 million by 2020.
One only needs to look around the Albuquerque landscape at the abundant business activity to understand this reality. This, combined with overpriced and overcrowded costal regions, and all the national recognition that Albuquerque has recently received (Forbes, Kiplinger’s, etc.), means Albuquerque is no longer the undiscovered gem in the desert. Not to mention that Fortune magazine, in its 2007 Investor Guide, forecast its top 100 real estate markets for 2007 and Albuquerque came in first in the Western U.S. and third in the nation.
There is no doubt that it is a great time to live in Albuquerque, for the culture, the quality of life and now, for the wealth-building opportunities. Simply put, anyone can choose to take advantage of this opportunity and build financial wealth.
The Journal welcomes essays on issues from New Mexico business owners and managers. Length should be kept to about 600 words. Please contact business editor Mike Murphy at (505) 823-3830, e-mail at mmurphy@abqjournal.com, or fax at (505) 823-3994.
NAME: Monica Youngblood
TITLE: Real estate agent, investor, consultant
COMPANY: Monica Youngblood Realty Group, http://www.monicayoungblood.com
From the Executive’s Desk
A tidbit for thought…
http://www.bestplaces.net/crime/?city1=3502000&city2=0615044