Albuquerque Real Estate Agent Joe Maez Says End of QE2 May Mean End of Record Low Interest Rates

Albuquerque, NM – With the long-anticipated end of the Federal Reserve's so-called QE2 coming at the end of the month, Albuquerque real estate agent Joe Maez says the phasing out of this technique of government-induced low interest rates will likely mean rising mortgage costs for buyers in months ahead. According to Maez, that means buyers need to act now to lock in historically low rates.

While the Fed remains undecided what monetary policy to implement in coming months to nurse the economy along, Maez says they have made clear that they don't intend to pursue QE3, a third round of Quantitative Easing that would seek to artificially lower interest rates.

"If the Fed stands by its previous statements not to engage in QE3, it can only serve to raise interest rates for anyone buying Albuquerque homes. That means the cost of home ownership will go up regardless of what home prices do."

He says that even if home prices stay the same or go down, a rising interest rate environment means buyers get less house for the same monthly payment than they did before.

"If I had been thinking about buying a house but putting it off for whatever reason, rising interest rates would get me off the sidelines. Now is the time to lock in historically cheap money and get into a better home for it."

With the combination of very low rates and home prices for New Mexico real estate, Maez says it's hard to imagine a better buying opportunity for buyers.

"For those sitting on the sidelines, this chance of a lifetime may be going the way of QE2."

For more information, contact:

Joe Maez
New Mexico Real Estate Agent
8100 Wyoming Blvd NE
M4 #234
Albuquerque, NM 87113
505-401-5775

http://www.nmhomesplus.com

Joe Maez, New Mexico Real Estate Agent With Coldwell Banker Legacy, Says Market Attracting Investors

Albuquerque, New Mexico - New Mexico Realtor® Joe Maez of Coldwell Banker Legacy says Albuquerque real estate shows a significant volume increase in year over year existing home sales and new home sales, with lower prices bringing in more real estate investors to the Albuquerque area. The New Mexico real estate market statistics reflect lower prices and increased volume in both existing home sales and new home sales.

Maez says this is due in part to the fact that sellers who have been resistant to lowering their price have been convinced that it's necessary to do so in order to get their home sold. He says that during any kind of market pullback, there are going to be homeowners who refuse to accept the price declines.

"Some sellers start out convinced they can outlast it. For owners who have no pressing need to sell, this is fine, but for those who become more motivated over time, the point comes when reality sets in."

Some of the motivating factors can be job transfers, a change in employment status, or a variable rate loan that has become unaffordable. Other factors can be a growing family or a suddenly empty nest. Maez says the recession has contributed to the supply as well, with foreclosures serving to bring prices for NM homes down to more affordable levels.

He says that while every seller has their own personal reasons for making the decision to sell, statistics from Southwest MLS (SWMLS) show that whatever the reason, more sellers are in fact lowering their price expectations. Those lower prices have led to an increase in the number of investors who are purchasing Albuquerque homes.

Maez says he's already sold several homes to investors in 2010 alone, some from out of state.

"Overall, I believe this is very healthy for the market in the long term. Buyers just needed more of a reason to buy, and they seem to have found it here in Albuquerque, Correles, Rio Rancho, and Los Lunas."

He says that at this rate, he doesn't believe higher prices lie too far ahead.

"With Kirtland Air Force Base and the need for off-base housing for military families, I believe the Albuquerque economy and real estate market has a lot going for it."

For more information, contact:

Joe Maez
New Mexico Real Estate Agent
505-401-5775
8100 Wyoming Blvd Ne
M4 #234
Albuquerque, NM 87113
http://www.nmhomesplus.com/