Thursday, September 11, 2014

Home Sales Drift Down

During August the metro Albuquerque real estate market continued drifting gently down as compared to 2013. The Greater Albuquerque Association of Realtors released the August sales report yesterday.
Closed sales of single family detached homes, 822 during August, were down both from July and from August 2013. Sales were down only one unit from the 823 closed sales during July, but the performance broke a seven month string of month over month sales increases. Sales were down 35, or 4.1%, from August 2013, continuing the year-over-year sales declines that have characterized 2014.
The 857 sales pending during August represented a double decline. Pending sales were down 29 August 2013 and 129, or 13.1%, from July, indicated a further drop in closed sales for September.
The average price for homes closed during August was $216,148, incorporating the contribution toward raising the average from three homes sold in the $1 million and over group. The average price was down from both July and from August 2013.
The median price was $184,100 for August. The figure was down from July but up $1,600 from August 2013. The price group from $200,000 to $249,000 was the most popular during August with 134 homes sold. However, at $49,000, that group is wider than other price categories. If combined, the two next lower price groups accounted for 143 sales during the month. The two groups are from $160,000 to $179,000 and from $180,000 to $199,000. These two cover a $39,000 spread.
Home sales took an average of 65 days to close during August. That was five days longer than during July 2014 and August 2014.

Wednesday, September 10, 2014

Gary King Incredibly Disappointing

I have always thought of Gary King as a decent guy, not someone I would for barring the Republican being an idiot, but decent. That’s over. I have also felt that King’s long quest to be elected governor and follow his dad, Gov. Bruce, was a little strange.
This morning’s Albuquerque Journal brings news that King is deeply into parochialism that is one of New Mexico’s big problems.
That’s my take on King’s remark at a Belen Fundraiser that Gov. Susana Martinez “does not have a Latino heart.” The remark is in a brief video published yesterday on the web site of the conservative magazine, “The Weekly Standard.”
Find the video at: http://www.weeklystandard.com/blogs/nm-dem-says-gop-guv-martinez-does-not-have-latino-heart_804671.html.
Just one of King's many missed points is that Martinez represents the majority of New Mexico Hispanics. She is a generation or two out of Mexico. The people who have been in the state and proudly proclaim that accident makes them better people, they are the minority. This is as of the 2000 census.

Monday, September 8, 2014

Minnesota Road Sign

The sign said, “Concentrate on Driving.” It was on U.S. 52 distracting drivers heading southeast from Minneapolis to Rochester.
In the same vein, our rental Camry had a disclaimer on the dashboard screen warning drivers that looking at the screen could be dangerous.

Wednesday, August 27, 2014

Administration Continues Hiding From Job Reality

Comes the cold water for any overall jolliness that might want to happen as a result of last week’s job performance news. Yes, New Mexico did post the nation’s second largest percentage wage job increase from June to July on a seasonally adjusted basis. Our 4,400 job increase was a 0.5% monthly job jump that tied with four other states behind Montana’s 0.7% Pretty good. And, yes, we did gain jobs from July 2013 to July 2014.
But there is that seasonality. Take away the adjustment for the month-over-month performance and we lost 3,400 jobs, dropping to 806,500 wage jobs in July 2014..
The Department of Workforce Solutions continues to ignore these ugly details.
More but…
Our year-over-year job increase was the nation’s smallest increase, also 0.5%, giving us the nation’s second worst economy, just after Alaska, the only state to lose jobs in July. Thus, our performance, while slightly better, still trails everyone else (almost).
Year over year, on a not seasonally adjusted basis, New Mexico gained 4,300 jobs, or 0.5%, about the same as the June to July increase.
Shifting to “employment,” which is different from wage jobs, New Mexico lost 3,200 jobs from July 2013 to July 2014 on a not seasonally adjusted basis. Do the adjustment and the annual loss becomes “only” 500 jobs.
Our metro areas reflected the state performance, which has to figure. Three metro areas lost jobs: Albuquerque (-200); Santa Fe (-1,000); and Farmington (-500). Nationally 38 other metro areas lost jobs, year over year, while 327 gained. Las Cruces gained 900 jobs.
A review of the sectors show the bag as being decidedly mixed. Education and health services, the state’s largest “private” job sector with 125,400 people in July, added 5,000 employees over the year. The sector is only sort of private because of government involvement in health care. The federal government also sends large amount of money to “for profit” educational institutions.
Professional and business services, the state’s second largest sector and presumed home to big numbers of science and engineering people, as well as landscape architects, lost 1,500 jobs for the year including 1,200 in Albuquerque. The much smaller manufacturing sector dropped 2,000 jobs, including 900 in Albuquerque, bringing the job-loss streak to 21 months.
Mining, meaning oil and gas, continued to save the state with 1,500 more jobs, year over year, bringing the sector’s job total to 27,900.

Friday, August 22, 2014

NM Economy Nation's 2nd Worst

Alaska lost a few jobs during July, the only state to do so. New Mexico added 4,300 wage jobs, a 0.5% increase. New Mexico's increase, while a nice switch from the months of job losses earlier this year, places the state as the nation's second worst in term of percentage job performance. Our increase is the nation's lowest. Three states showed a 0.7% wage job increase in July, the next best performance. They were Illinois, Nebraska, and Connecticut.
These numbers come from the Department of Workforce Solutions and are in the issue of the Labor Market Review newsletter that was released today. More later, early next week, most likely, when I have had a chance to look at the newsletter.
Bottom line for NM: Doing a little better. Still doing poorly.

Tuesday, August 12, 2014

Abq Home Sales Continue Behind 2013

The headline said, “July home sales in Albuquerque area take a tumble.” The headline was on the website of Albuquerque Business First. It is true, but only tells half the monthly performance story. July’s 823 closed sales of single family detached homes were up from June by 23 units or 3%. The “tumble” was taken from July 2013, which had 939 closed sales. July 2014 was 12.3% behind July 2013.
The “news” from the July sales performance is two items. First, the monthly sales performance fell behind 2013 for the first time since March. Second, pending sales were below July 2013. Pending sales have been behind 2013 all year on a month over month basis. Any upward market momentum has disappeared, no surprise given the Duke City’s job non-performance.
With two exceptions (the average price in February and the median in March), prices have stay above 2013 all year. In July, both the metro average and median price hit 2014 highs. The July average, $230,750, was 8%, or $17,246, above June and 3.7% ahead of July 2013. Three single family homes sol for $1 million or more during July. The median beat July 2013 by $8,000, or 4.4%, and was up $10,000, or 6%, from June.
The 823 sales closed during July were 88% of the 939 sales pending during June.
During July, single family homes took and average of 60 days to sell, the same average sales period as both June 2014 and July 2013.
Sales of condominiums and townhouses run less that 10% of single family homes. On a year over year basis, these continue to be behind 2013.

Friday, July 25, 2014

Abq Breaks Bad

Find this news at http://www.marketwatch.com/story/the-vice-capitals-of-america-2014-07-25.

The report said, "...according to an analysis by DrugAbuse.com of words mentioned in more than 450,000 tweets that were “geo-tagged” in cities with a population of at least 200,000. DrugAbuse.com is a site that provides resources and treatment on drug addiction...Albuquerque, N.M., was named the vice capital for crystal meth..."

Monday, July 21, 2014

Pending Home Sales Down from 2013

With the delay in getting the monthly metro Albuquerque real estate report posted (the Greater Albuquerque Association of Realtors released the report July 10; sorry ‘bout that), I will limit the report to noting that pending sales of single family detached homes have been down on a year-over-year basis for all six months of 2014 as compared to 2013.
Closed sales have been down for three months. There were 800 closed sales during June, up three from May but 59 units, or 6.9%, behind June 2013.
The homes that closed during June were n the market an average of 60 days, the quickest sales period of 2014.
As compared to 2013, average and median prices have increase as compared to 2013 for five of the six months of 2014.

Friday, July 18, 2014

Job Numbers Up and Down: Ambiguity Appears

That the New Mexico job (non)production situation is not quite the nation’s worst is the takeaway from the job numbers for June released this afternoon. Ambiguously bad might be a good description. By the seasonally adjusted figures for June 2013 to June 2014 from the Bureau of Labor Statistics, New Mexico can claim being the nation’s third worst state economy with a loss of 400 wage jobs or less than 0.5%. Alaska, down 0.7% seasonally adjusted, led the nation, followed by Vermont, down 0.1% and then New Mexico. From May into June, Alaska again led, minus 1.7%, with West Virginia, at minus 1.2%. New Mexico and New Hampshire followed, tied with a 0.6% job loss.
The ambiguity came with the seasonally unadjusted numbers. Here New Mexico gained 2,500 job on the June-to-June basis.
The release from the Department of Workforce Solutions heralded this, saying “growth (in) positive territory for the first time in nine months.”
The DWS release continued the annoying administration policy of tucking reality under the rug by not mentioning the seasonally adjusted/not adjusted distinction. Nor, no surprise, did DWS mention the state performance comparisons.
A few sector figures: Seasonally adjusted manufacturing continued the sector’s disappearing act, down another 2,200 jobs, with the much larger professional and business services sector down 1,000.
Going to the seasonally unadjusted performances, mining added 1,700 jobs, finance continued the mystery growth with 1,700 more and jobs and government dropped 3,200 jobs.

Friday, July 11, 2014

Tennis and Tesla

All of 0.17% of New Mexico homes come with a tennis court, according to Trulia.com. Vermont has the most courts, tennis wise with 0.77%. The mention was in today’s Wall Street Journal, page M 12. I could not find the report at trulia.com.
Being electric, Tesla cars need things into which to plug. That much should be generally known. I hadn’t thought much about the details until seeing these stations this week at the Marriott TownePlace Suites hotel in Farmington. Hotel staff said the stations were installed last fall and have drawn traffic, as it were. The staff said Tesla drivers have stayed at the TownePlace specifically because of the electrical availability.
Tesla calls the stations “superchargers.” The only other New Mexico location, according to teslamotors.com/supercharger is at a Hampton Inn in Gallup.
Clever.
Hotel management did not respond to my email inquiry for more details.

Sunday, June 29, 2014

Not Quite the Worst Economy, But Close

The lead item from the Labor Market Review, the Department of Workforce Solutions newsletter that hit my email inbox at 4:21 PM the afternoon of June 27, is, "New Mexico’s rate of over-the-year job growth, comparing May 2014 with May 2013, was negative 0.1 percent, representing a loss of 600 jobs."
My initial understanding of the May numbers was that we were still the worst economy in the nation. Not quite the case, apparently. Our job loss percentage ties Washington, D.C., but Vermont beats us with a loss percentage of 0.2%. New Mexico’s comparative job performance continues to be buried without comment in the table on page 16 of the Labor Market Review.
Three of our four metro areas lost 4,000 jobs over the year: Albuquerque, -2,800; Las Cruces, -100; Farmington, -1,200. Only the Santa Fe metro gained jobs, a whopping 200, or 0.3%.
Government, down 2,500 jobs statewide, led the sector losers. Only 700 of those job losses were in the metro areas.
Thus the job gains were in the rural counties and in the private sector, enough to overcome the loss of 1,800 government jobs.
Growing sectors, May 2013 to May 2014.
Mining, retail, finance (?), education and health services, leisure and hospitality.
Loser sectors:
Manufacturing, construction, information, professional and business services, government.
National retailers new to New Mexico (Dick's Sporting Goods, Total Wine) must see growth. But where?

Monday, June 16, 2014

Abq Journal Op-Ed, 6/16/14

The material below ran as an op-ed piece on the editorial page in today's Albuquerque Journal. It was extracted from columns I wrote in April. Creating the op-ed was Rep. Hall's idea. Thanks Jimmie. - Harold Morgan

6/4/14

Nation’s Worst State Economy Is Here. But Why, Exactly?

By Rep. Jimmie Hall and Harold Morgan

The worst state economy in the nation is here. Albuquerqueans are very good at divorce. People are leaving the state. Incomes are flat.
These things go together.
For April, we lost wage jobs, year-over-year, for the fourth consecutive month, reported the Bureau of Labor Statistics. We are one of three states with year-over-year losses, keeping us in the singular position of the worst nation’s state economy. We also led in month over month decline. The April-to-April decline was 4,400 jobs or 0.54 percent. Maybe it was newly divorced people leaving. Men’s Health magazine ranked divorce propensity in 100 cities. Albuquerque placed 99th.
Mapping county population change from 2008 and 2013 reveals a band of 15 population losers from northeast to southwest. From 2003 to 2008, 13 counties lost population. The trend has accelerated since 2010.
Births, deaths and moving sum to population change. Births minus deaths provide “natural increase.” Six counties, led by Sierra, had too few births to offset the number of deaths during 2010-to-2013. Moving, called “migration,” can be international or “domestic”—into or out of the state from the United States. Such moves tend to be for economic or family reasons.
Domestic movement is most important. For the three years from April 2010 to 2013, the departure total was 21,500. The most recent year July 1, 2012, to July 1, 2013—produced 13,500 departures, almost two-thirds of the total. About 3,600 people left during each of the previous two years.
During the 2012-13 year, 3,000 people moved here from other places in the United States, making net domestic migration a negative 10,526. Lea and Eddy counties provided 90 percent of the migration gain. Babies explain the population growing 26,100 (to 2.08 million) between 2010 and 2013. The 89,000 new babies were 36,000 more than the 53,000 deaths.
Income reflects this. For 2013, total personal income increased 1.7 percent. That placed 48th nationally. The 2013 inflation of 1.6 percent nearly consumed the increased earnings. Transfer payments (welfare, social security, etc.) more than doubled the earnings increase from real work.
Anguish aside, last year’s report about being 50th in child poverty only reflects bigger issues, work in particular. People participating in the labor force either have a job or believe it worth seeking a job.
In August 2013, labor force participation nationally was 63.2 percent, the lowest since August 1978. For New Mexico, participation was 58.5 percent for April 2014, ahead of five states.
Government dominated counties lead labor force participation: Los Alamos has 67.2 percent participation, followed by Santa Fe, Bernalillo, and Curry. Much else happens in these counties besides national laboratories, state government and the military. But what? Getting to the detail would be useful and inexpensive.
McKinley County has the lowest labor force participation, meaning the least work done in a general sense, of our larger counties. In McKinley, participation is 52.2 percent, below West Virginia’s lowest state rate of 53.4 percent. Sierra, Guadalupe and Catron follow.
Agriculture receives little appreciation. While agriculture itself is only about two percent of our economy, Emily Kerr, a Dallas Federal Reserve Bank economist, says that including linkages takes the total impact to around nine percent. With chile a small sector—cash receipts of $46.7 million in 2011—identifying those linkages to understand the full impact becomes more important. Maybe chile is a $200 million economic sector.
Chile linkages include cultural essence, farm machinery and fertilizer, transportation, food processing, recreation, various retail, literature and publishing, cuisine, tourism, government (extension service and research), international relations (the international chile conference and the research deal between NMSU and a Korean university).
Discovering the reasons behind all this bad stuff and identifying opportunities would be good first steps toward improvement.

Jimmie Hall is a state representative from Albuquerque. Harold Morgan’s weekly column is syndicated to nine community newspapers.





Friday, June 13, 2014

Filming Returns. So does Uncompensated Individual Subsidy.

Filming has returned to my neighborhood and, with it, a reminder about the subsidies.
The filming was supposed to be yesterday with an arterial street blocked for nine hours.
The subsidy thing is that while the state’s subsidy to film companies is something with which I disagree, the matter has been well discussed and is in place. What remains mostly not considered is the subsidy through disruption of individual daily activity imposed by, in this case, closing of the street which will affect several thousand people.
If a street is closed, drivers must go around. That takes time, creating a loss of productivity, consumption of more gasoline and more. The element of surprise adds annoyance.
If I got paid for my inconvenience, say, $100 as a flat fee, I might not care. For now I continue to wonder why I am supposed to be inconvenienced without objection to help a private business.

Tuesday, June 10, 2014

Abq April Job Losses Behind Only Detroit

BLS 5/28/14
Between April 2013 and April 2014,the Bureau of Labor Statistics said, “the largest over-the-year decrease in employment occurred in Detroit-Warren-
Livonia, Mich. (-5,500), followed by Albuquerque, N.M. (-4,500), and Atlantic City-
Hammonton, N.J. (-3,700). The largest over-the-year percentage decreases in
employment (3.7%) occurred in Farmington, N.M.”
The BLS report the figures May 28. Rarified company, indeed..

Metro Abq Closed Sales Up During May; Pending Sales Down

During May, pending sales, a key real estate market indicator, remained below the year ago period as it has for all of 2014. Pending sales in metro Albuquerque were 996 during May 2014, according to the monthly sales report released this afternoon by the Greater Albuquerque Association of Realtors. The May pending sales figure was 5.4% behind May 2013.
However, closed sales, 797 during May, continued the steady monthly increase that has characterized 2014 (other than the 26% jump between February and March). Closed sales were behind the year-ago period for the second month. Closed sales were 11.7% behind the 903 sales closed during May 2013, but well ahead of the 737 closed during May 2012.
Both the median and average sales prices hit 2014 highs during May. The May median price was $180,000, three percent more than both April 2014 and May 2013. The average price, $223,193, was $7,633, or four percent, up from April 2014 and 5.5% ahead of May 2014. The average price got a boost from the closing during the month of the sale of six homes worth $1 million or more.
May provided the quickest home sales of 2014 with 67 being the average number of days a closed sale was on the market. That was four days less than April but two days more than May 2013.
From the zip code sales sampler, 87106 had 49 active listings during May 2013 with 19 sales and 2.1% of all sales. During May 2014, 87106 had 74 listing and 19 sales for 2.4% of the market.
During May 2013, the zip code with the most listings, 87031, had 245 listings with 26 sales and 2.9% of sales. The zip code had 240 listings, 33 sales and 4.1% of the market during May 2014.