Research and Markets: Albuquerque, NM - Local Market Forecast Scrutinizes Residential Home Price Forecast & Analysis, Historical Accuracy, Equilibrium Home Price, & Local Market Metrics

DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/ff9d59/albuquerque_nm) has announced
the addition of the "Albuquerque, NM - Local Market Forecast" report to their
offering.

The Premier Real Estate Forecasting Tool

Covering nearly 300 housing markets throughout the U.S., Local Market Monitor
provides the complete home price forecast you need to evaluate risk for your
real estate portfolio. Whether you are looking to invest, sell or just manage
your current portfolio, Local Market Monitor makes it easy to identify which
markets are over or under valued and what is projected to happen to residential
real estate prices over the next 12 months.

With Local Market Monitor, you can easily gain insight into local residential
real estate markets through online charts, graphs and analysis.

* Mortgage insurers can mitigate losses in markets with higher risk and manage
Real Estate Owned (REO) properties.
* Residential real estate investors can accurately determine the forecasted gain
or loss for each property in a portfolio of home mortgages.
* Mortgage servicers can determine the future value of mortgage portfolios and
contact homeowners in advance to modify mortgage loans and avoid foreclosure.
* Home builders can identify the most attractive markets for new sales and
determine what will happen to home prices over the life cycle of a development.

Local Market Monitor covers nearly 300 housing markets throughout the US. Our
market reports are updated quarterly and contain a 12-month home price forecast,
Equilibrium Home Price, as well as other key market metrics. Each report
provides a complete historical view of home prices. We make it easy for you to
quickly gain insight into home value trends through our powerful reports, graphs
and analysis, which are accessible through our website or your company's
Intranet. You can easily sort markets by various metrics, allowing you to
quickly:

* Compare a portfolio of home mortgages to accurately determine the value of a
portfolio
* Identify the most overpriced or fair valued markets
* Determine the Equilibrium Home Price for a market; where prices should be
based on demographics
* Sort markets by forecasted price changes.
* Forecasted and historical home value data for each market is provided in both
graphical form and in file format that can be easily loaded into spreadsheets or
other programs for further analysis and reporting.

HOME PRICE FORECAST

Local Market Monitors Home Price Forecasting Model predicts the average change
in price for homes in a local market. Local Market Monitor forecasts changes in
the Home Price Index developed and published quarterly by the Federal Housing
Finance Agency (formerly the OFHEO). This repeat-sales index uses information
from the large number of home mortgages that pass through Fannie Mae and Freddie
Mac in order to give the best available measure of changes in market values. The
exact formula used changes according to whether a market is currently in
balance, over-priced or under-priced. The current status of a market depends on
the difference between the current average home value and the calculated
Equilibrium Home Price.

* In balanced markets, income growth is the primary factor determining future
home values. Local income growth is projected by Local Market Monitor based on
current local job growth and overall growth of the national economy.
* In over-priced markets, the momentum of home value changes is more important
than income growth in determining future home values.
* In under-priced markets, income growth is the dominant factor determining
future prices.

EQUILIBRIUM HOME PRICE

The key to Local Market Monitors ability to accurately forecast home prices is
our proprietary concept of Equilibrium Home Prices. The Equilibrium Home Price
for a local market is where the average price would be if there were no
distortions in the local market. The extent to which actual prices are higher
than the Equilibrium Home Price is a measure of how much adjustment will
eventually take place and a measure of the risk that actual home prices will
fall. This tool serves as an early warning system for potential mortgage risks.

By comparing the average home value to the Equilibrium Home Price, Local Market
Monitor classifies local markets into one of three categories:

* Balanced Market - home values are within 15% of the Equilibrium Home Price
* Over-priced Market - home values are over the Equilibrium Home Price by 15% or
more
* Under-priced Market - home values are under the Equilibrium Home Price by 15%
or more

In all unbalanced markets examined by Local Market Monitor over the previous
several decades, actual home prices always eventually return to the Equilibrium
Home Price, although the adjustment process usually requires several years.

For more information visit
http://www.researchandmarkets.com/research/ff9d59/albuquerque_nm

Research and Markets
Laura Wood, Senior Manager
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716
press@researchandmarkets.com

Copyright Business Wire 2009