Are we anywhere near the “bottom” in the

local residential Real Estate market?

Remember the summer of 2005?

1. Supply was low,

2. Demand was high,

3. Credit was EASY

$180,000

$190,000

$200,000

$210,000

$220,000

$230,000

$240,000

$250,000

$260,000

Base(brochure)

PriceJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Month

Average

Median

Source: SalesTraq of New Mexico - www.salestraq.com/albuquerque

ALBUQUERQUE 2007/2008 “Average” & “Median” New Home Base Price Comparisons

(12 month comparison – Detached single family homes)

$254,697$254,697

$233,990$233,990

$257,037

$229,675$229,675

Albuquerque New Home Permits* (Single Family Homes) according to the National Association of Home Builders

Q1 (2007) = 1,040

- 38.0% decrease

Source: National Association of Home Builders - http://www.nahb.org

Q1 (2008) = 640

U.S. Census Data

Average Price$ Median Price$

(New Homes)

1966 = $23,300 1966 = $21,4001976 = $48,000 1976 = $44,2001986 = $111,900 1986 = $92,0001996 = $166,400 1996 = $140,0002006 = $305,900 2006 = $246,500

Source: U.S. Census Bureau - www.census.gov

SalesTraq Data

Average Price$ Median Price$

(Albuquerque New Homes)

2007 = $251,768 2007 = $225,9902017 = $440,594* 2017 = $395,483*2027 = $771,040* 2027 = $692,095*2037 = $1,349,320* 2037 = $1,211,166*2047 = $2,361,310* 2047 = $2,119,541*

* Based on a 75% increase over the course of each decade

Source: SalesTraq of New Mexico - www.salestraq.com/albuquerque

Albuquerque Economic Development

SalesTraq’s Crystal Ball SeminarGary Tonjes

May 9, 2008

Southwest LocationSouthwest Location

Distances to Major Cities• Denver 437 miles• Phoenix 458 miles• Las Vegas 586 miles• Salt Lake City 604 miles• Dallas/Ft. Worth644 miles• Los Angeles 811 miles• San Jose 1,050 miles

Airline Information• 33 cities with non-stops daily

• 9 major airlines

• 6.5 million passengers

• 2 weather-impacted delays in

10 years• Leading Carriers:

Southwest, American, Delta, United, America West, Continental, Northwest, Express Jet

Population GrowthPopulation Growth

• Between 1990 and 2000, metro population increased 21.73%

• Between 1990 and 2008, ABQ metro area expanded by 40.3% vs 22.3% nationally, adding 241,321 residents

• The metro area’s population growth over a five year period (2006-2011) is forecast at 9.1% vs the national average of 6.3%

*Revised to include Torrance County. Source: Census and Claritas, Inc.

County 2000 Census Population* 2008 Estimated Population

Bernalillo (Albuquerque)

556,678 630,737

Sandoval (Rio Rancho)

89,908 120,740

Torrance (Moriarty) 16,911 17,720

Valencia (Belen, Los Lunas)

66,152 71,540

MSA Population 729,649 840,737

Demographic AdvantageDemographic Advantage

• The average age of an Albuquerque metro resident is 36.9 years vs the national average of 37.5 years

• Favorable ratio of residents in the 20- to 34-year-old demographic:

• 21.7% of our population is in this bracket, vs US avg. of 20.4%

• The Albuquerque metro’s 20- to 34-year-old population will expand by 10.3% over a five year period (2006-2011), twice the national average of 5.1%

Chart Source: Claritas, Inc. 2008 estimatesMay not add to 100% due to rounding

45 - 64 25.5%

65+11.9%

25 - 4427.8%

18 - 249.8%

Under 1825.1%

#1 Fittest City in America#1 Fittest City in America

Men’s Fitness, March 2007

#2 Arts Destination in America#2 Arts Destination in America

American Style Magazine, May 2007

33rdrd Smartest Place to Live Smartest Place to Live

Based on livability and affordability,‘Albuquerque offers resort-town

ambience, a boomtown economy and cow-town

prices.’

Kiplinger’s Personal Finance, May 2006

Albuquerque TrafficAlbuquerque Traffic

• ABQ 17th among Cities with Shortest Commutes to Work, 2007

• The average trip time to work is 24 minutes• 68% of Albuquerque residents get to work in 30 minutes or

less.

Somewhere in California Albuquerque

Major IncentivesMajor Incentives

Job Training Incentive Program (JTIP)High Wage Jobs Tax CreditManufacturing Investment Tax CreditTechnology Jobs Tax CreditWorkforce Investment Act (WIA)

On-the-job training (OJT)Customized training

SALESTRAQTM

Of New Mexico

More information at www.Salestraq.com

and

www.CrystalBallSeminars.com