Sunday, December 19, 2010
Monthly Skinny: December 2010
Here's the Latest Skinny (December). Take a quick listen - it's less than 3 minutes & always has good info on the Market.
Thursday, December 16, 2010
Median Sales Price for 392 - Eden Prairie
Click the link for a chart that shows the Median Sale Prices for Eden Prairie for the past 3 years. Median Sales Price for 392 - Eden Prairie
If you're interested in a finding out what the prices are in your neck of the woods, let me know & I will send you information for your area.
If you're interested in a finding out what the prices are in your neck of the woods, let me know & I will send you information for your area.
Wednesday, December 15, 2010
Tuesday, December 14, 2010
We weathered the storm & are all dug out. Here's a quick recap of the Twin Cities Real Estate Market. It's good news - hurrah.
 |
| Ahhh, Summer on Lake Minnetonka |
Weekly Market Activity Report
Remember the week ending May 1? The weather was considerably warmer, there wasn't more than two feet of snow on the ground and the optimism was high surrounding our professional sports teams. Things change.
That fateful week in May was also the last time our market recorded a year-over-year increase in weekly pending sales...until now.
For the week ending December 3, there were 606 pending sales, an increase of 10.0 percent from the same week last year. That's the first year-over-year increase in 30 weeks. Whether this positive trend continues will depend upon job growth and other economic factors, but this small sign of hope is nice to see in December.
On the opposite end of the spectrum, new listings are consistently not matching last year's marks — a welcome sign in this era of high supply. The 1,081 new listings for the most recent week is a decline of 13.8 percent from last year's pace and marks the 11th week of the last 13 to post a year-over-year decline.
Wednesday, December 8, 2010
Coldwell Banker Previews
Here's a link to a fun article on decor trends for the coming year. Check it out. You might glean some ideas for your own home.
Coldwell Banker Previews
Coldwell Banker Previews
Tuesday, November 30, 2010
Here's a quick look at the market place from Mpls Area Association of Realtors. The good news is RATES ARE GREAT: 3.125% on a FHA 5 yr ARM, 4.375% on a FHA Fixed, & 4.5% on a 30 yr Fixed Conforming.
Weekly Market Activity Report
For the week ending November 20, Pending Sales in the Twin Cities metropolitan area declined by just 4.1 percent from year-ago levels, marking the second week in a row where this year's sales figures closely match last year's numbers. There were 579 pendings for the week, and we have kept pace at about 600 sales per week for the past six months.
At 1,159, New Listings were 1.3 percent below 2009 levels. This year's listing activity has occasionally strayed from last year's trend line but has, for the most part, tracked along a fairly similar path.
As expected, the year-over-year inventory gains have been tapering off. As of November 29, the 24,423 active listings were 9.6 percent fewer than last year at this time. That's the third consecutive week of decreasing inventory gains. This metric does a great job of illustrating the buyer-seller balance as the market prepares for hibernation.
Weekly Market Activity Report
For the week ending November 20, Pending Sales in the Twin Cities metropolitan area declined by just 4.1 percent from year-ago levels, marking the second week in a row where this year's sales figures closely match last year's numbers. There were 579 pendings for the week, and we have kept pace at about 600 sales per week for the past six months.
At 1,159, New Listings were 1.3 percent below 2009 levels. This year's listing activity has occasionally strayed from last year's trend line but has, for the most part, tracked along a fairly similar path.
As expected, the year-over-year inventory gains have been tapering off. As of November 29, the 24,423 active listings were 9.6 percent fewer than last year at this time. That's the third consecutive week of decreasing inventory gains. This metric does a great job of illustrating the buyer-seller balance as the market prepares for hibernation.
Friday, November 19, 2010
Monthly Skinny: November 2010
Here's a short 3 minute video from Mpls Area Association of Realtors. There is a little good news in the housing market (current listings are down 13% from 2008) & while there isn't a dramatic recovery, things are, as one of my favorite singer songwriters Shawn Colvin said, "Steady On". Have a great weekend!
Tuesday, November 16, 2010
Below is the Weekly Update from Minneapolis Area Association of Realtors. Unfortunately, it states that there are now 11 homes on the market for each buyer. That's a pretty high Home/Buyer ratio. Normally, I like to see 5 or 6 homes on the market for each buyer. Unfortunately though, I don't control the market, just blog about it. Stay warm during these November days.
Weekly Market Activity Report
For the week ending November 6, the pending snow outlook worsened as the Pending Sales outlook improved. The 619 signed purchase agreements in the Twin Cities metropolitan area marked a 16.0 percent drop from the same week last year. That's the smallest decline since the week ending May 8.
We do need to add some context to that piece of good news. We are not seeing an increase in sales activity this year so much as sales began to decline at this time last year. The post tax-credit demand vacuum will lose suction during the winter months but will likely reappear this spring.
Potential sellers had a relatively busy week, listing 1,399 new properties on the market for a 10.6 percent increase over last year. That's the first significant increase in New Listings since the week ending April 24.
Although inventory levels were 11.3 percent higher than last year at 25,257 active listings, the rate of increase appears to be slowing. The Supply Demand Ratio has reached 10.82, its highest level since December 2008. This means there are currently about 11 homes available per buyer.
Weekly Market Activity Report
For the week ending November 6, the pending snow outlook worsened as the Pending Sales outlook improved. The 619 signed purchase agreements in the Twin Cities metropolitan area marked a 16.0 percent drop from the same week last year. That's the smallest decline since the week ending May 8.
We do need to add some context to that piece of good news. We are not seeing an increase in sales activity this year so much as sales began to decline at this time last year. The post tax-credit demand vacuum will lose suction during the winter months but will likely reappear this spring.
Potential sellers had a relatively busy week, listing 1,399 new properties on the market for a 10.6 percent increase over last year. That's the first significant increase in New Listings since the week ending April 24.
Although inventory levels were 11.3 percent higher than last year at 25,257 active listings, the rate of increase appears to be slowing. The Supply Demand Ratio has reached 10.82, its highest level since December 2008. This means there are currently about 11 homes available per buyer.
Tuesday, November 9, 2010
Here's a Weekly Update from Minneapolis Area Association of Realtors. I post these weekly, so my clients can see how the Twin Cities Housing Market is doing. As you can see, it's pretty bleak. Buyer demand has dropped since the expiration of the tax credit in May, 2010 & while listings aren't as high as they were a few years ago, they are creeping upward in number. Since Real Estate is all about Supply & Demand, this doesn't bode well for Sellers. I hate being the bearer of bad news, but it is what it is. In any case, enjoy this fine November weather.
Weekly Market Activity Report
For the week ending October 30, New Listings in the 13-county Twin Cities metropolitan area were up 0.4 percent over last year to punch in at 1,266 new units. That’s the first time seller activity has outpaced last year’s levels since the last full week of April.
Weekly Market Activity Report
For the week ending October 30, New Listings in the 13-county Twin Cities metropolitan area were up 0.4 percent over last year to punch in at 1,266 new units. That’s the first time seller activity has outpaced last year’s levels since the last full week of April.Buyer activity wasn’t quite so fortunate as Pending Sales were down 29.9 percent over the same week last year. But that’s a major win in its own right. The 579 signed purchase agreements mark the smallest year-over-year decrease in housing demand since the first week of May.
Inventory continued its ascent. As of November 8, the 25,629 Active Listings weighed in 12.0 percent heavier than last year. This metric has been steadily climbing since early June and should continue to be monitored closely. It means increased competition among sellers and more options and leverage for buyers.
Tuesday, November 2, 2010
Weekly Market Activity Report
Pending Sales in the 13-county Twin Cities metro experienced its smallest decrease since the end of May. The 611 purchase agreements signed for the week ending October 23 were 34.0 percent fewer than the same week in 2009. While still in the red, it’s not to the extent we’ve seen the past few months.
Seller activity held fairly stable at 1,303 New Listings for the week. This made for an 8.9 percent dip from last year’s levels and was roughly on par with the 7.8 percent average decline over the past three months.
Inventory is still high. As of November 1, it stands at 25,706 Active Listings, an 11.5 percent jump since last year at this time. The pace of inventory activity should continue to decline as we step toward winter.
Pending Sales in the 13-county Twin Cities metro experienced its smallest decrease since the end of May. The 611 purchase agreements signed for the week ending October 23 were 34.0 percent fewer than the same week in 2009. While still in the red, it’s not to the extent we’ve seen the past few months.
Seller activity held fairly stable at 1,303 New Listings for the week. This made for an 8.9 percent dip from last year’s levels and was roughly on par with the 7.8 percent average decline over the past three months.
Inventory is still high. As of November 1, it stands at 25,706 Active Listings, an 11.5 percent jump since last year at this time. The pace of inventory activity should continue to decline as we step toward winter.
Tuesday, October 26, 2010
Weekly Market Activity Report
 |
| Sumac |
For the week ending October 16, New Listings in the Twin Cities declined only 2.1 percent from the same week last year with 1,424 properties entering the market. That’s the smallest year-over-year decline in nine weeks, as the gap comparing last year’s performance with this continues to close.
Weekly Pending Sales are still stuck around the 600 mark. The 580 purchase agreements signed for the week translated into a 39.2 percent drop from last year at this time. That year-over-year decline is nothing new to regular followers of the Weekly Market Activity Report.
The real story continues to be the delicate balance between buyer and seller activity. As of October 25, the 26,606 active listings were 11.3 percent greater than the same week in 2009. For only the second time in the past 25 weeks, the magnitude of inventory growth is smaller than the previous week. In other words, the rate of inventory increase is decelerating. If it sounds like we’re scrounging for good news, we are. Even so, this shouldn’t be overlooked.
Friday, October 22, 2010
Monthly Skinny: October 2010
Check out this short latest video from the Mpls Area Association of Realtors regarding the current Twin Cities Housing Market.
Paint color trends - Paint Quality Institute
Paint color trends - Paint Quality Institute
Color trends for 2010 take inspiration from a variety of social and economic influences. In addition, living space personalization continues to act as a driver for color change with accent walls or niche areas appropriate for small doses of high impact, bold color while using more subtle hues on broad wall areas.
More and more homeowners are taking on the task of simple home projects to save money and improve their current space. Conversely, others are sprucing up in preparation for placing their home on the market.
Regardless of the purpose, a fresh coat of paint remains one of the most economical ways to accomplish all three. No matter what paint color is used, homeowners continue to strive for comfortable, tranquil home environments.
Good Morning
While over-the-top renovations aren’t the norm today, handy homeowners are tackling small manageable home improvements, such as the addition of a morning kitchen to a bedroom or home office.
With consumers continued desire to create both warm and functional spaces the Good Morning palette consists of hues that are fresh, clean and comfortable.
Color Recommendations:
Honey-like hues such as tan or pale gold
Coral
Yellow
Mineral Grey
Good Night
The inspiration for the Good Night palette comes from above—the ceiling. Why sleep beneath a lackluster white canopy? Wrap any space with constant color by painting the ceiling in a tint, tone or shade of the wall color or add a softer touch by paring pastel hues. From pastels to deep-tones, Good Night hues, as you might expect, are especially useful in bedrooms and baths or to “warm-up” a family space.
Color Recommendations:
Pastel hues, particularly pale blue or shell pink for ceilings
Midnight blue
Eggplant
Wine
Good Bye
Home staging continues to grow in popularity as property owners look for home sale assistance. The Good Bye palette reflects an assortment of simplistic hues that work across a variety of spaces creating a welcoming first impression and suitable backdrop for any living area.
Whether you’re saying good-bye to one home or hello to another, this classic palette is suitable for all areas and is an especially good choice for foyers, kitchens and family living spaces.
Color Recommendations:
Khaki pared with crisp white
Mid-toned Blues
Off-White, Sandy Tan
Black
No matter which hue attracts attention this year, consumers continue to have an increased appreciation for paint quality and value. And, why not? It remains a personal choice for a personal space—it’s about time.
http://www.paintquality.com/homeowners/paint-design/paint-color/color-trends.html
Color trends for 2010 take inspiration from a variety of social and economic influences. In addition, living space personalization continues to act as a driver for color change with accent walls or niche areas appropriate for small doses of high impact, bold color while using more subtle hues on broad wall areas.
More and more homeowners are taking on the task of simple home projects to save money and improve their current space. Conversely, others are sprucing up in preparation for placing their home on the market.
Regardless of the purpose, a fresh coat of paint remains one of the most economical ways to accomplish all three. No matter what paint color is used, homeowners continue to strive for comfortable, tranquil home environments.
Good Morning
While over-the-top renovations aren’t the norm today, handy homeowners are tackling small manageable home improvements, such as the addition of a morning kitchen to a bedroom or home office.
With consumers continued desire to create both warm and functional spaces the Good Morning palette consists of hues that are fresh, clean and comfortable.
Color Recommendations:
Honey-like hues such as tan or pale gold
Coral
Yellow
Mineral Grey
Good Night
The inspiration for the Good Night palette comes from above—the ceiling. Why sleep beneath a lackluster white canopy? Wrap any space with constant color by painting the ceiling in a tint, tone or shade of the wall color or add a softer touch by paring pastel hues. From pastels to deep-tones, Good Night hues, as you might expect, are especially useful in bedrooms and baths or to “warm-up” a family space.
Color Recommendations:
Pastel hues, particularly pale blue or shell pink for ceilings
Midnight blue
Eggplant
Wine
Good Bye
Home staging continues to grow in popularity as property owners look for home sale assistance. The Good Bye palette reflects an assortment of simplistic hues that work across a variety of spaces creating a welcoming first impression and suitable backdrop for any living area.
Whether you’re saying good-bye to one home or hello to another, this classic palette is suitable for all areas and is an especially good choice for foyers, kitchens and family living spaces.
Color Recommendations:
Khaki pared with crisp white
Mid-toned Blues
Off-White, Sandy Tan
Black
No matter which hue attracts attention this year, consumers continue to have an increased appreciation for paint quality and value. And, why not? It remains a personal choice for a personal space—it’s about time.
http://www.paintquality.com/homeowners/paint-design/paint-color/color-trends.html
Tuesday, October 19, 2010
Weekly Market Activity Report
 |
| An Evening Paddle |
As the mercury inches downward outside, grab your favorite hot beverage and let’s review the buyers and sellers weekly dance card. Bear in mind that current activity may look especially slow compared to last year’s tax-credit-induced performance.
For the week ending October 9, sellers continued to pick up their tempo by introducing 1,479 new listings to the marketplace. That’s only 4.1 percent fewer new homes than last year at this time, as the year-over-year comparison gap continues to narrow. Buyers danced to a slower beat. The 523 pending sales for the week were 44.8 percent fewer than last year. That’s the largest decline in 13 weeks.
With seller activity slowly returning and buyer activity remaining sluggish, inventory levels are still high. There were 26,866 active listings as of October 18. Keep a close watch on this metric, as it emphasizes the dynamic balance between supply and demand—the most critical forces affecting the market. There is some good news in the mix. At 220, housing affordability is at an all-time high. The availability of low cost homes combined with low interest rates have created an extraordinary buying opportunity.
For the week ending October 9, sellers continued to pick up their tempo by introducing 1,479 new listings to the marketplace. That’s only 4.1 percent fewer new homes than last year at this time, as the year-over-year comparison gap continues to narrow. Buyers danced to a slower beat. The 523 pending sales for the week were 44.8 percent fewer than last year. That’s the largest decline in 13 weeks.
With seller activity slowly returning and buyer activity remaining sluggish, inventory levels are still high. There were 26,866 active listings as of October 18. Keep a close watch on this metric, as it emphasizes the dynamic balance between supply and demand—the most critical forces affecting the market. There is some good news in the mix. At 220, housing affordability is at an all-time high. The availability of low cost homes combined with low interest rates have created an extraordinary buying opportunity.
Wednesday, October 13, 2010
 |
| Johnny Cash's Guitar @ The Country Music Hall of Fame Nashville, TN |
Weekly Market Activity Report
We're used to seeing housing activity slow down at this time of year. Trouble is, this seasonal slowdown is amplified when compared to a front-loaded 2010 selling season and a comparably strong tax-credit-driven 4th quarter 2009 selling season. The net effect is that year-over-year changes are comparing an incentive period to a non-incentive period. Keep that in mind in the coming weeks when looking over the latest housing market figures.
For the week ending October 2, sellers placed 5.3 percent fewer homes on the market. In sum, 1,541 new properties came online during the week. By comparison, over the past three months, the average decline between this and last year's activity is 9.1 percent.
The 630 pending sales during the week were 39.6 percent fewer than the same week last year. Since the second week of June, the percentage decline in buyer activity from the same week last year has ranged between 48 and 34 percent. That's not a pretty picture for the most recent four-month period.
Inventory continued along its growth path, checking in at 27,033 as of October 12. This was an 11.0 percent increase over last year at this time, which is the largest increase since the final week of January 2008. Market times and negotiations are starting to reflect this trend.
We're used to seeing housing activity slow down at this time of year. Trouble is, this seasonal slowdown is amplified when compared to a front-loaded 2010 selling season and a comparably strong tax-credit-driven 4th quarter 2009 selling season. The net effect is that year-over-year changes are comparing an incentive period to a non-incentive period. Keep that in mind in the coming weeks when looking over the latest housing market figures.
For the week ending October 2, sellers placed 5.3 percent fewer homes on the market. In sum, 1,541 new properties came online during the week. By comparison, over the past three months, the average decline between this and last year's activity is 9.1 percent.
The 630 pending sales during the week were 39.6 percent fewer than the same week last year. Since the second week of June, the percentage decline in buyer activity from the same week last year has ranged between 48 and 34 percent. That's not a pretty picture for the most recent four-month period.
Inventory continued along its growth path, checking in at 27,033 as of October 12. This was an 11.0 percent increase over last year at this time, which is the largest increase since the final week of January 2008. Market times and negotiations are starting to reflect this trend.
Tuesday, October 5, 2010
Weekly Market Activity Report
In the Twin Cities metropolitan area, the frost that some of us found on our lawns also kept the housing market in a sort of frozen state. For the week ending September 25, sellers placed 1,382 new homes on the market, which was 19.9 percent fewer than last year at this time. Over the past three months, listing activity has been an average of 9.2 percent under last year's levels.
Buyer activity produced 41.7 percent fewer purchase agreements than last year at this time. There were 616 contracts signed, and as the graph on page 3 illustrates, Pending Sales are still mimicking last year's activity, except with roughly 400 fewer sales. For the three-month average, the decline rests at 39.0 percent below 2009 levels.
Be aware that we're in an apples-to-oranges comparison period since the tax credit was in force last year at this time. Year-over-year comparisons may appear artificially low due to a market incentive that no longer exists.
Inventory levels are a crucial metric to watch, as they tell the story of whether listings overwhelm the market during times of slow purchase demand. As of October 4, there were 26,915 active listings on the market, 9.8 percent more than the same week in 2009.
In the Twin Cities metropolitan area, the frost that some of us found on our lawns also kept the housing market in a sort of frozen state. For the week ending September 25, sellers placed 1,382 new homes on the market, which was 19.9 percent fewer than last year at this time. Over the past three months, listing activity has been an average of 9.2 percent under last year's levels.
Buyer activity produced 41.7 percent fewer purchase agreements than last year at this time. There were 616 contracts signed, and as the graph on page 3 illustrates, Pending Sales are still mimicking last year's activity, except with roughly 400 fewer sales. For the three-month average, the decline rests at 39.0 percent below 2009 levels.
Be aware that we're in an apples-to-oranges comparison period since the tax credit was in force last year at this time. Year-over-year comparisons may appear artificially low due to a market incentive that no longer exists.
Inventory levels are a crucial metric to watch, as they tell the story of whether listings overwhelm the market during times of slow purchase demand. As of October 4, there were 26,915 active listings on the market, 9.8 percent more than the same week in 2009.
Tuesday, September 28, 2010
"u @ 50"
Do you know what a palindrome is? A palindrome, reads the same backwards, as forward. This video, reads the exact opposite backwards, as forward. Not only does it read the opposite, the meaning is the exact opposite..
This is only a 1 minute, 44 second video and it is brilliant.
Make sure you read, as well as listen...forward and backward.
This is a video that was submitted in a contest by a 20-year old. The contest was titled "u @ 50" by AARP. This video won second place. When they showed it, everyone in the room was awe-struck, and broke into spontaneous applause. So simple and yet so brilliant.
Please take a moment and watch it. Click here; Lost Generation
I can't imagine what won first place.
This is only a 1 minute, 44 second video and it is brilliant.
Make sure you read, as well as listen...forward and backward.
This is a video that was submitted in a contest by a 20-year old. The contest was titled "u @ 50" by AARP. This video won second place. When they showed it, everyone in the room was awe-struck, and broke into spontaneous applause. So simple and yet so brilliant.
Please take a moment and watch it. Click here; Lost Generation
I can't imagine what won first place.
Monday, September 27, 2010
Weekly Market Activity Report
Weekly Market Activity Report
 |
| Summer Storm over Lake Minnetonka |
As the waters of several Minnesota rivers swell, so too does the inventory of Twin Cities residential homes on the market. For the 17th consecutive week, the number of active listings for sale was greater than the same week in the year prior. For the week ending September 18, the 27,408 homes on the market made for a 9.5 percent increase over last year at this time.
Sellers are off the hook; it isn't listing activity that's causing this—instead, it's the slowed purchase activity. The 596 purchase agreements were 42.9 percent slimmer than last year's 1,043 contracts signed during the same week. We knew this year would be front-loaded with activity, but we didn't know by how much. Calling it substantial would be an understatement.
Sellers are off the hook; it isn't listing activity that's causing this—instead, it's the slowed purchase activity. The 596 purchase agreements were 42.9 percent slimmer than last year's 1,043 contracts signed during the same week. We knew this year would be front-loaded with activity, but we didn't know by how much. Calling it substantial would be an understatement.
The 1,638 properties that came on to the market were only 11.3 percent lighter than last year. As mortgage rates continue to hang tight at historic lows, it would appear that folks are simply staying put and allowing both economic uncertainty and turgid rivers to subside.
Wednesday, September 22, 2010
Since data for the Weekly Market Activity Report is pulled a week after it actually occurs, this week's data includes the Labor Day week. Taking the usual holiday dip, pending sales dropped to 519 purchase agreements signed for the week ending September 11. The 38.2 percent year-over-year decrease rests along the trend line we've seen develop since the end of the tax credit.
Housing affordability remains strong at 205, up 5.1 percent over last year at this time. This garners some hope that there will be more home buyers looking to take advantage of an incredibly favorable buying environment. Just listen to this:
• There are 27,601 homes available for purchase in the Twin Cities, an increase of 9.5 percent over last year.
• Months Supply of Inventory now perches at 8.0. It's a buyer's market.
• The Percent of Original List Price Received at Sale metric is down to 91.1 percent.
• Mortgage rates continue to creep along the bottom of historic lows.
Buyers have their hands at 10 and 2, firmly in control of this market as summer's sun fades in the rear view mirror and the clouds gather on the open road ahead.
Tuesday, September 21, 2010
10 Reasons to Buy a Home - Wall Street Journal MarketWatch.com
10 Reasons to Buy a Home - MarketWatch
Here's a great article that my hubby sent me from the Wall Street Journal, regarding the fabulous reasons to BUY NOW!
In my book, Reason #1 is "Mortgages are Cheap". How can you beat 4.375% on a 30 year fixed???
Here's a great article that my hubby sent me from the Wall Street Journal, regarding the fabulous reasons to BUY NOW!
In my book, Reason #1 is "Mortgages are Cheap". How can you beat 4.375% on a 30 year fixed???
Friday, September 17, 2010
10 Things that make Buyers Bite
Here's a great article that I found that has some timeless info for Sellers.
10 Things That Make Buyers Bite
By FrontDoor.com
Published: 11/01/2007
1. A Nice Entryway
Impress buyers right off the bat with a beautiful entrance. "I always tell sellers to put a fresh coat of paint on the front door," says real estate agent Theresa Evans of Charleston, S.C. And if you don't have an entrance at all, make one. "A lot of my buyers have mentioned that they don't like to just go through the front door into the living room," says Los Angeles-based realtor Rhonda Kohn. This problem, more common in condos and apartments, is solved by cleverly placing furniture to create more of an entryway. "A console table or demilune chest of drawers with something over it creates a welcoming vignette," says designer Sue Adams of Andover, Mass.
2. Hardwood Floors
Realtors agree that most buyers are hunting for hardwood. You can bet that of all types of flooring, hardwood floors will "have the most longevity and will never go out of style," according to designer Linda Applewhite of Sausalito, Calif. A synthetic wood floor, like Pergo, "is always a good option for those who can't afford hardwood," furthers real estate agent Rhonda Kohn. But know that a laminate floor "won't fool everyone - it has a hollow thud when you walk on it and it doesn't look the same," adds designer Sue Adams.
3. Fab Fixtures
Fixtures," says designer Linda Applewhite, "are the jewelry of the house." Only the extremely detail-oriented among us will stop to inspect doorknobs, faucets and cabinet knobs, but designers and real estate agents argue that we'll prefer the look of a place that has coordinated fixtures that are a cut above standard developer grade. "Newer construction is so chintzy with fixtures and fittings," observes Miami-based interior designer Simon Temprell. Replacing knobs and drawer pulls "is the quickest way to make over a bathroom or kitchen," he says. And when it comes to faucets, he adds, "for $60 or $70 dollars you can buy something infinitely better" than what you likely already have.
4. Beautiful Baths
According to real estate agents, marble counters, whirlpool baths and steam showers up the attractiveness of any bathroom. But if you don't have these luxury items, it may be more practical to address the unattractive aspects of your existing bath. "Rip out that big sheet mirror and those globe lights that look like you're in a theater dressing room," suggests designer Simon Temprell. Replace them with an elegant framed mirror (don't be afraid to look outside the bathroom section, he says) and sconce lighting on either side. This lighting scheme is also more flattering to the face, observes designer Sue Adams, and making buyers feel pretty will pay off!
5. Countertop Considerations
You've probably heard that granite is the secret to a contemporary kitchen, but that's not necessarily what buyers are after. "It's really about the slab," says designer Linda Applewhite. Buyers don't want to see grout lines on their counters, she explains.So when it comes to slab countertops, granite is the top pick because it's hard, nonporous and easy to care for. But then again, so is Corian, so are composite stone surfaces such as Silestone and, she notes, with the help of today's sophisticated sealants, so are concrete, limestone, soapstone and marble. Even butcher-block, which is much less expensive than stone, can be a more appealing alternative to tile or laminate countertops. "When it gets funky, you can sand it and oil it and it looks good again," she says. Already have granite? Make it cutting edge. "A lot of people are honing their granite now," adds Applewhite. "What that does is knock it down and make it more matte, so it looks warmer and more inviting. Shiny surfaces can look very cold."
6. Steel This Idea
Why do buyers go bananas for stainless-steel appliances? It's the power of suggestion. "A kitchen with stainless appliances looks like a commercial kitchen. It makes people think that they're great cooks," observes designer Sue Adams, "but because the finish shows fingerprints, it's not for everyone." As far as other alternatives go, the designers agree that in general, black fixtures can look dated, while white is okay for a country kitchen. And some people are making appliances blend in beautifully by ordering front panels to match their cabinetry.
7. Pre-Organized Closets
Just as stainless appliances convince buyers that they are better cooks, closet organizers make buyers believe that they are better homemakers. If your closets are unadorned, don't underestimate the importance of this easy addition. "They make you feel secure and calm and people need that," notes designer Sue Adams. And while you don't need to use high-end organizers, make sure that the materials are up-to-date. "Twenty years ago, closet organizers meant wire shelves. You can't slide anything over a wire shelf. You can't even put a hanger in some of them," she says. Today's ideal would be "melamine shelves, in bone or white, with some drawers and metal rods to maximize storage," she says. This organization shouldn't stop in the closet - make sure your kitchen cabinets are orderly, too. "If they open up a door and see a big pantry, but it's not organized properly, it won't be as exciting as something already organized with a place for everything," says real estate agent Theresa Evans.
8. Light Up
"Floor lamps just don't cut it these days," says real estate agent Rhonda Kohn. If your home doesn't get a lot of natural light, consider installing recessed lighting or new sconces, or both, so the buyer won't struggle to figure out how to brighten up the space. "Lighting is probably the most overlooked, yet the most important aspect of interior decoration," designer Simon Temprell says, adding, "In newer construction, you don't have sufficient lighting. The reality is that everyone needs three types - task, ambient and decorative lighting - which allow you to change the mood of the room." When it comes to recessed lighting, know that the smaller the fixture, the more updated it is. "We used to have six-inch apertures, now we have four-inch openings. And using halogen bulbs gives a cleaner, more modern look," says designer Sue Adams.
9. Built-In Bonus
Interior Designer Linda Applewhite observes that many buyers view built-ins as "free furniture." Well-crafted bookshelves, china cabinets and entertainment units can "make a home stand out as quality," adds designer Sue Adams. On the other hand, says designer Simon Temprell, "It can be a catch-22 because some people would rather organize their own furniture. Sometimes it's better to have freestanding pieces that look like built-ins, that you can give the buyer the option to purchase."
10. Grass Is Greener
Are the homebuyers in your area families with young children? If so, they'll be drawn to spaces with a flat, open lawn. Were you thinking of putting in a concrete patio or rock garden? Don't bother if you're putting your home on the market. "A flat yard is a real plus. Spend some money and put in the grass. It's a good seller," says real estate agent Rhonda Kohn.
Bonus Tip: Furnish That house!
Think you're ready for the open house? Consider this: "Architecturally interesting homes in immaculate shape can be shown empty," notes designer Applewhite. But in general, "people look for a homey kind of a feel," adds real estate agent Kohn. And that's homey, not homely. If the bulk of your furniture isn't attractive, don't hesitate to have it staged (propped with attractive rental furniture). "We're even seeing that done in the inexpensive condo market," she says.
10 Things That Make Buyers Bite
By FrontDoor.com
Published: 11/01/2007
1. A Nice Entryway
Impress buyers right off the bat with a beautiful entrance. "I always tell sellers to put a fresh coat of paint on the front door," says real estate agent Theresa Evans of Charleston, S.C. And if you don't have an entrance at all, make one. "A lot of my buyers have mentioned that they don't like to just go through the front door into the living room," says Los Angeles-based realtor Rhonda Kohn. This problem, more common in condos and apartments, is solved by cleverly placing furniture to create more of an entryway. "A console table or demilune chest of drawers with something over it creates a welcoming vignette," says designer Sue Adams of Andover, Mass.
2. Hardwood Floors
Realtors agree that most buyers are hunting for hardwood. You can bet that of all types of flooring, hardwood floors will "have the most longevity and will never go out of style," according to designer Linda Applewhite of Sausalito, Calif. A synthetic wood floor, like Pergo, "is always a good option for those who can't afford hardwood," furthers real estate agent Rhonda Kohn. But know that a laminate floor "won't fool everyone - it has a hollow thud when you walk on it and it doesn't look the same," adds designer Sue Adams.
3. Fab Fixtures
Fixtures," says designer Linda Applewhite, "are the jewelry of the house." Only the extremely detail-oriented among us will stop to inspect doorknobs, faucets and cabinet knobs, but designers and real estate agents argue that we'll prefer the look of a place that has coordinated fixtures that are a cut above standard developer grade. "Newer construction is so chintzy with fixtures and fittings," observes Miami-based interior designer Simon Temprell. Replacing knobs and drawer pulls "is the quickest way to make over a bathroom or kitchen," he says. And when it comes to faucets, he adds, "for $60 or $70 dollars you can buy something infinitely better" than what you likely already have.
4. Beautiful Baths
According to real estate agents, marble counters, whirlpool baths and steam showers up the attractiveness of any bathroom. But if you don't have these luxury items, it may be more practical to address the unattractive aspects of your existing bath. "Rip out that big sheet mirror and those globe lights that look like you're in a theater dressing room," suggests designer Simon Temprell. Replace them with an elegant framed mirror (don't be afraid to look outside the bathroom section, he says) and sconce lighting on either side. This lighting scheme is also more flattering to the face, observes designer Sue Adams, and making buyers feel pretty will pay off!
5. Countertop Considerations
You've probably heard that granite is the secret to a contemporary kitchen, but that's not necessarily what buyers are after. "It's really about the slab," says designer Linda Applewhite. Buyers don't want to see grout lines on their counters, she explains.So when it comes to slab countertops, granite is the top pick because it's hard, nonporous and easy to care for. But then again, so is Corian, so are composite stone surfaces such as Silestone and, she notes, with the help of today's sophisticated sealants, so are concrete, limestone, soapstone and marble. Even butcher-block, which is much less expensive than stone, can be a more appealing alternative to tile or laminate countertops. "When it gets funky, you can sand it and oil it and it looks good again," she says. Already have granite? Make it cutting edge. "A lot of people are honing their granite now," adds Applewhite. "What that does is knock it down and make it more matte, so it looks warmer and more inviting. Shiny surfaces can look very cold."
6. Steel This Idea
Why do buyers go bananas for stainless-steel appliances? It's the power of suggestion. "A kitchen with stainless appliances looks like a commercial kitchen. It makes people think that they're great cooks," observes designer Sue Adams, "but because the finish shows fingerprints, it's not for everyone." As far as other alternatives go, the designers agree that in general, black fixtures can look dated, while white is okay for a country kitchen. And some people are making appliances blend in beautifully by ordering front panels to match their cabinetry.
7. Pre-Organized Closets
Just as stainless appliances convince buyers that they are better cooks, closet organizers make buyers believe that they are better homemakers. If your closets are unadorned, don't underestimate the importance of this easy addition. "They make you feel secure and calm and people need that," notes designer Sue Adams. And while you don't need to use high-end organizers, make sure that the materials are up-to-date. "Twenty years ago, closet organizers meant wire shelves. You can't slide anything over a wire shelf. You can't even put a hanger in some of them," she says. Today's ideal would be "melamine shelves, in bone or white, with some drawers and metal rods to maximize storage," she says. This organization shouldn't stop in the closet - make sure your kitchen cabinets are orderly, too. "If they open up a door and see a big pantry, but it's not organized properly, it won't be as exciting as something already organized with a place for everything," says real estate agent Theresa Evans.
8. Light Up
"Floor lamps just don't cut it these days," says real estate agent Rhonda Kohn. If your home doesn't get a lot of natural light, consider installing recessed lighting or new sconces, or both, so the buyer won't struggle to figure out how to brighten up the space. "Lighting is probably the most overlooked, yet the most important aspect of interior decoration," designer Simon Temprell says, adding, "In newer construction, you don't have sufficient lighting. The reality is that everyone needs three types - task, ambient and decorative lighting - which allow you to change the mood of the room." When it comes to recessed lighting, know that the smaller the fixture, the more updated it is. "We used to have six-inch apertures, now we have four-inch openings. And using halogen bulbs gives a cleaner, more modern look," says designer Sue Adams.
9. Built-In Bonus
Interior Designer Linda Applewhite observes that many buyers view built-ins as "free furniture." Well-crafted bookshelves, china cabinets and entertainment units can "make a home stand out as quality," adds designer Sue Adams. On the other hand, says designer Simon Temprell, "It can be a catch-22 because some people would rather organize their own furniture. Sometimes it's better to have freestanding pieces that look like built-ins, that you can give the buyer the option to purchase."
10. Grass Is Greener
Are the homebuyers in your area families with young children? If so, they'll be drawn to spaces with a flat, open lawn. Were you thinking of putting in a concrete patio or rock garden? Don't bother if you're putting your home on the market. "A flat yard is a real plus. Spend some money and put in the grass. It's a good seller," says real estate agent Rhonda Kohn.
Bonus Tip: Furnish That house!
Think you're ready for the open house? Consider this: "Architecturally interesting homes in immaculate shape can be shown empty," notes designer Applewhite. But in general, "people look for a homey kind of a feel," adds real estate agent Kohn. And that's homey, not homely. If the bulk of your furniture isn't attractive, don't hesitate to have it staged (propped with attractive rental furniture). "We're even seeing that done in the inexpensive condo market," she says.
Tuesday, September 14, 2010
Weekly Market Activity Report
As autumn presses upon us, the Twin Cities residential real estate market's paralysis continues. For the week ending September 4, New Listings were down 12.8 percent compared to last year at this time, but there were still more properties coming on to the market than the week before at a time when the school year normally slows seller activity. Pending Sales had a less severe year-over-year decline than the previous four weeks but remain 35.9 percent behind where we were at this time in 2009. This has been the case all summer long.
Active Listings for Sale have been progressively expanding since the tax credit ended and are now 8.9 percent ahead of last year. Percent of Original List Price Received at Sale leaned toward buyers last month. Good news for home hunters; even more challenges for those looking to sell.
 |
| "Posh", a gorgeous Chris Craft Boat that we saw @ Lord Fletchers. |
As autumn presses upon us, the Twin Cities residential real estate market's paralysis continues. For the week ending September 4, New Listings were down 12.8 percent compared to last year at this time, but there were still more properties coming on to the market than the week before at a time when the school year normally slows seller activity. Pending Sales had a less severe year-over-year decline than the previous four weeks but remain 35.9 percent behind where we were at this time in 2009. This has been the case all summer long.
Active Listings for Sale have been progressively expanding since the tax credit ended and are now 8.9 percent ahead of last year. Percent of Original List Price Received at Sale leaned toward buyers last month. Good news for home hunters; even more challenges for those looking to sell.
Friday, September 10, 2010
Wednesday, September 8, 2010
Weekly Market Activity Report
 |
| Seed Savers Tomato Tasting Decorah, Iowa |
All of this adjustment firmly points to the federal tax credit for first-time home buyers that was in full swing both at this time last year and during the winter and spring months of this year. We have returned to a world void of juicy government incentives.
The number of homes for sale has grown to 27,271, up 8.6 percent from the prior year. Increased supply plus declining demand has caused the Supply-Demand Ratio to grow 56 percent in one year's time. This boils down to greater opportunity for buyers and increased challenges for sellers. You're probably used to hearing that by now. We're certainly used to saying it.
Wednesday, September 1, 2010
Monday, August 30, 2010
Weekly Market Activity Report
For 12 consecutive weeks now, the number of homes for sale in the Twin Cities housing market has been higher than it was a year ago, and the gap between this year's inventory and last year's inventory at the same time has been steadily growing. There are currently 27,784 homes for sale, up 8.1 percent from this time in 2009. Inventory is not growing due to an influx of new sellers putting their homes on the market. Rather, its growing due to a drop in buyers who once were absorbing supply.
For the week ending August 21, there were 601 signed purchase agreements, down 40.6 percent from a year ago. That's the 15th consecutive week of significant declines compared to a year ago.
With supply growing and fewer buyers to purchase it, home sellers can expect a challenging fall and downward pressure on home values. Motivated sellers who want to move quickly may have to pursue aggressive pricing to attract buyers.
For 12 consecutive weeks now, the number of homes for sale in the Twin Cities housing market has been higher than it was a year ago, and the gap between this year's inventory and last year's inventory at the same time has been steadily growing. There are currently 27,784 homes for sale, up 8.1 percent from this time in 2009. Inventory is not growing due to an influx of new sellers putting their homes on the market. Rather, its growing due to a drop in buyers who once were absorbing supply.
For the week ending August 21, there were 601 signed purchase agreements, down 40.6 percent from a year ago. That's the 15th consecutive week of significant declines compared to a year ago.
With supply growing and fewer buyers to purchase it, home sellers can expect a challenging fall and downward pressure on home values. Motivated sellers who want to move quickly may have to pursue aggressive pricing to attract buyers.
Wednesday, August 25, 2010
Foreclosures Surge 9% in July as Banks Crack Down
Foreclosures Surge 9% in July as Banks Crack Down
WashingtonPost.com
Friday, August 13, 2010
By Alex Veiga
LOS ANGELES -- The number of U.S. homes lost to foreclosure rose sharply in July, as lenders took back more properties from homeowners who had been in default for months on end.
Lenders repossessed 92,858 properties last month, up 9 percent from June and an increase of 6 percent from July 2009, the foreclosure-listing firm RealtyTrac said Thursday.
Banks have stepped up repossessions this year to clear out the backlog of bad loans. July marks the eighth consecutive month that the pace of homes lost to foreclosure has increased on an annual basis.
Still, the number of homeowners who have fallen behind on their payments remains high, and these borrowers are being allowed to stay in their homes longer. That's partly because lenders are reluctant to add to the glut of foreclosed homes on the market. They also are swamped with an unprecedented number of defaulting properties and have been overwhelmed by the volume.
The number of properties receiving an initial default notice -- the first step in the foreclosure process -- rose 1 percent last month from June but was down 28 percent compared with July of last year, RealtyTrac said. Initial defaults have fallen on an annual basis for the past six months.
The latest data reflect a foreclosure crisis that continues to drag on as many homeowners struggle to make their monthly payments amid high unemployment, slow job growth and an uneven rebound in home prices.
Among states, Nevada posted the highest foreclosure rate in July, with one out of 82 households receiving a foreclosure notice. Rounding out the top 10 states with the highest foreclosure rates last month were Arizona, Florida, California, Idaho, Michigan, Utah, Illinois, Georgia and Maryland.
Las Vegas continued to be the city with the highest foreclosure rate in the U.S., with one out of 71 homes receiving a foreclosure notice in July -- more than five times the national average.
Lenders are offering a variety of programs to modify their loans, but their success rates vary.
The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. More than 40 percent of participants, or about 530,000 homeowners, have fallen out of the administration's main effort to assist those facing foreclosure.
That program, known as Making Home Affordable, has provided permanent help to about 390,000 homeowners, or 30 percent of the 1.3 million who have enrolled since March 2009. RealtyTrac estimates more than 1 million American households are likely to lose their homes to foreclosure this year.
In all, 325,229 properties received a foreclosure-related warning in July, up 4 percent from June, but down 10 percent from the same month last year. That translates to one in 397 U.S. homes.
-- Associated Press
WashingtonPost.com
Friday, August 13, 2010
By Alex Veiga
LOS ANGELES -- The number of U.S. homes lost to foreclosure rose sharply in July, as lenders took back more properties from homeowners who had been in default for months on end.
Lenders repossessed 92,858 properties last month, up 9 percent from June and an increase of 6 percent from July 2009, the foreclosure-listing firm RealtyTrac said Thursday.
Banks have stepped up repossessions this year to clear out the backlog of bad loans. July marks the eighth consecutive month that the pace of homes lost to foreclosure has increased on an annual basis.
Still, the number of homeowners who have fallen behind on their payments remains high, and these borrowers are being allowed to stay in their homes longer. That's partly because lenders are reluctant to add to the glut of foreclosed homes on the market. They also are swamped with an unprecedented number of defaulting properties and have been overwhelmed by the volume.
The number of properties receiving an initial default notice -- the first step in the foreclosure process -- rose 1 percent last month from June but was down 28 percent compared with July of last year, RealtyTrac said. Initial defaults have fallen on an annual basis for the past six months.
The latest data reflect a foreclosure crisis that continues to drag on as many homeowners struggle to make their monthly payments amid high unemployment, slow job growth and an uneven rebound in home prices.
Among states, Nevada posted the highest foreclosure rate in July, with one out of 82 households receiving a foreclosure notice. Rounding out the top 10 states with the highest foreclosure rates last month were Arizona, Florida, California, Idaho, Michigan, Utah, Illinois, Georgia and Maryland.
Las Vegas continued to be the city with the highest foreclosure rate in the U.S., with one out of 71 homes receiving a foreclosure notice in July -- more than five times the national average.
Lenders are offering a variety of programs to modify their loans, but their success rates vary.
The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. More than 40 percent of participants, or about 530,000 homeowners, have fallen out of the administration's main effort to assist those facing foreclosure.
That program, known as Making Home Affordable, has provided permanent help to about 390,000 homeowners, or 30 percent of the 1.3 million who have enrolled since March 2009. RealtyTrac estimates more than 1 million American households are likely to lose their homes to foreclosure this year.
In all, 325,229 properties received a foreclosure-related warning in July, up 4 percent from June, but down 10 percent from the same month last year. That translates to one in 397 U.S. homes.
-- Associated Press
Tuesday, August 24, 2010
Weekly Market Activity Report
The Twin Cities Housing market has seen some impressive highs and puzzling lows this year. Unfortunately, the lows have persisted through summer, despite low interest rates and a diverse and affordable housing stock.
Although New Listings are about where they were last year (near 1,600), Pending Sales remain as low as they've been all summer. The week ending August 14 bore just 631 signed purchase agreements, down 38.5 percent compared to last year. The three-month total for pendings is 8,018 compared to 13,830 last year, which is an even heftier decline of 42.0 percent.
Active Listings are up to 27,784, 8.1 percent more than last year. Growing inventory is not the result of too many homes coming on the market but rather a product of not enough homes going off the market. With Months Supply of Inventory now at 7.8, it still remains a buyer's market out there.
The Twin Cities Housing market has seen some impressive highs and puzzling lows this year. Unfortunately, the lows have persisted through summer, despite low interest rates and a diverse and affordable housing stock.Although New Listings are about where they were last year (near 1,600), Pending Sales remain as low as they've been all summer. The week ending August 14 bore just 631 signed purchase agreements, down 38.5 percent compared to last year. The three-month total for pendings is 8,018 compared to 13,830 last year, which is an even heftier decline of 42.0 percent.
Active Listings are up to 27,784, 8.1 percent more than last year. Growing inventory is not the result of too many homes coming on the market but rather a product of not enough homes going off the market. With Months Supply of Inventory now at 7.8, it still remains a buyer's market out there.
Wednesday, August 18, 2010
Weekly Market Activity Report
For the week ending August 7, we didn't stray from the post-tax credit trends in the Twin Cities housing market. Pending sales remained entrenched in a holding pattern around 600 per week, continually underperforming last year's activity. The 659 purchase agreements signed were 36.5 percent below 2009 figures.
Weak sales means rising inventory. There are 27,664 homes available for sale, up 7.4 percent from a year ago. In August, there will be 8.64 homes available per buyer, up dramatically from the mark of 5.28 seen a year ago.
For now, Days on Market continues to drop slightly from last year, down 6.8 percent from a year ago to 127, but Percent of Original List Price Received at Sale for July 2010 declined from a year ago for the first time in several years, an indication that home prices will remain soft in the months ahead.
For the week ending August 7, we didn't stray from the post-tax credit trends in the Twin Cities housing market. Pending sales remained entrenched in a holding pattern around 600 per week, continually underperforming last year's activity. The 659 purchase agreements signed were 36.5 percent below 2009 figures.
Weak sales means rising inventory. There are 27,664 homes available for sale, up 7.4 percent from a year ago. In August, there will be 8.64 homes available per buyer, up dramatically from the mark of 5.28 seen a year ago.
For now, Days on Market continues to drop slightly from last year, down 6.8 percent from a year ago to 127, but Percent of Original List Price Received at Sale for July 2010 declined from a year ago for the first time in several years, an indication that home prices will remain soft in the months ahead.
Friday, August 13, 2010
Washington Post Article; FHA to Increase Fees
FHA set to increase fees paid by new borrowers
By Dina ElBoghdady
Washington Post Staff Writer
Friday, August 6, 2010
The Federal Housing Administration plans to raise the annual fees it charges new borrowers starting Sept. 7, which would add about $300 million a month to the agency's eroding cash reserves.
The insurance premiums are capped at 0.55 percent of the value of a loan. Earlier this week, the Senate voted to raise the cap to 1.5 percent. President Obama is expected to sign the measure this month.
But the FHA does not plan to raise the fees to the maximum level allowed, and it estimates that borrowers would pay about $38 more on average each month, agency officials said. The increase would not apply to current FHA loan holders.
Boosting the fees will give the agency a cash infusion and align its fee structure with that of private mortgage insurers, which were crowded out of the market as the popularity of FHA-insured loans grew.
The FHA does not make loans but insures qualified lenders against losses should loans go bad. By doing so, it enticed lenders that had retrenched to reenter the mortgage market, providing crucial support to the housing market. In the past 18 months, about 30 percent of new single-family home purchases and about 20 percent of refinancing deals were backed by the agency.
But as the agency's loan volume rose, so did its default rate. The cash reserves that the agency had for unexpected losses dropped below the threshold required by law last year. The FHA is under pressure to replenish its capital. If its cash remains depleted, taxpayers could be forced to cover the agency's losses for the first time.
Raising the premiums is a quick way for the agency to boost its cash cushion. It has resisted the move in the past for fear of shutting out qualified borrowers and hampering the housing market's recovery. But as the agency's finances worsened, housing officials relented.
Earlier this year, the FHA raised the upfront fees it charges borrowers. Those fees helped keep the agency cash-positive this fiscal year, with a net cash flow of $446 million as of June 30.
About a year ago, the FHA also asked Congress for authority to raise the annual fees. The increase was included in a broad FHA reform bill that passed the House in June. But when the Senate did not act on it, the FHA pushed for a free-standing bill that would allow for passage of the premium increase before Congress began its August recess.
"The premium is one of the more important measures," FHA Commissioner David H. Stevens said. "The desire to expedite that is simply a practical move."
Once Obama signs the measure, Stevens said the agency plans to raise the fee to 0.85 percent for new borrowers who have 5 percent equity and 0.9 percent for those with less than 5 percent.
The agency will also lower the upfront free from 2.25 percent to 1 percent. That will lighten the burden on consumers, he said. The upfront fees can be paid at closing or rolled into the loan.
The FHA has not given up on the broader reform measure, which the Senate plans to consider after the break. The proposal focuses on granting the FHA tougher lender enforcement capabilities.
By Dina ElBoghdady
Washington Post Staff Writer
Friday, August 6, 2010
The Federal Housing Administration plans to raise the annual fees it charges new borrowers starting Sept. 7, which would add about $300 million a month to the agency's eroding cash reserves.
The insurance premiums are capped at 0.55 percent of the value of a loan. Earlier this week, the Senate voted to raise the cap to 1.5 percent. President Obama is expected to sign the measure this month.
But the FHA does not plan to raise the fees to the maximum level allowed, and it estimates that borrowers would pay about $38 more on average each month, agency officials said. The increase would not apply to current FHA loan holders.
Boosting the fees will give the agency a cash infusion and align its fee structure with that of private mortgage insurers, which were crowded out of the market as the popularity of FHA-insured loans grew.
The FHA does not make loans but insures qualified lenders against losses should loans go bad. By doing so, it enticed lenders that had retrenched to reenter the mortgage market, providing crucial support to the housing market. In the past 18 months, about 30 percent of new single-family home purchases and about 20 percent of refinancing deals were backed by the agency.
But as the agency's loan volume rose, so did its default rate. The cash reserves that the agency had for unexpected losses dropped below the threshold required by law last year. The FHA is under pressure to replenish its capital. If its cash remains depleted, taxpayers could be forced to cover the agency's losses for the first time.
Raising the premiums is a quick way for the agency to boost its cash cushion. It has resisted the move in the past for fear of shutting out qualified borrowers and hampering the housing market's recovery. But as the agency's finances worsened, housing officials relented.
Earlier this year, the FHA raised the upfront fees it charges borrowers. Those fees helped keep the agency cash-positive this fiscal year, with a net cash flow of $446 million as of June 30.
About a year ago, the FHA also asked Congress for authority to raise the annual fees. The increase was included in a broad FHA reform bill that passed the House in June. But when the Senate did not act on it, the FHA pushed for a free-standing bill that would allow for passage of the premium increase before Congress began its August recess.
"The premium is one of the more important measures," FHA Commissioner David H. Stevens said. "The desire to expedite that is simply a practical move."
Once Obama signs the measure, Stevens said the agency plans to raise the fee to 0.85 percent for new borrowers who have 5 percent equity and 0.9 percent for those with less than 5 percent.
The agency will also lower the upfront free from 2.25 percent to 1 percent. That will lighten the burden on consumers, he said. The upfront fees can be paid at closing or rolled into the loan.
The FHA has not given up on the broader reform measure, which the Senate plans to consider after the break. The proposal focuses on granting the FHA tougher lender enforcement capabilities.
Freddie Mac Featured Perspective: “The Housing Market You’ve Been Saving For”
July 21st, 2010
In their "Featured Perspectives" section, Freddie Mac SVP of Single Family Sourcing Paul Mullings presents, “The Housing Market You’ve Been Saving For.”
The Housing Market You've Been Saving For
July 19, 2010 – Like a rare astronomical event, America is experiencing a conjunction between very affordable home prices and historically low mortgage rates that hasn't been seen for at least 50 years. Since nobody knows how long this will last, today's market is a rare buying opportunity for working families with stable incomes and good credit.
There are even some hints the present combination of historically low rates and more reasonably priced homes are beginning to slip away in some markets. For example, the National Association of Realtors' housing affordability index, while still high, has dropped nearly six percentage points in the past few quarters as existing home prices in many areas have reversed course and begun to rise again. (See chart)
So why aren't more families in the homebuying market? While job worries may have some potential buyers holding back, others are sitting on the sidelines because they are unsure about the new rules of the road for getting a conventional conforming mortgage. They are actually straightforward and not so difficult for families who have:
• A stable income;
• A good credit history
• A common-sense down payment. Generally, about five percent of the purchase price for a conventional, conforming mortgage. (Fortunately, there are down payment assistance programs for qualified borrowers.) Documentation – responsible lenders today will want documentation verifying your income (like W-2 forms, tax returns), employment, credit history, and assets – such as bank statements -- to verify savings.
• Under the new rules of the road, the lender must also obtain an impartial third-party appraisal that complies with tough new rules to verify that the value of the house you want will support the mortgage you need to finance it.
Anyone still unsure about the new rules should ask a reputable lender to pre-qualify them for a mortgage. Think of a pre-qualification letter almost like a driver's permit for the new rules of the homebuying road. A mortgage pre-qualification letter can:
• Confirm you can qualify for a mortgage
• Tell you how much you can expect to borrow;
• Make you a stronger home shopper since sellers won't have to worry about whether you can qualify for a mortgage.
During the pre-qualification process the lender will review your credit, financial, and employment information. There may be an application fee. Athough mortgage pre-qualifications are usually only good for a limited time they are still worth getting. The reason: even though you will need to apply for a mortgage once you find a house to buy, your pre-qualification letter helps clear the way by telling home sellers you're road-tested for the most affordable mortgage market in 50 years.
John C. Skoglund Jr.
Mortgage Banker - PHH Home Loans
Bringing families home…
612-599-8220 Direct
Web Site: http://phhonline.com/johnskoglund/
In their "Featured Perspectives" section, Freddie Mac SVP of Single Family Sourcing Paul Mullings presents, “The Housing Market You’ve Been Saving For.”
The Housing Market You've Been Saving For
July 19, 2010 – Like a rare astronomical event, America is experiencing a conjunction between very affordable home prices and historically low mortgage rates that hasn't been seen for at least 50 years. Since nobody knows how long this will last, today's market is a rare buying opportunity for working families with stable incomes and good credit.
There are even some hints the present combination of historically low rates and more reasonably priced homes are beginning to slip away in some markets. For example, the National Association of Realtors' housing affordability index, while still high, has dropped nearly six percentage points in the past few quarters as existing home prices in many areas have reversed course and begun to rise again. (See chart)
So why aren't more families in the homebuying market? While job worries may have some potential buyers holding back, others are sitting on the sidelines because they are unsure about the new rules of the road for getting a conventional conforming mortgage. They are actually straightforward and not so difficult for families who have:
• A stable income;
• A good credit history
• A common-sense down payment. Generally, about five percent of the purchase price for a conventional, conforming mortgage. (Fortunately, there are down payment assistance programs for qualified borrowers.) Documentation – responsible lenders today will want documentation verifying your income (like W-2 forms, tax returns), employment, credit history, and assets – such as bank statements -- to verify savings.
• Under the new rules of the road, the lender must also obtain an impartial third-party appraisal that complies with tough new rules to verify that the value of the house you want will support the mortgage you need to finance it.
Anyone still unsure about the new rules should ask a reputable lender to pre-qualify them for a mortgage. Think of a pre-qualification letter almost like a driver's permit for the new rules of the homebuying road. A mortgage pre-qualification letter can:
• Confirm you can qualify for a mortgage
• Tell you how much you can expect to borrow;
• Make you a stronger home shopper since sellers won't have to worry about whether you can qualify for a mortgage.
During the pre-qualification process the lender will review your credit, financial, and employment information. There may be an application fee. Athough mortgage pre-qualifications are usually only good for a limited time they are still worth getting. The reason: even though you will need to apply for a mortgage once you find a house to buy, your pre-qualification letter helps clear the way by telling home sellers you're road-tested for the most affordable mortgage market in 50 years.
John C. Skoglund Jr.
Mortgage Banker - PHH Home Loans
Bringing families home…
612-599-8220 Direct
Web Site: http://phhonline.com/johnskoglund/
Wednesday, August 11, 2010
Weekly Market Activity Report
For the week ending July 31, New Listings in the Twin Cities region were down 4.3 percent from last year, with 1,566 new properties coming onto the market. Pending Sales were down 34.3 percent from a year ago, as 651 purchase agreements were signed.
Over the last three months, there have been 13.4 fewer new listings than there were during the same period a year ago and 38.7 percent fewer pendings. This means increasing inventory. There were 27,627 Active Listings for Sale as of August 9, up 6.6 percent from the same point in 2009.
The growth in inventory, combined with slowed sales demand, means that the number of homes available per buyer in August has jumped to 8.64, up dramatically from the mark of 5.28 seen a year ago.
For the week ending July 31, New Listings in the Twin Cities region were down 4.3 percent from last year, with 1,566 new properties coming onto the market. Pending Sales were down 34.3 percent from a year ago, as 651 purchase agreements were signed.
Over the last three months, there have been 13.4 fewer new listings than there were during the same period a year ago and 38.7 percent fewer pendings. This means increasing inventory. There were 27,627 Active Listings for Sale as of August 9, up 6.6 percent from the same point in 2009.
The growth in inventory, combined with slowed sales demand, means that the number of homes available per buyer in August has jumped to 8.64, up dramatically from the mark of 5.28 seen a year ago.
Wednesday, August 4, 2010
Weekly Market Activity Report
Whether May or June or July, we're finding it difficult to report anything new to you for the warm weather months of 2010. Week-in and week-out, we're showing a recurring pattern of behavior in the Twin Cities housing market, and the week ending July 24 isn't much different. Pending Sales are at 628 for the week, down 37.8 percent compared to last year, and Active Listings for Sale are at 27,661, up 5.4 percent.
These percentage changes represent a bit of a holding pattern. In fact, we've been here since the expiration of the tax credit. There was a minor bump in Active Listings but it wasn't sufficient to convince us that we're heading toward another oversupply situation.
Days on Market and Months Supply of Inventory continue to indicate a favorable market for home buyers. But with interest rates remaining at historic lows, there appears to be no sense of urgency. We may see a minor kerfuffle in the market before the school year begins, but 1,000-plus pendings per week in August doesn't seem likely, let alone 800.
Whether May or June or July, we're finding it difficult to report anything new to you for the warm weather months of 2010. Week-in and week-out, we're showing a recurring pattern of behavior in the Twin Cities housing market, and the week ending July 24 isn't much different. Pending Sales are at 628 for the week, down 37.8 percent compared to last year, and Active Listings for Sale are at 27,661, up 5.4 percent.
These percentage changes represent a bit of a holding pattern. In fact, we've been here since the expiration of the tax credit. There was a minor bump in Active Listings but it wasn't sufficient to convince us that we're heading toward another oversupply situation.
Days on Market and Months Supply of Inventory continue to indicate a favorable market for home buyers. But with interest rates remaining at historic lows, there appears to be no sense of urgency. We may see a minor kerfuffle in the market before the school year begins, but 1,000-plus pendings per week in August doesn't seem likely, let alone 800.
Monday, August 2, 2010
Pantone Color of the Year
Move over, mimosa yellow, there's a new hue in town! Pantone LLC has just crowned Pantone 15-5519 Turquoise as the Color of the Year for 2010. Turquoise, an inviting, luminous hue, as the Color of the Year for 2010. Combining the serene qualities of blue and the invigorating aspects of green, Turquoise inspires thoughts of soothing, tropical waters and a comforting escape from the everyday troubles of the world, while at the same time restoring our sense of wellbeing.
In many cultures, Turquoise is believed to be a protective talisman, a color of deep compassion and healing, and a color of faith and truth, inspired by water and sky. Through years of color word-association studies, we also find that to many people, Turquoise represents an escape, taking them to a tropical paradise that is pleasant and inviting – even if it is only a fantasy.
Whether envisioned as a tranquil ocean surrounding a tropical island or a protective stone warding off evil spirits, Turquoise is a color that most people respond to positively. It is universally flattering, has appeal for men and women, and translates easily to fashion and interiors. With both warm and cool undertones, Turquoise pairs nicely with any other color in the spectrum. Turquoise adds a splash of excitement to neutrals and browns, complements reds and pinks, creates a classic maritime look with deep blues, livens up all other greens, and is especially trend-setting with yellow-greens.Tuesday, July 27, 2010
Weekly Market Activity ReportIt’s been almost 3 months since the expiration of the federal home buyer tax credit and the market appears to have settled into something of a rhythm. With the dust settling, pending sales have become mostly fixed in the 500-to-600 per week range for the past 9 weeks.
While the dramatic drop from a year ago is certainly not positive, demand is at least holding relatively steady for the time being. The 626 purchase agreements signed for the week ending July 17 were 39.7 percent behind a year ago.For the same reporting week there were 1,618 new listings in the Twin Cities, down 10.0 percent from a year ago. Inventory is rising due to slower demand. The 27,350 homes currently available for sale represent an increase of 4.8 percent from last year.
Wednesday, July 21, 2010
Weekly Market Activity Report
For the week ending July 10, the number of pending sales held steady with the week before but remained well behind last year's pace. The 545 signed agreements during the week represent a drop of 45.9 percent from last year at this time. That's the tenth consecutive week of year-over-year declines in buyer demand, a period that coincides with the loss of the federal tax credit for first-time home buyers.
The 1,542 new listings for the most recent reporting week are also down compared to last year but not to the extent of pendings, posting a decline of 17.4 percent from a year ago.
Inventory is up 4.4 percent from a year ago. Because the growing inventory is being greeted with slim buyer demand, the balance of buyers and sellers is shifting the market back in the buyer's favor. The July Supply-Demand Ratio of 7.44 means that there are 7.44 houses for each buyer this month, up 46.9 percent from the mark of 5.06 seen a year ago.
For the week ending July 10, the number of pending sales held steady with the week before but remained well behind last year's pace. The 545 signed agreements during the week represent a drop of 45.9 percent from last year at this time. That's the tenth consecutive week of year-over-year declines in buyer demand, a period that coincides with the loss of the federal tax credit for first-time home buyers.
The 1,542 new listings for the most recent reporting week are also down compared to last year but not to the extent of pendings, posting a decline of 17.4 percent from a year ago.
Inventory is up 4.4 percent from a year ago. Because the growing inventory is being greeted with slim buyer demand, the balance of buyers and sellers is shifting the market back in the buyer's favor. The July Supply-Demand Ratio of 7.44 means that there are 7.44 houses for each buyer this month, up 46.9 percent from the mark of 5.06 seen a year ago.
Tuesday, July 20, 2010
Monday, July 19, 2010
CNN's Money Magazine Best Places to Live
CNN's Money.com named Eden Prairie, MN, as the best small city in America for its safe neighborhoods, great schools, low unemployment rates, and school system. Read More.
WooHoo Eden Prairie! Check out the Top 10!
WooHoo Eden Prairie! Check out the Top 10!
Wednesday, July 14, 2010
Weekly Market Activity Report
As the summer progresses, the Twin Cities housing market continues a remarkably similar week-to-week pattern —tepid new listings, extremely weak buyer demand and a total supply of available homes that slowly increases.
New listings for the week ending July 3 were 5.6 percent below last year, but the drop in pending sales was much more dramatic. The 611 signed agreements for the week ending July 3rd represented a 38.2 percent drop from last year’s figures. Because the decline in demand is stronger than the decline in supply, the number of total active listings is up 3.8 percent from a year ago.
On the upside, Days on Market until Sale has dropped considerably over the last year. At 121 days in June this is 14 percent below the 140 days it took to sell a house last year. Percent of Original List Price has also increased, in related news. However, these metrics tend to lag a few months behind the true supply-demand picture, so it is unlikely that these positive trends will continue.
As the summer progresses, the Twin Cities housing market continues a remarkably similar week-to-week pattern —tepid new listings, extremely weak buyer demand and a total supply of available homes that slowly increases.
New listings for the week ending July 3 were 5.6 percent below last year, but the drop in pending sales was much more dramatic. The 611 signed agreements for the week ending July 3rd represented a 38.2 percent drop from last year’s figures. Because the decline in demand is stronger than the decline in supply, the number of total active listings is up 3.8 percent from a year ago.
On the upside, Days on Market until Sale has dropped considerably over the last year. At 121 days in June this is 14 percent below the 140 days it took to sell a house last year. Percent of Original List Price has also increased, in related news. However, these metrics tend to lag a few months behind the true supply-demand picture, so it is unlikely that these positive trends will continue.
Friday, July 9, 2010
Tuesday, July 6, 2010
Mortgage Rescue Scams & Look Before You Leep
The Minnesota Home Ownership Center launched “Look Before You Leap,” a statewide public education campaign seeking to raise public awareness about the booming mortgage rescue scam industry and its dangerous implications for struggling and unsuspecting home owners, and to connect struggling home owners with the Center’s network of foreclosure counselors. Click here to visit the site. http://www.lookbeforeyouleap.org/
Thursday, July 1, 2010
After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension the new closing deadline for eligible transactions is now September 30, 2010. There is will be no gap between June 30 and the date the President signs the bill into law
Tuesday, June 29, 2010
Weekly Market Activity Report
The Twin Cities housing market continues to adjust to a world without a fancy tax credit. Pending sales leveled off following the slight gains seen the prior week, squatting at 645 signed contracts for the week ending June 19.
While that's steady compared to last week, it's anemic compared to last year at this time when the market posted 1,156 signed contracts. If you're keeping track of percentages, that means we're down 44.2 percent from a year ago—the sixth consecutive week of year-over-year declines exceeding 30 percent.
New listings are also down from a year ago, posting a drop of 8.4 percent from a year ago to 1,712 for the most recent reporting week. Any sort of "return to normalcy" is going to take some time.
Friday, June 25, 2010
Fannie Set to Penalize Defaulters
Wall Street Journal
JUNE 24, 2010
By NICK TIMIRAOS
Fannie Mae said Wednesday it would "lock out" borrowers from getting a new loan for seven years if they default on a mortgage they could afford to pay.
The move represents the latest effort by the mortgage industry to prevent a new wave of losses that could result if more borrowers who can afford their monthly payments instead opt to "strategically" default on loans, because they owe far more than their homes are worth.
"Walking away from a mortgage is bad for borrowers and bad for communities, and our approach is meant to deter the disturbing trend toward strategic defaulting," said Terence Edwards, Fannie's executive vice president for credit portfolio management.
The government-owned mortgage-finance titan also said it planned to step up legal actions to pursue deficiency judgments in states that allow lenders to go after borrowers' other assets. In addition, Fannie said it would instruct its lender partners to monitor delinquent loans owned by Fannie, and recommend cases that warrant attention.
Fannie's move comes amid greater concern that it has become socially acceptable for borrowers to stop paying their loans, and that such a shift could exacerbate the housing bust. Those worries are particularly acute in Arizona, Nevada, Florida and other hard-hit housing markets where it could take years for borrowers to return to positive equity.
Nearly one in four homeowners with a mortgage is underwater, or owes more than their home is worth, according to CoreLogic, a real-estate data firm. A Morgan Stanley report estimated that around 12% of all mortgage defaults in February were strategic.
In 2008, Fannie revised to five years from four the period that borrowers with a foreclosure must wait before they are eligible for a new loan.
Under the new rules, the five-year waiting period is eliminated. Borrowers who can't document "extenuating circumstances" or show that they made an effort with their lender to avoid foreclosure will have to wait seven years to get a new loan; those who can demonstrate hardship or attempted a workout with their lender may have to wait only three years.
Its smaller sibling, Freddie Mac, also requires borrowers with a foreclosure to wait at least five years. Foreclosures can stay on a credit report for up to seven years.
Even as it steps up penalties, Fannie is preparing to reduce waiting periods for borrowers facing hardship who surrender their homes and avoid foreclosure. Under previously announced rules that take effect next month, Fannie will reduce waiting periods to two years for borrowers who agree to transfer their homes to the company through a "deed in lieu of foreclosure," or who complete short sales, where homes are sold for less than the amount owed.
JUNE 24, 2010
By NICK TIMIRAOS
Fannie Mae said Wednesday it would "lock out" borrowers from getting a new loan for seven years if they default on a mortgage they could afford to pay.
The move represents the latest effort by the mortgage industry to prevent a new wave of losses that could result if more borrowers who can afford their monthly payments instead opt to "strategically" default on loans, because they owe far more than their homes are worth.
"Walking away from a mortgage is bad for borrowers and bad for communities, and our approach is meant to deter the disturbing trend toward strategic defaulting," said Terence Edwards, Fannie's executive vice president for credit portfolio management.
The government-owned mortgage-finance titan also said it planned to step up legal actions to pursue deficiency judgments in states that allow lenders to go after borrowers' other assets. In addition, Fannie said it would instruct its lender partners to monitor delinquent loans owned by Fannie, and recommend cases that warrant attention.
Fannie's move comes amid greater concern that it has become socially acceptable for borrowers to stop paying their loans, and that such a shift could exacerbate the housing bust. Those worries are particularly acute in Arizona, Nevada, Florida and other hard-hit housing markets where it could take years for borrowers to return to positive equity.
Nearly one in four homeowners with a mortgage is underwater, or owes more than their home is worth, according to CoreLogic, a real-estate data firm. A Morgan Stanley report estimated that around 12% of all mortgage defaults in February were strategic.
In 2008, Fannie revised to five years from four the period that borrowers with a foreclosure must wait before they are eligible for a new loan.
Under the new rules, the five-year waiting period is eliminated. Borrowers who can't document "extenuating circumstances" or show that they made an effort with their lender to avoid foreclosure will have to wait seven years to get a new loan; those who can demonstrate hardship or attempted a workout with their lender may have to wait only three years.
Its smaller sibling, Freddie Mac, also requires borrowers with a foreclosure to wait at least five years. Foreclosures can stay on a credit report for up to seven years.
Even as it steps up penalties, Fannie is preparing to reduce waiting periods for borrowers facing hardship who surrender their homes and avoid foreclosure. Under previously announced rules that take effect next month, Fannie will reduce waiting periods to two years for borrowers who agree to transfer their homes to the company through a "deed in lieu of foreclosure," or who complete short sales, where homes are sold for less than the amount owed.
Tuesday, June 15, 2010
Tuesday, June 8, 2010
Weekly Market Activity Report
As the weeks following the tax credit expiration unfold, buyer demand continues to slow. The 600 purchase agreements signed for the week ending May 29 were 34.6 percent below the previous year—the fourth consecutive week of year-over-year decline in Pending Sales.
Refreshed supply is also in decline, as New Listings posted a fifth consecutive week of year-over-year decline, landing at 1,474 for the most recent reporting week—a 5.9 percent decrease from a year ago.
Two other metrics for this week:
Days on Market – This stat continues its year-over-year downward trend, resting at 118 days for May 2010.
Percentage of Original List Price Received – This continues to grow, up 2.8 percent above last year at this time to 94.1 percent of the list price.
As the weeks following the tax credit expiration unfold, buyer demand continues to slow. The 600 purchase agreements signed for the week ending May 29 were 34.6 percent below the previous year—the fourth consecutive week of year-over-year decline in Pending Sales.
Refreshed supply is also in decline, as New Listings posted a fifth consecutive week of year-over-year decline, landing at 1,474 for the most recent reporting week—a 5.9 percent decrease from a year ago.
Two other metrics for this week:
Days on Market – This stat continues its year-over-year downward trend, resting at 118 days for May 2010.
Percentage of Original List Price Received – This continues to grow, up 2.8 percent above last year at this time to 94.1 percent of the list price.
Wednesday, June 2, 2010
Weekly Market Activity Report
Home sales in the Twin Cities housing market took another dip as the hangover from the tax credit expiration continued. For the week ending May 22, there were 624 pending sales—a precipitous drop of 42.5 percent from a year ago.
The biggest drops in sales since the credit ended can be seen in the traditional seller market (i.e., anything that's not a foreclosure or short sale) and in the middle price ranges from $150,000 to $350,000. Pending sales have dropped in those ranges from 1,085 the week the credit ended to 384 for the week ending May 22. In sum, it may be a difficult summer market for home sellers.
The good news is that new supply is also slowing, which means the market is already self-correcting to avoid a surge in unneeded inventory. New listings fell to 1,581 for the same reporting week, a decline of 15.8 percent from this time last year.
The Supply-Demand Ratio has been updated for June and shows a figure of 5.05, which means there are 5.05 homes for sale for each buyer in the month. That's a 10.9 percent increase over the mark seen a year ago and is a result of the decline in buyer activity.
Home sales in the Twin Cities housing market took another dip as the hangover from the tax credit expiration continued. For the week ending May 22, there were 624 pending sales—a precipitous drop of 42.5 percent from a year ago.
The biggest drops in sales since the credit ended can be seen in the traditional seller market (i.e., anything that's not a foreclosure or short sale) and in the middle price ranges from $150,000 to $350,000. Pending sales have dropped in those ranges from 1,085 the week the credit ended to 384 for the week ending May 22. In sum, it may be a difficult summer market for home sellers.
The good news is that new supply is also slowing, which means the market is already self-correcting to avoid a surge in unneeded inventory. New listings fell to 1,581 for the same reporting week, a decline of 15.8 percent from this time last year.
The Supply-Demand Ratio has been updated for June and shows a figure of 5.05, which means there are 5.05 homes for sale for each buyer in the month. That's a 10.9 percent increase over the mark seen a year ago and is a result of the decline in buyer activity.
Friday, May 14, 2010
The expiration of the tax credit clearly motivated buyers to take action by April 30. Last week, there was a significant 31.2 percent jump in Pending Sales versus last year, bringing the total number of contracts written to 1,469. But for the first time this year the number of New Listings was down. A total of 1,803 of them entered the market, 11.5 percent lower than a year ago. Some encouraging figures include a Days on Market count of 127, down 15.3 percent compared to last year, and Percent of Original List Price Received at Sale of 93.6 percent, up 4.0 percent over last year. We expect buyer activity to continue over the coming weeks, although not with the same level of urgency due to the expired tax credits and a slight seasonal lull before we get into the heart of summer.Friday, May 7, 2010
Weekly Market Activity Report
Well, the federal home buyer tax credit we've been talking about for the last 18 months has finally expired. All good (or bad, depending on your opinion) things must come to an end. Unfortunately, we won't have definitive evidence of how wild the final days of the credit were for another week as we wait for activity to be recorded in the MLS system.
In the meantime, we can still see that home sellers were far more active than home buyers for the week ending April 24, continuing a recent trend. There were 2,147 new listings during the week, an increase of 19.1 percent from a year ago. That's the seventh week of the last eight to show double-digit percentage increases in new listings.
Signed purchase agreements were also up but in a less extreme fashion. The 1,184 pending sales for the week were a 9.8 percent increase from a year ago.
As a result of the growth in new listings, we're projecting that the Supply-Demand Ratio for May 2010 will be 5.69 homes per buyer, a healthy balanced number but a smidge higher than the 5.23 mark of May 2009. Why point out such a subtle difference? Because that would be the first time we have seen a year-over-year increase since June 2008.
Well, the federal home buyer tax credit we've been talking about for the last 18 months has finally expired. All good (or bad, depending on your opinion) things must come to an end. Unfortunately, we won't have definitive evidence of how wild the final days of the credit were for another week as we wait for activity to be recorded in the MLS system.
In the meantime, we can still see that home sellers were far more active than home buyers for the week ending April 24, continuing a recent trend. There were 2,147 new listings during the week, an increase of 19.1 percent from a year ago. That's the seventh week of the last eight to show double-digit percentage increases in new listings.
Signed purchase agreements were also up but in a less extreme fashion. The 1,184 pending sales for the week were a 9.8 percent increase from a year ago.
As a result of the growth in new listings, we're projecting that the Supply-Demand Ratio for May 2010 will be 5.69 homes per buyer, a healthy balanced number but a smidge higher than the 5.23 mark of May 2009. Why point out such a subtle difference? Because that would be the first time we have seen a year-over-year increase since June 2008.
Wednesday, April 28, 2010
Monthly Skinny: April 2010
Take a look at the video that Mpls Area Association of Realtors puts out monthly regarding the market in the Twin Cities.
http://www.youtube.com/watch?v=Or4p0k3K1rg
http://www.youtube.com/watch?v=Or4p0k3K1rg
Tuesday, April 27, 2010
Weekly Market Activity Report
It's down to the wire in the Twin Cities housing market for consumers to take advantage of the tax credits, which are set to expire Friday, April 30. With that looming deadline, sellers are far more active than buyers right now.
For the week ending April 17, there were 2,353 new listings added, a 21.9 percent increase vs. the same week last year. Over the last three months, there have been almost 4,000 more new listings than there were during the same period last year.
Pending sales are also growing but not at the same breakneck pace. The 1,103 purchase agreements for the most recent reporting week were just 1.8 percent higher than a year ago. A heavy increase in new listings compared with a marginal increase in pending sales has led to a growth in inventory; total active listings are up 3.0 percent over last year.
So what happens after the April 30 deadline? Since the tax credit deadline has shifted many buyers forward a few months in their normal cycle, we expect a slower summer selling season.
It's down to the wire in the Twin Cities housing market for consumers to take advantage of the tax credits, which are set to expire Friday, April 30. With that looming deadline, sellers are far more active than buyers right now.
For the week ending April 17, there were 2,353 new listings added, a 21.9 percent increase vs. the same week last year. Over the last three months, there have been almost 4,000 more new listings than there were during the same period last year.
Pending sales are also growing but not at the same breakneck pace. The 1,103 purchase agreements for the most recent reporting week were just 1.8 percent higher than a year ago. A heavy increase in new listings compared with a marginal increase in pending sales has led to a growth in inventory; total active listings are up 3.0 percent over last year.
So what happens after the April 30 deadline? Since the tax credit deadline has shifted many buyers forward a few months in their normal cycle, we expect a slower summer selling season.
Subscribe to:
Posts (Atom)
