Minnesota Homebuyer Blog

Monday, January 30, 2012

First Time Home Buyer Statistical Snapshot of Forest Lake MN Home Sales

Options are plenty for the first time homebuyer in Forest Lake, Minnesota. This north Washington County community does not just have lots of lakeshore, it has many affordable home choices too. There are many newer townhome developments as well as affordable single family homes. With the price per square footage running at just over $90, it is an affordable community to consider for your first home.

Stabilization is the word that best describes the real estate market in the community of Forest Lake Minnesota. In 2011 compared to 2010 most statistics were pretty much status quo. New listings are down by over 10% and closed sales up by 12% but the average sales price did not take a hit nor did the days on the market go up or down considerably. Currently the average price is just a tad less than the 2010 average at $171,139. Price per square foot held strong at $91/sq ft which is comparable to other communities in the Washington County/east Anoka County area. Closed sales being up12% shows that buyers are interested in the Forest Lake area and that the market is continuing to improve..

For additional details on the inventory levels in Forest Lake MN at the end of 2011, Click HERE.

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of RE/MAX Specialists, a call or visit my website for a FREE Relocation Packet or Homebuyers Success Packet. I specialize in

acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

First Time Home Buyer Statistical Snapshot of East Bethel MN Home Sales

The acreage lots and low prices make East Bethel a great option for the first time homebuyer who wants additional elbow room. There is a good mix of older and newer homes many with pole barns or extra large garages for snowmobile, camper and boat storage. With an abundance of lakes and trails nearby, this community is a very affordable sportsman’s’ paradise. It would be a great option for anyone who wants to buy their first home in Anoka County.

The average sales numbers in East Bethel are quite positive at the end of 2011. It shows that this north metro Anoka County community is starting to stabilize a bit. The number of closed sales were up dramatically and new listings are down a bit for the third consecutive year. A good surprise is seeing that the average sales price in 2011 in East Bethel is actually up 8% from 2010 and with new listings down, it appears that the real estate market stabilized a bit. The ratio comparing sold price to list price did see a bit of a drop in 2011 to just under 90% which is in line with other north and east metro communities I work in. The days on the market statistic is one number to watch as it did rise considerably and the price per square footage is another concerning factor as it dropped from $89 to $85, But as these were the only negatives in an otherwise stellar report, it appears that the affordable East Bethel housing market did have a good year in 2011

For additional details on the inventory levels in East Bethel MN at the end of 2011, Click HERE.

Saturday, January 28, 2012

First Time Buyer Question—Is a Buying a Minnesota Home a Good Investment in 2012?

“Is buying a home really a good investment?" Great question huh? Especially in this slowly stabilizing economy. For decades buying a home was for decades regarded one of the safest investments a person could make; the epitome of the American Dream. But now first time buyers are confused as home values and average sales prices plummeted. Is the real estate market current downturn a opportunity to grab one's piece of the American Dream? Does owning a home make sense as a financial investment?

MOST AMERICANS say YES! In a January 2012 survey of voters by the National Association of Home Builders, "74 percent said that despite the ups and downs in the housing market, owning a home is the best long-term investment they can make." That is 3 out of 4 voting Americans who still believe in the value of home ownership!

And I agree, buying a home is a wise investment and not just because I am a REALTOR®, but because I, too, am a homeowner. The key is to treat your home like an investment. It takes discipline and time for an investment to grow. And like any other investment, if you have to sell a stocks, mutual funds or a home, when the market is down, there is a chance that you will not realize as much profit as you may have expected.

So what are some of the key points that must be considered when investing in your first home?

Buy Smart

**Price **Interest Rate **Type of Mortgage **Resale Potential **Equity Builder?

Maintain and Protect Your Investment

**Home maintenance **Insurance

Don’t Put in Your Asset in Jeopardy

The best way to have a healthy balance sheet when you decide to sell your home is to Buy Smart in the first place. Buying smart is not just about getting the home at an extremely low price. With many home

s at rock bottom prices, it is a good time to consider buying a first home. But buying smart also means getting a mortgage that you can afford. One that is safe, preferably at a fixed rate rather than an adjustable rate, that won't fluctuate into something that you cannot afford. Interest rates are at record-breaking low rates. Talking to a knowledgable loan officer is a great way to get started in the home buying process and find out what options are available to first time buyers now.

But buying smart goes beyond the price paid and the loan used to finance a first home. It is also buying with resale in mind. Many, who purchased homes in the price climbing frenzy of a few years ago, snatched up any home they could after submitting multiple purchase agreements on several homes. They often overlooked an unusual floor plan or that the home was railroad tracks with several trains passing by at all times of the day and night. They adjusted their needs to accept the powerlines in the backyard or the noise from Interstate 35 just a few blocks away. But now if these same families are faced with trying to relocate, they are frustrated that buyers refuse to compromise on same aspects that they overlooked.

As a REALTOR® who loves to work with first time home buyers, I spend time helping my them to understand the positives and negatives of the location of each property we view. I point out how something quirky like having no basement or having a hot tub built in to a bedroom could affect the resale value by limiting potential buyers. Paint and wallpaper can be easily changed but foundation, plumbing and property location are much more expensive to deal with. Oddities it a home can drastically affect value when it is time to sell.

Lastly, buy smart by determining whether equity can be increase with good old fashioned hard work! If the home hasn’t been updated, a good sprucing up could raise its value. A house that has an unfinished basement, could build equity if it can be done at a reasonable cost. Don’t take shortcuts and avoid permitting because that can be costly if you go to sell. Is gardening your hobby? Look for a home with a yard that can be upgraded over the years. Just be frugal and realistic in what your resale will be in the end.

Beyond a smart buy, maintenance is essential as is proper insurance to be certain a home owner can afford the required repairs should the unexpected happen. Time after time I have to bear the bad news when presenting a market analysis at a home where the interior and/or exterior has not been repaired or replaced in decades. These homes are not worth what a neighboring, updated home is worth. Doing several projects over time allows a homeowner to enjoy the improvements while retaining the property value. Likewise, not insuring a home properly can be a huge risk. Worse yet, are the homeowners that make a home insurance claim and receiving payment for a repair but opt to use the money for something else.

Finally, it is important for a homebuyer to not put their investment in jeopardy. Many of the people who lost their homes in the market downturn put their homes in jeopardy but taking risky loans against the equity. Some people took home equity loans at reasonable rates but didn’t use the funds to improve their home. Some of these loans were at very high adjustable rates and as the payment rose, the homeowners just couldn’t make the payment. When I was growing up, I remember learning to never take a risk with anything you couldn’t afford to lose. I think a home falls into this category.

Like any investment, a home’s value will fluctuate. But a house is unique as an investment because it serves a dual purpose: It is a your place to live as well as a way to increase your net worth. By using the money that would be paid for rent and putting it toward a house you can afford with a plan to protect and maintain your property, a home purchase is still a good investment.

Monday, January 23, 2012

First Time Home Buyer Statistical Snapshot of Coon Rapids MN Home Sales

Opportunities abound for the first time homebuyer considering Coon Rapids as a place to put down roots. There is an abundance of choices with townhome developments at all ages and price points and single family homes. Whether you are looking to fix up a foreclosure or want something that has been maintained to perfection by a traditional seller, Coon Rapids is a great place to start your search for a first home!

Coon Rapids, a northern suburb to Minneapolis, saw a significant decrease in new listings but a huge increase in closed sales in 2011 over 2010. The average sales price of a home in this vibrant Anoka County community was down a whopping 13.1% which caused a subsequent drop in price per square footage from a very affordable $81/sq ft in 2010 to a extremely low $69/sq ft in 2011. It is one of the lowest in the north metro but keep in mind that there are many starter home and townhome developments with significant lender mediated properties. Coon Rapids area remains very affordable but prices will be leveling off again. Inventory dropped to less than 4 months at the end of 2011. Compare this to 7 months of inventory at the end of the previous year and there is a good potential for a rebound in prices into 2012. Market time is on the rise with an average 139 days on the market. The ratio of original price to received price is down in Coon Rapids but only by a bit under 3% so it looks like Coon Rapids will be continuing toward a balanced market in 2012.

For additional details on the inventory levels in Coon Rapids, MN at the end of 2011, Click HERE.

Are you a FIRST TIME HOMEBUYER ready to buy a home in Coon Rapids, MN?

Thursday, January 19, 2012

First Time Home Buyer Statistical Snapshot of Columbus MN Home Sales

Columbus Minnesota is not normally and area a first time homebuyer would consider but with affordability up throughout the north and east metro, 2011 could make it one. This community is known for acreage properties which usually mean that the listing prices are out of reach for a first time buyer but as the average homes sold for just under $190K in 2011, there are opportunities for those first time buyers who dream of owning an acreage home.

Closed sales nearly doubled in Columbus, Minnesota in 2011 compared to sales in 2010. Only 12 homes were sold all of 2010 in this Anoka County community, just west of Forest Lake, which is well known for its acreage properties. Yet in 2011, sales came back with 23 sold properties. However nearly 50 homes came on the market so it there is still an abundance of inventory. The average price of a home dropped also dropped nearly 16% which is the second consecutive year that the average priced dropped over by over 12%. This did impact the average price per square footage which also went down from $103 to $97/sq foot. But $97 per square foot is very good as compared to other north metro communities. Homes took longer to sell in 2011 and sellers didn’t fair as well during negotiations as sellers received a respectable 91% of their asking price which is much higher than in many neighboring communities but down from nearly 97% in the previous year. Average days on the market is up considerably to nearly five months but this is also more in line with neighboring communities. Iit appears that buyers are continued to have the upper hand in 2011when negotiation on acreage homes in Columbus, Minnesota.

For additional details on the inventory levels in Columbus, MN at the end of 2011, Click HERE.

Are you a FIRST TIME HOMEBUYER ready to buy a home in Columbus, MN?

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of RE/MAX Specialists, a call or visit my website a FREE Homebuyers Success Packet. I specialize in

First Time Home Buyer Statistical Snapshot of Circle Pines MN Home Sales

Circle Pines is an awesome community for any first time home buyer to consider. It has an abundance of single family starter homes as well as townhomes that are just a few years old. Prices have always been affordable in Circle Pines but with the price per square footage averaging just under $90, this centrally located community in the Centennial School District is a great option for a first home.

The number of new listings in Circle Pines dropped a bit compared to the previous year but with sale up, inventory levels are relatively low. In this small Anoka County community, just north of Shoreview, home sales were up significantly from 2010 after being down in 2009 and up in 2008, the roller coaster continues. Like in other north metro communities, the average time on the market increased significantly and the average price dropped. The price per square foot statistic was low compared to other Anoka County communities in 2010 at $88 but in 2011 dropped even further to an average of $79/sq ft. Area foreclosures and short sales have had a dramatic affect on this area. The ratio of percent received versus list price is slipped some from just under 92% to 88% showing that sellers in Circle Pines are willing to negotiate on price. These very low prices and good number of starter homes make Circle Pines, Minnesota an affordable option for first time home buyers.

For additional details on the inventory levels in Circle Pines MN at the end of 2011, Click HERE.

Are you a FIRST TIME HOMEBUYER ready to buy a home in Circle Pines, MN?

Tuesday, January 17, 2012

First Time Homebuyer Statistical Snapshot of Chisago MN Home Sales

First time homebuyers in the northeast Twin Cities area would be wise to the Chisago Lakes area for their first home. There are many affordable options including townhomes, single family homes, newer construction and turn of the century classics. This community is one of a very few that can use USDA financing which is a unique zero down option program for buyers that have a qualifying income level.

The real estate market really made a positive turn in Chisago, MN in 2011. Sales nearly doubled, up 69%; from 58 homes sold in 2010 to 98 sold in 2011. It was not at the expense of other stats either. The average sales price was almost dead even with the average in 2010 at just over $174,000. New listings were down nearly 7% so the market is more balanced than it has been for awhile in this northeast metro community just outside of Forest Lake. Sellers are receiving only slightly more than they did in 2010 with as the accepted sales price ratio compared to list price ratio is down just a bit. Market time also dropped significantly for the second year in a row. It now takes an average of 186 Days on Market or approximately 6 months which is similar to other north metro suburbs. The price per square foot in Chisago did slide a bit from $94/sq ft in 2010 to $90/sq ft which is comparable to other northeast metro suburbs. Buying a home in Chisago appears to be an affordable option into 2012.

For additional details on the inventory levels in Chisago, MN at the end of 2011, Click HERE.