Minnesota Homebuyer Blog: December 2009

Tuesday, December 22, 2009

December 2009 Twin Cities Real Estate Market Video Update—Continuing Signs of Recovery!

In the December Monthly Skinny from the Minneapolis Area Association of REALTORS® provides a snapshot of the Twin Cities real estate market as we wrap up 2009.

Though there still are challenges in the upper brackets of the housing market, there has been a continued trend of recovery. Though we did still see a 3% month-to-month drop in median home prices, from $175,000 to $170,000, this is lowest drop in two years. Strong home sales added to shrinking supply equates to a stabilizing home market. This month's Skinny notes that our Twin Cities was affected by the $8000 tax credit as part of this recovery. There is hope that the extended and expanded tax credit will continue to stabilize the Twin Cites home marketing into 2010 but only time will tell. Also predictions for the 2010 national market by Lawrence Yun, Chief Economist for the National Association of REALTORS® were shared in this month’s report.

Enjoy the last video update for the Twin Cities real estate market for 2009.

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet , Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. 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.

Friday, December 18, 2009

Oh the Weather Outside is Frightful…FIVE Reasons Why NOW is the Time to BUY a MN Home!

Yes the weather outside can be frightful on a cold Minnesota night when it snows and is below zero…but this year more than ever, those considering buying a home may not want to wait until the spring thaw. Whether you are considering a townhome in Hugo or White Bear Lake, a lake home on Forest Lake or acreage in Anoka County, there are deals throughout the north and east Twin Cities metro. But low home prices are not the only reason to take the “polar-plunge” into buying a home in the winter.

Here are FIVE of the BEST reasons homebuyers might want to move up the timeline for a new home:

Extended and Expanded Tax Credit. The homebuyers tax credit is not just for first time buyers anymore. Now people who own a home but plan to buy a new primary residence can receive a tax credit too. It is not as large as the first time buyer credit of $8000 but $6500 can come in very handy when decorating or landscaping that new property. Click HERE for additional information on the 2010 Homebuyers Tax Credit.

Fewer Buyers in the Market. When the first expiration date was set up, many first time buyers rushed to close by the end of November. The procrastinators are still procrastinating now that they have until April with the extended credit. Smart buyers are looking right away as sellers are selling all year round.

Less Demand equals Lower Prices. This is basic economics. Fewer buyers in the market are going to mean less chance of multiple offers. At the end of last fall, in the rush to have contracts in place to close by the end of November, there were literally dozens of offers on well-priced bank-owned homes in good condition throughout Anoka County. You still might have multiple offers at this time of year but your odds will be better.

Great Interest Rates. These extremely low interest rates will not last forever. Take advantage of the rates before they start rising.

Inventory. Homes do come on to the market during the winter. People relocate, get married, have children, retire etc and don’t always want to wait until spring to put their home on the market. Also banks list properties as soon as they get the keys. With new inventory coming on all the time, it is important to look or you could miss a great deal.

Saturday, December 12, 2009

November 2009 Twin Cities Real Estate Market Video Update—Affects of the $8000 Tax Credit!

As we cruise into the cold of winter, we can take a few minutes to review how the fall market energized the Twin Cities real estate market as we view the November Monthly Skinny from the Minneapolis Area Association of REALTORS®.

This month's Skinny examines how the Twin Cities was affected by the $8000 tax credit in the month of October. The announcement of the extension and expansion came late enough into the month that many buyers did not want to risk missing the original November 30th deadline. Almost 4700 purchase agreements were signed in the month of October. The affects of the first time buyer credits were most noteable on homes under $200,000. Also the inventory of foreclosure homes is down considerably now while homes in a short sale position are not selling so quickly. The obvious reason for this is that the approval of the purchase for a lender-owned home is within days while a home in a short sale position will take weeks or even months to obtain all of the approvals required for a closing. As noted in the video it will be interesting to see how the extended and expanded tax credit will affect the real estate market during the next few months. Most first time buyers that wanted to buy may have already purchased a home to meet the original deadline but the expansion for previous homeowners does create a new wild card.

Enjoy the video and lets hope these positive signs for Twin Cities real estate continue into 2010.