Market Update

Last week's market report compiled by the Minneapolis Area Association of Realtors shows that new listings are relatively flat compared to last year, but newly signed purchase agreements continue to decline, now over 20% behind this same time last year.

When you look at this year's activity in the chart below, you see that the trend is for increasing listings but relatively flat sales...resulting in the buyer's market you have heard so much about.


One factor contributing to the decrease in buyer activity is a tightening in lending standards. In recent years "subprime" mortgages opened up homeownership to people who traditionaly couldn't buy because of weak credit or little money for a down payment. The volume of "subprime" mortgages is expected to drop by about 30% this year, according to the Mortgage Bankers Association in Washington, DC. This means a smaller pool of qualified buyers.

The after effects of those lending practices are also causing a sharp increase in short sales and foreclosures due to a combination of declining values, no appreciation, 100% financing and unaffordable monthly payments due to increasing adjustable rate mortgages. This means an increase in the number of homes for sale, especially bank owned properties.

Many people seem to think that bank owned properties are the best way to get a good deal. My experience has shown that while that may sometimes be the case, you'll more often get a better value buying an owner-occupied property. Not only will you usually get a home in better condition, you may also get a better price. While owners may be willing to negotiate to get a sale, banks are often in no hurry to sell...they know what price they want for a property and are often willing to wait until they get it. They are also often slow to respond to an offer, with response time sometimes stretching into weeks.

In spite of public perception that the housing market is anything but certain right now, this is a good time for buyers if you're ready to buy. Homes in the Twin Cities are more affordable than in recent years, interest rates continue to be historically low inspite of the recent increases and there continues to be a big selection of homes from which to choose.

Market conditions aside, buying a home is about finding a comfortable, safe place to live...something that is always a wise investment when you're financially ready to buy.

Gardening

Last Saturday I gave a seminar on 'Third Age Life and Housing Transitions'. One of the many things we talked about was thinking about what you would miss about your current home and what you would look forward to in a new home if you were to move.



My husband and I moved from a house to a townhome about 8 years ago. Although many people love gardening and working in the yard, that was one of the things we were all too happy to leave behind. However, that doesn't mean we don't appreciate beautiful gardens. We now have the best of both worlds...beautiful grounds and gardens throughout the complex, tended by residents who love to garden. Hardly a day goes by that I don't think about how much I love living here!

One thing we don't have in our gardens, however, is rhubarb. Our son and daughter-in-law brought us a treasured package of freshly picked rhubarb so of course I had to bake a rhubarb custard pie to share. Maybe one day they'll bring us another treasured package...maybe even one of rhubarb plants so we can share with our gardening neighbors! YUMMMM....

City Inspections

As I went for my morning walk today I was reminded of our Minnesota seasons...often laughingly called winter and road construction!

We live in Golden Valley and I was also reminded of the new city ordinance effective January 2007 requiring all properties to have a sanitary sewer inspection BEFORE they are advertised for sale. It's called the I/I Point of Sale ordinance.

My experience has been that nearly all properties require some work be done, often at a cost in the thousands of dollars. If you are planning to sell, be sure to add this to your to-do list. In addition to budgeting $'s, be sure to allow ample time to have both the inspection and work completed...it's a new program and the system is somewhat overwhelmed.

A total of 12 cities in the Minneapolis/St. Paul metropolitan area require homes to be inspected before they are offered for sale, whether the sale is public or private. You can find a complete list of cities requiring inspections, with phone numbers and links to detailed information from the cities involved, at my website at HomesMSP.com.

Why RE/MAX Results?

This past month has been a whirlwind of the rites of spring... helping people buy and sell real estate... celebrating special birthdays... starting spring grilling season... watching grandkids watch the ducks in the creek.... aah, the joys of spring!

Speaking of the rites of spring...are there any other fans of Stravinsky's 'Rite of Spring'? Amazing to think it caused a riot when the ballet performance first debuted in 1913...we saw a live performance with the original Nijinsky choreography a number of years ago...what an experience! But I digress...

I have had occasion a number of times this past month to reflect on why I choose to be affiliated with RE/MAX Results. We pay a price to be affiliated with RE/MAX...is it worth it? My answer is a resounding, 'yes'! With nearly 7,000 offices in 67 countries worldwide, no one sells more real estate than RE/MAX. That means it's a name recognized and trusted worldwide. You may not know that while RE/MAX is a worldwide company, it's offices are franchised and locally owned. That means you get the best of both worlds...a respected international company plus privately owned local offices with local experts.

RE/MAX Results, a Twin Cities metro area franchise, is Minnesota's largest independently owned real estate firm. RE/MAX Results sells more homes per agent than any other real estate brokerage in the Twin Cities metro area...and also ranked #1 in the nation per the annual list published by REALTOR magazine last July!

The benefit to you as buyers and sellers is that when you work with a RE/MAX Results agent you can be assured that you have a highly knowledgeable and efficient team of professionals working with you every step of the way. Our long-term satisfied client relationships rank among the highest in the industry.

The benefit to us as agents is that we have a strong professional team supporting us, as well as a strong network of fellow agents to call upon for assistance with wide-ranging needs and questions for both us and our clients. I was reminded of this again this morning when this email came through from a fellow agent in response to a broadcast question...

"Thanks to those of you who took time out of your busy schedule, and called...I know that I can count on and trust the opinions of you folks, and it sure feels great to work among all of you! REMAX Results is the best!"