Not a Market for the Fainthearted
Looking at the housing market in the Twin Cities for February we are going to be focusing on four factors; an ever-shrinking supply of inventory, declining home sales, a consistently upward trend of median sales prices, and rising interest rates. The market activity we are seeing here pretty much reflects what is happening across the nation.
While we might not expect prices to climb when sales fall, this downward trend is more a result of seriously limited inventory levels coupled with strong demand. There are simply too many buyers chasing too few homes and for a nervous buyer, this may be situation impossible.
The Market in the Twin Cities is Starving for Listings
New listings declined 8% over February of last year while inventory levels dropped 23% putting the supply of homes at 1.5 months. At the same time, the median sales price of homes in the Twin Cities metro rose 12.7% to $250,000. This rise in prices is partly a reflection of bidding wars on desirable properties where supply is so limited.
The same theme of the last 2 years continues with a vengeance: ready, willing, well-qualified buyers who desperately want to become homeowners being thwarted because there just not enough listings to go around.
What Rising Interest Rates Mean for Twin Cities Housing
2017 Twin Cities Real Estate Market Outlook
The 2016 Housing Market reached an all-time high nationally with a housing stock value $29.6 trillion, regaining all it lost in the last recession. When we look at the numbers for the Twin Cities, they tell the story of a market that strongly favored sellers with fewer and fewer homes for sale spending less time on the market and selling for higher prices. In spite of inventory levels being down 26.3%, we saw the year close out with pending sales up 4.7%, closed sales up 6.7%, with an overall medium sales price up 5.5% to $232,000. The single family market segment earned the highest gains in price topping out at $251,000 up 5.7%.
For buyers lucky and quick enough to close a deal for a home, their journey had a happy ending. For others it was a tale of frustration and disappointment, especially as the year closed with interest rates spiking up from 3.375% to 4.5% Still, buyers remain undeterred and with interest rates that have leveled off at about 4.125% many begin the new year with the hope they will be moving into their own home by spring. For sellers the past year can be likened to one continuous ode to joy with days on market in decline and, median sale price rising and percentage of asking price received topping 97.5%.
With sellers in the Twin Cities still playing hard-to-get, the big question is will the threat of rising interest rates inspire them to finally make their...
The difference between a Condo, Single Family, and Townhome in Mpls, MN
You, the first time home buyer have now been through the preapproval process and know how much the lender is willing to give you for a mortgage and at what rate. You also know how much of a down payment you need and your approximate closing costs. You know how you will pay for your home. Check!
You, the first time home buyer know the current Twin Cities real estate market favors the seller and competition for homes is keen at your price range. Knowledge is power and you feel confident that you will move quickly when you find “the one” because you have done the work and are fully prepared. You know how to maneuver through the Twin Cities real estate market. Check!
You the first time home buyer feel confident and prepared because you have a real estate professional at your side for each important step of the home buying journey and will use...
Local RE/MAX Agents Named Among “America’s Best”
The Minnesota Property Group Earned Ranking for 2015 Home Sales
Plymouth, Minnesota July 26, 2016 – The Minnesota Property Group led by Joe Houghton with RE/MAX is among the 2,691 RE/MAX agents and teams featured in the 2016 REAL Trends “America’s Best Real Estate Agents” survey. The agents included in the survey represent less than 1 percent of all real estate professionals in the United States.
On learning the news, team leader Joe Houghton said, “Our team focus is treating our clients like members of our own family to provide them with the best possible home selling or buying experience on the planet. To have our team recognized alongside of so many hard working, dedicated real estate professionals is an accomplishment and we are honored to be named ‘America’s Best’. I’m so proud of my awesome team!
“America’s Best” is the industry’s largest ranking of agents based on homes sold in 2015. The survey is open to individual agents who closed at least 50 transaction sides or $20 million in sales volume and...
Why Early Spring is The Best Time Sell Your Twin Cities Home
Spring has officially arrived! Birds singing, flowers blooming, temperatures rising and “Home for Sale” signs popping up on front lawns like mushrooms in the forest after a rain shower. Now I have not seen any robins yet at my bird feeder, no crocus popping their colorful little heads out of the dirt or forsythia in bloom. What I have witnessed is platoons of serious home buyers out in the market place. Sounds like we have an active market filled with buyers holding pre-approvals, down payments and closing costs in their eager ready-to-buy hands. Isn’t that great? Let’s take a closer look and see why the best time to sell your Twin Cities home is in the early spring.
Real Estate Supply and Demand in the Twin Cities
What we typically have in the Twin Cities real estate market is an imbalance. We don't usually see very many “Home for Sale” signs but we have many ready and eager buyers chasing down the ones that do pop up. What does that mean exactly to you as a potential seller? Good news! we generally have a market that strongly favors sellers with homes often getting multiple offers that may even exceed the asking price.
Sell Your Twin Cities Home When the Market Favors the Sellers
Hey Minneapolis and St Paul, what are you doing this month?
November is the month that falls right smack in the middle of fall. In addition to the bounty of the season, we have a couple of holidays to celebrate this month. November 11 is Veterans Day, a day set aside to honor the brave men and women who have served our country by their service in the military.Thanksgiving on November 26 is the day we gather with family and friends to watch the Macy's Day Parade and football, as well as to eat too much turkey and pumpkin pie. The day following is Black Friday and although it is not technically a holiday many people have the day off work and it is the busiest shopping day of the entire year kicking off the biggest shopping season of the entire year.
Now that we have the holidays accounted for, let’s take a look at some weekend events going on in the Metro and celebrate this great month.
Sunday November 8
Join the Walker Art Center in celebrating its 75th anniversary. Visit the McGuire Theater for the Object Lesson, part of the Walker’s Immerse Yourself series. In this comically moving one-man show, award-winning actor Geoff Sobelle transforms the stage into an immersive and immense performance-installation that unpacks our relationship with everyday...
If you think Labor Day marked the end of summer, I am going to have to disagree. Officially the last day of summer is not until the Autumnal Equinox on September 23rd. The weather should remain warm and pleasant at least through the end of the month. So let's take summer for all she is worth, shall we? Let's enjoy each day as it comes and plan to enjoy the sights, sounds, and foods of summer until they and she (I always think of summer as female) are gone.
In case you need some inspiration, here are a few suggestions for ways to celebrate and savor the last weeks of summer.
Taste of Summer Bounty
Enjoy the fruits and fresh veggies of the season for as long as they last. Grill some corn, throw together a fresh, crispy and healthy salad with native vegetables or cut open a ripe, juicy, refreshing watermelon. Here are some great ways to grill fresh corn on the cob I found on Real Simple.
Post and Photos by Kay Nelson
I am a native Minnesotan and have never lived any other place. Finding myself in the now or never stage of life, I decided to experiment with living in another part of the country. Since I love the ocean, the mountains and I have family in the Los Angeles area, California seemed a logical and desirable choice. It was time to sample the lifestyle of a snowbird and escape the end of our Minnesota winter.
After sifting through the Vacation Rental by Owner website, I narrowed my choices to Santa Monica and Ventura. Since I didn’t want to deal with the challenge of driving and parking my car, my requirements included being within walking distance of the Pacific Ocean and being able to bring my cat Beau along as well. Success! Citrus Suites in Santa Monica fit the bill perfectly and I rented a 1 bedroom apartment for the month of March.
Minnesotan, moonlight, Sahara...Are you wondering what these 3 words have in common? Kay Nelson that’s what or is it who? Anyway, my intrepid friend Kay crossed another trip off her bucket list last year when she journeyed to the Dark Continent and visited Morocco. It was the experience of a lifetime for Kay, who is kindly sharing her adventure with those of us who will not get the opportunity to experience it for ourselves. And….take it away Kay!
It must have been the 10 cent movies at the Farrow Theater in Parkers Prairie during the ‘50’s what whetted my appetite for a trip to sleep out on the Sahara Desert in Morocco. Well, it took until 2014 to do this, but I am at the “now or never” stage of my life. So, on September 30, 2014, Joining a group of 13 under the leadership of Overseas Adventure Travels (OAT), I flew to Casablanca to begin my adventure!
The Sights and Sounds of Morocco
Morocco was an assault on the senses! The sounds of the call to prayer 4-5 times a day, the flute of the snake charmer, roaring motorcycles, and bleating sheep were just some of the sounds. For the eyeballs, it was a riot of color. The souks, the mosaics, the caramel color of the sand...
Now that you have de-cluttered, de-personalized and refreshed the interior of your house as you prepare to list it for sale, let’s continue the process on the outside. I cannot over-emphasize how important a role curb appeal can play in the sale of your home. It is that all-important first impression and at times the only impression that matters. Potential buyers may decide in those first few seconds not to buy your house. No matter how good the interior may be, they have judged your home in those critical first few seconds. It’s most important to make people feel safe, warm, and welcome as they approach your home. Let’s look at 10 ways to we can wow them on that first important look.
Trim shrubs and trees. If you have dead or dying shrubs, replace them. Compare your landscaping to other homes in the area to see if it is comparable. If it is not consider planting some shrubbery. Shrubs are a better choice than trees since immature specimens do little to enhance the landscaping and mature trees are very expensive....
You have decided now is the time to make a move and sell your home. As a seller, this is your time! According to Forbes, 60% of all home sales in 2014 will in the months of May-August. Additionally, there is a limited supply of inventory and buyers are out there who are ready and prepared to become homeowners themselves.
Let's Put Our Best Face On
Even though the market is tipping in your favor, in order to sell quickly and get the best price for your home you need to show it off at its absolute best. You know it’s a great house but remember that potential buyers will be looking with a critical eye and comparing your property to others for sale on the market.
To get your house ready to sell, let's look at what I call the two level approach, the first level being practical, which is the general condition of your property, and the second level the emotional which is about the aesthetics like curb appeal and decor, the livability factor.
Let’s Talk Practical
On this level we need to be concerned about structure and mechanicals, the things a home inspection will evaluate such as: