Housing Market Updates

The market’s up, the market’s down. Home are slow to sell, the mortgage rate will help houses sell quicker. We’re hearing it all these days but the Minneapolis Area Association of Realtors recently published market updates for 125 communities in the Twin City area in Minnesota.

The updates compare 2006 numbers with 2007 numbers in the following areas:

• New Listings
• Closed Sales
• Average Sales Price
• Percent of Original List Price Received at Sale
• Average Days on Market until Sale
• Single-Family Detached Inventory
• Townhouse-Condo Inventory

It is fascinating to look at the raw numbers that are most applicable to your situation to get a gauge on how the market is swinging for you. If you need help understanding the numbers or how they might fit into your plays for a move, contact an exclusive buyer agent.

Minnesota Housing Marketing IS Good

I have been attending Real Estate education classes. It's been very interesting to hear some of the positive perspectives on today's housing and mortgages markets. Here is some of the news I wanted to share:

• We are at an interest rate lower than a year ago especially on the 30 year fixed.


• 98 % of all mortgages in our country ARE paid on time!!!


• There are lots of buyers looking and looking (observed during the traditional method of "open houses.")


• We are a cautious consumer especially right now. Maybe we (sellers and buyers) are being greedy since we seem to have experienced such interesting times in housing lately.


• This IS a good market. Maybe not for everyone. No market is.


• There will not be a bell ringing when we hit bottom in pricing of real estate nor a bell ringing saying interest rates are going to go up.


• A full time educated participating Realtor is a resource especially now.

Submitted by Mary Rugani

Subprime Mortgage Crisis for African Americans

Martin Luther King Jr Day is right around the corner. It’s a pertinent time to look at the impact that the Subprime Mortgage Crisis has had on the African American population.

There has been a new report released showing that "Subprime Mortgage
Crisis Causing African Americans to Experience Greatest Loss of Wealth
in Modern U.S. History". (If you don’t have time to read the entire report, you can also access a summary.)

DemocracyNow! Recently ran an article on the report.



Submitted by Holly LaRochelle

It's a Good Time to Buy

RIS Media just wrote a great article on buying a home in today’s market. As they point out, there are several reasons that today is a particularly good time to buy a home for most of us. The selection is as great as it will ever be, mortgage rates are still relatively low by historical standards, and costs of any desired remodeling/upgrades are a lot less because of the downturn in new home construction and the resulting glut of building supplies.

The expected downturn in the economy could also mean it’s a good time for refurbishing and remodeling new home – or indeed homes you plan to sell. Again as RIS Medis describes, Construction labor costs are down as well, as many home builders have decided to become remodeling contractors until the market for new homes improves. The remodeling market has also slowed down somewhat. With many home builders recently reinventing themselves as remodeling contractors, price competition in that market is very intense today.

When you're ready to buy a home, be sure to get an exclusive buyer agent to work for you to make the most of your buyer's advantage.

Minnesota Groups Helping Home Buyers & Owners

Homeownership is a big step. The Star Tribune recently published an article that outlines a number of organizations out there that strive to help people become homeowners (Housing Help). Here are a few of the organizations they named:

Accessible Space Inc. (http://www.accessiblespace.org/) - a nonprofit corporation that provides accessible and affordable housing for adults with impaired mobility, traumatic brain injuries and physical disabilities.

Aeon (http://www.aeonhomes.org/) - provides permanent affordable apartment homes to homeless young people and adults, adults seeking a sober community, very-low-income single people and families and other low- and moderate-income households.

Association Of Community Organizations For Reform Now Housing (ACORN) (http://www.acornhousing.org/) - offers classes for first-time home buyers, mortgage counseling and helps clients obtain affordable mortgages through lending partnerships for low- and moderate-income applicants in Minneapolis and St. Paul.

Department Of Veterans Affairs (http://www.va.gov/) - provides home loans through mortgage lenders and other services to veterans, dependents and survivors.

Minnesota Department Of Commerce (http://www.commerce.state.mn.us/) investigates complaints about lenders, real estate agents, appraisers, insurance adjusters and agents and residential building contractors.

And don’t forget, Buyers Real Estate Group provides Free Real Estate Seminars for Home Buyers 7 p.m. on Thursdays. Learn about financing, home inspections, closing, and general benefits of using an exclusive buyers agent. (The session is free, but you do need to register.)



Submitted by Mary Rugani

Low Cost Loans for Homeowners

In our staff meeting today, we had the pleasure of meeting with Brenda Yaritz and Jim Hasnik of Center for Energy and Environment and CEE Financial Services. They provide low cost loans to homeowners in need of home improvements. These funds can be used for new windows, insulation, siding, furnaces and much more!

These programs are implemented as part of neighborhood or city homeowner assistance. They are easy to get and the best part, as I see it, is they look at the whole picture of the home owner. Ordinarily, to receive a home equity or home improvement loan, the home owner has to go through the entire loan qualifying process and be underwritten by a federal qualifying program like FANNIE MAE or FREDDIE MAC. With CEE, homeowners are talking with real people who see them as real people.

Look at their website: http://www.mncee.org/. Type in your city to see programs available for you. From now on, CEE will be linked to the Buyers Real Estate Group website.

Submitted by Susan Hofflander

All About Savage

On the banks of the Minnesota River, Savage is 15 miles southeast of Minneapolis. The city is still relatively undeveloped and rural although it is growing into a bedroom community. The city is named after Marion Willis Savage who owned and trained the nationally celebrated racing horse Dan Patch.

Quick stats:

Population: 21,115
Median age: 31
Median household income: $75,097
Median Price Asked for Housing Units: $230,900

To learn more about Savage, Minnesota, visit the city web site, or visit the Buyers Real Estate Group site for more information on communities throughout the Twin Cities.