Twin Cities Housing Market December Report

The Monthly Skinny is a summary of the Twin Cities housing market activity. Decreases in mortgage rates and housing prices have made the market surprisingly attractive to home buyers. And the housing affordability is 180 – that’s unbelievably high and a sign that now just might be the right time to buy. Learn more on the video below:

Thinking Remodel?

National Realty News recently published an article about remodeling. They had a nice list of questions to ask yourself before you think about remodeling but it was the facts and figures that I found most interesting.

Here’s the ROI they reported for some popular improvements:

• Kitchens – often become dated sooner than any other room due to wear and tear – 92.9%.
• Bathrooms – they have changed the most over the years – 90.1%; adding a bathroom yields 86.4%.
• Family rooms – adding one will return approximately 80.6%.
• Bedrooms – adding an additional bedroom results in an 82.75% return; a master suite approximately 80.1%.
• Decks – average ROI here is 86.7%.
• Windows – add “volume” to a home and yield a surprising 84.5%.

Low interest rate – is more to come?

According to RIS Media, the latest drop in interest rates are a sign of things to come. As they said, the Federal Reserve served notice that more unconventional actions probably are ahead as it fights to reverse the nation’s economic woes.

The rates are at historic lows but as we’re remarked before –that’s good new for lenders with good credit ratings. Banks are no longer interested in lending money to homebuyers without excellent ratings.

Too cold to buy a house?

That’s kind of the word from the Minneapolis Area Association of Realtors. Well maybe it’s not the weather, maybe it’s the holidays. Either way the housing market is entering an annual hibernation. That being said – there is an increase in activity from this time last year.

For the week ending December 6, there were 597 signed purchase agreements (pending sales), which is up 27.6 percent over the same week last year. Roughly half of these sales—54.7 percent—were lender-mediated foreclosures or short sales. On the supply side, new listings were relatively flat, up only 0.7 percent for the same time period comparison.

For some folks the holidays are a great time to start looking for a home – especially if they are looking to relocate to the area and have family or friends in the Twin Cities. The good thing about the cols is it can help you access a home’s insulation without getting out of your car – look for the icicles. Looking for more home buying tips? Contact us at Buyers Real Estate Group.

Interest rates at 4.5% - tempting

Word on the street is that the Feds are considering a proposal to force 30-year fixed-rate mortgages to 4.5 percent. That’s obviously great news for buyers.

So people have been asking me – when should I buy? Are things going to get better or worse? Well, I wish I knew. What I can tell you is that especially for first time home buyers now is a good time to buy.

It’s a rough time to sell and that’s an opportunity for first time buyers. Can you get the big loans of years past – no. But that’s a good thing. It’s smart to buy a home you can afford and the more stringent loan requirements are helping people buy homes they can afford.

There are a number of incentives out there for first time homebuyers. We just helped placed a couple is a home using federal support this fall. We keep up on the opportunities that are out there. It’s our job as buyer agents to know every advantage to you in the market.

The holiday time is a great time to let your family know you’re thinking about a home purchase. Maybe you can get help with the down payment this year instead of a new tie!

BREG buyers in NY Times

Today can be a great time to buy a house. It’s a great time if you’re a first time home buyer. It’s a great time if you’ve been realistic with your finances. It’s a great time to take advantage of Federal loans and initiatives set up to get people into homes.

Alison Nowak and Lacey Mamak worked with Buyers Real Estate Group agent Mary Rugani to take advantage of all of their opportunities. They recently bought a small home near the Windom neighborhood in Minneapolis.

Not only did they get a great home – they got featured in the New York Times as a couple who made the right move at the right time.

Buying a home in any economy can be risky. A buyers-only real estate agent can help you hedge your bets. A buyer’s agent knows the ins and outs of housing market initiatives and she’s there to make sure that your best interests are met in the purchasing transaction.