Appraisals are low

There’s an interesting story in the Minneapolis Star tribune this week (New rules hamper home sales). It’s about a couple who had all but sold they house; two days before closing the appraisal came in at more than $200,000 less than the agreed upon house price. The buyers backed off the sale.

There’s a new federal mandate in place meant to buffer lenders from appraisers. Some say it’s a safety catch; others claim it’s too stringent and making it even tougher to buy or sell a home. One real estate agent noted that in ten years as an agent, he had only one property come in at a too low price; in the last six months he’s had 5.

From the buyer’s perspective this means be aware of the heightened importance of appraisals. And work with an exclusive buyer agent to make sure you have someone in your corner!

Submitted by Mary Rugani

July Skinny – video on TC housing market

Here’s the latest from the Minneapolis Area Association of REALTORS® on the Minneapolis / St Paul housing market:

Twin Cities is tops!

According to CNN Money Magazine, Chanhassen is the number two best place to live behind Louisville CO. The magazine notes that Chanhassen has low unemployment rate, property taxes have gone down while property values have gone up and they still have a triple-A bond rating. It seems as if Chanhassen is recession-proof. Chanhassen also has lakes, 34 parks, and the 1,047-acre Minnesota Landscape Arboretum.

So what other Minnesota cities made the top 100:
Chaska – 20
Lino Lakes – 36
Owatonna – 97

Perfect Picnic Place - St Catherine's University

Do you live in St Paul? Maybe around Mac Groveland or Highland? St. Catherine’s University (formerly the College of St Catherine) is a great place for a quiet picnic. On the western end of campus – near Randolph and Cleveland there is a small pond with a ton of ducks.

If you’re over ten it’s just a nice place to kick back with a book, catch some rays and enjoy a quiet lunch. (There’s a cafeteria – but we usually bring our own. Sometimes we just pick up a baguette and deli meats from nearby Lund’s – or you could pick up a readymade sandwich from Cecil’s, one of best kosher delis in the Cities!)

If you’re under ten (or with kids) be sure to bring bread for the duck and fish. Also you might want to bring a container for toads, if you’re the kind of family who lets a kid bring a toad home.
Just be sure to be respectful. It’s a campus after all, not an official picnic ground.

Want to know an area? Talk to your Minnesota REALTOR.

June Twin Cities Housing Marketing

Here’s the latest scoop on the housing market in St. Paul / Minneapolis from the Minnesota Area Association of REALTORS:

• June saw 5,183 signed purchase agreements, up 33.7 percent from this time last year.
  40.7 percent of closed sales in June were lender-mediated, compared to 59.7 percent in January.
• A decrease in lender-mediated market share brought the overall median price up from last month to $173,500 in June. Despite the month-over-month increase, that's still a 15.4 percent drop from June 2008.
• The median June sales price of traditional homes was $210,000, down 7.7 percent from a year ago.
• The median June sales price of lender-mediated homes was $124,025, down 16.8 percent from a year ago.
• The number of properties for sale at the end of June was 26,204, down 21.9 percent from this time last year.
• There are 7.3 months of supply available, down significantly from the 10.6 seen at this time last year and trending back down towards a balanced market of 5 to 6 months of supply.
• There are 10.9 months of traditional supply and only 4.4 months of lender-mediated supply.
• June's pending sales were the highest June showing since 2005 and the 12th consecutive month of year-over-year increases.
• With low mortgage rates and the $8,000 federal tax credit for first-time home buyers, we're seeing the recent jump in sales spill over into the traditional market.
  We still have an abnormally high number of foreclosures and short sales, but it's an improvement from six months ago.
• Sellers still face a challenging market, but things look better for them than they have in awhile.

Perfect Picnic - Minnehaha

Located on the border of Minneapolis and St Paul, Minnehaha is convenient to folks in both cities. Also it’s got something for everyone. Got a big family? Minnehaha has plenty of picnic tables and grills? Got a really big family or afraid of rain? Minnehaha also has a pavilion. Don’t feel like cooking or even packing sandwiches? In the middle of the park is a terrific seafood restaurant called Sea Salt.

Sea Salt is a very casual place, where you line up to order food and they bring out to you at one of the nearby picnic tables. The clam strips are tasty – the beer is always cold!

Minnehaha has a playground for kids. You can rent a bicycle built for two, or one or six! But the highlight is the walk around the Minnehaha Falls. You really get a feel for the recent weather when you see whether the falls are gushing or trickling – but it’s kind of a thrill either way.
They are working on some of the wading areas – but just east of the park, next to the old Vet’s hospital is a perfect wading pool for small kids.

Maximum LTV for Refi Program Increases to 125 Percent

According to the Minneapolis Area Association of REALTORS…

On July 1, 2009, Federal House Finance Agency (FHFA) Director James Lockhart joined Treasury Secretary Timothy Geithner and HUD Secretary Shaun Donovan in announcing a major expansion of the Obama Administration's Home Affordable Refinance Program for Fannie Mae and Freddie Mac loans.

The change will allow current borrowers with loan-to-value (LTV) ratios of more than 80 percent up to 125 percent (formerly 105 percent) to qualify if they meet other program requirements. This significantly expands eligibility for the program which allows borrowers to lock in today's lower rates or move into a fixed rate product. Higher fees will apply to loans with LTVs above 105 percent, but the program includes lower fees for borrowers who opt for a 20-year or 25-year term, to build equity faster and reduce interest payments over the life of the loan.

Borrowers can find out if they have a Fannie Mae or Freddie Mac loan by clicking on "loan look up" at www.MakingHomeAffordable.gov.

Perfect Picnic Place

It’s summer in the Twin Cities. We need to get out and enjoy it and no better way than to recreate your 4th of July picnic any day of the week. We’re going to help by posting some of our favorite picnic places, menus and ideas.

If you have a favorite place – please let me know. Send it to us at info@buyersrealestategroup.com add a picture if you can and we’ll pass your good advice on to others.

Northstar Commuter Rail Ready

The first Northstar Commuter Rail passenger cars have arrived in Minnesota. Throughout the summer, the remaining 16 passenger cars will be delivered and you will see Northstar trains running on tracks between Big Lake and downtown Minneapolis as testing begins.

Fall 2009 is the target for full operation of the Northstar Commuter Rail. Visit www.mn-GetOnBoard.com for more info.