Thank You to all of our loyal past clients and colloeagues who have been advocates for us the past decade. We enjoy the opportunity to serve the Southwest Metro as a Real Estate Team.

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Buyers have a different mindset- Buyers in today’s market realize that most sellers over the past 4-5 years have come to a reality that the their house is not worth what it once was.  Therefore when they see a home they like, but appears to be out of line with other homes in terms of value- they will simply pass on it 95% of the time assuming that the sellers really aren’t serious about negotiating or selling the property due to the value being substantially above what other homes are.

Condition is important- If a home is in less than perfect condition buyers in this market will pass unless the home is clearly priced accordingly.  You simply cannot expect to command “top of market” pricing if your home is tired or needs some updating.

Data is King- Most buyers in this market either have direct experience loosing money on Real Estate or have a good friend or family member that has felt the pain of the Crash.  The Crash is fresh in everyone’s mind so even if the emotion is telling them to make an offer, the data will almost certainly have to back the decision up or they won’t pull the trigger.

There are many reasons to take action in the market this year, but following are some of the best reasons to make your move if your goal is to change your current housing situation.

1.  Insanely Low Interest Rates-   Most Realtors in MN that have been around for any length of time realize these rates are a once in a lifetime opportunity.  Its just not possible to sustain rates like this once the economy recovers and inflation becomes a legitimate threat again.

2.  Most Markets Are Stabilizing- If you look at the data from most housing markets across the country you will see many that are experiencing slight price increases and many more that have by all appearances found the bottom and are not going lower.

3.  Positive Momentum-    The National Association of Realtors as well as the Minnesota Realtors Association are reporting faster selling times and lower inventories across nearly every price range.  This momentum will fuel more market activity as buyers rush to take advantage of this historic market following a market wide price correction from 20-40% and rates that have not been seen for the better part of the last 100 years.

In recent weeks we have seen an unmistakable trend in the Minnesota Housing market.   Home owners who are sick of their current property are looking to take advantage of the low rates and cheap prices and upgrade their lifestyle with a higher quality home.   Through MN Realtors we talk with weekly, the message has been consistent.   More inquiries and information requests are coming in from buyer (and sellers) looking to make a change.

The market in the Twin Cities is perfect for the opportunist

Money is certainly made when the markets hit bottom.  Meaning people that are either lucky enough or smart enough to judge the market cycle correctly, will make a substantial gain in equity if they purchase at or near the bottom.  Add the buzz on the street of the market being at the bottom with rediculous low rates -that smart money knows how to leverage-  and you have some really outstanding conditions for a least a moderate bounce in the market this year.

For a free analysis of the market as it pertains to your situation contact us at www.joeandcindy.com

While there isn’t the tax credit motivator, the current market is plenty attractive for first time home buyers.  With rents increasing across town and plenty of loan programs such as FHA and VA geared towards making financing available to new home owners, purchase is now a cheaper option than renting in some cases.

Minnesota First Time Home Buyers Information

For first time home buyers looking to find out about the market and what it would cost to get into their first home, our suggestion is to get in contact with an expert that focuses on the areas you are interested in.  Sites such as EdenPrairieExperts.com or MinnetonkaExperts.com are a good starting point to learn about the area and where prices are currently at for that particular area.

Find Out What You Can Afford

After you have decided your preference is to move forward and purchase a new home, our suggestion is talk with your lender and get prequalified.  Most Realtors in MN will have contacts with reputable lenders and can put you in touch with someone they trust.  Consider the tax savings you will get when purchasing in determining your ultimate comfort level.  The interest deduction offered to homeowners translates in to extra spendable cash every year that you would not otherwise get.

Wondering what 2012 is going to bring in the housing market?

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Its been a crazy last few days for the team.  We have sold 5 homes this week, the week before Christmas.   Normally we see minimal activity this time of year, however with low rates and good relocation traffic we have had some happy sellers this week.   The brokerage as a whole (ReMax Advantage Plus) has experienced unusually high showing rates for late December and is also reporting overall strong numbers.

Buyers are missing out on the good properties

We have experienced many of our buyer clients loosing out in multiple offers on their property of choice.  For the first time in several years its not uncommon to see multiple offers in the lower price ranges.  Most of the higher price points are not experiencing this too often however.

Fluke or Market Change?

Minnesota Realtors have reported overall inventory is at its lowest point in close to 5  years which points to a balancing market.   Shadow inventory is also not weighing in on buyers minds right now since the industry has been talking about his “shadow inventory” for 2 years now but people really have not seen any major changes in foreclosure volume.  Signs are positive that 2012 will be a strong year for sales and further stabilizing of prices.