Real Estate Information Archive

NAR is reporting that sales activity will continue to be soft in the months ahead but should see gradual improvement during the second half of 2008. The chances of a improved 2nd half will increase dramatically if the loan limits are increased.

NAR reports in its latest forcast that projected home sales to be at a pace of 4.9 million in the first half of the year and should rise to 5.8 million in the second half before leveling off to 5.60 million for all of 2009. You can compare that to existing home sales of 5.65 million in 2007. Existing-home prices are expected to fall 1.2% in 2008 to $216,300 and rise 3.2% to $223,200 in 2009. National median existing-home prices fell 1.4% in 2007.

NAR also projects new home sales to decline 17.7 percent in 2008 to 637,000 and then climb 7.6 percent to 685,000 in 2009.

Lawrance Yun, NAR's chief economist says higher loan limits for conventional mortgages could have a positive impact on sales."If higher limits are inacted very quickly, we'll see faster and more meaningful recovery by expanding safe, affordable financing in high cost areas-that in turn, would help to stimulate overall economic activity."

Mortgage Application Volume Is Up 73%

I am an avid TODAY show viewer and on the show  a few weeks ago was real estate expert Barbara Corcoran.  She gave some great tips for those of you who are trying to get your home to sell.  Here are 8 of her Tips on Getting your Home to Sell.  Click on  http://www.msnbc.msn.com/id/21134540/vp/20741973#20741973  to watch her interview with Ann Curry - it is very informative as well!!!!

1. Make the right first impression
Buyers decide in the first eight seconds whether or not they want to buy your home.

Paint the front door and trim.

Hang a wreath on the door.

Add potted flowers (flowers in front say this is a happy house).

Fertilize the grass to make it bright green.

Put fresh mulch around the bushes.

Fix the doorbell if it’s broken.

2. Let the sun shine in!
After location, light is the second most quoted reason why a buyer chooses the house.

• Clean all the windows.
• Replace drapery with sheer curtains or white shades.
• Replace lamp shades with sheer white shades.
• Replace light bulbs with higher wattage.
• Trim back shrubs that block window light.
• Paint the inside walls white.
• Put white slipcovers on all dark furniture.
• Put up lights in each corner of the major rooms.

3. Remove clutter
People can’t visualize themselves living there when they can’t see past your clutter.

• Store half your “stuff,” including knick-knacks and furniture.
• Remove personal objects like family photos and children’s artwork.
• Remove all objects from closet floors.
• Put half your clothes into storage.
• Make your linen closet meticulous; people judge hidden wiring and plumbing by how neat your linen closet is.
• Hide all electric cords and wiring.
• Eliminate unhealthy plants.
• Put fresh sheets on beds with four extra pillows.

4. Send kitty to Grandma’s House
People buy with their eyes and their noses.

• Remove kitty litter, dog beds and other smelly pet items.
• Warm a few drops of vanilla inside the oven door.
• Smoke outside; remove ashtrays.
• Open all windows an hour before the buyer arrives.
• Keep the trash can clean.

5. Freshen the kitchen
The kitchen is everyone’s favorite room in the house.

• Clear all countertops.
• Replace cracked, scratched or broken appliances.
• Re-grout the tile.
• Wax the floors.
• Update kitchen knobs.
• Paint or replace cabinet fronts.
• Put in a window; it can increase the value of your home by 10 percent.

6. Clean the bathroom
No one wants to move into your bathroom.

• Scrub the walls and floors.
• Clear off all shelves and put away personal items.
• Re-grout tiles and replace caulking.
• Hang a new shower curtain.
• Buy fresh hand towels and rug.
• Replace old soap.

7. Add color
Touches of yellow and other warm colors say ‘welcome home.’

• Buy new throw pillows for the sofa and bed.
• Add a fresh ficus tree.
• Define areas with colorful rugs.

8. Don't empty out the house
An empty house makes the seller look desperate. Buyers generally don't pay full price for an empty house. In addition empty rooms look smaller.

• Rent or borrow furniture if you need to in order to make the home look lived in and give the buyer a sense of space. 

National real estate forecasts are nearly  as accurate as national weather forcasts.

National real estate forecast make no more sense than national weather forcasts.

Unfortunately, consumers are being blasted on a daily basis with negative media pieces regarding residential real estate. We all know the market is favoring the buyers. That's a given. However, it must be remembered that the goal of any media is to sell advertising space, not to accurately report. And it's easiest to sell advertising space with inflammatory gloom and doom pieces.

Many real estate brokers are complaining about the unrealistic buyer who wants to present an offer at a price monumentally off the asking price. The real estate agents representing these buyers implication is that while there are some properties which should have offers at this unusually low level, the buyers are generating an opinion of value based (in part) on media pieces not indigenous to the local market.

Let's talk about foreclosures. I have seen articles and heard new stories saying that foreclosures have increased over 75% this year. Wow.that's huge. Foreclosures and delinquencies have increased. However, the method by which the data is presented to consumers makes buyers think that a disproportionately high number of sellers are in default.

The reality is that, in Minnesota for example, the foreclosure rate is between 1 to 2%. Take a look at RealtyTrac.com. The rate is as large as it's been in some time, but it's far cry from the sound bite which screeches "over 75% increase."

As a prudent consumer of  residential real estate, you should seek out valuable knowledge-not just raw information. Raw information is available everywhere, particularly on the Internet. That's not wisdom. You need someone to interpret this raw data and convert it into something that enhances your ability to make an informed realty decision.

 

Fed Cuts Key Interest Rate by .75 pbs

 Fed jumped in and cut a key interest rate by .75 bps unexpectedly. This was a much needed cut after a global plunge that came from heightened fears of a recession. The cut from 4.5% to 3.5% was the biggest reduction in this target rate on record going back to 1990. It is also the first time the fed has changed the fund rate in between meeting since 2001 when the US was battling fears of a recession and terrorist attacks.

I have received many calls about the rate cuts and how this will affect mortgages. Mortgages with terms of 15 and 30 years will not be directly affected. This fed cut Will directly affect prime, which is tied to equity lines and or 2nd mortgages. The bond market is directly tied to our 15 and 30 year mortgages. After last weeks plunge this would typically indicate investors are selling off and placing money into safer areas such as bonds. When bonds are driven up, home loan rates on 15 to 30 year mortgages will improve.

How things will affect real estate here in the Twin Cities, Anoka County? and surrounding counties feel free to call Jeff @ 612-616-2929 (located in Andover Minnesota) or blog for additional information.

GORGEOUS SUPER KING BRICK HM ON QUIET WOODED LOT. HUGE GARAGE W/BACK DOOR &ENTRANCE TO LL. EXTERIOR IS MAINTENANCE FREE. HIGH CEILINGS, HDWD FLRS, TONS OF STORAGE, NEW ROOF COMING SOON & SO MUCH MORE!

Click on this link to learn more about this home: http://www.freemovingtruck.com/property.asp?id_property=33287

First, let's clear up all the negative news. Yes we did and do have a sub-prime lending mess. It was a result of making risky loans to unqualified buyers. This is always bad business. We will work our way through this over the next year or so. Lenders have tightened up lending criteria and are starting to charge interest rates and private insurance premiums based on the borrower's credit worthiness (i.e. credit score). What a great idea!

There are a lot of good positives out in our market. If you follow the news you will have noticed the interest rates have not gone up. In fact the interest rates have DROPPED! If you do the math you will notice that the costs of owning a home have gone down. Last year at this time the the interest rates were @ 6.5% today you should be able to close @ 5.5%. Today your payment is substantially less, like around 10% less.

Secondly, home prices in the Minneapolis, St. Paul market are about as low as they will go. If your timing your purchase regarding the market hitting the bottom, you might consider jumping in now. The second it hits the bottom, it's on its way back up. I think you know what I'm getting at here! The very best time to invest in a new home, could very well be now.

When you buy and sell in the same market the market becomes neutral. You may not always sell your home for what you ideally want, but your not paying top dollar for your new home either. while you might take less for your current home, you will pay less for the home your buying. If your future home costs more than your current home, you may come out way ahead. Think about the big picture!!

Consider checking out the market. A good site that will take your search criteria and email the homes directly to you is www.emailtwincitieshomes.com  another site to actively look, and provide you with all the homes on the market is www.homehunterMN.com 

We strongly suggest that you work with a professional buyers specialist to assist you with your home search. The buyers specialists with Team Firnstahl have been recognized as the best in the business and can provide excellent counsel.  And, there's no charge for their service. They show and sell homes every day and know the market inside and out and, thus, can provide the necessary perspective about homes, areas and prices.

last, I would recommend that you meet with a credible lender to discuss your financing options if history has taught us anything, It's that experienced loan counselors working in stable, established lending institutions is an invaluable part of the process. For help in this area please call Team Firnstahl @ 763-587-7200 for assistance. It's really an important first step.

In times like this, filled with uncertainty and opportunity, It's important to work with a professional with years of experience and a record of success. There is a real difference. If you have any questions whatsoever or would just like to chat about the market, please call Team Firnstahl at 763-587-7200.

46x24 indoor gymnasuim, with it's own seperate heating and A/C system. This home also has its own workout room located off the gym with plenty of room for all your workout equipment.

When viewing this home from the street the gym is hardly noticable, Home blends in well with tthe landscape of the the neigborhood.

This photo shows the home from the back yard. Want to see another 20 photo's of home click below.

http://www.freemovingtruck.com/property.asp?id_property=62894

 

 

Congressional leaders came to an agreement this past week on a stimulus package created to boost the economy and prevent a possible recession. The proposed package will give individuals who pay income tax up to $600 and working couples up to $1200. Couples with children will get an additional $300 per child. Individuals who do not make enough to pay income taxes and make at least $3000 will get up to $300.

The package also includes FHA & GSE reform, raising the limit from $362,000 to $725,000 in high-cost areas. Freddie Mac and Fannie Mae caps will be increased from $417,000 to $725,000 as well.

NAR president Richard Gaylord commented: "NAR is pleased that the House of Representatives, along with President Bush, presented a bipartisan economic stimulus package today that includes important housing provisions. NAR has been actively advocating for many months FHA reform and increasing the conforming loan limits for Fannie Mae and Freddie Mac."

The stimulus package announced today is a positive step toward strengthening the housing market and our economy.  The increase in loan limits should provide liquidity to the market in all parts of the country allowing qualified home buyers who may have been on the sidelines to enter the market. The Stimulus package still needs to make it through the Senate, but everyone is hoping to get the rebate checks out as soon as possible.