September 20, 2013
Every real estate market in the U.S, never stays the same. Housing is nearly always shifting with market ups and downs that certainly change the way we move forward in selling and buying a home. The good news, statistics show Minneapolis is on the upswing and on the rise!
Many factors will go into determining what the current market trends are in a particular area. The Minneapolis Area Association of Realtors has reported that pending home sales, in August 2013, rose 10.9%. With less than 4 months of supply on the market, we are currently in what some would say is a Seller’s market. This means that home prices are on the rise and with inventory this low, many buyers looking to purchase are finding there is not much to choose from – which tends to give Sellers the advantage when it comes to negotiating the sale price. Current records show, the Real Estate inventory holds 15,773 active properties for sale, which is 9.9% lower then August 2012.
With that being said, more properties are coming up for sale and interest rates are coming in at a 5 week low. So even though home prices are on the rise, homeowners are still looking to sell and Buyers are getting great interest rate opportunities to purchase, which makes this the kind of market we all should be taking part in.
On a side note, foreclosures and short sales still have a presence when it comes to real estate inventory, something to keep in mind when either selling or buying in this market. In August of 2012 foreclosures and short sales made up 35.8% of the Real Estate sales activity, that number is down to 20.7% this year. Making it so the majority of houses for sale are traditional sales, thankfully, no waiting games or crazy addendums attached.
Of course when we take in all this information, we want to remember the current market in each area has its own local statistics, something my team and I are here to provide when you’re ready to sell or buy your new home. Feel free to contact us, anytime.
Realtor- GRI, ABR, CDPE
the Better Living Group
Keller Williams Classic Realty NW
Tags: American Dream, Appraisals, business, Buying, Buying or Selling, Community, Current Market, First Time Homebuyer, fixed rate mortgage, Home Ownership, Homes, Keller Williams Realty, Lending, Minneapolis, Minneapolis Market, Minnesota Realtor, MN, Mortgage, mortgage interest rates, Move Up Buyer, Owning A Home, Real Estate Market, Realtor, realtor gri, rewarding service, Twin Cities
July 17, 2013
Three weeks ago the mortgage rates took a huge turn. A 30-year fixed rate mortgage went from 3.93% up to 4.46% in one week. Compared to last year when a 30-year mortgage was at 3.66%. The 15-year fixed rate went from 3.04% up to 3.5%. When last year the fixed rate for a 15-year mortgage was at 2.94%, this is a drastic change in a short period of time. This is the largest jump and change in interest rates since 1987.
A 30-year fixed rate mortgage is very common when taking out a loan on a house, so this increase will affect homebuyers. There is so much to look at when purchasing and or thinking about purchasing a home and current interest rates is at the top of the list. Because interest rates have such a major impact when purchasing a home, they have the power to change the potential buying power for current and future homebuyers.
When getting approved for a loan, many factors are reviewed which will give you a price range of what will be affordable for your lifestyle. Working in the interest rate will shift your “budget” lower or higher, depending on the rates at that time.
Due to the change and jump in mortgage interest rates, homebuyers will feel the affect on their monthly house payments compared to two weeks ago when the average interest rate was at about 3.75. Many people, including myself as a Licensed Realtor, will look at this with cautious eyes, and will keep watch on where they will go from here.
If you or someone you know has questions about moving forward with your new home purchase and/or are looking to see what your property value is in the current market – give us a call today! We have all the tools, experience and expanded referral list that you’ll need to move forward.