Special Fed Alert

The long awaited Fed decision arrived with a bang! The Fed surprised many economists and traders with a half percent cut in both the Fed Funds and Discount Rates. Stocks soared higher and enjoyed their largest gain since 2003.

What does the Fed cut mean? Rates on consumer debt, car loans, and Home Equity lines will all benefit. But because Home Loan rates are tied more closely to inflation, it is not uncommon to see less of a reaction...or even an opposite reaction in mortgage rates.

The Fed cut also hurts rates of return on investments, which gives foreign investors less incentive to invest in US securities. This has sent the Dollar much lower against the currency of most major foreign countries. This makes foreign goods more expensive for us to buy, which adds to inflation pressures.

Overall, the Fed cut is good news for the economy & for home owners, but may nudge inflation a bit higher. Please call or email us should you have any questions or concerns.

Thinking of buying or selling a home?

Thinking of buying or selling a home, know someone who is thinking of making a move or just interested in the happenings of the real estate market?

Visit www.greatertwincitieshomes.com to sign up for your
VIP all access pass.

Get insider access to all the reports, tools and resources including your own home buying/selling plans, zero down payment programs, Bank owned and foreclosure property reports, your homes current market value online, find out what your neighbors home sold for and much more all provided free with no obligation.

Yes, Twin Cities, It's a Buyer's Market

The Twins Cities residential housing supply reached 7.4 months of inventory in August, well above the 5 month mark that is considered balanced between buyers and sellers. Last August, the supply was 4.5 months and in February of this year it was still only 4.8 months. The housing supply is the theoretical amount of time it would take for all the homes currently on the market to become pending or sold. It is found by dividing the number of homes currently listed by the number of homes being sold each month. Currently there are approximatlely 31,430 homes on the market in the Twin Cities area. If you are thinking of making a move give The Singhal Team a call today or visit www.greatertwincitieshomes.com for your VIP all access pass.

Get insider access to all the reports, tools and resources including your own buying/selling plan, zero down programs, foreclosure reports, your homes value online, find out what your neighbors home sold for and much more all provided free with no obligation.

Twin Cities Median Sales Price Virtually Unchanged

The St. Paul Area Association of Realtor released their monthly market statistics today. The median sales price for the 13 county Twin Cities metro area for August, 2006 was $235,000, up only 0.04 percent from $234,900 in August 2005. This is still 2.6 percent higher the the total 2005 median price which was $228,900. All counties did not fare equally, however. The Anoka County median price was up 2.45% from August 2005. Hennepin County was up only 0.42% and Ramsey County was down 0.18%. Washington and Chisago Counties lost 3.42% and 9.80% respectively.