Perfect Opportunities for Buyers

It is a perfect opportunity now to take advantage of the low interest rates and low home prices today and buy a home. There are numerous down payment assistance programs such as CityLiving for both St. Paul and Minneapolis. Also don’t forget the $8000 tax credit given to first time home buyers. Many cities also offer their own incentives for living in a particular location. Nowadays it is also common for Sellers to contribute to buyers closing cost and down payments. These incentives are going to only last for so long.
The interest rate today is hovering around 5.25 percent which is still very low. It will only stay so low for so long and as well as home prices. The market in June and July saw an increase in homes sales and median sales price. As the inventory of homes available decreases, the sales of price of homes will increase. If we continue on this trend the price of homes will only increase. So take advantage of the opportunities and buy a home today.

Market Improving

According to the Minneapolis Area Association of Realtors, the overall median sales price for all properties was down 17.8 percent from one year ago, but up 2.1 percent from the second quarter median sales price. The median sales price of traditional homes in June was down 6.2 percent from a year ago. Lender-mediated home sales were down 15.4 percent from a year ago.

There appears to be less room for negotiation, as the Percent of Original List Price Received at Sale continues to improve—the July mark of 94.0 is 1.5 percent higher than last July.

A year ago the market was not like it is today. The market is slowly but surely improving.

Home Sales Were Strong In July

Buyer activity in the Twin Cities housing market continued its strong run in July, according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.

For the 13th consecutive month, there were more pending sales than there were a year ago. July saw 5,174 signed purchase agreements, up 16.0 % from July 2008 and the strongest July showing since 2005. Of these sales, 43.6 % were lender-mediated foreclosures and short sales.

What does this mean? It means that buyers are very active and the housing supply is shrinking. We started to see the first signs of the housing market correction last year, and we’ve come a long way. But make no mistake, there is still plenty more than has to happen to balance out the market.

Deadline for $8000 Tax Credit Fast Approaching

The deadline for the $8,000 first time home buyer tax credit is quickly approaching. The deadline is December 1, 2009 and has the following restrictions:

• Taxpayers who have not owned another principal residence at any time during the 3 years prior to the date of purchase are considered first time home buyers.

• The home must be purchased after April 8, 2008 and before December 1, 2009 in order to obtain the credit.

• Income limits apply. For married couples filing jointly the limit is $150,000 and for single people it is $75,000.

What does all of this mean? If you are in the market to buy your first home the clock is ticking for you to take advantage of the $8,000 tax credit. There are still some great homes and great buys in the Shoreview and Roseville areas.