Your opportunity is now.

Forget the negative hype about the housing industry. If you’re waiting to purchase your first home or to move up to an even nicer home, you should note that all of the conditions are favorable now. Consider these facts:

• Kenneth R. Harney, who writes a nationally syndicated newspaper column on housing, said, “Despite the impressions you might get from the network news, the U.S. economy continues to churn out solid, even encouraging, numbers—and that’s important for anyone interested in real estate. Last week the federal government reported retail sales up by 1.2 percent in the past month, and strong growth in new jobs, exports and household incomes. These are the very economic fundamentals that create an underlying base for a national recovery in housing and real estate.”

• David Blitzer, chairman of the S&P Index Committee, said, “People willing to hold properties for a long time could be well served by starting to look at potential purchases now, because over the long term, home appreciation usually pays off.”

• Housing affordability in the Twin Cities metropolitan area has recently experienced a “massive upswing,” according to the Minneapolis Area Association of REALTORS® (MAAR). The MAAR Housing Affordability Index (HAI) increased to 141, the highest rate in nearly three years and the healthiest December HAI figure since 2003.

• Forbes magazine recently ranked our area the number one “Most Affordable Place to Live well” in the country. Forbes noted that the most important criteria in the number one ranking was our housing affordability.

• As of Dec. 26, there were 28,651 homes for sale in the Twin Cities metro area compared to 25,020 at this same time last year, according to MAAR. That’s 14.5 percent more choice for home buyers!

• There is a wide variety of well-priced, quality homes for sale in all communities of the Twin Cities. You can choose from new construction, existing homes, starter homes, luxury properties, condominiums, co-ops, townhomes, and lofts. No matter what type of house you’re looking for or what your budget is, you’re sure to find a home to fit your needs.

• Interest rates on fixed-rate mortgages are at historic lows. Fixed-rate conforming home loans with no points are being offered by area lenders with rates near 6 percent for 30-year loans and in the mid-5 percent range for 15-year loans. Compare that to what the previous generation faced—an average interest rate of 9 percent in the 1970s and 13 percent in the 1980s.

• Home prices are moderating in our area, which is good news for prospective buyers. Home sellers have a better understanding of the changing housing market and are being realistic with their original asking prices, as well as making positive adjustments to their original prices when necessary. Buyers who are interested in a house should make an offer and negotiate with the seller, or they may be disappointed to learn that the house was sold to another buyer.

With all of these favorable conditions, it’s clear that your opportunity to purchase a great home is now.

St. Paul: $4 Million Set Aside To Revive Six Neighborhoods

The Housing and Redevelopment Authority approved more than $4 million for strategic purchases of vacant buildings in need of rehab in six areas. The hope is that by focusing on a few blocks and removing blighted properties, or fixing them up so people can move in, other neighbors will be encouraged to improve their houses. The money comes from the Invest St. Paul program, a $25 million initiative to improve four struggling neighborhoods Frogtown, North End, Lower East Side and Dayton's Bluff. The recent $4 million will be used to improve Frogtown, North End, Lower East Side and Dayton's Bluff, Payne-Phalen, North End, Thomas Dale/Summit University, West Seventh and the West Side.

Minneapolis: New Homes For Hightest Bidder!

Home builders hope to have successful sales of about 200 new homes at the Convention Center the weekend of January 26-27. Between 2003 and 2006, new and foreclosed home auctions have seen the largest percentage growth in the industry. In '03, gross sales receipts for auctioned homes were $11.5 billion and in '06, $16 billion. Norman Mitchel International, one of the partners in the event will tack on an 8 percent fee onto the selling price. The auction at the Mpls Convention Center is unique because it features new homes and not foreclosed homes. All bidders must have a cashier's check to get a bidding number. Bringing the homes to the auction block means significant discounts, often ranging from 25-75 percent.

Best Home Selection. Ever. The Time To Buy Is Now!

2007 real estate in the Twin Cities showed a definite shift to a buyers market. It is a great time to buy a home with interest rates hovering around 6% and a good inventory to choose from in every price range.

-Low interest rates, why wait?
-Peak of affordabilty is now
-Best home selection -ever
-You will wish you had bought today

Call us to get started on your future!

Housing Supply Outlook

The highest growth in inventory from one year ago is occurring in previously owned single-family detached homes- up 18.8 percent from this time in 2006. The lion's share of that inventory increase can be found in that cost below $190,000. In most upper-bracket price ranges, the supply of homes for sale is actually decreasing.

The biggest decline in price per square foot can be found in new construction properties- down 4.7 percent comparing sales from the last twelve months to the twelve months before that. New condominiums especially are being sold at a relative discount price compared to last year, with a drop of 7.1 percent in price per square foot.

Not surprisingly, new construction home sales have declined substantially from the heights of the past few years. Sales of new single- family detached homes have declined the least of all new construction properties.

Affordable housing from unexpected places

In the midst of the mortgage industry credit crunch, we have been starved of upbeat stories about generosity and successful first time home buying experiences. However, this week The Seattle Times featured a story on how the Runberg Architecture Group came up with an unconventional way to help their employees find affordable housing. The owner, Brian Runberg, is helping architects at his firm design and build their own houses. Brian bought land on which his employees can design and build houses, and once the houses are built, employees can purchase the homes at cost. It’s an incredibly ingenious way to help out employees at firm that specializes in affordable housing. We thought some upbeat real estate news is in order and look forward to a great real estate market in the year to come!

St. Paul: Rival Developers Unveil Plans For Riverfront Site

Minnetonka-based Opus Corp. and Wingfield Corp. of Brussels, Belgium, released competing plans for the former jail site. Opus proposed to develop a 23-floor office building along with a nine-floor hotel and 100 condo units. The Wingfield plan would include three towers; an office building, a 45-story residential tower, a boutique hotel as well as restaurants and retail.