Strong Home Sales Continue Into Spring

Based on data from the Regional MLS of Minnesota, Inc. April home sales in the Twin Cities were even stronger than March's upswing according to the Minneapolis Area Association of Realtors. There were 5,211 pending sales in April, up 23.8 percent from a year ago. This is the highest showing of signed purchase agreements since April of '05 and the tenth consecutive month of year-over-year increases. Of the month's pending sales 46% were lender-mediated foreclosures and short sales-down from the last few months as more traditional properties are sold during the spring selling season but up from last year at this time.

Pending Home Sales On The Rise

Pending home sales rose with many first-time buyers taking advantage of historically good housing affordability conditions, according to the National Association of Realtors®.

Lawrence Yun, NAR chief economist, said it should take a few months for the market to gain momentum. “This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a downpayment,” he said. “We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around.”

Housing Sales Spring Back in the Metro Area

The 2009 spring selling season appears to be off to a strong start as indicated from the 13 county metro housing statistics released by the Saint Paul Area Association of REALTORS®.

Closed home sales were up 14.25% from one year ago. There was also an increase in the number of mortgage applications compared to last year. Some contributing factors include the first time homebuyers $8,000 tax credit and historically low interest rates. It appears as though buyers are feeling more confident, moving off the sidelines and purchasing homes again.

First Time Home Buyers Give Market A Boost!

Affordable home prices combined with historically low mortgage rates and first-time buyer's tax credit are fueling the sudden real estate turnaround. We've heard of open houses with a home that was priced in the $110,000 - $115,000 range getting 30+ people through in two hours. And many homes are now selling in multiple offer scenarios. Our optimism is supported by hard numbers. Pending home sales have jumped 20% compared to the same period a year ago. Chris Galler heads The Minnesota Association of Realtors® and says the housing market in the $100,000 to $250,000 price arena is extremely hot right now.

Could You Use $8,000?

Pohlad charity gives $8,000 to Dayton's Bluff homebuyers
Grant aimed at two hard-hit ZIP codes
By Tad Vezner

People looking to buy a home in St. Paul's Dayton's Bluff neighborhood will get extra money for a down payment, with the help of a $1 million grant from a Minneapolis charity.

Anyone who purchases a single-family home or duplex in the east St. Paul neighborhood by the end of the 2009 calendar year will receive $8,000. The money will not have to be repaid if the owner keeps the home for seven years. The owner has to stay in the home to qualify, and there are no limits on income.

The homes also must be in the 55411 or 55106 ZIP codes — the two areas hardest hit by foreclosures statewide, according to the Minnesota Housing Finance Agency. The funding would be in addition to an $8,000 federal tax credit that is part of this year's federal stimulus package.

"We're pretty excited. We should be ready to go shortly," said Jim Erchul, executive director of Dayton's Bluff Neighborhood Housing Services of St. Paul, the local nonprofit that is managing the grant funds. "That would help them (homebuyers) buy some furniture when they move in."

The funds are part of a $20 million effort by the Pohlad Family Foundation, a charity that focuses on family-based programs, to combat the effects of the economic downturn. It is giving job retention grants and low-interest capital improvement loans to small businesses; improving neighborhoods hit by the housing crisis and assisting homeless families with rent; and helping local nonprofits with other needed services, primarily in the areas of employment and housing.

In addition to several local and state housing agencies, the primary fund managers include the Minnesota Chamber of Commerce Foundation and MAP for Nonprofits.

The foundation usually gives $7 million to $10 million annually, primarily to local Twin Cities programs. The $20 million grant was made in addition to the foundation's regular allocations this year.

Anyone interested in the Dayton's Bluff program should contact Dayton's Bluff Neighborhood Housing Services at 651-774-6995.

Tad Vezner can be reached at 651-228-5461.

St.Paul: City Offers 'Heroes' Tax Credit For First Home Buyers

Later this month, St. Paul and Minneapolis city officials will unveil a program that provides $8 million worth of federal tax credits to qualified first-time homebuyers who purchase homes in either city. St. Paul's Housing and Redevelopment Authority voted to sweeten the deal for vets, firefighters, emergency med techs, members of the US armed forces, health care workers and certain public sector employees. Those borrowers could receive loans of up to $15,000 for down-payment assistance, closing costs or reducing the principal amount owed on a mortgage.

Market Trend Continues

When compared to the same week a year ago, the market trends of the past few months continued this week with an increase in pending sales while new listings remaining about the same. Interest rates remain at record low's. Call us today to open the door to your dream home.