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.

TIME FOR SHOREVIEW HOME BUYERS TO GET OFF THE FENCE

Rates continue to be at historic lows and let’s face it, any rate below 6% is considered to be outstanding. Especially when you combine it with housing prices that are at their lowest levels in 6 years. Home prices are beginning to stabilize and we are even seeing homes being sold in multiple offer scenarios.

In addition, if you are a first time home buyer, you may qualify to take advantage of the $8,000 tax credit. We’ve heard it before, but it bares repeating. When do you know when we’ve hit the bottom of the housing market…when it starts to go back up.

So, if you are in the market to buy one of the beautiful Shoreview homes or a fantastic home in any other area, it is time for you to make your move and get off of the fence.

Tips for Buying Homes

Here are just a few tips that buyers should think about when buying a home:

1. Find a real estate professional that you get along with. Not only does
your realtor need to be knowledgeable, but you need to find someone that
works well with your personality.

2. Don’t try to second guess the market. If you find a home that you want,
make an offer on it.

3. Don’t ask for too many opinions from friends and family. Too many ideas
can make it harder to make a decision.

4. Accept the fact that no house is perfect. It is much more important to
focus on the things that are most important and let the minor ones go.

5. While negotiation is a big part of buying real estate, the best negotiation
is when all parties are happy with the outcome. A win-win is always a
better path.

These tips apply to first time home buyers as well as seasoned home buyers that may be purchasing their 10th home. Check back again for more tips on buying homes.

Traditional Home Sales Are On The Rise

After increasing by $12,000 from April to May, the median sales price in the Shoreview and Roseville housing markets jumped another $8,500 in June as traditional homes again increased their market share. Traditional homes are defined as those excluding foreclosures and short sales.

Of the 4,764 closed sales in the Twin Cities during June, 40.7% were lender-mediated foreclosures and short sales, down from the 59.7% seen at the beginning of the year. While that percentage is still too high, it’s a definite improvement from six months ago. It also is another indication that the low rates and tax credit are helping to encourage traditional home sales.

MORE HELP FOR FIRST TIME HOME BUYERS

More great news for FHA approved home buyers using the First Time Homebuyer Tax Credit. FHA approved lenders have been given the go ahead to develop a bridge-loan product that will enable first time home buyers to use the benefit of the First Time Homebuyer Tax Credit upfront.

FHA approved lenders can develop bridge loans that first time homebuyers can use to help cover closing costs, buy down their interest rates or put more than the minimum 3.5% down.

It is important to note, that these bridge loans can not be used to cover the minimum 3.5% down payment required by FHA.