Weekly Market Activity Report from MAAR

With mortgage rates plunging downward in recent weeks in response to actions taken by the Federal Reserve, home buying activity remains strong.

For the week ending March 21, pending sales in the Twin Cities were 13.0 percent higher than the same week last year, while the number of new listings on the market was basically flat. Over the last three months, there have been approximately 1,200 more signed purchase agreements than there were a year ago and 3,000 fewer new listings. During this time, 58.1 percent of pending sales have been lender-mediated foreclosures and short sales, while 37.1 percent of new listings have been lender-mediated. The fact that the share of lender-mediated sales easily exceeds the share of new lender-mediated listings is a hopeful sign.

New buyers entering this market will be met with strong affordability but will have less to choose from compared to previous years. There are currently 26,064 homes for sale in the metro area, which is down 15.7 percent and 4,840 units from this time in 2008.

Open Houses for March 29th

Come and visit us at one of our great open houses this upcoming Sunday!

First time open!
3120 Shores Blvd. 12-2
Minnetonka, MN
$215,000

This home is cute as a cupcake! Totally remodeled and loaded with new everything. New Appliances, New Windows, New Roof, New Siding, New Garage, New New New!

9108 Overlook Court 12-2
Chanhassen
$520,000

Located in the family friendly neighborhood of Springfield, this single family home has been beautifully upgraded and features a lower level walk out basement, great for entertaining.

6605 Pointe Lake Lucy 2:30-4:30
Chanhassen
$899,900

A Masterpiece in Minnetonka School District. This home has so many great features, the only way to believe it is to see it.

For more information on these open houses or any other Stafford Listings, please visit StaffordFamliyRealtors.com or call 952.470.2575.

Weekly Market Activity Report from MAAR

Has everyone remembered to "spring" forward? It looks like the Twin Cities Housing Market certainly has, as the new season has brought in an uptick in sales along with the warm weather. The market can only hope that "spring" fever is more than just a figure of speech.

Speaking of pending sales, while they have tapered off during the week ending March 14, there is no denying that since the new year began pending sales have steadily outperformed last year’s numbers. In fact, even with almost no increase in pending sales activity the 870 pending sales for the week are still 14.9 percent higher than last March at this time.

Total active listings are another story. While new listings for this period are only 13.9 percent lower than last year, active listings are down nearly 14.7 percent. This can be looked at in a positive light, however if you consider that pending sales, decreasing inventory and higher HAI (Housing Affordability Index) are all helping to get more people into homes throughout the new spring season. This coupled with the federal government’s tax credit efforts could give the Twin Cities housing market the added boost it needs to awaken and to realize the potential that is out there.

There are many other events that coincide with spring: spring training, spring fever, spring boards… ok, that last one isn't technically associated with the season. But with the Month’s Supply of Inventory for March down 15.2 percent over last year, agents across the Twin Cities can assist buyers in diving right into the market now that conditions are beginning to warm.

Weekly Market Activity Report from MAAR

Weekly Market Activity Report
Ah, spring: that festive season when a young home buyer's fancy turns to thoughts of warm weather, green grass, new flooring, breakfast nooks and purchase agreements.

Pending sales continue to outperform last year, posting 869 for the week ending March 7—good for a 24.7 percent increase. Of these signed purchase agreements, 56.6 percent were for lender-mediated foreclosures and short sales.

New listings for the same time period comparison dropped by 12.6 percent, continuing a months-long trend of fewer home sellers. Increased sales has combined with decreased new listings to draw down the total inventory of homes for sale. The number of active listings for sale is down 14.9 percent from this time last year to 25,901.

Overall, that twitterpated feeling some may be experiencing now is not uncommon. The snow is finally melting, the sun is shining, and home sales all over the Twin Cities have been growing in strength for nine consecutive months

Open Houses for March 15th

We have three great properties that we will be hosting open houses at. Two new listings, their first time on the market are located in the Springfield Neighborhood in Chanhassen and we will be holding a tandem open.

550 Summerfield Drive, Chanhassen
Open 12-2 PM

9108 Overlook Court, Chanhassen
Open 12-3 PM

Both beautiful properties have just been listed on the MLS and have been upgraded with all the amenities. You'll love these homes!

6557 Bartlett Boulevard, Mound
Open 1-3 PM

Come and visit us this weekend.
For more information on these or our other listings, visit StaffordFamliyRealtors.com or call 952.221.7751.

$15K PRICE REDUCTION

Big News! We have recently reduced the price of a beautiful one-owner home in Chaska's Bellavista neighborhood.

1632 Isabella Parkway
Chaska, MN 55318

is now being offered at $535,000. This is a great deal in a rarely available neighborhood n the award winning Chaska Town Course.

Visit StaffordFamilyRealtors.com for more information on this listing or call us at 952.221.7751.

Pricing Disagreement: What is a Home Worth?

Homebuyers and the real estate professionals they choose to sell their homes don't always agree over what the property is worth, and many buyers think both of them are setting prices too high, according to a survey by HomeGain.com Inc.

The survey found that 63 percent of homeowners believe the price their practitioner recommended is too low. About 45 percent of sellers think prices should be 20 percent to 30 percent higher, while 14 percent believe their home should be priced a whopping 30 percent higher.

Meanwhile, 21 percent of homebuyers say the homes they are considering are overpriced by up to 10 percent; 32 percent say prices are 10 percent to 20 percent too high; and 6 percent say homes are more than 21 percent over priced. Only 18 percent believe homes are priced fairly.

“Homeowners know that prices have fallen, but that somehow doesn’t apply to them because they have ‘upgraded vinyl’” or something, Pamela Frey-Primiani of Keller Williams Realty in Sicklerville, N.J., says. “Sellers have got to be realistic in their expectations. An overpriced home in these times does nothing — no showings, no offers, just whining from sellers that it’s all someone else’s fault that the home hasn’t sold.”

Source: HomeGain.com Inc. (03/05/2009)

Weekly Market Activity Report from MAAR

As we approach St. Patrick's Day, there's reason to take advantage of our Blarney Stone kisses and impart some eloquence (or "gift of gab" if you prefer). New listings continue to trail year-over-year numbers in our local housing market, coming in at 1,628 for the week ending February 28, which is 19.2 percent behind this week last year. Total active listings are roughly 5,000 below this time in 2008. In an oversupplied market, this is cause for celebration. Continued growth in home sales adds to the festive spirit, with pending sales showing a healthy 12.1 percent increase over the doldrumish numbers of last February.

There are several important monthly indicators to look at in this week's report. Days on Market Until Sale in February stood at 157 days, down 4.8 percent from last February. This is the third consecutive month of downward year-over-year movement. The Housing Affordability Index (HAI) continues its yearlong improvement with a March 2009 HAI of 206—31.2 percent ahead of its March 2008 mark of 157. Months Supply of Inventory is holding relatively steady at 7.8 months, down 15.2 percent from the mark of 9.2 months we saw a year ago.

According to John Tucillo, one of the foremost real estate economists in the U.S. and former Chief Economist for NAR, there are three necessary phases that must occur for the housing recovery to launch:

1) a decline in new listing activity

2) a decline in days on market

3) an increase in sale price to list price ratio

The first phase came about last summer and the second phase began in the fourth quarter of 2008. Hopefully the third phase will occur sometime this year. Strong affordability, improving chances for a housing recovery and a federal tax credit for first-time buyers equates to a welcome home-buying environment—a little Irish luck for real estate.

Weekly Market Activity Report from MAAR

Brr! Did the last snowstorm convince you that winter has not loosened its icy grip on the Twin Cities quite yet? It seems assured that March will lion in and lamb out, but the Twin Cities housing market is not expected to show the same pattern, as sales continue to climb upward when compared to last year's numbers.

Since December 2008, pending sales for the Twin Cities housing market have continued to outperform the same week for the prior year. For the week ending February 21, pending sales are up 12.4 percent vs. last year at this time. Deep freeze or not, buyers are showing a willingness to brave the temperatures for a deal.

New listings checked in at 1,558, which is 15 percent below 2008. Active listings are off from last year by about 4,000 (or 13.7 percent fewer) homes. Warmer weather tends to coincide with more activity, so we'll be watching new and active listings with much interest over the next few months.

Another number to watch is the Supply-Demand Ratio (SDR). This figure, representing how many homes are available per buyer, is down 21.8 percent to 6.38 homes per buyer compared to last year. That's now nine months in a row of lowered year-over-year SDR. With fewer active listings and a shrinking SDR, sellers may begin to feel some easement from the buyer's market wedge. It's too early to tell, but as many of our REALTOR® members are telling us, the increase in foot traffic is palpable.

Weekly Market Activity Report from MAAR

One. That's the number of times over the last 33 weeks that we've had fewer pending sales this year than we did a year ago. And the week in question was Thanksgiving—a week where making an offer on a home is typically ignored in favor of turkey and afternoon naps during another loss by the Detroit Lions.

The buying party continued for the week ending February 14, as there were 731 pending sales in the Twin Cities—up 17.1 percent. Over the last three months, there have been almost 1,200 more pending sales than there were last year. During this time period, 60.3 percent of sales were lender-mediated foreclosures or short sales.

Increased sales means increased absorption of inventory means less houses for sale. There are approximately 4,000 fewer houses for sale right now than there were at this time last year, a drop of nearly 14 percent. New listings remain sluggish as well. The most recent reporting week saw a 9.5 percent year-over-year drop.

Here’s a warning for potential borrowers: Nervous lenders have tough new rules and are paperwork crazy.

"Borrowers are going to have to prove they are the borrower they say they are," says Keith Gumbinger, vice president of HSH Associates, a mortgage-industry publisher in Pompton Plains, N.J.

Gumbinger says homebuyers should consider these things before they apply for a loan.

1. Down payments are critical. Borrowers should expect to put down at least 10 percent for a “conforming loan” – a mortgage that Fannie Mae and Freddie Mac will purchase.

2. Credit scores count. A 720 on the 850-point FICO rating scale will get a borrower access to the best rates. Rich Bira, branch manager of FCM Direct Lender in Chicago, says: "A score between 720 and 739 gets 0.125 percent added to the rate, a score between 700 and 719 gets 0.375 percent added to the rate, and a score between 680 and 699 gets 0.5 percent added to the rate.”

3. Consider VA and FHA. Borrowers without down payments or with less than stellar credit scores should consider these government-insured loans offered through the Federal Housing Administration of the Veterans Administration. 4. Unearth the records. Before applying, borrowers should organize tax, banking and other records that prove income, savings and debts. They should also expect to be patient about what may seem to be endless requests for information.5. Get rid of debts. Limiting debts, including what borrowers expect to pay for the mortgage, to less than 43 percent of gross income is important.

Source: Chicago Tribune, Mary Umberger (02/15/09)

Weekly Market Activity Report from MAAR

Did you find your "ain true love" on Saturday night? Or were you out there showing houses and adding to the already sizable gains in pending sales seen in the Weekly Market Activity Report? Either way, it appears that more Twin Cities home buyers are finding their hearts' desire as we enter the second month of 2009.

New listings continue their seasonal upward movement, with 1,780 homes for the week ending February 7. This is a 16.2 percent decrease from the same week last year—an ongoing good news trend for an oversupplied market. For the same time period, there were 745 pending sales, an increase of 17.5 percent compared to last year at this time. Sales have increased more steadily than new listings so far this year, which has helped reign in our Months Supply of Inventory to a healthier 7.7 months—down 13.5 percent from last year.

Active listings for sale continue to trail year-over-year numbers. There are currently 25,537 homes for sale, a 12.4 percent decrease from last year. Thankfully, increasing affordability means that a healthier share of these homes should find true romance with a buyer than in previous years.

This information was compiled by Minneapolis Area Association of Realtors.

Home Buyer Tax Credit

The White House and Congress agreed to give first-time home buyers a tax credit for 10 percent of the value of a home, up to a maximum of $8,000. The tax credit is part of the $787.2 billion economic stimulus plan, which President Barack Obama is expected to sign early this week. The tax credit was scaled back from an earlier Senate proposal of $15,000.

The tax credit will apply only to first-time home buyers who purchase a home from the start of 2009 to the end of November 2009. The credit begins phasing out for couples with incomes above $150,000 and individuals with incomes above $75,000. Buyers will have to repay the credit if they sell their home within three years.

The National Association of REALTORS® (NAR) estimates that the tax credit will result in an additional 200,000 home sales and enable many new home buyers to enter the market. According to NAR, first-time home buyers purchased 2.2 million homes last year. This represented 41 percent of all U.S. home sales, up from 39 percent in 2007 and 36 percent in 2006.

Information was first published by Coldwell Banker Burnet Hot Wire Xpress.

FAQ: Senate Stimulus Bill and the Home Buyer Tax Credit

Thanks to Brian Call of Rubicon Motgage Advisors LLC, here are some answers to your questions about the Senate Stimulus Bill.

There have been several questions about the proposed $15,000 home buyer tax credit that is in the Senate version of the economic stimulus bill. It is important to remember that the proposed credit is far from a done deal. If it passes, it will have to be reconciled with the House version of the stimulus bill, which modifies an existing $7,500 home buyer credit, repealing a provision that requires buyers to pay it back.

There are some big differences between those two versions. The Senate version is nonrefundable, meaning you can only receive the credit if you owe federal income taxes. The existing credit is refundable, meaning you get a check from the government even if you do not owe income tax. And the current credit applies to first-time home buyers, defined as anyone who has not bought a house in three years. The Senate version is open to existing homeowners.
Here are some more

Frequently Asked Questions:

If I bought a home and used the $7,500 home buyer tax credit, can I retroactively receive $15,000 credit if it becomes law? No.

Are there any income restrictions on the tax credit? The Senate version currently has no income limits. The current $7,500 tax credit phases out on buyers with incomes exceeding $75,000 for individuals and $150,000 for married couples.

When will the new tax credit go into effect? The Senate version would take effect when the bill is signed by the President into law, and it would last for one year.

Can I take the tax credit this year? Yes. The Senate proposal would allow buyers, even those who purchase in 2009, to claim the credit on their 2008 taxes.

The proposed tax credit is nonrefundable. What does that mean? You can only receive the credit to the extent that you owe federal income taxes. The Senate proposal would give home buyers two years to claim the credit, so buyers could claim a $7,500 credit in 2009 and a $7,500 credit in 2010. A family of four that makes less than $82,000, for example, could have a tax liability of less than $7,500 and they would not receive the full value of the credit.

Are there any repayment requirements on the tax credit? No. The Senate proposal does not require the credit to be paid back. The House proposal eliminates a 15-year repayment provision on the existing $7,500 tax credit.

If I am eligible for the current $7,500 credit, am I also eligible for the $15,000 credit? While the $15,000 credit has fewer restrictions than the existing credit, there is one big difference: because the credit is nonrefundable, if you have a low federal income tax liability, you could end up receiving more money with the current credit than the larger, proposed credit.

Are there any increased down payment requirements on the proposed tax credit? No. A separate measure has been introduced in the House that would expand the tax credit to $15,000 but would require a 5% down payment on mortgages. The Federal Housing Administration currently requires a minimum 3.5% down payment.

Can I use the tax credit to buy a second home? No.

How long do I have to live in my home after I purchase it with the tax credit? The Senate version requires buyers to pay back the credit if they sell the house less than two years after they buy it.

If you are looking for more information please contact Eric or Sharla at 952.470.2575 or Brian Call at briancall@rubiconmortgagellc.com.

http://www.staffordfamilyrealtors.com/

Weekly Market Activity Report from MAAR

For the week ending January 31, new listings continue at a lower level than seen last year, clocking in at 1,635—a 15.3 percent drop. Conversely, pending sales continue to raise sand with 673 recorded for this week's report—25 percent above last year. Basically, this is all welcome news. Having fewer listings on the market, combined with an increase in pending sales, helps to reduce the Months Supply of Inventory to 13.5 percent when compared to last year at this time—down from 8.9 to 7.7 months. This means it will take the current supply of houses for sale 7.7 months to sell (on average).

The Percent of Original List Price Received at Sale continues to fall, with the January figure of 89.5 sitting at 1.6 percent less than 2008. It's important to consider sales prices of foreclosure homes and how they affect this figure.

Our new Housing Affordability Index jumped to 202 in February. This is a new record and means that the median family income is 202 percent of what is necessary to qualify for the median-priced home. Again, we must consider how the sales prices in the lender-mediated market are affecting this figure, but we can say with some confidence that there are a number of very attractive buying opportunities in the local housing market. If we are able to maintain these trends, we'll be well on our way to killing the blues. And to this current market malaise, we'll be singing "gone, gone, gone (done moved on)."

Information compiled and published by Minneapolis Area Association of REALTORS.

NEW LISTINGS

Announcing Three Great New Properties from Stafford Family Realtors

We are excited to announce three new listings that will be coming to the MLS over the next month or so.

Our first property is located in Chanhassen in the Springfield neighborhood. This property is an executive single family home in a beautiful neighborhood. Family friendly this neighborhood sits close to shopping, entertainment, schools, parks and the new 312 corridor.

Are you looking for the perfect destination for your vacation home? Located near Cook, MN, we will soon offer a 7.55 acre property on Lake Vermilion. Ultra private and sited on an exclusive part of the lake, this home is upgraded and comfortable, great for family vacations or a quiet get away.

We also will be bringing on a great family home in Carver Bluffs of Carver. More information to come.

Please contact Eric or Sharla Stafford with any questions.

PRICE REDUCTION

We are extreamly excited to announce that we have recived a $40,000 price reduction on 1340 Alpine Pass in Golden Valley. This beautiful home, built in 1963, sits on a large double lot over looking ponds and mature trees.


The home has been completely updated and features a Gourmet Kitchen with Stainless Steel appliances and Stained Cement counter tops. There are natural Hardwood floors thruout. The reciently updated bathroom features a double vanity with Corian counter tops and a tiled, heated floor.


The home is the perfect alternative to condo style living with all the amenities and room to roam.

With the new price, we are $75,000 less than what the home sold for previously.


This is a truly remarkable opportunity! Don't let it pass you by!


For more information, visit www.StaffordFamilyRealtors.com.

Home Fads That Are Falling Out of Style

In this ever changing world, Fads come and go. The Eighties are trying to make a come-back in personaal fashion, bigger is not always better and Feng Shui has fallen out of alinement. It is hard to keep up with all the changes. Below is a list of the top 6 Fads that have fallen from grace with the Real Estate world.

This list was published on REALTOR, a magazine for Real Estate Professionals. The tips have been compiled by Melissa Dittmann Tracey.

1. Fireplaces: The fireplace skyrocketed in importance in homes in 1991 with 62 percent of new homes having one or more. But the number has steadily been decreasing ever since. In 2007, the number dropped to 51 percent.

2. Carpet: While 54 percent of homes still have carpet floors, the number is decreasing and hardwood floors are taking the place. Vinyl and ceramic tile flooring also are being bypassed more by buyers. Seventeen percent of new homes contain hardwood floors throughout the entire house.

3. Living room: These once-decorative centerpieces of homes are slowly vanishing from newer homes. Thirty-four percent of consumers say they’re willing to buy a home without a living room.

4. Desks in the kitchen: These desks were once looked at as great storage areas but they’re often too small and quickly become clutter spaces in a home, said Gayle Butler, editor in chief of Better Homes and Gardens. Instead, more consumers say they prefer larger desks in or near the family room—equipped with a messaging center—where they can keep an eye on their kids as they work on the computer.

5. Skylights: The little windows that allow natural light to seep into a home from above are falling out of style. Only 10 percent of new homes will include them this year, a continuing downward spiral for skylights.

6. Upscale kitchen finishes: Granite countertops are slowly becoming less desirable among buyers who are now moving toward affordable, low-maintenance laminate countertops—which tend to last longer and now come in various styles.

Weekly Market Update

With temperatures remaining stubbornly arctic, there is a very real possibility that we'll stay below freezing for the entirety of January. After a steady rise for the first two weeks of 2009, the Twin Cities housing market is reflecting the cold, with new listings down by 18 percent when comparing the week ending January 17 to the same week last year. If new listings continue to taper off, the market's supply balance can handle it, as we are still tilted generously in favor of the buyer.

For the same time period comparison, pending sales are up 13.2 percent over last year, and January 2009 has steadily outperformed January 2008. Total active listings trail last year, down by at least 10.5 percent. An ideal situation would be for listings overall to hold steady and for pending sales to keep rising...hopefully bringing temperatures up as well."And all the clouds that low'r'd upon our house, in the deep bosom of the ocean buried." – WS, R3

Information compiled and published by Minneapolis Area Association of REALTORS

You Can’t Stand in the Way of Progress

60-ton house moves across ice on White Bear Lake

Manitou Island, White Bear Lake's tony private island neighborhood, will be short one house this morning.

The house that sheltered generations of caretakers on the island is moving — but only a few blocks away.

Still, for homeowner Doug Kraemer and house mover Terry Semple, who together have picked up and transported a dozen homes in White Bear Lake, this move will be different. They will be wheeling the century-old home across lake ice to make room for potential development on Manitou.

"Honestly, in this economy we're up for anything," said Semple, only half joking. Actually, the lake route is the only one possible.

The bridge that connects the island with the mainland is too narrow and wimpy to support the 60-ton house, Semple said. And with White Bear Lake water levels down 6 feet — meaning the 100-yard-wide channel between the island and Matoska Park is frozen solid in parts — a ride across the ice became plausible.

But that doesn't mean the move is easy. Semple has been trying to thicken the ice in areas by pumping water onto the surface of the lake, and he thinks he has a couple of feet of frozen stuff where he needs it.

The weight of the home will be spread among 64 tires as the house inches over the lake, winched from the far shore.

"It's far more common to tear down a house, sat's one of the neat things about this story — they are saving it," said Sara Hanson, the group's executive director.

The move will allow the Manitou Island Homeowners Association to divide the caretaker's lot into two lots for future building.

The house ultimately will sit on a lot on Sixth Street, just off the corner from Johnson Avenue. But it will have to wait at the back of the lot until spring, when Kraemer can dig a basement and put up a foundation.

This story appeared in the St. Paul Pioneer Press and was written by John Brewer. To read the full article, click the link below:

http://www.twincities.com/ci_11569047