Posts in State Of The Local Real Estate Market
The Twin Cities Real Estate Market Watch shows a significant swing in both supply and demand categories. The above snap shot provides current inventory levels, off market listings, closed and pending sales in the past 7 days as of 11/15/12.
If I was a potential seller, I'd want to be going on the market with the typical season highes of both expired and cancelled listings. Sellers should consider going against the flow and be featured on the market when inventory levels are lower. There are 12 additional advantages of listing during the holiday season. I'd love to discuss those in person :)
President Obama has introduced a new refinance plan for homeowner's who hold FHA loans that were originated prior to June 1, 2009. Please see the link below for more details. This is the best of both worlds for any FHA loan holders. The monthly mortgage insurance is lowered from today's rate of 1.15% to the old factor you are currently paying of .55%, so the lower rate will not be washed away by increased monthly mortgage insurance like it had been. Also, you do not have to pay FHA a large up front amount... More details here...
Reversing Real Estate Trends
Even Ben Bernanke is finally acknowledging a reversing pattern in certain US market places. The Twin Cities housing market has revealed parallel trends and conditions associated with the balance of supply and demand. For the past few years, the actual supply of single family homes greatly exceeded the effective demand of home buyers. The supply and demand ratios are reversing in the Twin Cities at a relatively blinding pace. Numerous factors have impacted these transitions and they include: Record Housing Affordability Indexes, record low interest rates, increased amount of investors and investor activity (over 40% Cash Buyers), reduced number of pending foreclosures associated with the most recent re-finance programs for homes in a short equity position. Also, the Federal Reserve and other bank regulators have utilized tools and programs to ensure that the banks have enough capital to cover mortgage losses while continuing to lend at such great rates. Banks have posted incredible consecutive quarters as well which in turn stabilizes the real estate marketplace.
For the past two years, existing homeowners have faced the question: “Should I stay or should I go? More and more homeowners are just now catching on to the fact that the supply and demand levels have reversed, coupled with the seasonally high period of sales in the marketplace. Dr. John Tucillo ( Chief Economist) best describes the nations real estate picture using a bathtub analogy. Picture a bath tub half-filled with water running, the plug removed and the water level remaining the same. He suggests that when water levels (supply and demand) adjust in either direction; investing in real estate becomes more risky. In other words, for the first time in years, we’re in a very stable marketplace according to Chief Economist, Dr. John Tucillo. Potential sellers can further leverage their equity position when making decisions regarding choosing better trained professionals with proven track records of sales. For example in 2011, EXIT Realty Nexus agents netted their sellers 5.83% more for their sellers than the rest of their competition (Data taken from posted MLS sales in 2011; Original List Price versus Sold Price). In 2010, EXIT Realty Nexus agents posted a 6.1% higher net sale for their sellers versus their competition. Sellers are also reversing their trends when selecting their preferred agent who will better serve their bottom line.
If you owe less than $729,000 on your mortgage and live in Minnesota, you may qualify for the new regulations and the Affordable Home Program. Under this new plan, the government is trying to force the banks to cut your mortgage payments by up to $12,000 a year…But not all banks want you to known this. Why? Because there are 2 Important Loop-Holes:
1. Most Minnesota Homeowners are Pre-Approved
2. Most Credit Types are Accepted.
President Obama passed yet another new program called the Home Affordable Refinance Plan (HARP) that allows Minnesota residents an small window of opportunity to refinance their homes at all time low rates and also reduce the amount owing by as much as $12,000 a year.
The catch? There might be a small window of time for Minnesota residents to take advantage of this new regulation. Even consumers who may owe more than their home is worth should inquire into their eligibility.
It is recommended to be proactive on this because it is not known how long this plan will exist for homeowners to refinance with these new rates and/or even take cash out of the equity in their home.
THERE IS A VERY LIMITED WINDOW OF OPPORTUNITY HERE. Contact us for more direction.
EXIT Realty Minnesota is very pleased to announce the merger between EXIT Realty Nexus of Coon Rapids MN and EXIT Innovation Realty of St. Paul near the Edgecumbe triangle of Highland Park in St. Paul MN. EXIT Realty Nexus CEO, Frank D'Angelo was seeking a second prime Class A office lo to accommodate growth for his newest agents who have joined his team from the southern Twin Cities. Meanwhile, building owner Ron Becker of EXIT Innovation Realty was seeking a managing broker to expand his operation and thought his location would be a perfect fit for D'Angelo's expansion and growth needs. Frank agreed and goes on to say, "Ron Becker and his late wife Mary have masterfully designed a state of the art business complex perfectly suited for the EXIT Realty business model and this complex also facilitates a vivacious group of businesses such as: Dr. Robert Maley's Dental Care, Highland Federal Finance, BodyMind Chiropractic, United Residential Mortgage, AVADA Hearing Care, LTC Financial, Courtney Law Group, In-Pursuit Talent, Tilsner Accounting, India Chamber of Commerce and now EXIT Realty Nexus of Saint Paul, MN."
EXIT Realty Nexus continues to grow in Minnesota. Their growth and prosperity can be primarily attributed to their on-going mission of being the best trained agents in the industry. The statement, "Good Agents are Born, Great Agents are Trained" is the companies Mission/Vision. This has also helped their agents net their sellers 6.3% more than the posted averages of their competition. Average posted sales for sellers last year were at 92.1% of list price while seller sales with EXIT Realty Nexus were 98.4% of list price. That 6.3% difference in seller pockets is significant and is largely attributed to their integrated marketing advantages and training. EXIT Realty Minnesota's Regional Director Bill Pankonin says, “ listing agents with EXIT Realty Nexus have developed a 'Client Centric' marketing approach which is quite different than the traditional 'Company or Ego-Centric' marketing approaches that mostly delve into the statistics such as: who sold more or which company is the oldest”.