Data Supplied by the Regional Multiple Listing Service Inc.

June was a busy month for SPAAR President and Snyder Team leader Jennifer Snyder. “In addition to it being ‘that time of year’ when families want to get moved and settled before the new school year, buyers feel that we have finally hit the bottom in terms of affordability,” she said.

Snyder’s sentiments are reflected in statistics released last week for the 13-county Twin Cities metropolitan area. While new listings are down, pending sales are up—nearly one-and-a-half times what they were over last June’s post-tax credit slump.

“Properties that are priced appropriately for the market are moving,” said Snyder. “Listings at all different price points are selling—and in a couple of cases it’s even getting tricky to find the right inventory for a specific buyer—a good problem I haven’t experienced in a while,” she said.

When combined with record affordability, the 5.5% decline in new listings and a 15.9% decrease in inventory add an element of urgency buyers haven’t experienced in some time.

The flow of financially distressed properties onto the market appears to be slowing, and those on the market are selling. Foreclosures and short sales accounted for 38.2% of all sales, the lowest level since June 2010. 

For more details, look at these June statistics: THE 200+ I HOUSING SUPPLY OVERVIEW

Go to your typical real estate website.  What do you see?  Listings.  Lots and lots of listings.  Or in other words, sellers.  But what about the buyers?  They play just as important of a role in a real estate transaction.  RE/MAX Results understands this and is reinventing how we sell real estate.

Results.net, the RE/MAX Results website, now has Buyer Listings.  Sellers, whether they are on the market or even contemplating being on the market, can visit Results.net and search for active buyers who are currently under contract with RE/MAX Results. Simply enter a few pieces of information about the home you’d like to sell such as bedrooms, bathrooms and neighborhood or school district. Press the “Find Buyers” button. It will show you the matching buyers.

Visit Results.net today and check out this groundbreaking feature.  Are you interested in being added to the Buyer Listings?  Give us a call or send us an email today to learn more about it!

~Information from Marshall Saunders, Owner/Broker of RE/MAX Results.~

The annual Spring Parade of Homes starts this weekend.  Builders throughout the Twin Cities and Western Wisconsin showcase their latest designs.  This season there are over 340 homes to tour and be inspired by. 

The Parade starts this Saturday, March 5^th and goes through Sunday, April 3^rd.   The model homes are open every Thursday through Sunday from 12-6pm.  Pick up a guidebook with all the locations at your nearest Holiday Station Store. 

Will you be checking out the Spring 2011 Parade of Homes?

In an effort to boost the real estate market, FHA has extended its 90-day seasoning waiver.  What does that mean?  If an investor purchases a home with plans to fix it up and then sell it, he or she does not have to wait 90 days before listing the home for sale.  The purpose is to encourage more investors to get in the market and to provide more options for buyers.

There are requirements that must be met for the waiver to be allowed.  For example, all transactions must be arms-length.  There can be no identity of interest between the buyer, sellers, or other parties involved in the transaction.  There are also rules relating to sales price, marketing, and title.  The waiver applies to sales contracts executed between February 1, 2011 and December 31, 2011.  The waiver can be extended or withdrawn at any time. 

It is important to note that the extension of the waiver does not guarantee transactions will go smoothly.  Individual underwriters may not approve loans for homes being sold in such a quick timeframe.  We would recommend that sellers wait 90 days after a purchase before marketing it for sale to ensure a better transaction for all.

According to a National Association of REALTORS® survey released in January 2011, home owners and renters agree that home ownership benefits individuals and families, strengthens our communities, and is integral to our nation’s economy.

The American Attitudes About Homeownership survey found:

• 95% of homeowners and 72% of renters believe that over a period of years it makes sense to own a home.
• Despite the downturn in the economy, 93% of homeowners would buy a home again.
• More than half of owners (56%) are “very” or “extremely” satisfied with the overall quality of their family life, only 36% of renters report the same levels of satisfaction.
• 63% of renters say they will purchase a home sometime in the future.
• 18-24 year olds have the strongest desire for home ownership.

Even during this rough economic cycle, homeownership is still desired by most people.  The benefits of owning a home just outweigh any negatives.  This survey shows there will also be people looking to own a home.

~Information from the National Association of REALTORS®~

We have a guest blogger today!  Vince Hunt a Senior Mortgage Consultant with Prime Mortgage has some great information concerning VA loans and why it might be a great option for you.

Unless you have 20% down or more, the VA mortgage is hands down the best deal out there.  The VA loan is an entitlement that the veteran has worked for, just like the G.I. bill for schooling or health care benefits.  So, it’s a good idea to use it.   It’s basically the last truly 0% down loan available.  There is a funding fee that goes to the VA that is rolled into the loan and in some cases this may be waived if the veteran was disabled.  There is no monthly mortgage insurance premium, the rates are fantastic (about the same as conventional or FHA rates) and the qualifying is slightly easier than conventional loans. 

Depending on the purchase price of the home, the veteran has to come up with the earnest money of typically $1,000.   The veteran would then typically receive a refund of around $200 or so at the closing.  $800 to buy a home is fantastic!  The current loan limit for MN and WI is $417,000.  You have to qualify based on credit and debt to income, but the underwriting is typically more lenient than conventional underwriting.

If you were an active duty service member that is currently active or was honorably discharged you be eligible  Also, if you were in the reserves for six years or longer you may be eligible for a VA loan.  To ensure eligibility call Vince at 612-825-1300 today.  All you need is your DD214 (discharge papers) and your certificate of eligibility.  To get a copy of your certificate of eligibility or to learn more about VA loans, simply click here. 

Just like selling in the winter is a good idea, so is buying.  Moving in the winter can be difficult.  However, many buyers find the benefits outweigh the potential hassle.  Here are 5 reasons to buy a home in the winter:

1. Motivated sellers.  No, this doesn’t mean they’re desperate or you’ll find extreme deals.  It means they are just as ready to sell as you are ready to buy.  This can bring great results for both parties.
2. Lower interest rates.  The market generally sees lower interest rates during winter months and this can be very beneficial for your bottom line.
3. Less buyer competition.  Cold temps can scare away some buyers.  This can be great news especially if you are looking at competitive areas or inexpensive foreclosures.
4. Specialized attention from your lender.  Your lender should always be there to answer questions and make you feel comfortable.  However, fewer buyers in the market can free up some of your lender’s time.  This can translate into even more specialized attention to your needs.
5. Relaxing in spring and summer.  While other buyers are searching and moving, you can be kicking up your feet in your new home.

Are you ready to buy a home?  Give us a call or send us an email today and let us help get you started!

A report released today by RealtyTrac showed homes in foreclosure sold for 32% less than homes not in foreclosure during the third quarter.   This is the largest reported disparity since 2005.  Why are foreclosure homes selling for so much less? 

One reason is motivation.  Homeowners just want to get out before the bank takes the home back.  Some banks just want to get homes out of inventory as fast as possible.  Desperation often leads to premature price reductions or extremely low starting points. 

Buyer options also play a roll in pricing.  Buyers have a lot of homes to choose from right now.  Prices on foreclosures are frequently low to simply generate interest.  The more buyers you can get through a home increases the chances for an offer.

The main reason that foreclosure sell for less than non-foreclosures is condition.  These homes often need extensive repair work or updating.  Many of these homes do not qualify for FHA or DVA financing due to the condition.  Prices must be low to attract the right buyers while accounting for the work needed.   Homes not move-in ready are harder to sell, unless the price point is too low to pass up.

It is important to note that just because a home is a foreclosure doesn’t mean it’s a “steal.”  A well-maintained home with lots of appeal doesn’t create the desperation for extreme pricing, even if it is a foreclosure.  Every neighborhood and market is different as well.  It is in the best interest of a buyer to look at all homes that match the search criteria.  A knowledgeable Realtor will help you determine if a foreclosure is right for you. 

Congratulations, you’ve got an accepted offer on your new home!  You’re also probably making lists of what you need to before closing.  Well, it’s also important to know what not to do before closing. 

In order to eliminate any possibility of potential problems before closing, anyone in the application process should use credit sparingly and make sure they adhere to the tips provided below by credit expert Linda Ferrari of Credit Resource Corp:

•          Don’t do anything that causes a red flag to be raised by the scoring system.

•          Don’t apply for new credit of any kind.  This includes furniture financing.

•          Don’t pay off collections or charge offs.

•          Don’t max out or over charge on your credit accounts.

•          Don’t consolidate your debt onto one or two credit cards.

While this is not a comprehensive list, it does give a good idea of what not to do to your credit before buying a home.  As always, speak to your mortgage professional or Realtor to get more information.