Apple Valley, MN

There are plenty of folks who are choosing to buy their first homes right now in Dakota County, especially in Apple Valley and the five cities on its borders. Interest rates and prices have converged to the optimal level, and the indications are that this may be as good as it gets.

There are a lot of real estate professionals who offer reasons to buy a home right now, and most of the given reasons are valid for somebody. They are not all valid for everyone. For example:

Interest and Property Taxes are Deductible. This is true, but the fact that they are deductible does not always mean that they should be deducted. The standard deduction for single filers in 2012 will be $5,950, and the standard deduction for married filers will be $11,900. You have to have enough deductions to exceed the standard deduction or your deductions will not help your tax bill. If you have little else but mortgage interest and property taxes to deduct, many entry level home purchases will not give you a tax advantage.

Owning is Cheaper Than Renting. This could be true, but it is necessary to include all the new expenses that go along with owning your own home. In addition to the monthly payment which may actually be lower than your current rent, taxes, insurance, general maintenance, periodic updates, future assessments, and desired improvements need to be considered. Generally the new home is larger than the rental, so utilities could also cost a bit more. Owning will probably cost more than renting, but driving your own car usually costs more than taking the bus too, which brings us to the one reason to buy your first home.

It May Cost More, But It's Worth It. The best and most universally valid reason to buy your first home is because it will probably make your life better. That is, it will make your life better if you do your homework, don't overspend, and choose carefully. talk to a financing professional, and expect that you will be qualified for more than you feel that you can comfortably allocate to your monthly payment. The comfortable amount is the important one, and it's best to not exceed that level. Keep in mind that unexpected expenses, both home-related and otherwise always occur. Have a cushion saved that will not be used for buying and moving expenses. With the proper preparation, your lifestyle upgrade will be worth the effort and the possible additional expense over the cost of living in the world of temporary housing.

If you're ready to declare your independence from Mr. Landlord, call me to arrange a convenient time for a home buying orientation and strategy session. You'll learn about buyer advocacy, the risks and rewards of buying foreclosures and short sales, what to look for when shopping for a new home, and a whole lot more. Call now, you have nothing to lose but about an hour of your time.

Over that last ten years the Cobblestone Lake Area of Apple Valley has averaged about 2 - 3 sales each month, which is why it's very important to look at data on a specific neighborhood with a 12 month moving average so we can figure out the trend for that specific neighborhood.

The Absorption Rate peaked at about 21 Months of Inventory over the Winter of 2007 - 2008. In December 2010 the Absorption Rate stood at 5.3 Months of Inventory and inventory increased by ten homes in the following month moving the Absorption Rate to 12.5 Months of Inventory.

(Big changes like this is a reason why I look at a twelve month moving average.)

Months of Inventory has been trending down since peak inventory levels during 2007 - 2008 and have fallen to about 6 - 7 Months of Inventory in 2010 and have remained at about that level ever since. Inventory levels did decline most of 2011 up to August and have gone back up sustaining a slight Buyer's Market in the Cobblestone Lake Neighborhood.

The Median Sale Price in Cobblestone Lake has been relatively flat during 2010 and most of 2011 and has just recently started to rise slightly. Prices in the Cobblestone Lake area have fallen about 44% since the Housing Market Peak of 2006 and have risen 10% from January 2011.

In this next chart we see sales data by price bracket. I would take this information with a grain of salt since the data available is pretty small group of homes. But it is worth reviewing to get an idea of what market conditions may be like for various price ranges.

Today's economic data indicates that the economy is improving, and it's no surprise that housing will probably move in tandem. With job data showing substantial sustained improvement, fewer people are unemployed and an increasing number of job holders are feeling more secure in their employment.

The uncertainties of the past few years are slowly fading, and housing appears to be also recovering slowly in many parts of the country. In my little corner of the world, Apple Valley, Minnesota, and the five cities that it touches have had a great first month of 2012. According to the Regional Multiple Listing Service of Minnesota, total units closed increased about 21%, from 180 in 2011 to 218 in 2012. Greater Dakota County likewise had an increase in January from 233 sold in 2011 to 311 sold in 2012. That's about a 33% increase, and it looks to me like a pretty good start to the year.

The increase in the number of buyers should not go unnoticed by anyone considering owning a new home. Competition for the best property in any price range will be greater this year, but probably not as great early in the year than later, and again not as great this year as next. Now is the time to make a lifestyle upgrade decision if you want the best possible value.

For more specific information about the real estate market in Apple Valley and its five neighbors, Burnsville, Eagan, Farmington, Lakeville, and Rosemount, drop me an email with your request. I also answer phone calls promptly.

The Sun Is Setting Later and Renters Are Starting To Get Restless

If you regularly escape from your day boss and drive home to be overseen by your night boss (AKA Mr. Landlord), you've probably noticed that you don't need your headlights unless it's raining or snowing. That means you have a little time after work to do some things that require some daylight, like touring homes for sale.

The later sunset and the fact that we're getting close to lease renewal decision time is prompting a lot of renters to begin planning for a life style upgrade. A large number of leases cycle in May and June, and that means there is a decision that needs to be made thirty to sixty days before then, depending on the provisions of the lease. Unless you love to do things too fast and too late, now is the time to get serious about buying your first home. So, what's it gonna be? Are you going to swallow hard and accept that rent increase for another year, or is it time to declare your independence from your landlord? You know that you and your family deserve better.

From now forward, if you work a typical day shift, you can probably get out and walk through a few homes after work and before dark. As days get longer and warmer, more and more renters are going to join the mob seeking out the best valued home for sale, and, no matter how many homes are on the market, there is only one best valued home. If you're going to commit to buying a home rather than remain in your temporary housing, do yourself a big favor and begin the process today. Start with a homebuyer orientation and strategy session. It doesn't cost anything but about an hour of your time. Call me now to arrange a convenient time for your first big step toward residential independence.

2012 Minnesota Precinct Caucuses February 7, 7:00PM

Minnesota's biennial political circus will officially begin in a few weeks with the precinct caucuses. Although I approach Minnesota politics with cynicism and mostly as a spectator sport with predictable outcome, my attendance at precinct caucuses has been fairly consistent. If you have any chance to influence the political direction of the state, or maybe even the federal government, your voice will be loudest and strongest when you participate in your caucus.

The business of Minnesota precinct caucuses consists of choosing precinct officers, choosing delegates to the district and/or county conventions, and proposing resolutions to be acted on at the conventions. Those resolutions, if passed, will eventually become part of the party platform. There is often a straw poll conducted in which you can indicate preference for various state and federal office candidates.

If nothing more, the commitment is for one usually cold Tuesday night off the couch and a relatively informal gathering with a few of your neighbors. All you'll be missing at home is probably one episode of The Biggest Loser, and there's a lot more to lose than weight if we continue to allow government to exist without our participation.

The following is from the Minnesota Office of the Secretary of State:

Finding Your Precinct Caucus
Caucus Finder helps Minnesotans locate the time and place of caucus meetings in their neighborhoods. Caucus Finder for the February 7, 2012 caucuses will be available after January 18, 2012.