Maple Grove, MN

TODAY WE ARE GOING TO LOOK AT GETTING MOTIVATED TO MOVE. NOT BECAUSE IT IS A GREAT TIME IN THIS MARKET TO BUY AND SELL A HOME. NOT BECAUSE AGENT AFTER AGENT IS TELLING YOU IT'S A GREAT TIME TO BUY A HOME. NOT BECAUSE THE $8,000 TAX CREDIT MAKES AFFORDABILITY GREAT!

NO- WE ARE ONLY GOING TO TALK ABOUT WHETHER OR NOT YOU CAN AFFORD TO MOVE. IT'S REALLY THE NUMBER ONE REASON PEOPLE MAKE A MOVE IN THE FIRST PLACE. IF YOUR BANK ACCOUNT SAYS "WE CAN AFFORD A MORTGAGE PAYMENT" THEN YOU SHOULD BE READY TO MOVE. IF IT DOESN'T SAY THAT, THEN MAYBE WE SHOULD HAVE ANOTHER DISCUSSION ABOUT WHAT WE CAN DO TO HELP YOU GET TO THE POINT YOU CAN HAVE THE HOME BUYING CONVERSATION.

THE MOTIVATION QUESTION IS A TRICKY SITUATION. AS REALTORS, WE ALWAYS ENCOURAGE YOU TO BUY A HOME BECAUSE IT IS A GREAT INVESTMENT AND WILL ALWAYS GO UP IN VALUE. WELL, THAT REFLECTS LONG TERM TRENDS. IF YOU ARE JUST LOOKING INTO THE MARKET NOW, ALL YOU SEE IS HOME VALUES DROPPING. T.V., BLOGS, NEWSPAPERS AND RADIO TALKING ABOUT HOW BAD TH MARKET IS. THE FACT IS I BELIEVE THE BOTTOM IS CLOSE IF NOT ALREADY HERE. IT IS ALSO TRUE THAT IN A DOWN MARKET THAT HOME AFFORDABILITY INCREASES. IT ALSO MEANS THAT LOWER END OR STARTER HOMES ARE THE BEST VALUE AND IF YOUR A MOVE UP BUYER, THE DEALS ON MIDDLE INCOME NEIGHBORHOOD HOMES IS FANTASTIC.

THE REASON i WRITE ABOUT MOTIVATION, IS THAT ALL OF THE MOTIVATING FACTORS YOU SHOULD BE CONSIDERING ARE COMING TO AN END SOON. INTEREST RATES ARE GOING TO GO UP. THE TAX CREDIT WILL EXPIRE 11/30/09. PROPERTY VALUES WILL STABILIZE AND THEN INCREASE.

SO IF YOU CAN LOOK AT YOUR BANK STATEMENTS AND CAN SEE YOU CAN AFFORD $1,100-$1,500 OR MORE A MONTH, THEN YOU CAN AFFORD TO OWN A HOME RATHER THAN WAISTING IT ON RENT. SO, WHY NOT TAKE ADVANTAGE OF THE OTHER WONDERFUL INCENTIVES AVAILABLE TO YOU NOW?

CONTACT ME TO GET STARTED!

Housing affordability has reached near record lows. What does this mean? This means properties are very affordable and it's a great time to buy. Take advantage of the $8,000 tax credit and it means the first year of home ownership is incredibly low. Call me now to take advantage of this market.

Does your home have one of those new composite decks with the lifetime warranty? The one that was to be a green deck and save the trees? Well, just like every other promise made by new technology, there are some catches and some trial and error. The U.S. Consumer Products Safety Commission has placed a recall on several composite deck materials due to the material/decking be defective. There have been instances of people getting cut or breaking knees, ankles, etc. due to falling through the decking material. If you have a composite deck, you may want to check out this recall to see if the materials used by you or the builder on on the list. http://www.deckingnotice.com/

We love referrals! If you know anyone looking to make a move soon, please contact us. We look out for you long after you move.

Best Wishes for a wonderful day!

Eric Helmers-The Helmers Group

612-581-5375

Eric@EricHelmers.com

I have already had a few of you e-mail me asking what I meant buy, "The purchasing power being diminished or having no effect if buyers are waiting for a price drop when interest rates are climbing".

Here is a simple example.

You are looking at properties and you find a home priced at $150,000. The market has stable inventory but interest rates are on a gradual climb. You feel that if you wait for a couple of months that you can find an equal home for less so you decide to wait thinking "I/We can time the market and get a sale price we want". Her is what can happen and likely will happen if the Federal reserve sticks with it's thinking that it will need to raise long term interest rates to stem of inflation.

Home Price: $150,000.

Interst Rate: 6%

Payment before taxes, Insurance, Etc.=$872./Mo

Home Price: $140,000

Interst Rate Rises to: 6.5%

New Payment before Taxes, Insurance, Etc. $860./Mo.

As you can see from the sample, waiting for a price drop even as much 7% of the current list price can have almost no effect on your monthly payment should interest rates rise even 1/2%. So, if you wait and try to time the market, you may not save any money and you risk losing the $,8,000 tax credit that expires on 11/31/09. This expiration date means you need to have found, purchased and closed title prior to that date. Miss the closing date by even a day after 11/31/09 and you will not receive the tax credit as it stands right now. With many foreclosures in this area receiving multiple offers, it is getting harder and harder to find the right property for you and your family. It's time to act now!

Contact me or my preferred loan officer to get started or for more information.

Have we hit a bottom?

Buyers who have been sitting on the fence waiting for interest rates to drop, home values to decrease or additional inventory to come to market due to lack of "The Perfect Home" may want to get some gas in their tanks and get motivated. Inventories are continue to decline, prices in the $100K-$225K price range has stabilized and most important of all, the $8,000 tax credit expires 11/31/09.

What does this mean?

If buyers continue to wait for prices to drop marginally, and rates even go up .50 percent, all value you would receive with the price drop would be lost with the increase in the interest rate. The tax credit of $8,00 dollars expires and there is already great competition for the existing homes specifically foreclosure properties. Buyers need to act now or be left saying "If I would have bought when". Call or e-mail me and let's meet to discuss your needs and the current market conditions.

Cell: 612-581-5375

E-mail: Eric@EricHelmers.com

Info-Second Quarter Existing-Home Sales Rise
Existing-home sales in the second quarter showed healthy gains from the first quarter in the vast majority of states, and price declines have increased affordability in most metro areas, according to the latest surveyby the NATIONAL ASSOCIATION OF REALTORS®.

Total state existing-home sales, including single-family and condo properties, rose 3.8 percent to a seasonally adjusted annual rate of 4.76 million units in the second quarter from 4.58 million units in the first quarter. However, they remain 2.9 percent below the 4.90 million-unit pace in the second quarter of 2008.

Thirty-nine states experienced sales increases from the first quarter, and nine states were higher than a year ago; the District of Columbia showed both quarterly and annual rises.

NAR: Gain Appears to Be Sustainable

"With low interest rates, lower home prices, and a first-time buyer tax credit, we've been seeing healthy increases in home sales, which are a hopeful sign for the economy," says Lawrence Yun, NAR chief economist. "There have been sustained sales gains in Arizona, Nevada, and Florida, as well as diverse areas such as Maryland, the District of Columbia, and Nebraska. More recently, we've seen strong double-digit gains in Idaho, Utah, New Mexico, Washington, Hawaii, New York, New Jersey, Maine, Vermont, Wisconsin, Indiana, South Dakota, and Montana."

Yun also explained housing's impact on the overall economy.

"Given the need for related goods and services, each home sale pumps an additional $63,000 into the economy - that's how the housing engine traditionally pulls us out of recession. In addition, sales are drawing down inventory and that will help stabilize home values, which in turn will lessen foreclosure pressure and boost credit availability for other sectors of the economy."

Distressed Sales

During the second quarter, 129 out of 155 metropolitan statistical areas reported lower median existing single-family home prices in comparison with the second quarter of 2008, while 26 areas had price gains.

Distressed sales - foreclosures and short sales - accounted for 36 percent of transactions in the second quarter, which continued to weigh down median home prices because they typically are sold at a 15 to 20 percent discount; first-time buyers accounted for one-third of transactions.

The national median existing single-family price was $174,100, which is 15.6 percent below the second quarter of 2008.

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage declined to a record low 5.03 percent in the second quarter from 5.06 percent in the first quarter; the rate was 6.09 percent in the second quarter of 2008.

NAR President Charles McMillan said there are unique opportunities in the current market.

"Housing affordability is hovering near record highs and there's a wide selection of homes, but first-time buyers need to move quickly to take advantage of the $8,000 tax credit because they have to finalize the transaction by November 30," he says. "Various state, local, and nonprofit programs target first-time buyers, and a REALTOR® can help you identify the programs and financing options that are currently available in your area."

Source- NAR