Buying activity this week remained about the same as last week. It's almost hard to imagine why buyers are not taking advantage of this wonderful opportunity. Until I think about the Bear Stearns news and all the doom and gloom dire predictions we heard this week.
Many buyers are trying to time things, to make sure they get the best price. Bad economic news creates a perception that we are in a free fall. While that may be true in some real estate markets it's not in others. Many of the areas I work in are RISING. Average sale price in many neighborhoods is rising, really, I'm not crazy, check it out on my profile.
Trying to time things to get the best price is only smart for investors who don't really care to much about the home itself.
Buyers of a "home" (not just a "house"), are well served to focus on getting the best homepossible, rather than the best pricepossible. Not that price isn't vitally important, of course it is. But buyers always gravitate to the highest "quality" they find after reviewing what's available.
Find the nice home in that area you didn't think you could afford, or find that home that has more than features and amenities than you ever thought you'd get. Then buy it! Good Luck!
Good News!
The department of Housing and Urban Development has raised the loan limits on FHA financing from $271,050 to $365,000. FHA loans continue to be a wonderful financing option, and in currently one of the best options available to many buyers. 
Coupled with the improved affordability of homes, this is definitely the best time to buy in ages. Affordability is at a five year high right now, based on median income, median home prices, and mortgage rates.
An additional 25 percent of the homes currently on the market are now candidates for FHA financing. Buyers are now able to buy more home, and/or better homes, for the same amount, thanks to these changes.
Activity in the real estate market increased across the board this week. The number of new deals (pending sales) went from 635 last week to 680 this week. The number of new listings went up as well from 1832 last week to 2014 this week.
These increases add to the rise in activity since mid January.
Spring activity is typically high, when compared to last year, this spring's activity is slightly down. The number of new listings this spring is about % lower than the same period last year. While the number of pending sales is down by about %.
An interesting side note, the Housing Affordability Index (HAI) is at a five year high. The HAI measures housing affordability based on sales prices and interest rates. The HAI is at 157 now, meaning the median household income is equal to 157% of the median home price. A lower HAI means homes are less affordable.
This increase in affordability is god news for buyers, but the best news is that the BEST HOMES (which always sell fast, and for a fair price) are actually easy to find, and buy today. Everyone moving today benefits from the fact that they can pick and choose from the plethora of options out there and they'll find a fantastic home which they will love more and more every year they live there.
Signs of Spring!
Deals are being done, fewer homes being listed, all spell good news for the Real Estate Market.
Pending sales inched up this week making a strong case for the market being prime for the picking. While sales volume remains healthy, the type of deals being done varies in different neighborhoods. Some places the lowest price rages are hot, while in other neighborhoods it's the moderate price rages.
New listing activity is relatively week, a very helpful thing if the trend continues. The primary force limiting price appreciation is over supply. Since sales are strong, new listings flooding the market are to blame for the oversupply. Whatever the reason so many home owners are choosing now to sell, if they stop, the number of homes available will go down. As the number of homes available approaches the number of sales, the markets get hot, and prices go up.
If you are interested in buying or selling, be sure you, and your REALTOR, really understand your market, the neighborhood, property type, and price range! It's never been more important.
This Tuesday evening from 6-7 the Linden Hills Housing Committee will be hosting a town hall meeting to discuss the effect of Foreclosure on the community. There will be a Pot Luck dinner, kids are welcome. Following this presentation and discussion, the Linden Hill Neighborhood Council will have a Board meeting from 7-9 and everyone is welcome to stay for that as well.
Discussion Topics for the town hall meetingwill include:
Why there are so many foreclosures happening
Local Real Estate Values
The effect of this trend on residents and the community
A list of Foreclosure information and prevention resources will be available. The town hall meeting will start at 6:00 and the Board Meeting will begin at 7:00. For more information contact the Housing Committee Chairperson, Ben Kolkman (612) 599-4161. All are welcome.
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Lakes Sotheby's International Realty SHIPMAN + KOLKMAN Realtors Marketing, Public Relations, Comunications & Branding for a more effective Real Estate Transaction
Lakes Sotheby's International Realty - SHIPMAN + KOLKMAN Realtors
"We are a marketing, advertising and communications firm. We apply these talents to Real Estate."
- Todd Shipman
Historic Urban property in the Twin Cities of Minneapolis and St. Paul is the core of our business. Minneapolis and St. Paul are currently experienceing a rebirth of new houseing options within select areas of the urban core and specific suburban neigborhoods.
Fuled by the desier to live closer to the city, and strong real estate values these new houseing options include remodeled older homes and new construction (in-fill, and tear down), which often incorporate green building and living elements.
Rural Leagacy and Conservation properties include some of the most impressive and important pieces of real estate we have left. Our interest in repersent these properties is fuled by a deep desier to see their highest value appriciated. Whether corporate or private ownership, the need for stewardship, conservation and preservation is a fundamental concern, where we believe we can help to make a difference.
International living is a passion of our and many of our clients. With our experience of living abroad and developed worldwide network of real estate expertise, we act as a respected resource for those seeking or offering properties on a global scale.
Todd Shipman, Partner
Todd Shipman has been listing and selling real estate around the Twin Cities for more than nine years. Dedicated to education in real estate, he has earned the titles of Certified Residential Specialist® and Certified International Property Specialist®. Todd is a graduate of the REALTOR® Institute and has served as president for the Minneapolis Area Association of REALTORS®, the leading regional advocate and provider of information, research, and education on the real estate industry for brokers, real estate professionals, and the public.
Todd provides a straightforward, honest, and insightful approach. Through his involvement in professional organizations Todd has the opportunity to network with the top real estate professionals locally, nationally and around the world, which helps him bring a fresh approach to every property he represents.
Ben Kolkman, Partner
Ben Kolkman has been in sales and marketing for 10 years, experience includes Real Estate, Information Technology, and Medical Devices. Representing Buyers and Sellers throughout the metro area, Ben's primary market is historic urban housing. He covers the Twin Cities Real Estate market in his blog, and is a regular contributor to other local real estate media outlets.
Ben excels leads the team's internet marketing strategy. His passions include urban neighborhoods, historic restoration & green remodeling. Every fall Ben organizes the Remodeled Home Tour as a fundraising event for local housing and neighborhood groups.
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