Christopher Larson

Although we as United States citizens are not exactly revered these days (and have not been for quite a long time), at least we can stick it to the rest of the world in the winter Olympic games. It is great to see these athletes exuding so much pride as they represent us as a nation. We are currently leading in Gold, Silver, Bronze, and obviously overall medals. Thanks to all the athletes! Especially Lindsey Vonn from Buck Hill in Minnesota!!

The median sales price of traditional homes (excluding foreclosures and short sales) in January was $198,000, down 7.9 percent from a year ago. Lender-mediated properties posted a January figure of $125,000, an increase of 3.3 percent from a year ago. There were 2,736 signed purchase agreements in January, a dip of 3.2 percent from a year ago.

That's the second consecutive month of year-over-year decline in pending sales, though the declines have been small to this point.

The Federal Home Buyer Tax Credit and extremely low mortgage rates have been the two main drivers of the market's recent momentum and, unfortunately, both of those market boosters may be near their eventual end.

The tax credit expires on April 30 and likely will not be extended. Further, the Federal Reserve intends to stop buying mortgage-backed securities in the near future, a move that will likely lead to an increase in mortgage rates. Unless these changes are effectively offset by other economic improvements, we can expect downward pressure on home sales in the months ahead.

"A lot of progress has been made in the last year," said MAAR President-Elect, Pat Paulson. "But the recovery process still isn't over. There are going to be some more bumps in the road."

Make sure you find out more about the down payment assistance being offered in Minneapolis, St Paul, Hennepin County, Ramsey County, and Dakota County. These programs will be incredible resources for our clients now and only more important after the tax credit expires.

Hey Realtors...Let's see what we can do together!

After 41 consecutive months, four Super Bowls and a presidential election, the Twin Cities housing market finally posted a median sales price that was higher than the same month a year ago.

The January median sales price of $157,000 was a 1.3 percent increase from last January's mark of $155,000. That's the first yearover- year increase since July 2006. 1.3 percent may seem pretty "ho-hum," and in an ordinary market it is. But in light of the three year roller coaster we've been riding, "ho-hum" sounds glorious right now.

There's a lot of positive news, but the Federal Home Buyer Tax Credit and extremely low mortgage rates have been the two main drivers of the market's recent momentum and, unfortunately, both of those market boosters may be near their eventual end.

Let's see what the rest of the year looks like, hold on!

Week of February 15, 2010

The Twin Cities housing market at the beginning of 2010 continues to look similar to the Twin Cities housing market at the beginning of 2009. There were 1,848 new listings for the week ending February 6, a 3.8 percent increase from the same week last year. On a similar track, there were 780 pending sales for the same week, 4.7 percent above last year.

With supply dropping-now at 5.5 months of availability-it may be that potential buyers are all too familiar with the inventory they have to choose from, especially in the lower price ranges where sales have been through the roof in the last year and inventory has dropped quickly.

For more information go to spaar.com

First Time Homebuyer Program
In the market for your first home? Whether you are buying an existing home or building a new one, the Dakota County CDA's First Time Homebuyer Program provides a financial resource to make your purchase successful.

Current interest rate: 4.99%

Program Eligibility

• Homebuyers must be first time homeowners or someone who has not owned their primary residence in the last three years.
• Eligible properties include existing single family homes, townhomes, condominiums or duplexes in Dakota County.
• New construction is eligible in Apple Valley, Burnsville, Eagan, Empire Township, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake and West St. Paul.
• Homebuyers must occupy the home as their primary residence after purchase.
• Buyers must have a minimum credit score of 620.

Income Limits

• 1 or 2 person households: $83,900
• 3 or more person households: $92,290

Maximum Purchase Prices

• $276,683 for single family homes, townhomes or condominiums
• $389,205 for duplexes (not eligible for additional Downpayment Assistance)

Eligible Financing

• The First Time Homebuyer Program may only be used with 30-year amortizing fixed-rate FHA or VA mortgage loans.
• Homebuyers may also utilize the one-time $8,000 federal tax credit in addition to the First Time Homebuyer Program as long as they meet the requirements and deadlines for the federal tax credit.

Fees & Requirements

• An application fee of $225 is paid at closing. Mortgage lenders may also charge a $150 transfer fee as part of closing costs.
• Home Stretch Homebuyer Education certificate required prior to loan closing.

To apply, contact a Christopher Larson. We have all the necessary paperwork to qualify homebuyers for the First Time Homebuyer Program and Downpayment Assistance.

Questions? Call (651) 387-2514

Downpayment & Closing Cost Assistance
Homebuyers accessing the Dakota County CDA First Time Homebuyer Program can also apply for downpayment and closing cost assistance loans up of up to $10,000 depending on household income.

Loan Terms

• Zero percent interest
• No monthly payments
• Loan must be repaid when the primary mortgage is paid off, the home is no longer the primary residence, or when the home is sold or refinanced.
• Borrower must contribute a minimum of $750 of their own funds toward the purchase of the home.
• Home must meet the minimum housing standards for FHA or VA mortgages.

Maximum Loan Amounts & Income Limits

• 10% of the first mortgage amount up to $10,000 for households with incomes at or below 50% of the area median income.
• 5% of the first mortgage amount up to $7,500 for households with incomes between 51% and 80% of the area median income.
• 2.5% of the base mortgage amount for households with incomes between 81% and the First Time Homebuyer Program income limits.

Questions? Call (651) 387-2514.

Home Stretch® Homebuyer Education Program
Purchasing a home may be the biggest investment you ever make. The first step in making a sound investment is to learn about the homebuying process by attending Home Stretch.

Home Stretch teaches homebuyers about the entire homebuying process and the responsibilities of homeownership. Topics covered include: Budgeting and Credit Issues, Financing and Qualifying for a Home, Shopping for a Home, The Purchase Process, Closing on a Home and Life as a Homeowner.

Home Stretch is taught by professionals in the homebuying field including a certified Home Stretch educator, mortgage lenders, realtors and home inspectors.

The Dakota County CDA holds Home Stretch classes monthly and is a HUD-Approved Housing Counseling Agency. Upon completion, participants receive a Home Stretch certificate.

There is also money available in Ramsey and Hennepin County