Kim Melin

If you’ve been sitting “on the fence” waiting for conditions to improve before you purchase a home, fence-sit no more!

The Twin Cities housing market offers incredible opportunities for first-time buyers as well as move-up buyers.

In the Twin Cities, we’re seeing lower home prices than in previous years and historically low interest rates. In early July, 30-year fixed-rate loans were available in the low 5 percent range and 15-year fixed-rate loans in the high 4 percent range.

These rates are amazing, especially when you compare them to previous years such as the ‘80s when interest rates were in the double digits. This wonderful combination of low interest rates and moderating prices is resulting in excellent affordability.

Home prices are well within the means of the average Minneapolis or St. Paul resident.

The Twin Cities also has an excellent supply of homes for sale in all price ranges, styles, and communities. Buyers can choose from new construction, existing homes, starter homes, luxury properties, condominiums, co-ops, townhomes, and lofts.

Also, if you’re a first-time home buyer, don’t forget the tax credit authorized by the American Recovery and Reinvestment Act of 2009. Under this act, first-time home buyers can receive a tax credit for 10 percent of the value of a home, up to $8,000. This is a great incentive, especially since you don’t need to repay the tax credit unless you sell your home within three years. But, you only have until Dec. 1, 2009 to take advantage of this credit.

So, start looking for your next home now. Enjoy our beautiful summer weather and the benefits of the Minnesota housing market.

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Have you jumped off the fence? Looking for a real estate agent to represent your best interests? Contact me, Kim Melin, today.

Check out my website for help in buying a home in the Minneapolis area.

President Obama recently signed a bill that reforms certain abuses within the credit card industry that may change life as we know it. The bill won’t take effect until 2010 but wounded lenders are already threatening reprisals in the form of higher rates and more fees.

The new bill will help consumers in many ways:

More time to pay bills: Bills will be due on the same day every month, no less than 21 days after they are mailed or delivered. No arbitrary time before 5 pm can be set for when the payment has to arrive. No late fees can be charged for payment not made on the due date when it fall on weekends or holiday.

More limited interest rate hikes: Raising the interest on existing balances can only be done under certain conditions. Subprime fees can't be applied until a payment is over 60 days late. Terms can't be changed for paying off old balances. No more interest rate increases because the cardholder was late with someone else. More notice for interest rate increases.

Limits on fees and penalties: Subprime interest rates charged if a customer was over 60 days late with payment will revert to the original rate once the customer has been on time for six months. Fees and penalties must be reasonable, based on rates set by the Federal Reserve Board. No fee can be charged for making payments, unless they are expedited through a service representative. No over-the-limit fees can be charged unless the customer agrees to have account set up to permit authorization of over-the-limit transactions.

New way to apply payments: Payments above the minimum payment will be applied to highest interest rate items.

Other provisions deal specifically with new cardholders and cardholders under 21.

In the current economy, many card holders who have been late on payments – maybe because they diverted the money to their house payment – have been slapped with high late fees, often compounded with over-limit fees, and subprime interest rates as high as 30% within a short time span. Even when consumers paid most creditors on time, they could be faced with interest rate hikes or credit line decreases based on their performance with other creditors. Interest rate hikes applied to all consumers even extended to old balances. Companies charged excessive fees even to pay the bill. The new law prevents lenders from going crazy with fees and interest rate hikes.

The new bill does not reward the bad behavior of people who can't or don't pay, but does make the treatment of all consumers more fair. This is a good thing. Even if you personally feel that people have gone overboard with credit, it is hard too feel too sorry for the banks. They have a year to find ways to recoup any losses they may incur as result of the new law, so it is unlikely they will pay a great price for being forced to act responsibly. Consumers are likely to pay, one way or the other, but many people will be forced to reassess their relationship with credit and how they use it.

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Need help in assessing whether you are creditworthy to buy a home? Contact me, Kim Melin, today. Check out my website for help in buying a home in the Minneapolis area.

The number of homes for sale in the Twin Cities metro area continues to decline relative to a year ago. As of Monday morning this week, there were 26,674 homes for sale in the region, down 20.9 percent from a year ago. In other words, we've lost 1 in 5 homes in our inventory in the last year.

Sales are a different story. For the week ending June 20, there were 1,156 signed purchase agreements, up 32.1 percent from the same week in 2008. That's the 12th week of the last 13 to feature a year-over-year increase in sales activity exceeding 20 percent.

We must bear in mind, however, that sales are only up in certain categories and price ranges. Year to date, traditional home sales (excluding foreclosures and short sales) are still down 17.8 percent from last year. New construction sales are down 21.7 percent from last year. And sales of homes priced above $350,000 are down 26.8 percent from a year ago. The lion's share of market activity is taking place in the lower price ranges this year.

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The attached MAAR Weekly Market Activity Report is information the Minneapolis Area Association of REALTORS® (MAAR) sends to REALTOR® broker members and interested parties on a weekly basis. This is provided by MAAR to help you understand the Twin Cities 13-county residential real estate marketplace. Please contact me regarding any questions or comments you may have.

Sincerely,

Mark
Mark Allen, CEO

Minneapolis Area Association of REALTORS®
(952) 988-3134
www.mplsrealtor.com

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