Todd Urbanski

2008 may well be remembered as the year of the foreclosure. There is a rumor that 1st graders now know how to spell foreclosure before they can spell thier own name. Wright County, Mn had it's share of foreclosures as well. A large majority of these were new construction that were never lived in. There is some good news as well! The fourth quarter of 2008 saw fewer newly listed lender mediated properties. That is the first quarter to quarter decrease since 2003. I am not calling it a trend yet, but I am very optimistic.

2008 Lender Mediated Homes Sold in Wright County (foreclosure & short sale)

City Total homes sold Lender-mediated % Lender Mediated

Annandale 64 20 31.3%

Buffalo 255 129 50.6%

Cokato 48 13 27.1%

Delano 82 15 18.3%

Hanover 40 16 40%

Howard Lake 23 10 43.5%

Maple Lake 28 11 39.3%

Monticello 201 85 42.3%

That gives you a snapshot of what happened in 2008. Keep in mind that some of these homes are very very good deals for the right buyer. When I say the right buyer I mean one that is not afraid of delays, extra work, buying a home as-is, and what sometimes is known as the waiting game. Don't get me wrong, there are great homes that are great deals out there right now! Make sure you talk to a Realtor that has experience with lender mediated properties as you start your search. Because...there are also so many excellent deals to find in the traditional market, make sure to ask your agent the differences and potential pit-falls of lender mediated properties before you start your search. Compare and contrast. Look at both and understand what you are buying.

2009 will be fine! That's the tag-line I am using, and I expect it to come true.

Talk to you next time!

Rates today dropped to 4 7/8%. This is truly an unbelievable time to buy. But what does it mean to the average seller. I understand that most sellers are frustrated right now, they are not recieving offers and often are having very few showings. But there is some good news. The lower rates means that more buyers are now able to afford your home. Let me demonstrate an example:

List Price=$200,000 Interest rate of 6.5% (most of 2008) Payment would be $1,257.00

List Price=$200,000 Interest rate of 4.875% (12/15/2008) Payment would be $1,054.00

The average buyer will now save $203.00 per month with the better interest rate. That also means that they can afford more of a house. So if they can only afford an $1100 payment, your home is now affordable to them, where as for most of the year it was not. Now you still have to have good credit and a job to qualify, but if you meet these requirements, you can buy a home today that was out of reach just a month ago.

As sellers, if you need to sell. It may be time to price your home even more aggressively than before. In a nutshell, with rates and prices where they are today there has never been a better time to buy!

And for the sellers. You will take less now than three years ago, but more than likely, you will buy something else. And you will pay less than you would have three years ago.

Keep this in mind. In 1981 rates were at 18%. This is not the worst housing market we have ever seen. You could argue, if your a buyer, that it's the best!

Feel free to contact me with any of your questions.

Let me introduce myself. My name is Todd Urbanski, I live in Hanover and have since 1991. Over the years I have served two terms on the city council, served 16 years on the fire department, sat on the Economic Developement Authority, I have been involved with the park board as well as the planning commission. I also happen to work for Coldwell Banker Burnet in Buffalo. My goal for this blog, first is to keep it on-going, but to offer you a quick snap-shot of what is happening in our local real estate market.

This has obviously been a challenging year for many sellers. The interesting thing is that it is also one of the best times to buy a home in the last 35 years. Today as I write this, mortgage interest rates are at 5%. Inventory levels have dropped and home prices are as low as 2001/2002.

Our local market has also been effected. In November in Hanover there were only 2 sales with an average sales price of $194,450. In November of 2007 there was only 1 sale at a price of $235,000. Overall for the year we have had 39 sales, compared with 35 last year. That is roughly 3 to 4 sales per month. Not bad for a small city like ours! Our average sales price though has fallen 17.8% from last year. Currently for the year our average sales price is $243,530, last year it was $296,156. We currently have 29 homes on the market, compared with 40 at this time last year.

So overall it is a great time to buy and it's really not that bad of a time to sell depending upon your situation. To sell today, it is a price war and a beauty contest! You have to be priced right and you have to have your home q-tip clean! And once you sell you can enjoy all the benefits of being a buyer in the best market to buy in the last 35 years.

Stop in at the River Inn, order yourself a sausage/ sauerkrauht pizza, tell them Todd sent you!