More Great Housing Data!

As the final days of summer start to wane, Twin Cities home buyers posted their 14th consecutive week of double-digit, year-over-year gains. For the week ending August 13, there were 47.4 percent more purchase agreements signed than during the same week last year. A total of 952 buyers entered contract.

Sellers continued their slowdown, introducing only 1,387 new properties to the marketplace. That's 13.7 percent fewer than last year at this time. Slowed listings and comparatively strong sales figures have helped inventory levels post their largest weekly decline on record. The 24,232 active listings for sale were down 19.7 percent from last year. That record will likely be broken next week.

Renewed economic uncertainties combined with the Fed's announcement to maintain low interest rates could motivate some buyers to postpone their purchases. Though apparent in financial markets, the trepidation has yet to show up in local housing numbers. July's monthly data actually brought relief to some critical market indicators. Price declines are shrinking along with seller concessions, and absorption rates are finally moving in the right direction – toward balance.

This is all good news as those that want to sell have less competition. Those that are buying still have enough to choose from and rates are at historic lows! Now is a great time to buy or sell. Fill out this form if there is anything I can do for you.

Uplifting Real Estate News!

While day traders continue along their roller coaster ride, 997 Twin Cities home buyers made the smart investment in real estate. That's 40.0 percent more than those who made the investment last year. As this year's pending sales trend line rounds off its seasonal peak, you'll notice that purchase demand is coming back in line with historical trends.

Sellers were another story. There were 1,433 new listings, 18.7 percent fewer than this time last year. Seller activity has also likely reached its seasonal peak but remains below historical levels for this time of year. Consequently, buyers have effectively absorbed existing supply. That's a good thing. The number of active listings is down 18.5 percent to 24,362 available homes for sale.

With strong sales and less new supply entering the market, the balance is shifting toward neutral. Both the prevalence and magnitude of seller concessions have stabilized, and absorption rates improved in July after 12 months of sizable increases. Though still slightly lower than last summer, prices have increased nearly 18.0 percent from March to June of this year.

If you or anyone you know is thinking of buying, the bottom we have all been looking for may be here! Drop me an email or call me at 612.308.4708. I'd be happy to help direct you down the right path. ~ Joe Koltes Visit my website at www.go2joe.com

Twin Cities homes sales in June rose 33%

Sales are up for the 12th straight month, but a sizable chunk of the sales were from foreclosures and other "distressed" deals.

Expect more decline

Homes prices should decline another 15 to 20% through 2010. Defaulting is shifting from low-end to middle and upper-end homes which is distorting average home price data but is extremely bad news. Expect housing inventory to surge later this year as various stop-gap solution run their course ($8000 homeowner tax credit, ultra-low interest rates) and the economic situation continues to deteriorate. Email me for more information!

There was at least some good news for homeowners in the June housing report from Twin Cities Realtors groups. But the timing of a housing recovery still depends on when the influx of foreclosed homes into the market subsides.

Pending home sales in the metro area in June were up 33.7 percent from this time last year, to 5,183. That number was the highest for the month of June since 2005, and marked 12 consecutive months of year-to-year increases, the Minneapolis Area Association of Realtors said Friday.

In another favorable trend, the number of properties for sale at the end of June dropped 21.6 percent from a year ago, to 26,204, the Realtors association said. The more scarce property is, the higher the price is likely to be.

"Sellers still face a challenging market, but things look better for them than they have in a while," said Brad Fisher, president-elect of the Realtors association.

In the Twin Cities, the housing market is showing slow improvement. Closed sales for June were up 20 percent, but more than 40 percent of those sales were the result of foreclosures or "short sales," where the lender agrees to a sale for less than the amount of the mortgage.

Still, the percentage of home sales that were the result of foreclosures or short sales was down from 59.7 percent in January.

"The fact that short sales and foreclosures are coming down as a percent of total home sales is a good sign that could lead to at least a short-term bounce in housing values," said Scott Anderson, vice president and senior economist at Wells Fargo & Co. in Minneapolis. "But some economists worry that there could be another flood of foreclosures because of the rising unemployment rate and the weak labor market."January.

"The fact that short sales and foreclosures are coming down as a percent of total home sales is a good sign that could lead to at least a short-term bounce in housing values," said Scott Anderson, vice president and senior economist at Wells Fargo & Co. in Minneapolis. "But some economists worry that there could be another flood of foreclosures because of the rising unemployment rate and the weak labor market."

Greg Sax, a spokesman for the Minneapolis Area Association of Realtors, agreed.

"It's hard to say when we'll get to the end of the foreclosure crisis, because there may be more coming that we don't know about yet," Sax said. "That's why we don't want to paint too rosy a picture."

Greg Sax, a spokesman for the Minneapolis Area Association of Realtors, agreed.

"It's hard to say when we'll get to the end of the foreclosure crisis, because there may be more coming that we don't know about yet," Sax said. "That's why we don't want to paint too rosy a picture." Email me for more information!

Fed Drops Rates by .50 to 1.5%

SURPRISE RATE CUT:

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Federal Reserve cuts rates by 0.50%

This morning the Federal Reserve responded to the current credit crisis by lowering the federal funds rate to 1.50%.

The Federal Reserve meets again October 28th & 29th. Will they continue to lower rates? And what does this mean for you?

GOOD NEWS in an uncertain economy
Mortgage rates are low, starting at 5.25% (5.47% APR)*
Lenders are still lending millions of dollars each day
Larger banks have over 200 trustworthy lenders on their network
Larger banks like Wells Fargo will beat the national average interest rate*

For a new loan or Refinance go to http://www.go2joe.com and click on "mortgage"

In times like these, it's important to smile and help others to do the same!

Selling your Home

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20 Tips for Selling Your Home
As a homeowner, you can play an important part in the timely sale of your property. When you take the following steps, you’ll help your RE/MAX Sales Associate sell your home faster, at the best possible price.

The easiest and most reliable way to improve the appeal of your home is to enlist a quality home service professional. The right professional can help you get everything in order - from repainting the kitchen to providing a thorough cleaning - so you can stay focused on more important things.

1. Make the Most of that First Impression
   A well-manicured lawn, neatly trimmed shrubs and a clutter-free porch welcome prospects. So does a freshly painted – or at least freshly scrubbed – front door. If it’s autumn, rake the leaves. If it’s winter, shovel the walkways. The fewer obstacles between prospects and the true appeal of your home, the better.
2. Invest a Few Hours for Future Dividends
   Here’s your chance to clean up in real estate. Clean up the living room, the bathroom, the kitchen. If your woodwork is scuffed or the paint is fading, consider some minor redecoration. Fresh wallpaper adds charm and value to your property. If you’re worried about time, hire professional cleaners or painters to get your house ready. Remember, prospects would rather see how great your home really looks than hear how great it could look "with a little work."
3. Check Faucets and Bulbs
   Dripping water rattles the nerves, discolors sinks, and suggests faulty or worn-out plumbing. Burned out bulbs or faulty wiring leave prospects in the dark. Don’t let little problems detract from what’s right with your home.
4. Don’t Shut Out a Sale
   If cabinets or closet doors stick in your home, you can be sure they will also stick in a prospect’s mind. Don’t try to explain away sticky situations when you can easily plane them away. A little effort on your part can smooth the way toward a closing.
5. Think Safety
   Homeowners learn to live with all kinds of self-set booby traps: roller skates on the stairs, festooned extension cords, slippery throw rugs and low hanging overhead lights. Make your residence as non-perilous as possible for uninitiated visitors.
6. Make Room for Space
   Remember, potential buyers are looking for more than just comfortable living space. They’re looking for storage space, too. Make sure your attic and basement are clean and free of unnecessary items.
7. Consider Your Closets
   The better organized a closet, the larger it appears. Now’s the time to box up those unwanted clothes and donate them to charity.
8. Make Your Bathroom Sparkle
   Bathrooms sell homes, so let them shine. Check and repair damaged or unsightly caulking in the tubs and showers. For added allure, display your best towels, mats, and shower curtains.
9. Create Dream Bedrooms
   Wake up prospects to the cozy comforts of your bedrooms. For a spacious look, get rid of excess furniture. Colorful bedspreads and fresh curtains are a must.
10. Open up in the Daytime
    Let the sun shine in! Pull back your curtains and drapes so prospects can see how bright and cheery your home is.
11. Lighten up at Night
    Turn on the excitement by turning on all your lights - both inside and outside - when showing your home in the evening. Lights add color and warmth, and make prospects feel welcome.
12. Avoid Crowd Scenes
    Potential buyers often feel like intruders when they enter a home filled with people. Rather than giving your house the attention it deserves, they're likely to hurry through. Keep the company present to a minimum.
13. Watch Your Pets
    Dogs and cats are great companions, but not when you're showing your home. Pets have a talent for getting underfoot. So do everybody a favor: Keep Kitty and Spot outside, or at least out of the way.
14. Think Volume
    Rock-and-roll will never die. But it might kill a real estate transaction. When it's time to show your home, it's time to turn down the stereo or TV.
15. Relax
    Be friendly, but don't try to force conversation. Prospects want to view your home with a minimum of distraction.
16. Don't Apologize
    No matter how humble your abode, never apologize for its shortcomings. If a prospect volunteers a derogatory comment about your home's appearance, let your experienced RE/MAX Associate handle the situation.
17. Keep a Low Profile
    Nobody knows your home as well as you do. But RE/MAX Sales Associates know buyers - what they need and what they want. Your RE/MAX Associate will have an easier time articulating the virtues of your home if you stay in the background.
18. Don't Turn Your Home into a Second-Hand Store
    When prospects come to view your home, don't distract them with offers to sell those furnishings you no longer need. You may lose the biggest sale of all.
19. Defer to Experience
    When prospects want to talk price, terms, or other real estate matters, let them speak to an expert - your RE/MAX Sales Associate.
20. Help Your Agent
    Your RE/MAX Associate will have an easier time selling your home if showings are scheduled through his or her office. You'll appreciate the results!

First Time Homebuyers

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First-time Buyers
Whether you have spent years saving and preparing to buy a home, or you still aren't sure if it is something you can even dream of, the questions surrounding a first-time home purchase can feel endless.

You can find the answers – and peace of mind – by working with RE/MAX, the industry leader in experience and service.

Here are some tips to help you with the process of becoming your own landlord.

Being prequalified for a loan determines how much house you can afford. It also allows you to move more swiftly when you find the right house, especially when you aren't the only interested buyer.

Shop for mortgage rates and terms
A difference of even half a percentage point can make a huge difference in how much you pay over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8 percent vs. 7.5 percent is about $35 per month. Over 30 years, that's $12,600.

Using a buyer agent
A buyer agent is legally responsible for representing the buyer's interest in a real estate transaction. Generally, the buyer agent is compensated by the seller at the time you purchase a new home. There are some limitations to using a buyer agent, however. Before you decide, have a Realtor explain the advantages and disadvantages of using a buyer agent.

Features that help or hurt resale value
In some areas, a swimming pool actually detracts from a home's value and makes the home harder to sell. In neighborhoods with two-car, attached garages, a single-car or detached garage may impact the home sale and future value. Your Realtor can point out features that hurt, as well as those that help, resale value.

Rate the houses you tour
After touring each home, write down what you liked and didn't like. Develop a rating system which will help you narrow the field down to the house that's the best for you.