TEN REASONS WHY YOU SHOULD LIST NOW!

With record levels of snowfall this month of February, it's sometimes difficult to motivate sellers to get their homes listed! Many sellers are of the impression that if they wait until their grass is green and flowers are blooming, their house will show better and they'll get better offers. Here are some reasons why sellers should list now, and not wait until late spring.

1. Interest rates are at historic lows - but they are inching up. This has motivated some buyers to get more serious about their house search.

2. FHA rules are rumoured to be tightening - possible changes may mean that FHA buyers will have to pay more in the way of down payment and mortgage insurance. This will push buyers forward who want to beat these new possible changes.

3. We have already started our "spring market". Witness the "Open House Extravagansas" and the "Home and Garden Shows" prominent in our area.

4. The inventory will only get larger - creating more choices for your buyers if you wait.

5. There is a great selection of inventory for Move-Up buyers in this market. If you are a move-up buyer you will have lots to choose from.

6. June is historically our largest closing month - meaning that most buyers are under contract by mid April.

7. We are still in a down market. The experts are telling us that we should not be expecting to see house prices increase in value in the near future.

8. There are still First Time Home Buyer Programs out there. These programs are limited to areas, and funding availability - so there is a sense of urgency with those wishing to take advantage of those programs.

9. Because the Metro area is home to many large corporations, we are seeing transferees who want to get into a home before the school year ends.

10. You are more likely to attract serious buyers during the colder weather. Typically it is the more serious buyers who will go out into the snow and ice to look at homes - while the casual lookers will wait for nicer weather.

Record Drop in Twin Cities Home Prices, According to Zillow Report

Record Drop in Twin Cities Home Prices, According to Zillow Report

Daivd Vanneste On Fox 9 News!

http://www.myfoxtwincities.com/dpp/news/minnesota/zillow-twin-cities-home-prices-record-drop-q4-feb-9-2011

Real Estate Buyers Starting To Get Off The Fence!

Having been a trusted agent in the real estate business for 25 years, I have seen many different markets. This current one has been one of the more difficult ones - especially for sellers. However, as with every dark cloud - there is a silver lining. There has never been a better time for buyers to make a move - either into the real estate market for the first time, or become a move-up buyer.



There are many factors that affect affordability for a buyer: Inventory, Home Values, Interest Rates and Tax Incentives. Right now in our current market, the affordability index is the highest we have ever seen it. Typically, an index over 100 indicates a good market for buyers. The affordability index is now at 184.5! This is because we have historic low interest rates, a tremendous selection and very motivated seller pool.



We are seeing more showings on our listings recently- indicating that buyers are getting this message, especially since interest rates have inched up a bit! A 1/2% increase in rates can transfer into a 5% decrease in price for buyers, so with the recent slight increase in interest rates, buyers are starting to get off the fence. Move-Up buyers are also seeing that by taking advantage of this current market and low interest rates, they are able to leverage themselves into a more expensive home.



Now is an incredible time to buy! Together with all their resources, the Vanneste Group is to assisting homebuyers achieve the social and financial benefits of owning a home.

Seizing Historic Opportunities!

"It's the best affordable housing program we've had in the history of this country", Karl Case, a Wellesley College economics professor was quoted in an article written by Gita Sitaramiah in the St Paul Pioneer Press Sept 1, 2010.


What Karl was referring to was the oversupply of housing on the market, coupled with current historic interest rates that are hovering around 4.5%. This has indeed created a perfect storm for buyers in this market. In todays' housing market, buyers have an unbelievable opportunity to capitalize on something we have not seen in the history of this nation!



So - why aren't we seeing more activity from buyers? The current economic state is probably the best answer to that question. Buyers are feeling a little uncertain about the unemployment indicators and the general economic strength of our country. For those buyers willing to move forward tho', the opportunities abound.



We are actually seeing an uptick in home-buying from our more economic-savy clients, who realize the key to good investment is to buy when the market (housing and interest rates) is low! They recognize that with less competition for their offers, they are in postion to negotiate with sellers for unbelievable deals, and coupled with the low interest rates, they will be able to expand their purchasing power!



Timing is Everything! Buyers that step out into the market now will be seizing rare opportunities!

The startling news contained in a recent AP report that about 1.7 million homeowners (one in 78 US homes) received a foreclosure-related warning between January and June of this year has reinfoced what many of us have believed for some time - that the foreclosure and short sale market will be with us for the foreseeable future.


While the foreclosure and short sale statistics for new listings in June of 2010 for our Twin Cities area reflect that there has been a slight reduction compared to June of 2009, it's likely that this is due more to the bank's managing the flow of their distressed properties. The expectation is that this market will be with us at least for a couple more years - that is assuming the economy does not worsen. Most people believe there is a "shadow inventory" of distressed properties waiting to hit the market.


The data for June of 2010 does hold some interesting statistics for Short Sale properties. Pending Sales and Closed Sales for Short Sale properties for June 2010 both increased which may mean that the parties involved (sellers, banks, agents) are improving their systems and knowledge to get short sales closed.


Due to the economic times we are currently experiencing, it is highly likely that someone you know or someone you are related to will be faced with the possibility of losing their home. It is at this particular stressful juncture that people should be turning to professionals to help them navigate through the options and difficult choices they have ahead of them.



We have recently partnered with a group that will help insure success for our short sale clients. This group consists of attorneys, closers and title professionals, who can assist us in providing our clients confidential and professional service.



If you know of anyone who may find further information on this subject helpful, please have them contact us for a free confidential analysis.

Is There Any Good News In Real Estate?

The short answer to this is YES!

We're being bombarded daily thru national and local news services with negative real estate related stories. They range from features about the continued in-flux of foreclosures, to fraud cases, and not forgetting the current declining market.

So - lets put some perspective on this and also focus on some of the good news in this industry! This is not to gloss over the issues we are currently facing, but as someone who has been in the real estate business for 23 years, I have seen other times that have also been challenging (remember the double digit interest rates!?).

Our local market is quite a bit different than the overall national market. Quite often these news stories tend to focus on the national market - which is in worse shape than our local market, (mainly due to the local economic conditions). So, while predictions are that some national markets will see a further decline in values of 6-8%, our local market is actually faring much better. In fact when comparing April 2009 to April 2010 for Ramsey County alone, we see that both the sales volume and number of home sales have increased

Buyers have never had it better!! There is still an oversupply of homes on the market which means that sellers are being much more competitive in their pricing. We are also experiencing interest rates which have dipped down to 30 year lows! Interest rates will significantly affect the amount of home a buyer can purchase because it goes to the amount of monthly payment a buyer can qualify for. The other good news is that there are still programs out there that will allow down payment assistance to qualified buyers!

Sellers can still navigate thru this market with an experienced agent. Getting your home ready and pricing it right can still bring a quick offer. Just recently we had multiple offers on a property in Shoreview that ended up selling for over list price!

The key to success in this market is to have an experienced agent who can help guide you thru the constantly changing landscape!