Real Estate Highlights…
Local Activity: During the previous seven days, our listings averaged ten website views per day. Ten views is up two views per day from the 30 day average; this is probably due to holiday activity and the subsequent drop in the housing market activity. The importance of tracking on-line views is in the direction (up or down) of the activity, just like the stock market. The interest indicator is measured in on-line views. The appeal indicator (of an individual home) is open house attendance. The ‘more than curious’ indicator is the number of personal showings. And of course, the commitment indicator is the offer (purchase agreement). But, it all begins with the number of views on-line.
Home Loans: New Federal Rules Aim to Curb Risky Mortgages … HOT LINK Lenders must be able to prove that a borrower can afford to repay the loan they take out. Sounds like common sense to us.
Supply and Demand: We are often asked if home prices have hit bottom. The answer is a straight forward, “probably.” Every major index both nationally and in Central Minnesota, (except for average sales price), indicates a resounding bottom of the housing market. Nationally the for-sale housing inventory has fallen 43% since the summer of 2010. This sharp decline in the housing inventory was a necessary correction to the high supply of homes for sale after the great bubble. Central Minnesota was no different. The glut of homes for sale has been replaced by a six year low in homes for-sale inventory. If we had to predict for 2013, we would say “YES!” Home prices have hit bottom.
When Pigs Fly: Just twelve months ago, rising home prices could have been summed up with “when pigs fly”. In 2013, Minnesota will see rising prices again. This will lead to more inventory. We are already seeing more new construction than in the previous six years. Rising prices will also encourage current homeowners to sell. There is a very large pent-up desire to sell within the ranks of current home owners. Retirements, health situations, new jobs, larger families and empty-nests are all reasons for current home owners to need/want to sell. But perceived low sale prices have kept people in their current homes. The real question to ask is: “Will small increases in prices be enough encouragement for current owners to take action?” As realtors, we know more inventory means more homes to choose from and more home sales. Every Realtor has a buyer or several buyers waiting for the “right” home to come on the market. The buyers are ready, able and willing…they just need a few good homes to pick from.
After eleven days of January, The Tami and Steve Team is more than optimistic about the direction our 2013 Housing Market is taking. 2012 was stronger than 2011 and all the market indicators (save one) are shouting ‘Pigs are Flying!”
Remember: When your home is listed with the Tami and Steve Team, don’t forget to check out your showing report. The on-line views include CBBurnet.com, Coldwell Banker.com, 1stDibs.com, FrontDoor.com, Homes.com, NYTimes.com, Realtor.com, Trulia, Zillow/Yahoo Homes.