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Recent statistics show the real estate market to be stabilizing during the last twelve months. Everything is pointing that the rock bottom has been hit in many places. This is of extreme importance to many real estate investors, because those who get in at the very low have a potential to reap benefits as the market rebounds. Yet, picking a bottom can often be very difficult and risky endeavor. That’s why it is important to keep a constant eye on monthly real estate movements. Following are such statistics for real estate in Afton, Minnesota that can provide an insight into the current local market conditions.

Please note that all following statistics are provided by Minneapolis Area Association of Realtors and seem accurate and reliable.

Activity for the January of 2010, being the most recent month, shows ‘New Listings’ jump from 1 to 3 new homes for sale, which represents a 200% increase from the same period in 2009. There were no closed home sales during the first month, which compares less favorably to the year ago when there was one closed sale. Yet, if we dig deeper, we can find that 2009 actually saw a drop in new home listings from 2008 from 58 to 53, while at same time the number of closed sales increased from 19 during 2008 to 26 during 2009.

‘Median Sales Price’ for a property in Afton MN during the January of 2009 was only $76,000. Since there were no real estate sales in January 2010, we have to take a look at the month before, December of 2009, when the Media Sales Price was $315,000. That’s quite a big jump indeed! However, for a year as a whole, 2009 have seen Median Sales Price drop to $307,000 from $404,000 during previous year.

‘Percent of Original List Price Received’ of homes for sale shows a drop from 93.2% (2008) to 85.2% (2009), confirming the price pressure that existed during the past year.

‘Average Days on Market until Sale’ stood at 279 (December 2009), a further deterioration from 2008 which had 212 days.

‘Inventory of Homes for Sale’ at the end of January 2010 was 21 which is surprisingly 31% less than the inventory at the end of January 2009.

Please take into consideration that the Afton area is a smaller reporting market place, so even a smaller change in a real estate sales can have a drastic influence on statistics. Thus, whether all of those numbers are pointing to the housing market that has dropped down sufficiently enough in this area and is now ready to rebound, still stands to be seen in the coming month’s numbers. So, stay tuned.

The Bloomington, Minnesota real estate market remains a little sluggish as the United States works its way through a financial crisis. However, 2009 figures held close to those of 2008 without significant declines in home sales or home prices. In fact, the average sales price of a home in 2009 was actually up 9.2 percent, $211,295 in 2009 compared to a 2008 average sales price of $195,537. The median or “middle” sales price was down slightly at 5.1 percent through December.

An indication of the country’s overall economy, home listings were up 19.7 percent over listings in 2008. According to the Minneapolis Area Association of Realtors, 66 homes were listed in 2008 in Hennepin County while 79 were listed there in 2009. The increased listings alone are not necessarily a negative indicator. But, home sales were down 9.1 percent with 55 homes being sold in 2008 and 50 sold in 2009. What does the combination of those factors mean to home shoppers? Homes in Bloomington, MN are likely to be on sale with reduced prices and motivated sellers.

Some homes are selling on the minnesota mls, likely to buyers motivated by an $8,000 tax credit offered by the federal government through the American Reinvestment and Recovery Act. The credit, available to first-time homebuyers as a result of a housing market stimulus package, was due to sunset on Nov. 30, 2009. Before the tax credit expired, Congress raced to extend the credit (with the available amount reduced to $6,500) and expanded its benefits to include repeat buyers too. National Association of Realtors’ Chief Economist Lawrence Yun helped champion the tax credit through Congress and attributes improvements in the real estate market to the plan that motivated buyers to move.

Homes appear to have sold faster in 2009 compared to 2008 in Bloomington, MN and Hennepin County. In 2008, homes were remaining on the market an average of 146 days before they sold. In 2009 they are reported to have sold 16.7 percent faster with homes for sale on the market an average of only 122 days.

By the end of 2008, there were 321 single-family detached homes on the market for sale. By the end of 2009, there were 265 such homes on the market. That doesn’t necessarily mean these homes were sold, some may have simply fallen into expired listings and others may have been removed from the market for other reasons. The townhouse-condo inventory was down slightly in 2009 as well with 165 inventoried in 2009 and 172 inventoried in 2008.

Armed with up-to-date statistics provided courtesy of the Minneapolis Area Association of Realtors, today we’re taking a quick look at short sales in the Twin Cities from December 2009.

What is a short sale?

A special arrangement between the seller of a property and the lender on the mortgage of the property agree for the property to be sold for less than what the seller owes to the lender. Short sales allow borrowers to avoid the adverse consequences of a “foreclosure” on their credit report. Short sales are a better alternative for mortgage lenders because in lieu of foreclosure, there is less of a financial loss to the lending institution.

In December 2009, what were the short sale numbers for the Twin Cities?

There were 3,934 properties listed as short sales in the Twin Cities in December 2009. The number of short sales was double the amount of foreclosures (1,799) and nearly 30% of all “traditional properties” (i.e., properties not considered a foreclosure or short sale) listed in December. At nearly six months, the average number of days a short sale was listed in December 2009 was 177 days, two more months than it took a foreclosure or “traditional” property to sell. When a short sale did sell, the sellers only received 86.5% of their original list price, in comparison to “traditional” properties receiving 92.8% of the list price and foreclosures receiving 97.6%.

While the concept of a short sale is easy to understand, the process of purchasing a short sale property can be a long process that may become complicated when a seller accepts your offer, but the lender rejects it. Working with a real estate professional is a great idea, however, not all real estate agents are familiar with the intricacies of mn short sales and may even hurt your chances of a successful closing.

If you’re a minnesota first time homebuyer and you’re not in a rush to move-in today, a property listed as a short sale may be just the right home for you. With the know-how of one of our many experienced agents, you could find the home of your dreams at a great price and without all the headaches of attempting to purchase a short sale yourself!

On The Minnesota Real Estate Team we’ve got agents that have listed and closed short sale properties, helping buyers and sellers alike successfully move to the next adventure in their lives!

Minneapolis is the largest city in the state of Minnesota with an estimated population of 390,000. In association with St. Paul, Minneapolis is ranked as the 13th largest urban area in the United States. With a great arts scene featuring music, theater, visual arts, dance and literature, Minneapolis has been lauded as the “most literate city in America.” While many neighborhoods compromise Minneapolis, today we’re examining housing figures from December 2008 to December 2009 and looking at year-to-date information for Minneapolis as a whole.

In December 2008 Minneapolis had 1,901 homes on market, 555 were new listings. A year later there were 27.4% fewer homes being listed with only 1,380 properties and 446 were new listings, down 19.6% from the previous year. Townhouse and condo units also saw a 20.8% slip between December 2008’s 1,065 units and December 2009’s 844 units. This change for new market listings follows the year-to-date trend: 11,052 in 2008 down to 9,785 in 2009.

Closed sales for properties in December 2009 were also down, but the number of closing for the year-to-date did see an increase. In December ‘08 and year-end of 2008, the numbers of closed sales were 398 and 5,293 respectively. Closed sales for December ‘09 fell 24.9% to 299 with the year-to-date at 5,886 closings, a positive 11.2% change over the previous year.

The average sales price of a home for December 2008 to December 2009 increased from $157,425 in 2008 to $177,515. The average sales price for the year-to-date decreased 12.7% from $209,824 to $183,265 in 2008 and 2009 respectively. While looking at the median sales price for December 2009 ($134,900) and the year-to-date ($150,000), its apparent that homes with a lower sales price are comprising a greater percent of the sales for Minneapolis.

The average number of days a home was on the market fell 12.5% from 127 days in December 2008 to 111 days in December 2009, which mimicked the year-to-date change, 12.6% to 112 days in 2009. The percent of sellers receiving the original list price increased 6.6% from December 2008’s 89.8% to 95.6% in 2009. For the year-to-date in 2009, 94.7% percent of sellers in Minneapolis received the original listing price (not accounting for previous listing prices), which rose by nearly four-percent.

The city of Minneapolis has a neighborhood for every price range and life you’d like to live. If you’re not sure where to look, let the Minnesota Real Estate Team help guide your journey as a buyer, seller, or both! If you’re looking to purchase a home and don’t know where to start, The Minnesota Real Estate Team can help you with all types of searching from properties, some of which are part of the mls mn. Those only licensed real estate agents have access to the actual MLS, our team is happy to help you with all of your buying and selling needs here in Minneapolis, MN.

Are you a MN first time home buyer wishing you took advantage of 2009’s $8,000 First-Time Homebuyer Credit? Don’t feel bad, you’re not alone!

Have you heard the good news?

The First-Time Homebuyer Credit was extended! The credit remains at $8,000 for a first-time homebuyer.

The new law went into effect November 2009 and extends the deadline for qualifying home purchases until April 30, 2010.  If a buyer enters into a purchase agreement by April 30, 2010, the buyer has until June 30, 2010, to close on the property.  Buyers have the option of claiming the credit on either their 2009 or 2010 tax returns.

That’s not the only bit of good news!

Income limits have gone up too!  The full credit will be available to buyers with adjusted gross incomes up to $125,000 or $225,000 (joint filers).  First-time homebuyers with adjusted gross incomes between $125,000 and $145,000, or $225,000 and $245,000 (joint filers) are eligible for a reduced credit.  However, buyers with higher incomes do not qualify.

First-time homebuyers aren’t the only ones being rewarded in 2010!

The new credit also provides a “long-time resident” credit of up to $6,500 to homebuyers who do not qualify as “first-time buyers.”  To be eligible, a buyer must have owned and used the same home as a principal / primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.

You should know, however, that with the new tax credit comes three new requirements.  First, your dependents are not eligible to claim the credit.  Second, no credit is available if the purchase price of a home is more than $800,000.  Lastly, a buyer must be at least 18 years of age on the date of purchase.

If you’re a first time homebuyer and want to take advantage of the tax credit, you likely have a number of questions.  The Minnesota Real Estate Team offers free classes for  first time home buyers in Minnesota to prepare you for the next step in your adult life.

To answer any of your real estate questions, call The Minnesota Real Estate Team at 952-223-1150.  Or if you’re in listening in the Minnesota area, tune into The Minnesota Real Estate Show on Saturday’s from 11AM to NOON on KTLK, 100.3 FM.

In today’s real estate market in 2009 in Minnesota, we have seen a number bank owned properties for sale on the MLS. However, in recent months, there have been fewer foreclosed homes for sale. Looking forward, most experts are predicting that there will be in fact another surge of REOs to hit the MLS in 2010.

As these foreclosures hit the market in 2010, first time home buyers, investors, and buyers of all price ranges really were in a bit of a “feeding frenzy.” Each month our team has offered and continues to offer a mn first time home buyer class. At these classes here in 2009, we found buyers really eager to take advantage of the tax credit and the amazing prices on these various properties for sale.

Though there is a great amount of minnesota investment property that is available to purchase as well, investors too have been scooping up some of the amazing deals.

Whether a buyer is looking for a foreclosure in the suburbs of Minneapolis and the Twin Cities as a whole, or whether he or she is looking inner city, there are certainly opportunities.

It will be interesting to see here in 2010 how many REOs do in fact hit the Minnesota real estate market. I know in speaking with real estate agents on our team, our market certainly could use some more inventory at various price points.

Lastly, as a buyer of bank owned properties, it is crucial to work with a top realtor in the transaction. Buying a bank owned home can and often is in fact a very complicated process. Having a top real estate agent to guide you through the transaction I have found to be crucial.

Feel free to use our search for homes function on this website at any time.

Happy REO house hunting!!

With the current real estate market conditions that we are finding here in Minneapolis, Minnesota, there still exists a very large number of short sales on the MLS for sale. Our team, The Minnesota Real Estate Team, has a number of agents who have been able to successfully close so many MN short sales throughout 2009.

As a buyer in today’s market, realize that more than ever, you need a top, top buyer’s agent to help you navigate through a short sale real estate transaction. We are finding timelines for these transactions vary. However, the general consensus is that if you need to be moved in by a certain timeline, offering on a short sale may not be your best option.

Moving into 2010, we have recently been seeing some of the larger national banks to have speeded up the approval process on short sales. However, this is not happening consistently across the board.

As a seller, if you are experiencing difficulties in making your mortgage payments, please realize that you do have options. Wherever your home may be located here in Minnesota or Wisconsin, we have an agent on our team who can help.

Short sales often times can be a frustrating real estate transaction for a buyer and buyer’s agent. However, often times a buyer is able to negotiate a discount on the property for sale.

Please don’t hesitate to contact our team if we can help with any of your short sale buying or selling needs here in MN. There is never any rush or obligation when working with our team.

It is interesting to see how the inventory levels of homes for sale here in the Twin Cities are still at relative low levels. Currently there are around 22,000 active homes for sale on the MLS, and this is down over 20% year over year.

Last weekend on The Minnesota Real Estate Show, we discussed the “shadow inventory” of bank owned homes that appear to be coming onto the market here in 2010.

How and when this will take place remains to be seen.  Clearly however the number of foreclosures that have hit the MN MLS in recent weeks and months has dropped significantly. This has certainly helped existing homeowners who are competing against these bank owned homes for sale.

Buyers at price points $250,000 and under in many parts of Minneapolis and the Twin Cities area are finding a lack of homes to choose from. This of course is creating multiple offer situations and a buying rush.

Now that the tax credit has been extended for first time home buyers, and also a $6500 tax credit being extended to existing homeowners, I really believe that our local market will continue to see and a slow steady uptick in pending sales.

Lastly, a brief congratulations to The Minnesota Real Estate Team. We just found out that we are currently the #3 ranked REMAX team in the United States for 2009 closed sales (through October).

The Minnesota Real Estate Show is now moving to Saturdays, 12-1 PM on KTLK, 100.3 FM. Call in with any and all of your real estate related questions!

With this amazing $8000 first time home buyer tax credit being currently offered, our team here in Minnesota is finding first time home buyers to really be in the “driver seat.” Though the supply of homes for sale on the MLS is not huge, there are still a number of outstanding properties for sale throughout the Twin Cities and Minnesota as a whole. Not only bank owned properties, but some short sales as well as regular “retail” listings.

If you are a prospective first time home buyer, realize that there are so many outstanding programs available to help you get the property financed. Not only on the federal level, but the state, county, and often times city level as well.

Every month, our team puts on a monthly first time home buyer seminar here in the Minneapolis area. We discuss many different items: down payment assistance for first time buyers, grants available, the $8000 tax credit, and really any and all details regarding the first time home buyer programs available for buyers here in Minnesota.

Stop on out to our next free class on August 13th, 6:30-8 PM. We provide the information to all attendees in a low pressure yet informative setting.

The Minnesota Real Estate Team of REMAX Advantage Plus takes great pride in providing our first time home buyer clients as much information as we can. We have been the #1 RE/MAX Team in Minnesota from 2006 through 2009. Our team is here to help you however we can.

For more info on this event, email Request@MnRealEstateTeam.com or call 952-223-1150.

Today, we would like to offer some great first time home buyer tips for buyers here in Minnesota.

1.  Be sure to talk to a top loan offer and know what you are preapproved for before you start looking for various properties. As a first time buyer, this will save you time and allow you to know exactly what price of home you can afford.

2. Attend a first time home buyer seminar and get as much information about the buying process as you can. With our team, we strongly believe in offering free montly first time buyer classses here in MN.  Each month, the seminar is down in Burnsville. It gives buyers the chance to ask all type of questions regarding the first time home buying process.

3. Plug in with a loan officer and a real estate agent that you like and you trust.  In today’s market, there are a number of various programs that offer down payment assistance. With our team, we work with Carrie Guarrero of The Minnesota Home Loan Partners. She focuses specifically on first time home buyers and all of the various programs, grants, and down payment assistance that are available.

4. Know your credit score! Find out what your score is and what you can do to concretely improve it! Credit scores are king in this market.

5. Get to understand the $8000 tax credit! Remember that this expires as of the end of November 30th.

These are just a few tips to share with you. Don’t hesitate to contact us if you would like to attend our free First Time Homebuyer Seminar here in MN.  Our forum is very laid back, and we give you a chance to air all of your questions.

For more info on this event in Burnsville, email Request@MnRealEstateTeam.com or call 952-223-1150.

Here’s to you during this exciting time of looking for your first home!