It's been a while since I have had time to write. I've been very busy selling in our current market place.
Don't really have much to say right now. I feel our market in the metro has hit rock bottom. Buyers are now stepping up to buy homes realizing the market isn't going to get any better than what it is.
Our economy is very scary and I'm nervous about things just like everyone else. I'm torn between helping big companies and letting them drown in their own mess.
In the meantime please tell someone to buy a home with me!
Tuesday, November 18, 2008
Monday, September 8, 2008
Good market news!
Taken from the Minneapolis Weekly Report on 9/6/2008
Like Adam West as Batman, the market for home sales in the Twin Cities went POW! during the week ending August 30. For the week, there were 965 purchase agreements signed—a whopping increase of 51.3 percent from the same week last year. That's the highest year-over-year increase in pending sales since we began tracking that figure on a weekly basis in 2004. Home-buying activity is particularly heavy relative to last year due in all likelihood to a) the historically sluggish showing in August of last year as the credit crunch took hold, b) a bevy of buyers taking advantage of the final days of FHA's seller-funded downpayment assistance program, which sunsets on October 1 of this year and (c) new home buyers getting off the fence and taking advantage of the new home buyer tax credit of up to $7,500.
This week's edition of the MAAR Weekly Market Activity Report features updated figures for several key metrics. Days on Market Until Sale dipped slightly to 143 but remains up from last year by 5.8 percent. The Percent of Original List Price Received at Sale increased slightly to 92.7 but remains down from the healthier levels of the past several years. The Housing Affordability Index increased to 151, thanks to falling prices and interest rates.
The Months Supply of Inventory fell to 9.9 months. This means it will take the current crop of properties for sale approximately 9.9 months to completely sell through, given current sales rates. This is dead-even with this time last year, another indication that the market isn't continuing to shift in the buyer's favor anymore for the time being. A balanced market is thought to have a 5- to 6-month supply rate.
Like Adam West as Batman, the market for home sales in the Twin Cities went POW! during the week ending August 30. For the week, there were 965 purchase agreements signed—a whopping increase of 51.3 percent from the same week last year. That's the highest year-over-year increase in pending sales since we began tracking that figure on a weekly basis in 2004. Home-buying activity is particularly heavy relative to last year due in all likelihood to a) the historically sluggish showing in August of last year as the credit crunch took hold, b) a bevy of buyers taking advantage of the final days of FHA's seller-funded downpayment assistance program, which sunsets on October 1 of this year and (c) new home buyers getting off the fence and taking advantage of the new home buyer tax credit of up to $7,500.
This week's edition of the MAAR Weekly Market Activity Report features updated figures for several key metrics. Days on Market Until Sale dipped slightly to 143 but remains up from last year by 5.8 percent. The Percent of Original List Price Received at Sale increased slightly to 92.7 but remains down from the healthier levels of the past several years. The Housing Affordability Index increased to 151, thanks to falling prices and interest rates.
The Months Supply of Inventory fell to 9.9 months. This means it will take the current crop of properties for sale approximately 9.9 months to completely sell through, given current sales rates. This is dead-even with this time last year, another indication that the market isn't continuing to shift in the buyer's favor anymore for the time being. A balanced market is thought to have a 5- to 6-month supply rate.
Wednesday, July 16, 2008
We need to help Ourselves!
Two months ago I wrote about how I felt things were getting better. Well they did until about three weeks ago. Fanny Mae and Freddie Mac are now having problems, IndyMac is almost gone completely and it appears that our slight recovery has gone sour once again. Foreclosures are dominating the market and values are dropping like a rock. If you’re a buyer then you are in for one heck of a deal.
The causes for our market are attributed to many events and actions but in my opinion the biggest reason is the lenders themselves. They created the products pushed them on all of us and got lazy with their standards. I do not feel one bit sorry for the lenders and frankly am glad to see some of them go away. I do not however, agree with our government bailing some of them out. Wouldn’t it be nice to have the government bail all of us out of our personal issues?
Short sales are becoming more and more them norm. Even with perfect credit and no late payments some lenders are allowing this to happen because they know things can change and time is money. Be cautious of short sales and make sure you have an agent with a proven track record and extensive knowledge of the process or it WILL affect you down the road.
Foreclosures are up 53% from this time last year! Folks the only way we are going to correct this problem is to get this inventory off the market; it truly is time to get off the fence. The longer foreclosures sit the more prices drop and our economy gets worse. Homes drive our economy. Think about it. From the lumberjack in
Wednesday, June 11, 2008
Minnesota Short Sales!
Recently my broker wrote about me and my services on our company blogsite. I am honored to have been chosen out of 350+ agents. Below is a copy of that article
No one has a crystal ball. No one can predict the future. Yet, everyone has an opinion about it. After all, that’s what makes horse races.
Real estate trends are no exception. But Nate Berg has a market perspective that has been honed by a wide range of professional experiences, including residential sales and mortgage origination. You might want to take Nate’s prognostications seriously. The smart money is on Nate Berg.
While the media continues to broadcast funeral dirges for the housing market and the real estate industry in general, Nate hears a different tune. Nate sees an end to the rough patch of foreclosures and short sales. The newspapers offer a dark picture for the future; Nate sees a light at the end of the tunnel. Am I over-using metaphors while discussing this Brooklyn Park MN real estate agent? Perhaps. Unfortunately, I cannot resist the temptation to use just one more: Nate has formulated his opinions while working “in the trenches’ with buyers, sellers, and borrowers. He has worked with plenty of short-sales and clients facing foreclosure. He knows what he is talking about.
Nate believes the market dip has hit rock-bottom. Why? Nate has been doing dozens of Broker Price Opinions (BPO’s) and assisting sellers in pre-foreclosure and short-sale situations. Recently, he noted that the number of Broker Price Opinion orders he receives every week has been dropping. The build-up of short-sale and foreclosure inventory is slowing down. More importantly, he has noted that the price values rendered by the BPO’s have not continued to fall. Prices have stabilized. Also, Fannie Mae and Freddie Mac have dropped the “declining markets” clause. As a mortgage professional, Nate believes that this will have a significant an positive impact on real estate market activity and prices.
Nate has foreseen other industry trends in the past. Several years ago, well before we were talking about things like “carbon footprint” or astronomical energy costs, Nate was busy selling plenty of ICF homes in the Minneapolis area. ICF, or Insulated Concrete Forms homes offer an extremely energy-efficient option for new home construction while adding only 5% to building costs. They also are more fire resistant, and are not conducive to mold growth. Today, ICF is the buzzword for the “green” home building industry, and ICF homes arfe even becoming quite popular with Minnesota luxury home buyers. Nate invested in an ICF home for himself.
In addition to experience with new home construction and home financing, Nate has years of experience with land development and residential sales in Brooklyn Park, Maple Grove, Champlin, and surrounding metro communities. He has been an agent with Independent Brokers Realty for the past five years. Nate joined Independent Brokers because the company lacks top-heavy corporate structure, and allows agents the freedom to pursue their own career goals and business innovations.
For expert advice from a Brooklyn Park MN real estate agent, give Nate Berg a call at (763) 682 6610 or visit him online at http://nateberg.com
No one has a crystal ball. No one can predict the future. Yet, everyone has an opinion about it. After all, that’s what makes horse races.
Real estate trends are no exception. But Nate Berg has a market perspective that has been honed by a wide range of professional experiences, including residential sales and mortgage origination. You might want to take Nate’s prognostications seriously. The smart money is on Nate Berg.
While the media continues to broadcast funeral dirges for the housing market and the real estate industry in general, Nate hears a different tune. Nate sees an end to the rough patch of foreclosures and short sales. The newspapers offer a dark picture for the future; Nate sees a light at the end of the tunnel. Am I over-using metaphors while discussing this Brooklyn Park MN real estate agent? Perhaps. Unfortunately, I cannot resist the temptation to use just one more: Nate has formulated his opinions while working “in the trenches’ with buyers, sellers, and borrowers. He has worked with plenty of short-sales and clients facing foreclosure. He knows what he is talking about.
Nate believes the market dip has hit rock-bottom. Why? Nate has been doing dozens of Broker Price Opinions (BPO’s) and assisting sellers in pre-foreclosure and short-sale situations. Recently, he noted that the number of Broker Price Opinion orders he receives every week has been dropping. The build-up of short-sale and foreclosure inventory is slowing down. More importantly, he has noted that the price values rendered by the BPO’s have not continued to fall. Prices have stabilized. Also, Fannie Mae and Freddie Mac have dropped the “declining markets” clause. As a mortgage professional, Nate believes that this will have a significant an positive impact on real estate market activity and prices.
Nate has foreseen other industry trends in the past. Several years ago, well before we were talking about things like “carbon footprint” or astronomical energy costs, Nate was busy selling plenty of ICF homes in the Minneapolis area. ICF, or Insulated Concrete Forms homes offer an extremely energy-efficient option for new home construction while adding only 5% to building costs. They also are more fire resistant, and are not conducive to mold growth. Today, ICF is the buzzword for the “green” home building industry, and ICF homes arfe even becoming quite popular with Minnesota luxury home buyers. Nate invested in an ICF home for himself.
In addition to experience with new home construction and home financing, Nate has years of experience with land development and residential sales in Brooklyn Park, Maple Grove, Champlin, and surrounding metro communities. He has been an agent with Independent Brokers Realty for the past five years. Nate joined Independent Brokers because the company lacks top-heavy corporate structure, and allows agents the freedom to pursue their own career goals and business innovations.
For expert advice from a Brooklyn Park MN real estate agent, give Nate Berg a call at (763) 682 6610 or visit him online at http://nateberg.com
Friday, May 23, 2008
At the bottom!
Hello everyone,
I was ready some mortgage information today and it was good news for once! Starting June 1, 2008 Fannie Mae and Freddie Mac, the two big companies that basically control the mortgage market, have decided to stop the declining market stipulation.
What does that mean? Well that means the tight standards we have experienced over the last year are going to be loosened. Some limited 100% programs will be back and most loans will go from the 10% down requirement back to only 5%. this should help to loosen the market, locally.
I have noticed from all the bank appraisals I have been doing that the prices have stopped dropping for about the last month. In my opinion we have hit bottom. I do not know how long we will be at the bottom,but we are there. In April new construction actually went up 0.8%!So if you are on the fence about buying a home it's time to get off!
I was ready some mortgage information today and it was good news for once! Starting June 1, 2008 Fannie Mae and Freddie Mac, the two big companies that basically control the mortgage market, have decided to stop the declining market stipulation.
What does that mean? Well that means the tight standards we have experienced over the last year are going to be loosened. Some limited 100% programs will be back and most loans will go from the 10% down requirement back to only 5%. this should help to loosen the market, locally.
I have noticed from all the bank appraisals I have been doing that the prices have stopped dropping for about the last month. In my opinion we have hit bottom. I do not know how long we will be at the bottom,but we are there. In April new construction actually went up 0.8%!So if you are on the fence about buying a home it's time to get off!
Friday, April 25, 2008
Open Houses
I want to touch on a topic many sellers and agents are afraid to talk about; Open Houses.
Open houses are often a much demanded aspect of an agents arsenal by sellers and a much hated chore by agents.
The fact is open houses for the most part do not work in our current time and market place. 89% of buyers begin their home search online and can do so in their own underwear without leaving their own house. Open houses are old technology from the early days of real estate. Times have changed and folks, they simply do not work. Back when people actually read the newspaper and had no idea what a computer was let alone the Internet, open houses were a great selling tool. Now days the newspapers themselves have admitted that readership is down, classifieds are dwindling and everything is moving to the Internet.
Studies have shown that less than 1% of homes actually sell in an open house. I'm willing to bet that most of those were new construction homes which I used to sell. I still feel that for new construction those open houses are a must as people need to see and feel their options and begin the tedious process of building their new home. For existing homes the need is just not there.
Why do open houses still occur?
The reasons they still occur are simple, sellers are not educated in the open house process and the factual data that we as agents see. This data is readily available to us as agents and it is our job to educate our clients. the other reason is there are some agents who are "Old School" and do it just to please their sellers urging desire to have an open house. Again, if the agent were to sit down and educate their sellers this could be avoided. Some agents do them when they are "rookies" in hopes of snagging a potential buyer as a client. But if nobody shows up it is all a waste of time for both the sellers and the agent.
Folks why spent around $100-150 to advertise an open house for one weekend when you could be plastering it all over the Internet for far less than that price for 30+ days. Marketing has changed, times have changed and the times are dictating that we need to stop this nonsense called, "open houses."
So when it's time to list your house a better question to ask the potential agent is not, "How many open houses are you going to do?", but rather, "Do you provide a virtual tour and heavy Internet marketing?"
Open houses are often a much demanded aspect of an agents arsenal by sellers and a much hated chore by agents.
The fact is open houses for the most part do not work in our current time and market place. 89% of buyers begin their home search online and can do so in their own underwear without leaving their own house. Open houses are old technology from the early days of real estate. Times have changed and folks, they simply do not work. Back when people actually read the newspaper and had no idea what a computer was let alone the Internet, open houses were a great selling tool. Now days the newspapers themselves have admitted that readership is down, classifieds are dwindling and everything is moving to the Internet.
Studies have shown that less than 1% of homes actually sell in an open house. I'm willing to bet that most of those were new construction homes which I used to sell. I still feel that for new construction those open houses are a must as people need to see and feel their options and begin the tedious process of building their new home. For existing homes the need is just not there.
Why do open houses still occur?
The reasons they still occur are simple, sellers are not educated in the open house process and the factual data that we as agents see. This data is readily available to us as agents and it is our job to educate our clients. the other reason is there are some agents who are "Old School" and do it just to please their sellers urging desire to have an open house. Again, if the agent were to sit down and educate their sellers this could be avoided. Some agents do them when they are "rookies" in hopes of snagging a potential buyer as a client. But if nobody shows up it is all a waste of time for both the sellers and the agent.
Folks why spent around $100-150 to advertise an open house for one weekend when you could be plastering it all over the Internet for far less than that price for 30+ days. Marketing has changed, times have changed and the times are dictating that we need to stop this nonsense called, "open houses."
So when it's time to list your house a better question to ask the potential agent is not, "How many open houses are you going to do?", but rather, "Do you provide a virtual tour and heavy Internet marketing?"
Tuesday, April 15, 2008
Short Sales
Everyday you may see the term "Short Sale" either on TV, surfing the internet or even in the newspaper. But what is it? A short sale is the term used for anyone trying to sell their home for less than what they owe. It does not necessarily mean a foreclosure. Sometimes the lender will be willing to do a short sale if you can prove a problem to them in the future.
The average foreclosure costs the lending industry around $50,000, that’s not including holding costs. In order to save some money up front lenders will decide to let you sell the property for less than what’s owed. Lenders are not in the business to hold property. They want to make money and if your loan doesn’t make them money they want to get rid of it, quick.
Getting the lender to agree to a short sale is often times just as hard as getting the lender to give you the mortgage in the first place. You need to prove you are worthy. It takes a lot of time to work on a short sale and special skills and knowledge of the business is a must.
I have made short sales and foreclosures my niche in real estate. I have preformed many BPO’s (broker price opinions) for lenders and know how to get the lenders to take note and react to the short sale process. Unfortunately many agents try to do a short sale and have no extra training or knowledge in the process. This only hurts the sellers in the long run. Besides getting the bank to take less we can also get them to stop calling you everyday. So if you find yourself in a situation that may be a short sale make sure you find the right agent to work for you. This is just the basics of a short sale make sure to ask us for a free consultation to learn more.
Friday, April 11, 2008
When will things get better?
Our real estate market is very volatile right now and many things need to be corrected in order for it to improve. The current foreclosure mess will no doubt drag down our local prices and already has in many areas. But the bigger problem, in my opinion, is the over corrections made by the lending industry which have made good buyers side by the sidelines unable to buy right now.
We need to burn off our inventory of foreclosures in order to bring the market back to a healthy status. Rates are still great but getting qualified now is 180 degrees from even the first half of 2007.
Real Estate is an industry that drives our nation. Think about it from the agents and lenders down to the manufacturing of appliances and home based products. Everyone is affected from a down market
We need to burn off our inventory of foreclosures in order to bring the market back to a healthy status. Rates are still great but getting qualified now is 180 degrees from even the first half of 2007.
Real Estate is an industry that drives our nation. Think about it from the agents and lenders down to the manufacturing of appliances and home based products. Everyone is affected from a down market
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