Real Estate Information Archive

Blog

Displaying blog entries 1-3 of 3

Twin Cities Year End Stats

by The Steve Westmark Team

The Twin Cities real estate market had some highs and some lows. Enclosed is a report from Minneapolis Area Association of Realtors.

Several highlights you will find are that:

1. Sales were slightly up for 2008 over 2007.

2. Average and Median Sales Price in the Twin Cities were down.

3. Inventory of homes for sale has decreased.

4. Months of inventory has decreased since 2007.

5. The biggest positive is that affordability of housing in the Twin Cities is 36% better than at this time last year.

If you would like more information don't hesitate to contact me.

Click on link below for all details from this report:

http://www.mplsrealtor.com/downloads/market/MMI/mmi.pdf

Mortgage Rates Drop!

by The Steve Westmark Team

The Federal Reserve pushed interest rates lower in December, and mortgage rates quickly followed. According to Freddie Mac, the national average for a conventional 30-year fixed-rate loan fell from 6.1 percent in November to 5.19 percent in late December, the lowest rate on record dating back to 1971. The Fed's actions reflect the government's ongoing commitment to stabilize the economy.

In other news, existing home sales decreased according to a December report published by the National Association of REALTORS (NAR). Existing home sales activity was revised downward to 4.49 million units, representing a 10.6 percent decrease from the same time a year ago. Existing-home sales include single family homes, townhomes, condos, and co-ops.

Lawrence Yun, NAR chief economist, expected a decline and added, "We hope the home sales impact from the stock market crash turns out to be short-lived, as was the case in 1987 and 2001."

Despite the overall decline in sales across the country, rising activity in California, Nevada, Arizona and Florida markets seems to signal a renewed interest in these areas, as bargain hunters take advantage of discounted homes.

Total housing inventory rose 0.1 percent in November to 4.20 million existing homes for sale. This representing an 11.2-month supply, up from a 10.3-month supply the month before.

Should I Buy a Home Now?

by The Steve Westmark Team

I’m often asked if this is a good time to buy a home.  Some clients are concerned that home prices may fall further than they have already.  They are assuming that the best course of action is to wait for the bottom in the market and then buy.  The problem with this approach is that you don’t know where the bottom is until you see it in the rear view mirror, meaning until you’ve missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability.  Even though interest rates have gone up in the last six months, they are still near historic lows.  Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life.  It’s important to live in a home that reflects your taste and values, yet is within your financial “comfort zone.”  To that end, it may be more important to lock in today’s relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today’s market.

Displaying blog entries 1-3 of 3

Syndication

Categories

Archives

Share This Page

Contact Information

Photo of The Steve Westmark Team Real Estate
The Steve Westmark Team
RE/MAX Advantage Plus
14451 Highway 7 Suite 100
Minnetonka MN 55345
612-978-7777
877-SOLDING
Fax: 952-241-1600