June 2010 Newsletter
REAL ESTATE
HI LITES
June 2010
MARKET HANGOVER – has set in since the tax credit expired. Originally, purchase agreements dated on or before April 30, 2010 had to close by June 30, 2010. The closing time has been extended to September 30, 2010, so lenders and trade groups have more time to process the backlog of homebuyers. NOTE – for qualified military service members, who were ordered on extended duty, these dates have been extended one year with a sales contract dated on or before April 30, 2011 and must close by June 30, 2011.
Pended sales in mid June started to recover from the after shock seen in May, which was significantly lower compared to March and April, 2010. Demands are expected to slowly recover this summer. The number of listings is about the same as a year ago. Median price increased by 6.1% - to $175,000 on the foreclosed properties while traditional prices declined to $198,000 from $210,000 a year ago. Short sales are continuing to see lower sales prices.
With the stimulus plan going away, this will bring us back to a normal market. People certainly need to know that interest rates are at their lowest. Many communities are offering buyers programs with guidelines to help sell homes in their cities through the Minnesota Home Ownership Center. To find a local housing counselor or Home Stretch workshop near you visit www.hocmn.org. To view the benefits of homeownership or get a brochure visit www.nahb.org/homebuyerbrochure.
For sellers, this is promising news and you want your home to impress buyers. The top two impressions: Curb Appeal - as many people drive through neighborhoods they want to live in and Décor – putting your home in neutral tones to appeal to the broadest range of buyers as they don’t have vision and will only see that the interior needs to be completely redone. Neutral tones create the illusion of more space, brighten a darker room, and clean and less clutter will show off all the best features of your property.
HOW LONG WILL IT LAST?
The National Association of Home Builders provides this insight. The true longevity of any household material depends on maintenance, use, and quality of installation and climate conditions, so use these averages as a general guide. This hopefully will help you decide what you may want to do to bring value back
Heat & smoke detectors 5-10 yrs
Dishwasher – 9
Microwave – 9
acrylic kitchen sink – 50
Carpet 8-10
Gas or elec water heater-10
Asphalt roof – 20
Gas range-15
Wood Shake Roof - 30 years
Wooden Windows - 30 years
Vinyl Floor - 50 years
Cabinets - up to 50 years
Slate/clay roof - 50+ years
Wooden Floors - Lifetime
Brick Siding - lifetime
Furnace - 15 - 20 years
HOW DO YOU DRIVE?
Ways to save almost 25% in fuel efficiency:
1) Don’t accelerate quickly
2) Don’t stop quickly by hitting the brakes. Back off the gas when you see a red light in the distance and coast to a stop
3) Lighten load – Every 50# in trunk decreases fuel efficiency by 1%
4) Keep tires full – use less gas
5) Avoid zigzagging – plan your appointments
6) Long Distance-cruise control on flat surface. Every 10 miles over 60 mph is like paying an extra 50 cents per gallon of gas
For more info: www.drroadmap.com.
TO BUY VS RENT
In Minneapolis, you want to buy. Home prices have become more affordable. Traditional sellers are feeling what the competition of foreclosures has done to their value. In calculating whether it’s better to buy or rent, economist use a rule of thumb: If the home price is 15 times higher than the annual rent for a similar property, it is better to rent.
The quality of life here is high; there are many cultural institutions, which have drawn in a well-educated populace. There are attractions for Joe Sixpack as well, with franchises in all four major professional sports and easy access to the lakes and forests Minnesota is noted for. We recently were recognized for our bike trails as being one of the best. When we speak of Minneapolis, it takes into consideration the 13 metro counties.
POTPOURRI
* A bicycle can’t stand alone; it is two tired
* A boiled egg is hard to beat
* He had a photographic memory which was never developed
* When you’ve seen one shopping center you’ve seen a mall
* A lot of money is tainted. ‘Taint yours and ‘taint mine
IN CLOSING
I am committed to my career as a full time agent, keeping buyers and sellers aware of the changing market. The highest compliment my clients can give me is a referral from family, friends and business associates. Thank You
