Everything you need to learn the Twin Cities real estate market.

The Minneapolis Association of Realtors website offers a very unique tool to help people learn about the real estate market of the twin cities. This tool is great for everyone from home buyers and home sellers, to real estate investors, to individuals who just want to learn more about the market. This tool is appropriately called, "The Thing".

"The Thing" lets you search for information on any part of the metro area you wish. It really has every metric you could think of. Click here to learn more about the real estate market using "The Thing"

Are the mortgage rates as low as they will go?

Mortgage rates have risen very slightly for three out of the past four weeks. It has been two months since we have seen the lowest recorded rates of 3.31 percent for the average 30-year fixed-rate loan.

Frank Nothaft, (Chief Economist for Freddie Mac) seems to think that the all- time low rates may be behind us. Nothaft foresees the rates to climb up to 3.75 percent by years end, and move to above 4 percent the next year.

The rates will still be very favorable for new home buyers for a while, however, home owners exploring the option of a re-finance shouldn't wait around too much longer if they want to lock in with these historically low rates. As the economy shapes up, rising rates are a natural occurrence. They will fluctuate a little, but the days of 3.31 percent may be gone.

Is It A Good Time To Buy?

Buyers often ask when is a good time to buy, and one thing I always tell them to look at is housing affordability. This housing affordability index measures housing affordability for the Twin Cities region.  An index of 120 means the median household income was 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability. The past months housing affordability index was 256, which increased 10.3% from the previous month. That means the median household income has 256% of what it takes to qualify for their next dream home. Of course, every buyer has different circumstances. It may be time to sit down with a professional to determine if now is the right time for you to buy!

Twin Cities Real Estate Outlook

In a report out from The Minneapolis Association of Realtors covering the Twin Cities 13 county metro area, February figures appear dismal but is the market as dire as the numbers indicate? Pending sales were down 12% and the median sales price was down $17,000 from February 2010. It is important to note that last February buyers were driven by the tax credit so the comparison is not really an "apples to apples" comparison. I see the increase of 8.6% in pending sales from January 2011 to February 2011 as a positive sign. The commentary in the report also points out short sale inventory with offers on it are not counted in the pending sales statistics. It will be interesting to see how March numbers play out. For detailed information about your area and price range, contact me.

Jacqueline A. Knauf, RE/MAX Results

Do Buyers Have Less Choices?

I have recently been hearing from buyers that they don't feel like there are enough choices for them in the marketplace. I did a little digging to legitimize what they have been feeling. The Supply and Demand Ratio shows there are 4.39 homes on the market per buyer. This is down from 5.02 homes per buyer in April 2009 and 7.28 in April 2008. While the numbers for this year and last year look similar, that is nearly a 13% difference in the amount of homes for sale per buyer which is a large enough difference to be felt in the home shopping process.

Here is the Weekly Market Report from the Minneapolis Area Association of Realtors with more current statistics. Additional evidence can be found in the number of homes on the market which is down 12.5% from last year at this time. Another measure that the industry uses shows there is a 6 month supply of homes on the market; 2 years ago there was over a 9 month supply of homes.

These statistics match up with what several of my buyers have been feeling. However, if we look a closer at the statistics we find that not all price ranges are created equal. For example, overall inventory may be down and buyers under $120k may be shackled with less choices (currently a 3 month supply of homes) but buyers shopping in the over $1M range have almost a 3 year supply to pick from (compared to a 2 year supply a year ago). There are price ranges and areas where buyers still have significant choices and opportunities. For buyers, it is very important to review price range specific statistics when pondering the age old buying questions, "is now the right time?" I recommend getting an analysis of your specific area of interest and price range to know exactly what's happening within your shopping budget.

Jacqueline A. Miller

Where is Twin Cities Market Heading?

At the end of January there were 16.6% less homes on the market than a year ago. If you have been waiting to put your home on the market, now may be the time.

Here is the video summary of the Twin Cities real estate market courtesy of the Minneapolis Area Association of Realtors. This informative monthly summary includes current trends and activity and also future projections. Watch this video for an overview of the real estate market.

If you are wondering what the value of your home is in today's market, please contact us for a free price analysis.

-Jacqueline