Considering a Short Sale in 2013? How the Fiscal Cliff Negotiations will Benefit You

The Mortgage Forgiveness Debt Relief Act was set to expire January 1, 2013 meaning that homeowners who complete a short sale after that date would be taxed on the deficiency that the bank accepted as if it were income.  This would put many struggling homeowners in a bind.  While they are no longer responsible for the deficiency to the mortgage company they are left with a large tax burden.  Luckily this has been extended for another year under the fiscal cliff negotiations.  If you are considering a short sale please speak with your tax adviser as they affect everyone differently depending on their income and tax situation.

Just in: October 2012 Metro Area Real Estate Stats!

The Minneapolis Area Associaiton of Realtors released NorthstarMLS’ October stats this morning, and it was another month of improvement!  The average sales price is up 7.8% over last October to $209,522.  Market t ime is down 24.8%, pending sales are up 34% and closed sales are up 15.1%.  We did see an increase in new listings, up 7.5% from last year, however the inventory continues to drop 29.7%, with only a 3.7 month supply of homes on the market.  What do these numbers mean?  The market is stabilizing.  If you were to put your home on the market now at a reasonable market price you are likely to have more success than you did a year ago.  We have even started seeing more multiple offers again.  For more specific statistics on your neighborhood call your neighborhood Realtor or give me a call anytime!

Quarter 3 Shows Strong Growth Nationally

Third quarter numbers are out and show that home prices have seen the strongest growth since 2006.  According to the latest figures from the National Association of Realtors the median price for existing single family homes jumped 7.6% from a year ago.  Existing home sales also rose 10.3% in the third quarter.  Year to date in Minneapolis the median sales price is up 17.9%, with sales up 16.3% placing us ahead of the nation.  One factor for the rise in sales price could be our low inventory, down about 30% from last year in Minneapolis.  Nationwide that number is slightly lower at 20% less than last year.  While this is great for sellers and the housing market it is placing a squeeze on first time buyers, making it more difficult for them to get their foot in the door.

Change in Season AND a Change in the Market

Well it is definitely Fall here in Downtown Minneapolis!  With this change in weather also comes a change in the housing market.  We have not seen such activity in the downtown market since 2006 with inventory of listings at a 9 year low.  Interest rates are at a never seen before low in the 3% range, making affordability even higher.  Home values continue to improve along with consumer confidence.  This should help gain momentum into 2013 as supply becomes strained with no new projects ready to move in and demand from buyers increases.  Now is a great time to look at selling!  In most of the local neighborhoods the median sales price has gone up, while the days on market and number of new listings has gone down.  It is still a great time to buy a home as well!  Low interest rates give you more buying power and you can still get in at great prices.  With low inventory it is even more important to have a dedicated Real Estate Agent working for you from the beginning of your search!

From Snow Piles to Potholes

(Michael Sharp RE/MAX Results)You have probably heard that saying about Minnesota, there are 2 seasons; winter and road construction.  We definitely had a hard winter, but the snow is mostly melted and Minneapolis has recaptured most of those parking spaces that the snow was holding hostage.  But we have also gained a whole lot of pot holes to deal with!  For those of you playing “dodge the pothole” in Minneapolis, help is on the way.  The city approved an additional $1 Million to speed up repair of these pesky bumps, humps, and craters.  In the mean time be careful of those holes.  And if you need the name of a good tire shop or rim repair person please call me.

Skyscape to Auction off Unsold Units

By Michael Sharp: RE/MAX Results

On March 14, 2011 Velocity will auction off some of Skyscape’s unsold condos.  Interested buyers must preview the units prior to the auction and fill out an interest card to attend the auction.  Only units with enough interest will be auctioned off.  Starting prices are 40+% below the last asking price.  This past weekend the building was buzzing with activity from prospective bidders.  The question will be how many of these prospectives become actual bidders, and how high over the starting price are they willing to go.  It also remains to be seen whether this will help or hurt the building’s resale values in the future.

Bring the Family Downtown!

89.3 The Current is presenting a free family event called “Rock the Cradle” on February 20, 2011 from 11AM to 5PM.  Events take place at the Minneapolis Institute of Arts and the Children’s Theatre Company.  Events are geared towards kids that are 2-8 and include story time with the Current’s DJ’s, a disco and live music, puppetry, yoga, art projects, an art gallery “hunt”, and a musical instrument petting zoo for kids to try out different instruments.  Check out their website for more information.  Just one tip, leave your stroller at home!