Market changes drastically from last year with pending and closed sales up significantly from this time last year.  Expect prices to show a slight bump due to frenzied first time buyer activity trying to get into a home before the now extended tax credit was to expire.  The volume of first time buyers entering the market and purchasing foreclosures at break neck speed with show as an aberration in the coming months as the rush will be over and we will enter into a seasonal slow down.  However, if your considering selling your property this summer, you may want to push your time frame up to earlier in the winter/spring market. Expect listings to start increasing in February.

Rates seem to be staying stable.  However, the Fed has indicated that the economy may have slight improvement and that it may have to start raising rates in the next quarter or two to stem off inflation.  First time buyer credit expires 11/30/09, but there are and still will be homes that are extremely affordable and over the winter months, could be had for less than you would save with the credit.

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There have been alot of rumors and information that has been wrong floating around blogs and some real estate websites.  Below is the correct information you need to understand the extended tax credit.  As you will see below, it now applies to current home sellers looking to move up or down as home buyers.  This allows you to be more flexable on the sale of your home if you have lived there more than 5 years.  Call me if your looking to buy or sell a home in the coming months.

Rates seem to be staying stable.  However, the Fed has indicated that the economy may have slight improvement and that it may have to start raising rates in the next quarter or two to stem off inflation.  First time buyer credit expires 11/30/09, but there are and still will be homes that are extremely affordable and over the winter months, could be had for less than you would save with the credit.

So your thinking you need to purchase a home in the next seven weeks because you might not have a chance to collect on the $8,000 tax credit coming to an end in November.  Personally I think you should take another look at the market and affordability.  Many real estatee professionals will not like me to share this line of thinking with you because they like when the market has bonuses that invoke a sense of desperation like a tax credit coming to an end.  Fact is there are around 450-500,000 foreclosed properties that still have not come to the market.  Why is this important?  Follow with me.

1) Currently there is a lack of desirable properties on the market and buyers are struggling to find homes that work for them, but they are still buying because they are panicked that the tax credit is about to expire.  I have seen 6-10 offers on most of my foreclosure listings and the last property I closed sold for $45,000 more than the bank listed it for.  WOW!  Over the last 6 months I am averaging offers around 5% over list price.

2) Due to the RUSH on the remaining properties, there is a small increase of 2-5% in home pricing depending on where you are searching.  This will be temporary until the tax credit expires.  New home starts are already reflecting this in the number of permits being pulled.  Expect pricing to drop when the tax credit is over and due to seasonal price reductions based on the weather related market and the Holidays.  Winter is always slow and therefore less demand creates lower prices on a temporary basis. (Dec.- Mid Feb.)

So what does this mean to the average home buyer.  It's simple.  Wait 3-4 months and save more money than the tax credit will save you and possibly find a nicer home than what is currently available in the market today.  How you ask.

Say prices are temporarily inflated by 3% and you are seeing offers per my own listing experience of 5% over list price.  Say that after the tax credit prices drop another 3% due to a rise in inventory and the upcoming seasonal slump real estate sees and you are no longer forced to compete with multiple offers or pay above list price for a property?

Here is how you save much more than the tax credit affords you.

The banks release the estimated 450-500,000 foreclosures expected to come to market this year.  The tax credit expires, the market has a seasonal adjustment and the number of competing buyers drops.

The effect could be like this. Your currently looking at listings around $175,000.  You've lost out on one or two homes to higher offers due to the current crunch.  Your finding these homes are selling for 4-5% above list price or (5%= $183,750).  Your willing to pay because you will save $8,000 due to the tax credit.

But what if you waited?  Say a similar listing comes to market after the tax credit has expired.  Due to natural pricing by REO or foreclosure specialists, the same listing that would have been $175,000 drops to $169,750 (3% Reduction) because they understand their will be fewer buyers and the banks still need to sell these properties.  Say because the market has changed and you no longer need to compete against other buyers, imagine the bank accepting an offer 3% below the listing price. ($164,657.)

Tax credit?  Who needs a stinking tax credit?  What would have possibly cost you $183,750 may only cost you $164,657. and it may be a home in better condition or in a more desirable neighborhood or school district?  That's a savings of $19,093!!  This is a very likely scenario based a market conditions and the upcoming seasonal market.  Which would you rather have?  A $8,000 tax credit or the same or better house at a $19,000 savings.  The savings is also bigger than listed due to the fact you would be paying less interest on the loan.  So in closing, don't panic but due plan on acting in the next 4-6 months.

The Helmers Group believes in giving you information to make sound decisions and will alway look out for your best interests.  Call or e-mail us today to get the information and help you need in this market.

Here is a link to a story on the impending increase in foreclosures coming to market. http://rismedia.com/2009-10-04/where-are-all-the-reos/

We over ordered football schedules this year and are offering to send anyone interested in a magnetic Vikings/Gophers combo schedule for free.  E-mail Eric@EricHelmers.com with your name and address and we'll send you the magnetic schedule or if you request, we can e-mail you a copy in adobe format that you can print for your office or kids rooms.

Rates remain remarkably low giving real estate buyers and investors amazing opportunities to save tens of thousands of dollars or trim years of their mortgage.  $8,000 tax credit ends 11/30/09.  Buyers should understand that they need to have identified a property, had a offer accepted and title work closed prior to that date or lose out on the tax credit.  The clock is ticking down to zero soon.  Call now to get started. 

Rates remain remarkably low giving real estate buyers and investors amazing opportunities to save tens of thousands of dollars or trim years of their mortgage.  $8,000 tax credit ends 11/30/09.  Buyers should understand that they need to have identified a property, had a offer accepted and title work closed prior to that date or lose out on the tax credit.  The clock is ticking down to zero soon.  Call now to get started. 

For most in this market, conventional thinking would be that real estate agents would be notifying and motivate buyers to act quickly in order to take advantage of the $8,000 tax credit that is soon to expire in November.  The point I want to make is to sellers that may have equity left in their current home and who may want to move up either to a new or larger home.  With interest rates where they are now and the number of motivated buyers looking for starter homes, right now may be your best chance to take advantage of the current market.  Call me or e-mail me so I can share with you how this might be the best time in ages for you to sell your house and buy the home of your dreams.  You need to act quickly to ensure the best possible outcome.  Call now!

Here is this months market report showing trends for the Maple Grove area.

Trends show median sale prices are still showing signs of depreciation in Maple Grove.  The vast majority of sales in this area are still foreclosures which are impacting on this number.  Marketing times year to date have had a very small increase of just 2 additional days over last years numbers.  Total inventory is down 12% and closed sales are slightly lower.  Signs still point to sellers pricing their homes higher than the market is willing to pay, but the numbers also show sellers are being are more likely to negotiate on an offer rather than walking away.

These numbers show that sellers not needing to sell are removing their homes from the market and that the foreclosure inventory is being consumed by the first time buyers in our market It may also show that there is still a slightly stable and stronger market in Maple Grove which could possibly be related to due to being a desired location for people going through the relocation process.

If you are looking to buyer or sell a home or are looking for additional information or a free CMA, please contact us.