Aug 7, 2007

This post is for my fellow Lynnhurst Residents.  The market in our neighborhood is still strong.  The 55419 zip code is showing continued growth over this time period last year.  The average house price rose to $373,400 which is a 7.11% increase over Q1, 2006.  Lynnhurst Values and the 55419 zipcode remain at the top of the list of Southwest Minneapolis Neighborhoods for average price and home value appreciation. 

The number of homes sold in the 55419 zip code for Q1 2007 was 95, which was down 5% from the same time period last year.  The average market time is 63 days and the the percentage of asking price that Lynnhurst Home Sellers are seeing is steady at 97.3%  (Meaning that sellers are getting an average of 97.3% of their asking price.)

Lynnhurst edged out SW Mpls competing neighborhood, Linden Hills (55410), where the numbers were strong, but not enoough rank the top neighborhood in the highly desirable SW Mpls area.

Too see more data by zipcode, click on RMLS Quarterly Report and search the county and zip code that applies. 

Where is Lynnhurst?  It's boundaries are 46th St W down to 54th St W and from Penn Ave to Lyndale Ave.  Other neighborhoods that are included in the 55419 zip code are Tangletown, Kenny, Kingfield and East Harriet.  (Some parts of these neighborhoods are also in other zip codes)

See current active Lynnhurst Real Estate Listings online at WebDigs.com or call me at 612-327-8303.  READ MORE ABOUT SOUTHWEST MINNEAPOLIS in a Minneapolis Star Tribune Article By Jim Buchta titled, "Hot Spots in a Cold Market." that was published Sunday Aug 4, 2007.

For questions online, you can also email me at TomMeckey@WebDigs.com

Tuesday, August 7, 2007

National City Home Equity annonces that they are no longer accepting loan applications...

"Effective Monday, August 6^th, 2007, National City Home Equity suspended the acceptance of new applications and the issuance of preliminary approvals on previously submitted loan and line applications."

- Provided by National City Home Equity Rep, Barb Armstrong in an email to Loan Originator, Casey Murray at Home Equity Advisors, LLC.  Home Equity Advisors ( www.HomeEquityAdvisorsLLC.com ) is an equal housing lender.

So, less than one week after AHM (American Home Mortgage) closes its doors, another lending giant appears to be calling it quits.  What does mean for sellers?  Make sure that you have a good listing agent to help you evaluate any offers that come in.  You will want to make sure that the agent you are working with is plugged into the market and understands the current climate.

It is important that the agent know what questions to ask as it relates to a prospective buyer's financing and who the lender is.  Although, when industry giants start to fall, it is anybody's best guess as to what loans will fund and which loans are suspect.

As much as it pains me to say it, there is safety in numbers.  So look at buyers who are working with lenders such as Countrywide Home Loans, Amtrust Mortgage, Wells Fargo, CitiBank, Bank of America and First Horizon.  These are Lenders that may have participated in the subprime market and are suffering losses at the moment, but are large enough to sustain them and continue to offer lending services.

This goes for brokers as well.  It is all right to work with a Mortgage Broker and still beneficial.  But, make sure you are asking that broker which banks they broker for.  If you haven't heard of the "end investor" or lender who will service that loan, then you should proceed with caution and do your homework.  Research the lender so that you can have a better understanding of their financial health. 

Where do you go for this information?  Good question!  Start with local industry news sites such as Inman News ( www.inman.com ).  If you can't find it there, contact me at TomMeckey@WebDigs.com and I will be happy to help.  You can call me directly at 612-767-3982.

Don't forget to check out how real estate is doing in your neighborhood at www.WebDigs.com - the new way to do real estate!

Monday August 6, 2007 

The Minneapolis and St. Paul Metro Housing Markets continue to stump Realtors, Sellers and Buyers.  While rates remain somewhat steady and still at all time lows, the housing supply continues to grow.  What is even more mind boggling is that in certain local minneapolis markets, prices continue to increase as supply increases.  This unexpected development has many real estate professionals scratching their heads in dismay.

I have heard fellow agents say that they are getting price reductions and still no one comes to look at their listings.   Clearly there is some tension in the air.  It exists at every level.  Listing agents are frustrated with sellers who don't get it.  Buyers are frustrated because they are not getting the "deals" that the media is telling them they should be getting.

Mortgage professionals have no idea if loans are going to close on purchase transactions because it seems that every other day another national lender shuts its doors.  Most recently American Home Mortgage fell victim to the subprime shake up.  They ceased operations on Tuesday July 31, 2007 and it is reported that some 720+ purchase transactions didn't close becasue the loans did not fund that day. 

The fallout is leaving real estate agents and their clients wondering, "who can we trust?"  All I can say is that it more crucial now than at any other time that sellers and buyers alike trust the data.  If a Realtor makes a statement about the market, ask them to back it up with the facts.  Don't just take their word for it.  You need to make sure that you are getting accurate information and not opinions.

The link below is to the weekly Market Activity Report for the 13 County Metro Areas of Minneapolis and St. Paul.  To summarize, the report shows that there is currently a 9.6 month housing supply, which is up from 7.1 months just a year ago.  (That is a 34.61% increase) 

What does this mean?  Simply put - if no new listings were to come on the market, it would take 9.6 months to deplete the current active listing inventory.  So, what does that mean for sellers?  Simple: GET YOUR PRICING RIGHT.  Otherwise, you could be in for a long and frustrating experience.  For the full story, click on the link below.

http://www.mplsrealtor.com/Segments/Realtors/WMAR_2007_08-06.pdf

NOTE:  Housing Supply Rate = the # of months it will take for the current supply of properties to become pending or sold

The market is considered balanced between buyers and sellers when there is roughly a 5-month supply of homes available for purchase - (Published by Minneapolis Area Association of REALTORS® using data from RMLS.)

To see the market activity in your local MN Market, visit www.WebDigs.com and search by your Zip Code.  I am happy to field questions of a more specific nature.  You can reach me via email or phone.  TomMeckey@WebDigs.com or call 612-767-3982.

So this week I show up to this Real Estate Technology conference in San Francisco and if I learned nothing else, I learned that a blog is an important thing to have so that I can better connect with people.  Sounds great...as if I don't have enough to do, now I gotta write a blog.  Actually I am pretty excited about it.  I have a lot going on in my head and this may just be the outlet that I have been looking for. 

I love real estate.  I love all things about real estate...except for realtors, loan officers and home inspectors.  (I say that tongue in cheek.)  I really love talking about real estate and working with people that are looking for their first home, or their dream home.  It is exciting when you can help someone find a place that they would want to call home.  It is rewarding in a way that I had not expected when I got into this business, but has turned out to be a pretty nice perk to an otherwise challenging job choice.

I like houses.  I like going to them, looking at the construction, admiring the details and thoughtfulness that was put into the design of a home, whether it is an old home, new home, 50's home...whatever.  I love houses.  New ones, old ones, doesn't matter.  Every house has potential...except for the one second from the corner on Irving and 53rd in the Southwest Minneapolis Lynnhurst Neighborhood.  That one needs to go.  You could say that the lot has potential. 

Anyway, here is what I have learned in the two days that I have spent in San Francisco learning about real estate technology and blogging:  I should talk about what I know...which others in my profession may likely disagree with and then post comments on my site (which I should make public) so that others can see what an idiot I probably am.  Sounds fun.  I am in. 

Hopefully I will be able to contribute something that will be of value.   Whether it is for a first time home buyer, or a fellow agent, hopefully the many, many things that cloud my brain can be of use to others.