How the Housing Market Will Fare Under Either Presidential Candidate


There has not been a lot of talk about the housing market in this year’s election. However, the choice of presidential candidate will affect the housing market directly. So how will the housing market fare under either major party candidate?

“In order to gauge which candidate would favor the U.S. housing market, one has to look at their wider economic policies and see how they would trickle down to housing,” writes CNBC, in “How housing would fare under Clinton, Trump” (November 2).

“What we’ve really gotten is more directional conversation: One party talking about affordable housing, the other party talking about deregulating a financial market that seems to have largely seized up,” said Rick Sharga, executive vice president of Ten-X, an online real estate marketplace for investors.”

Hillary Clinton

“Clinton does have the advantage of building on a framework already in place under the Obama administration,” writes CNBC.

“She has advisors like Jim Parrot and Gene Sperling who have already put out white papers looking at what to do about Fannie and Freddie, there’s already a perspective with what to do about the FHA program, so she is ready to hit the ground on Day One,” said [Jaret Seiberg, managing director at Cowen Group, a financial services company.]

Clinton has also put forth proposals to increase homeownership, which is now hovering near record lows. She has promised to provide down payment assistance to “underserved” communities.

“Specifically, the plan would match up to $10,000 in savings for households who earn less than area median income to put towards a down payment on a first home. On the plus side, that will encourage some households to save more. But we doubt it will be a game changer in terms of getting more people onto the housing ladder,” noted researchers at Capital Economics.

“The focus on down payments ignores the fact that it is the need for a high credit score which is preventing many Americans from buying. And even if the proposals do help more people to buy, the eventual outcome will be higher house prices, benefiting existing rather than potential homeowners.”

Donald Trump

“Republican Donald Trump, a real estate mogul who has invested largely in hotel and multifamily housing development, has said even less about housing than Democrat Hillary Clinton, but the GOP platform is clearer when it comes to the financing side of the business.

“We’re really seeing a lot more discussion about things like reforming or rejecting the Dodd-Frank [financial reform] bill. We’ve seen a lot of discussion about easing regulatory burden on the industry which was put on it by Dodd-Frank and by the CFPB [Consumer Financial Protection Bureau],” said Sharga. “The contention seems to be that some of the rules established in Dodd-Frank and the CFPB make it difficult for qualified borrowers to get a loan and make it difficult for lenders to justify making loans because of the regulatory and litigation risk.”

Given that Trump’s track record is all in multifamily housing, his thoughts on the single-family market, which comprises most of the nation’s housing, is the big unknown.

“But clearly his whole campaign is about growing the economy and smashing through regulations, so I think you could see real upside with Trump, provided the economy and the other parts of his agenda don’t derail it,” said Seiberg.”

*Note: The Grossman Group does not officially endorse either major party candidate. This is for informational purposes only.

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Highland Park October Market Snapshot

Highland Park Real Estate Snapshot
Closed Sales October 2016: 388 (up 14.8%)
Average Sale Price October 2016: $321,937 (up 6.4%)
Median Days on Market October 2016: 27 (down 28.9%)
Average Percent of Original Sales Price October 2016: 97.9% (up 1.6%)

For a Market Snapshot of any area or a Market Analysis of your home, call 651-434-7887 or email

Grossman Group Real Estate
Coldwell Banker Burnet – Highland Park
Lic in MN


Why Buy or Sell a House in the Fall?

house-in-fallSpring is typically known as the most common time to buy or sell real estate. But with its beautiful colors, picturesque views of homes and the chill of winter coming soon behind, fall can be a wonderful time to buy or sell. Why?

1. Less Competition

“The spring market is hot,” many people will say, assuming that since most homes are on the market in the spring, that means it is the best time to list their home. However, more houses on the market can mean your home gets lost in the mix. With less competition in the fall, your house will get more attention, and command a higher price. Similarly, a buyer in the fall will find less competition from other buyers for the home of their dreams. “Fall homebuyers should consider [making] lowball offers, followed by more aggressive negotiation,” according to Time Money and Brian Davis, a real estate investor and director of education at Spark Rental. That aggressive negotiation will help both buyer and seller to meet their needs.

You will also find, in the fall season, that you are the center of attention to other providers: for instance, your loan officer, service providers, title companies, and others, meaning your needs and questions get met quickly.

2. Fall Buyers and Sellers are Serious

Real estate doesn’t happen only in the spring, it happens at all times of year. Maybe a seller had a home built over the summer and now needs to sell their current home, as Time Money writes. Buyers and sellers might be most interested in moving before the holidays and school’s winter break. For whatever reason, fall buyers and sellers are typically very motivated and serious. Says Sam Heskel, president of Nadlan Valuation, an appraisal management company in Brooklyn, NY: “that means sellers could be more open to negotiating and accepting a lower offer.” Or buyers open to offering more.

3. Fall Buyers and Sellers are Worn Out

The buyer that spent their spring (and summer) with the list of “musts” for their perfect home have now seen a plethora of houses, and are likely to be more realistic to homes with imperfections and opportunities. Likewise, sellers who set their sights and prices high early on are now most likely to have reasonable expectations and possibly even reduced prices, writes Time Money.

4. Take Advantage of Tax Breaks

According to Time Money:

First-time homebuyers, take note: Although you can’t escape paying income tax, you can make a dent in what you owe when you become a homeowner. “Property tax and mortgage interest are both deductions you can take for your whole year’s worth of income, even if you closed on your home in December,” says David Hryck, a New York, NY tax adviser, lawyer, and personal finance expert. “Any payments that are made prior to the closing of the loan are tax-deductible. This can make a serious difference in the amount you owe the government at the end of the year.”

Discuss with your loan officer the tax and financial advantages of a fall purchase.

5. Take Advantage of Year-End Sales to Outfit Your Home

Whether your home is listed for sale, or you’re a new buyer looking to buy in the fall, there are a number of year end sales to take advantage of, including (but not limited to) Black Friday and Holiday sales. According to Consumer Reports, as Time writes, appliances and kitchenware are most affordable in November.

There is an old adage that says, “the best time to buy or sell a home is when you need to.”  And the best people to have on your side are the friendly and experienced team of the Grossman Group. Call us today at (651) 434-7887 or email RLGrossman@CBBurnet.Com to discuss your needs for buying, selling, or preparing for spring.

The Grossman Group

Coldwell Banker Burnet, Highland Park

Licensed in Minnesota

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For your own private showing, call (651) 434-7887 or email

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The Grossman Group
Coldwell Banker Burnet – Highland Park
Licensed in MN

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Which Home Improvement Projects Offer the Highest Return on Investment?

home improvementReal Estate Week in Review

A new cost vs. value report from the Appraisal Institute, published in Remodeling magazine, analyzes which home remodeling projects offer the most return on investment at the time of sale. The Institute President Scott Robinson explains, “home improvement projects are not necessarily investments in which a homeowner should expect a dollar-for-dollar return, but rather projects that can increase the likelihood of a sale, or bring it to the same standards of other properties in a neighborhood. So keep in mind that certain projects might be essential to selling a your house, so the decision to execute might not be elective. For example, if the house doesn’t have a bathroom that functions, fix it.”

Can home improvement projects have a downside? Yes. “It’s entirely possible to over-improve your house by adding things that you might consider an amenity, but that won’t necessarily be valued by many buyers. That includes special-use spaces like saunas and wine rooms, and amenities like swimming pools and tennis courts.” Says Robinson, “Projects that take a home significantly beyond community norms are often not worth the cost when the owner sells the home. If the improvements don’t match what’s standard in a community, they’ll be considered excessive.”

Ultimately, “home buyers today have been spoiled by the images of perfectly repaired and perfectly curated that appear on social media and on television, creating high expectations for the condition, finishes and amenities of the houses they’re considering. Many buyers today are also busy and don’t have the time to tackle a fix-up project.”

So which projects have the highest return on investment in the Twin Cities area? Below are some highlights from the report:

  1. Manufactured Stone Veneer

Job Cost: $7,520

Resale Value: $7,295

Cost Recouped: 97%


  1. Fiberglass Attic Insulation

Job Cost: $1,351

Resale Value: $1,286

Cost Recouped: 95.3%


  1. Garage Door Replacement

Job Cost: $1,890 – $3,202

Resale Value: $1,484 – $2,510

Cost Recouped: 78.5%

See the entire list from the Star Tribune here.

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Home Sellers are Seeing the Strongest Appreciation Since the Recession

MarketWatch reports on new data from RealtyTrac that in March, US homeowners realized the highest price gains since December 2007. On average, homes sold for $30,500 more than purchase price, an average gain of 17%.

The Twin Cities is seeing a return to near pre-recession prices, as illustrated in the chart below.

Recession prices