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

Photo provided by 123rf.com.

Advertisements

Just Listed!

Mackubin Just Listed.png

Don’t miss this hot new Saint Paul property – it will go fast!

Immaculate city home with scenic lake view at an affordable price! Nestled just across the street from Loeb Lake and Marydale Park is this spectacular 1997 built 3 bed/3 bath/2 car garage home equipped with functional space, gleaming wood finishes, and inviting, cozy atmosphere. Retreat to your own private large landscaped yard with deck and gardens. Explore your hobbies in an insulated workshop in garage. Versatile lower level provides bedroom, or family room option. Biking distance to Como Park!

See more here

For your own private showing, call (651) 434-7887 or email rlgrossman@cbburnet.com

Proudly presented by
Robbie and Julie Grossman
The Grossman Group
Coldwell Banker Burnet – Highland Park
Licensed in MN

mackubin flyer resize

mackubin flyer back resize

The Spring Market has Kicked Off, with Twin Cities Housing Availability at a 10-year Low

scheffer blog photo
2077 Scheffer: Sold in 3 Days

The real estate spring market has kicked off with record short supply, according to a number of media outlets. “Presidents Day weekend is traditionally seen by real estate agents and homebuilders as the start of the spring housing market — the busiest time of year for home sales. The number of listings always rises, and it will this year as well, but inventory is already so low to begin with that even the new listings will not be nearly enough,” reports CNBC.

The national trend is true locally as well. On Tuesday, a report from the Saint Thomas Real Estate Program has demonstrated that the availability of Twin Cities housing has hit a 10 year low. Additionally, the metro median home price was $215, 000 at year end in 2015, 10.4 percent higher than January 2014.

Says Judy Shields, President of the Minneapolis Area Association of Realtors: “I think there is extra buying pressure right now. There’s a lot of people out there looking and not a lot available, so it just magnifies the problem.”

While promising news for sellers, this is not to discourage buyers. Preparation is the key to winning a dream home. Says Herb Tousley, Director of the University of St. Thomas Real Estate Program, “if you are looking for a home, be ready,” Tousley said. “Get your financing pre-approved. If you find something you like a lot in a good neighborhood be ready to act on it right away.”

Shields and Tousley cite, as reasons for high demand and low supply:

  • the concern of increased interest rates,
  • people looking to buy rather than rent, and
  • businesses recruiting out of state talent.

Mortgage Rates Approach Record Low

The average rate on a 30 year fixed mortgage is in freefall, reports CNBC, despite the recent minor hike in interest rates. They explain: “Mortgage rates are falling because investors are flooding the U.S. bond market. Mortgage rates follow the yield on bonds that loosely follow the 10-year Treasury. Investors are buying bonds as a safety play in a highly volatile and largely negative stock market. Signs of weakness in the U.S. economy, in addition to trouble in overseas markets, pushed the yield on the 10-year Treasury to its lowest level since 2012, and mortgage rates followed south.”

“…investors are looking for safe havens as global stock markets and oil prices nosedive,” writes Lorraine Woellert, contributor to Forbes. “Money is pouring into Treasury bonds and other safe investments, which helps drive down mortgage rates.”

Companies Flocking to the Heart of the Twin Cities

Companies, not just residents, are flocking to the urban hearts of the Twin Cities, reports the Minnesota Real Estate Journal.  Both residents and tenants are drawn to live-work-play areas, like the one expected to come to the Ford Plant site in Highland Park, Saint Paul.  “Tenants are focused today on downtown CBDs or suburban markets that have a lot of amenities. They are going after these live-work-play environments. There is a lot of that in downtown [Minneapolis/St. Paul], so companies are migrating toward that market. They want to attract the best employees, and to do that they need a presence in the downtown.”

In Cold Weather – A Hot Market

wordsworth sold image

The Grossman Group’s listing at 1836 Wordsworth Avenue in Highland Park has now been sold (sale pending) in under a week. As previously mentioned, we are seeing a lot of activity and interest in our listing on 2077 Scheffer Avenue, also in Highland Park, in this past week. Inventory is low, reducing the competition, and sales prices are high. The market, especially in our local area, is booming, despite the cold weather and snow. Like the groundhogs, we’re seeing signs of an early spring!

Here are some of the factors contributing to the hot market in Minneapolis, Saint Paul, and Highland Park.

Minnesota’s economy is booming, fueling relocation to the area and higher sales prices

Gallup’s annual job creation report has ranked Minnesota number one in the nation for job creation, and recently, CNBC ranked Minnesota best in the nation for business. (Kare11, January 31). Last August, Forbes ranked Minnesota the fastest growing state for technology jobs. Says Charlie Weaver, executive director of the Minnesota Business Partnership, “The business outlook in Minnesota for 2016 is pretty strong because we are blessed with several large corporations, a lot of different industries.” Currently, he reported, Minnesota has more jobs than employees, making Minnesota a hotbed for relocation.

Economists predict further growth in housing

Economists see more growth for US economy and housing in 2016, reports the Star Tribune (January 19). Says David Crowe, chief economist for the National Association of Home Builders, “There are a number of positive indicators out there that make me believe … this will be a good year for the economy and for housing. Not only is housing finally driving some of that, housing is finally moving at a much faster pace than the economy.”

With today’s announcement that unemployment has fallen below 5% with wages rising, (New York Times, February 5) we will continue to see gains in the housing market as buyers have more to spend and take advantage of historically low mortgage rates. Says Diane Swonk, an independent economist in Chicago, “We are likely to have to two rate hikes this year, probably in June and December, but the wage gains are important, so March can’t be ruled out.”

Twin Cities home sales activity has hit a 10 year high

Reports the Minneapolis/St. Paul Business Journal (January 20). The number of homes sold in the Twin Cities is up 13.7% from 2014, and the median sales price increased by 7%. “As sales hit a 10-year high,” said Judy Shields, President of the Minneapolis Area Association of Realtors, “Attractive rates, rising rents, job growth, wage increases and the lowest unemployment rate of any major metro area will continue to be positive factors for real estate.”

2015 ended with the highest existing home sales since 2006, reports Forbes and the Star Tribune (January 22). “Sales of previously-owned homes surged 14.7% in December in the largest monthly increase the National Association of Realtors has ever recorded, the trade group said Friday.

Thanks to the robust finish, 2015 ended with 5.26 million existing-home sales, the highest figure since 2006, when annual sales were 6.48 million… Existing-home sales prices have now increased on a year-over-year basis for 46 consecutive months.”

 

The Real Estate market is peaking

Reports the Minneapolis/St. Paul Business Journal (February 5), according to a panel of experts at a forum hosted by the business journal. “The Twin Cities real estate market is peaking from an investment and expansion standpoint in almost every sector.”

In Pictures

Just Listed! Charming In-demand Highland Park Home

Inventory is low and buyers are looking to move! We’re kicking off a great spring with a few houses coming on the market, and now is THE TIME to list your home for the most exposure and top dollar.

Today’s listing is 1836 Wordsworth, a charming home at a great price in in-demand Highland Park. Explore this great home’s interactive floorplan and photos here.

Wordsworth Flyer.png

 

Accolades for Twin Cities high schools, small cities

Real Estate Week in Review
Newsweek released its top 500 high schools in the nation, and 10 Minnesota schools have made the list (“10 Minnesota High Schools Make Newsweek’s Top 500,” WCCO, Aug 19). Based on their rankings and criteria, Edina High School is the top school in Minnesota and #71 nationally. Other cities include Orono (#101) with 100% graduation rate and 95% of those students attending college, Wayzata at 150 and Eagan at 197, and Minnetonka (292), Stillwater (326), Mound-Westonka (400), St. Anthony Village (403), Lakeville North (417) and Prior Lake (463).

Money Magazine also released its list, of Best Small Cities to live, with Chanhassen coming in at #7 (“Minnesota cities rank high on Money magazine’s best small places to live” Minneapolis-Saint Paul Business Journal, Aug 19). Other cities on the list include Rosemount and Edina (at #12 and #15).

US rental costs continue to rise, reports the Associated Press (“US home rents surge 4.2 percent from a year ago; apartment demand shows shift from ownership,” Fox Business, Aug 26).  Minneapolis was named as one city in which rents are rising, along with home affordability, creating an ideal time for renters to consider purchasing.

New Listings
New Listings

In the Twin Cities region, new listings are up from one year ago, while pending sales continue to trend above this time last year. Both are up this past week, while overall inventory is down, indicating a great time to list your home.

Pending Sales
Pending Sales