Early 2013: It's a Buyers' AND Sellers' Market

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In 2013, we finally have a real estate market that’s in balance.

Just how much has it improved? In the St. Cloud area, we have fewer than 1,000 homes on the market. Compare that to the height of our real estate depression when more than 3,000 homes flooded our market, causing home prices to plummet.

When you combine this improved inventory with historically low mortgage interest rates and rising home values, you have the perfect recipe for a real estate market that’s great for both buyers and sellers.

Low interest rates make getting into a home or upgrading to a better home as inexpensive as it has been in a long time. Rates right now are less than 3.5 percent. In fact, some of our best customers have locked into fixed rates below 2.5 percent on 15-year mortgages.

For example, a mortgage payment today on a $100,000 home is about $437 a month. For a $200,000 mortgage, the payment is less than $1,000 month. And for a $300,000 mortgage, your payment can be less than $1,500 a month.

Many potential home buyers were holding out for the market to improve, and we’ve hit that point. There’s never been a better time in recent years to buy a home in the St. Cloud area.

Faster Turnover, Too
Best of all, selling a home doesn’t have to be a drawn-out, year-long ordeal. We can get your property sold and have you into a new home quickly. More than one half of our listed homes sell in just two to eight weeks.

It’s possible to sell your home now and be in a better home in time to enjoy the summer!

Give us a call or drop us a line if you’re ready to discuss your real estate buying and selling options.

Prudential Pladson Realty        (320) 240-3363        hauck@saintcloudrealestate.com

Saint Cloud Spring Market Report – Ready For Take-Off?

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I am very pleased to announce that we have been seeing a lot of exciting new things happening in our real estate market – things that are pointing to a very positive upward trend of better days, months and hopefully years ahead.  Here is an overview of what we have been seeing in the first quarter of 2012: stronger sales, continued low interest rates and plenty of available financing for buyers.

Sales

For the first time in a long time, our sales figures are showing an increase year over year.  In fact, the increase is significant when you look at the exact numbers.  Last year at this time we had sold 115 homes as compared to the same time this year with 274 pending sales.  This is a great sign for sellers because with increased demand there is more likelihood of sellers obtaining their asking price or at least very close to it.  Plus as sales continue to increase there is a greater chance of sellers receiving multiple offers on their property.

Interest Rates

The cost of buying a home is lower than ever before and these record-setting low interest rates do not seem to be going anywhere just yet.  We are currently seeing rates in the 4% range or even lower depending on the type of financing and credit outlook of applicants.  When buying, a home a buyer should consider both the actual purchase price of the home as well as the cost of the mortgage.  In other words, what may have yielded monthly payments of $675 on a $100,000 property several years ago would cost only $476 per month on the same $100,000 amount today.  This is because of the low cost of interest on the mortgage.

Financing

Leading up to the settlement recently reached between banks and regulators, the robo-signing scandal that hit the mortgage industry had impacted buyers’ ability to obtain financing in a relatively quick and simple manner.  With long lists of requirements that needed to be fulfilled, many buyers were finding it difficult to get financing for their prospective purchases.  But now lenders are loosening up a bit and financing is more readily available.  The requirements are still there but they are not as vigilant in a lot of cases.  Also, government programs that have recently been introduced are also out there to assist existing homeowners with refinances without too much hassle or verification.

Days on Market

Another positive trend that we have been seeing is the decreasing number of days that homes in our marketplace remain on the market before selling.  What once may have been far longer to sell a home is now whittled down to as little as 45 days or less.  This is a result of good amount of pent-up demand that is beginning to surface with the approaching warmer months and stronger outlook across the real estate market.
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To get in on this exciting market and either find the perfect home from our great selection of homes for sale or to explore your options in terms of selling your property as demand is on the rise – contact us today!  We look forward to serving all your real estate needs!