Tag Archives: housing market

Spring-time for home buying: What to expect

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Spring-time for home buying applies to different months of the year, depending on the location. Typically, though, it covers April, May, and June, because many Americans take vacations from July to August. For most parts of the country, April is usually the busiest month for home buying.

This home buying season is the first one in a while that has the housing market clearly in recovery. Previously, there were lingering uncertainties on home price increases, but this year sees the first season where most people are expecting home prices to rise.

With expectations of prices to increase even more, buyers have been impatient. Meanwhile, property owners are waiting for peak prices before they decide to put their houses on the market. Because of this, inventory in some parts of the country is spare and prices have been pushed further up.

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Meanwhile, the worst of the foreclosure crisis is a thing of the past for most parts of the country and the shadow inventory has shrunk. This means that the market has shifted from distressed sales to conventional sales.

Another factor that has a significant effect on the activity during the spring home buying season is the Rent vs. Buy Index. With the latest data, it is still cheaper to buy than rent these days, even though home prices are still rising. While there are fewer sure bargains to be found in the current housing market, buying is still considered more practical.

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Real estate investor Steve Liefschultz is the chairman of the board of The Remada Company in Minnesota. For more updates on the US housing markets, visit this Facebook page.

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Minnesota home prices and sales inventory on an upward trend

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The St. Paul and Minneapolis Realtor’s associations recently reported that the local median sales price increased to $209,000 in October, which is 7.2 percent rise, year-on-year. Inventory, meanwhile, also increased 4.3 percent. The trend goes against traditional assumptions of supply and demand as the drop in prices as supply increases hasn’t happened yet in the Twin Cities real estate market.

The disappearance of distressed properties, short sales, and foreclosures, is attributed as one of the reasons for the continued increase of home prices along sales inventory increases. Distressed properties dominated the market in the past and they used to artificially depress home prices. With those properties out of the way, traditional sales are now inflating prices.

Home sales, however, were reported to have gone down slightly in October. While sales of traditional single family homes continued to increase in the Twin Cities, the amount was rated as insufficient to offset the decline in distressed property sales, according to the Minneapolis Area Association of Realtors.

Closed home sales dropped by 1.5 percent, which is the smallest decline for the year. The decrease in year-over-year closed sales has been recorded monthly, except for June when the sales slightly rose.

Overall, realtors see the developments as positive as traditional activity stays strong. The housing market remains healthy with greater inventory for buyers and good prices for traditional sellers.

Banker and real estate investor Steve Liefschultz is the owner of The Remada Company, a real estate development and management company in Minnesota. For more news and updates on Minnesota real estate, follow this Twitter account.