Tuesday, August 21, 2007

Buy Low, Sell High! Is the end of the decline in sight?

Market Activity Report

The post-boom housing decline is nearing its second anniversary in the Twin Cities housing market, ringing in the occasion with a continuation of slowing home sales. Newly signed purchase agreements (pending sales) for the week ending August 11 were behind this time in 2006 by 11.9 percent. Sellers and builders are also slowing their activity, with new listings for the same time period behind 2006's pace by 3.32 percent.

On Monday , CNBC delved further into a Forbes story about cities with bargain real estate buys that ranked Minneapolis No. 2.

Along with REALTORS(r) from other high-ranking cities, Tampa and Kansas City, MAAR's 2007 President, Deb Greene, fielded questions from Maria Bartiromo on CNBC's "Closing Bell" about what's going on in our local market.

Here is a snipit of the entire Forbe's story pertaining to the Twin Cities:

2. Minneapolis, Minn.

While new constructions in Minneapolis didn't explode over the last three years as much as in the rest of the country, the housing stock has increased to a level larger than buyers are able to absorb. According to Moody's, it was eighth worst for sales-rate-to-inventory, and third worst for its year-over-year rate of tightening.

For the whole story go to:

http://www.forbes.com/2007/06/22/homes-buyers-property-forbeslife-cx_mw_0625buyers.html

Now on the financing end for real estate; according to the Rate Trend Index Panel ( a group of lending experts from around the country) their predictions are as follows:
This week, a little more than half of the panelists believe mortgage rates will fall over the next 35 to 45 days. The rest believe rates will remain relatively unchanged (plus or minus 2 basis points) over that period.

The good news, this is one of the best times to buy property. If you are looking for a cabin, a condo, an investment property or piece of land. Maybe you've been in your house for more than a few years and want to move up to the home you've always wanted. This is the time to make that move. As interest rates begin to drop, we're forcasting a reduction on real estate inventory over the next 16 months from people reacting to the opportunity to "buy low". We're seeing people move money out of the volatle stock market to purchase investment property and vacation homes as an investment as well.

Call The Basil Group for more information on purchasing a new property: (763) 416-7300.

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