About 25% of home purchases in Minnesota have been cash sales (i.e. no mortgage). This is lower than the national average of 36% and is down from a few years back in the Great Recession. During the downturn and ensuing Great Recession; real estate investors purchased homes at discounted rates and accounted for a significant…read more
The number of homes that have been flipped in the Twin Cities is down considerably as the market continues to show positive momentum. Investors were particularly attracted to flipping homes during the Great Recession when lender-mediated properties could be purchased for cents on the dollar; resulting in instant equity to the new buyer. together with…read more
Every year I’m asked what’s in store for the next year? Although I can’t predict the future (or I would be playing the lottery!) I predict 2015 will continue last year’s positive momentum. Most economists agree that the Federal Reserve will raise interest rates in 2015; when though it is unknown. We should continue to…read more
Although we as hardy Minnesotan’s have been mostly sparred by Mother Nature this winter; the notion of a heated driveway could be the next fad in new construction and home renovations. Historically only high-end homes offered heated driveways, however the cost to install and operate a heated driveway has come down and more and more…read more
The Economists at Trulia have done an excellent job providing an overview of key metrics we measure the housing market as we’ve come out of the Great Recession. The graphic below summarizes key housing market indicators related to a normal housing cycle. Over the past year numerous strides have occurred in the local Twin Cities…read more
New construction homes have historically always commanded a premium price over the existing home market. However, since the housing downturn and Great Recession; the gap between the two product types has widened. In the Twin Cities Metro Area (as of July 2014) the median listing price for a new construction home was $359,900 ($147 per…read more
Good news for home sellers and existing home owners; the foreclosure crisis in the Twin Cities Metro Area continues to dwindle. Foreclosures accounted for only 12% of the resales in June 2014; this compares to 26% of all transactions in 2013 that were distressed sales. In fact, between 2009 and 2011 about one-half of all…read more
It’s Memorial Day weekend; the first weekend of summer where Minnesotan’s are known for “going to the lake” for the next 12 precious weekends. With the never-ending winter of 2014, summer has finally arrived and people are once again ready to be out doors and enjoying Minnesota summers. The second home market, often called the…read more
The Twin Cities real estate market continues to favor sellers as the number of homes for sale (i.e supply) continues to be tight for buyers. Although supply has increased somewhat in the spring; there are not enough homes listed for sale in the Twin Cities Metro Area to meet buyer demand. As of April 2014,…read more
A recent report by the National Association of Realtors for the first quarter of 2014 shows one-third of all real estate sales in Minnesota are for cash. Nationally, about 43% of all sales in the U.S. were cash transactions. During the Great Recession, the percentage of cash buyers increased significantly from mostly investors who purchased…read more
