By Matt Mullins on April 29, 2014
The following article and Infographic shows the average downpayment by geography. According to LendingTree, the average down payment in Minnesota is about 14.5%, ranking us #20 in the U.S. Although lenders continue to demand a high-level of due diligence on prospective lenders, they have loosened their belts from the over correction that occurred during the Great Recession. The majority of transactions I’ve assisted on recently have averaged a downpayment between 5% and 10%. Minnesota’s neighbor to the west; North Dakota – has the lowest downpayment average in the U.S. This is in-part due the oil boom and the significant high wages buyers have in western and northwestern North Dakota.
LendingTree Average Down Payment Report: US Average Down Payment Percentage Falls to 15.78% in Q1 2014
Mortgage lenders loosen standards as rates rise and the housing market improves
Posted in Buyers, First Time Home Buyers, Market Stats
By Matt Mullins on March 11, 2014
This past year was a pivotal year in the housing recovery in the Twin Cities. The Twin Cities Metro Area shifted from a buyers to sellers market over the course of the year. The number of sales were up nearly 9% while the median sales price increased over 14% for a year-end median sales price of $192,000. At the same time, lender-mediated sales continue to decline resulting in fewer homeowners that are upside down on their mortgage….only a few years ago distressed sales made-up over 50% of sales compared to 26% today.
The Mullins Group projects continued positive housing market metrics in 2014 for the Twin Cities Market. The following outlines where we project the market will go in 2014:
Pricing: Expect more moderate price growth of 4%-5%.
Sales: Sales activity momentum will continue and sales will be higher than 2013. With rising prices we expect investor activity will start to wane as pricing creeps up.
Inventory: As pricing has increased we expect more homeowners to list their home as they are no longer underwater on their mortgage. Supply continues to be low, but hopefully listing activity will increase for the peak spring and summer selling seasons.
Distressed Properties: Expect to see even fewer foreclosures and short sales in 2014; this is a great for everybody.
Rental Housing: Expect increasing rents as vacancies are still at historic lows. New luxury product in Downtown Minneapolis during the summer of 2014 will ease vacancy rates.
Posted in Buyers, First Time Home Buyers, Market Stats, Sellers
By Matt Mullins on February 4, 2014
As the housing market turned a corner in 2013, house flippers contributed to the turn-around. Many investors in the Metro Area were able to purchase foreclosed homes for cents on the dollar, remodel the homes, then bring them back to the market. I recently viewed 8 properties with a client and 7 of the 8 properties were investor-owned flips. After researching these properties, investors typically purchased the home from $65,000 to $100,000 and are now listing the property for $180,000 to $200,000. Many of these homes had cosmetic improvements, but were not overly enhanced. Assuming these properties sell for near asking price; flippers stand to earn extremely healthy profits as the housing market rebounds.
Minnesota ranks high in home flipping sales
- Article by: Jim Buchta
- Star Tribune
- January 31, 2014 – 11:43 PM
The Minnesota housing turnaround is getting a little help from house flippers.
The state ranked eighth in the nation for the sales trend last year with nearly 7 percent of sales being flips, according to a report released Friday from RealtyTrac.
“It’s a sign the market is recovering,” said Daren Blomquist, vice president of RealtyTrac, which tracked sales of single-family homes that were bought and sold again within six months. Continue reading “Flipping houses…a lucurative business in the Twin Cities”
Posted in Buyers, Home Improvement, Investment Real Estate, Lender-mediated properties, Remodeling
By Matt Mullins on November 17, 2013
As the Twin Cities Metro real estate market has improved in 2013, the number of lender-mediated properties has decreased signicantly as homeowners have recovered lost equity and are no longer upside down on their market. As a result, the number of investors seeking homes to “flip” has decreased significantly. However, investors with deeper pockets are pursuing the upper-bracket market as a new niche has evolved.
Home ‘flipping’ goes high-end in Twin Cities, takes on high stakes
Home-flipping has gone high-end.
Instead of snapping up low-priced foreclosures and sprucing them up with paint and new carpet for a quick profit, a growing subset of investors are now turning to million-dollar properties — such as the house that broker Greg Lawrence dubbed “The Big Flip,” a 7,750-square-foot Minnetonka home with indoor and outdoor pools, a brand-new luxury kitchen and a list price of $1.495 million.
It’s a much higher risk than the 40 or so starter houses that Lawrence, owner of Home Avenue, has bought, rehabbed and sold in recent years, he said. But he believes the time is right. Continue reading “High End Flipping taking a stake in Twin Cities”
Posted in Investment Real Estate, Market Stats
By Matt Mullins on October 16, 2013
A recent study confirms what I often tell clients; mature trees add curb appeal to a property and can increase a homes sale price. The study found that homes with trees sold for over $7,000 more than other like homes! Not only do trees add curb appeal and can lower your cooling costs in the summer months, they do have a return on investment that is worth more than the beauty they can add to your property.
How Trees Can Boost a Home’s Sale Price
In a study, homes with “street trees,” those planted between the sidewalk and street, sold for $7,130 more, on average, than homes without street trees.
Maybe money grows on trees after all.
In an analysis of 2,608 real-estate transactions over 10 months, researchers found that homes with “street trees,” those planted between the sidewalk and street, sold for $7,130 more, on average, than homes without street trees. Continue reading “Money does grow on trees!”
Posted in Buyers, Home Improvement, Landscaping
By Matt Mullins on October 15, 2013
When shopping for mortgage rates online, rates can vary significantly from lender-to-lender. If a rate seems “too good to be true”..it probably is! Some lenders may advertise low rates; but when analyzing the terms many times they may include hidden fees or points buying down the rate. The Mullins Group recommends engaging multiple mortgage broker who can provide information on the financing terms for the mortgage. Popular websites such as bankrate.com provide a good background, however your local lender will be able to provide the best details regarding financing.
When Shopping for Mortgage Rates, Surprises Await
The interest rates posted online by real-estate websites and mortgage lenders are often not the rates that home buyers get when they apply for a loan.
Posted in Buyers, Mortgage/Finance
By Matt Mullins on July 23, 2013
For years, the trend has been to design homes to the back of the house as we have become an auto-dominated society with front-loaded garages. Prior to the 1970s, a high percentage of homes constructed throughout Minnesota had front porches. However, that design trend faded as garages became larger and more emphasis was placed on the back yard. The latest census bureau information finds that about two-third’s of all new construction in the Midwest now contains a front porch. This is particularly prevelant in newer upper-bracket subdivisions where traditional design has made a come-back. Developments such as Stone Mill Farms and Dancing Waters in Woodbury, Liberty on the Lake in Stillwater, and Spirit of Brantjen Farms in Lakeville, and Cobblestone Lake in Apple Valley have all incorporated design standards that focus on the front porch. All of these developments are master planned communities with smaller lot sizes, but designed to maximize space and community gathering spots. These developments are excellent examples of home design with front porches that add exceptional curb appeal to these homes.
Out front is back in, as porches gain popularity in the Midwest
Article by: Susan Feyder
- Star Tribune
- July 21, 2013 – 7:25 AM
Sara Maves says few summer days go by without her meeting someone new in her neighborhood, thanks to the time she spends on her front porch in Chanhassen.
“Sometimes it’s just a wave and hello, sometimes we engage in a conversation,” said Maves, whose family moved into the newly built house in October. “We have definitely introduced ourselves to other people just by being out front.”
In Chanhassen and other suburbs across the country, homeowners like Maves are turning away from the garage-dominated facades of the stereotypical suburb and embracing the old-fashioned front porch.
U.S. Census Bureau figures show that 63 percent of the houses built in the Midwest last year had porches, up 50 percent since 1992.
Meanwhile, the share with decks — typically out back — has fallen from 41 percent to 32 percent.
Continue reading “Front Porches making a comeback in Twin Cities”
Posted in Architecture, Buyers, New Construction, Remodeling
By Matt Mullins on July 9, 2013
Over the past few weeks, mortgage rates jumped at the higest levels in the past 30 years as a percentage increase. This jump was in response to the Fed pulling back on the Qualitative Easing program as the economy improves. This announcement resulted in a rise in the 10-year treasuries which mortgage rates follow. After increasing from less than 4% to nearly 4.5%, rates have come down again and are hovering around 4.25%. Because most industry experts believe rates will increase later in the year, many buyers are entering the marketplace in fear of rising rates and housing becoming less affordable.
Today’s rates are still extremely low by historical standards, but these rates will not last forever especially as the American economy continues to improve since the Great Recession. Home values in the Twin Cities Metro Area have increased significantly in June 2013, surpasing a $200,000 median income and about a 20% increase over last year’s pricing. The Mullins Group expects pricing to continue to increase as inventory is down -20% and buyers are no longer on the fence. If you are thinking about purchasing, we recommend taking advantage of today’s affordability before pricing and mortgage rates continue to increase.
Posted in Buyers, First Time Home Buyers, Mortgage/Finance
By Matt Mullins on May 21, 2013
As any buyer, Realtor, lender, or anybody else in the real estate industry will tell you…appraisals have been a hurdle through the economic downturn and housing correction. Lenders tightened underwriting criteria, while appraisers had few competitive properties to compare and have been extremely conservative. As a result, many offers with agreed upon terms between a buyer and seller were rejected with a low appraisal. However, as the Twin Cities real estate market has turned a corner, higher sales pricing has provided better comps for appraisers and they are more likely today to provide a higher home value in 2013 than in 2012. This is good news for buyers, sellers, and for those looking to refinance.
Posted in Appraisal, Buyers, Mortgage/Finance
By Matt Mullins on April 16, 2013
Technology has changed the home buying and selling process signficantly over the past few years. With the addition of Apps, today’s buyers and sellers have access to real estate data that previously was tougher to obtain. There are literally hundreds, if not thousands, of real estate apps available. From home searches to mortgage applications to operating your home remotely, just about anything you can imagine is out there for your devices. I personally use a variety of apps.. from Zillow, Trulia, Realtor.com, mortgage apps, and my local Twin Cities MLS app.
As homes become more and more technological, there are apps that can control your home..from the thermostat, coffee makers, garage, security system, etc. While this is mainly in new construction, more homes can incorporate wireless features through your secured wireless Internet.
Continue reading “Real Estate Apps today’s homeowners have embraced”
Posted in Buyers, First Time Home Buyers, Misc., New Construction, Technology
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