The real estate market is off to a roaring start! From my perspective and experience, I believe it’s going to be a banner year! I can’t speak for the entire country, but I’m confident in my opinion for our local South of the River home sales!
Below are my top three reasons 2013 will be a great year if you’re considering selling a home in Apple Valley, Eagan, Lakeville, Rosemount and Farmington Minnesota.
1) Inventory Levels are at a record low!
The basic premise of a marketplace is that price is determined at the point where the supply curve intersects with the demand curve. We have fewer active listings on the market in the 13-county metro area of Minneapolis and St. Paul than we had on the market in 2005. Ordinarily when supply is this low, we would be seeing dramatically increasing home prices. The only reason we haven’t seen them so far is that buyer demand has been held back by the difficulty of getting a mortgage.
2) Mortgage Qualifications and available Loan Types are changing for the better!
Recently, alternative mortgage products have become available, including conventional loans with a 3 percent downpayment and no mortgage insurance payments, attractive 80/10/10 loans with no mortgage insurance and FHA Approval for buyers who want to get a mortgage after a foreclosure or short sale. More attractive loans with easier qualifying standards will mean more people looking to buy a home in Eagan, Lakeville, Rosemount, Apple Valley and Farmington!
3) Interest Rates and Home Prices combine to make Homes Affordable! The combination of incredibly low interest rates and relatively low home prices mean homes are very affordable. Buyers and investors are attracted by this fantastic combination and are entering the market at a fast pace. Loan applications are one of the first indicators of the amount of buyers planning to buy a home this spring. The level of mortgage application varies week to week and can be followed on The Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey website.
From my years of selling real estate South of the River, I can say with certainty that buyer demand springs to life very early in the year. We are seeing it happen already in the first week of January. It takes sellers a little longer to get their homes prepped, ready and listed on the market.
This is because sellers think about ‘Listing my Home in the Spring’ and they picture green grass, flowers and leaves on the trees. Buyers are just not that patient, they are already flooding our open houses and website traffic has spiked too. Buyers will meet a Realtor in an open house or on a phone call and they will begin their search in earnest, usually purchasing within 30-60 days, long before the grass is green!
If you are a homeowner thinking about selling your South of the River Home in the spring of 2013, I urge you to re-set your time frame perspective. Try to get your home ready and listed before the end of February to take advantage of peaking buyer demand! Call today for a private consultation or a brief home visit to get the process started, 612-889-6496