2010 craft talk
DESCRIPTION
Current state of Mpls St.Paul Residential Real Estate MarketTRANSCRIPT
Twin Cities Residential Real Estate 2010
Oh where or where has my wealth gone?
The good news
• 45,185 Homes were sold in 2009 (up16%)• Home prices are up 9.8% (since 2000)• Mortgage interest rates are at a 50 year low
of 5%• Homes haven’t been this affordable since
2001• FHA loans have down payments as low as
3.5%, Conventional are 10%
Not so good news
• The number of homes sold decreased 22.4% from the 2004 peak
• Average sale prices have decreased 28.4% from the 2006 peak
• Qualifying for a mortgage has gotten much tougher, especially for self employed people
• 43% of all 2009 sales were lender mediated versus a historical 2%
Current State?
• 25,000 agents to 15,000 agents
• 5% 30 year rates• $8,000 Credit for 1st
time buyers til 4/30/10• $6,500 Credit for 2nd
time buyers til 4/30/10• FHA is dominant form
of financing.
Lender Mediated Sales
Short sales
• Sale proceeds do not cover existing mortgage(s) and selling expenses
• Seller must prove “hardship”
• Bank takes less (sometimes $0) and gives clear title to buyer
• 1099 “loss” to seller
Foreclosures
• Pre-foreclosure– Prior to Sheriff’s sale
• Redemption period– Generally 6-12 months
– May be owner occupied
– Tenants perhaps
• REO (bank owned)
• HUD (Fed owned)
Lender Mediated Sales
New Construction
• Industry consolidation: Lennar, Pulte/Centex, Toll, Ryland
• Smaller homes, Cheaper!
• Build to order vs Specs
• Town homes have slowed considerably
• Condo market is saturated, financing is an issue
Other RE issues
• TH/Condo Assoc’s have financial problems
• Mortgage workouts to reduce foreclosures may slow process
• Cities buying blighted properties.
• City Ordinances regarding vacant buildings
• Tax values decreasing, mil rates increasing
• Cities offering their own incentives to buyers
Market time
Fun Facts
• Highest asking price– $14.9m (Garfield, MN)
• Highest Sold price in 2009– $8.85M (Lk Mtka)
• Number or $1M Sales– 238 in 2009
– 360 in 2008
– 461 in 2007
– 473 in 2006
– 502 in 2005
Craig and Susan’s Results
• 284 Listings to date• 314 Sales to date• Average of 40
Transactions per year (national avg is 11)
• Sale Price to List Price of 98.1% Lifetime
• $200 Million+ Lifetime
Craig and Susan’s Certifications
• GRI – Graduate Realtor Institute
• CRS – Certified Residential Specialist
• ABR- Accredited Buyer Representative
• CDPE- Certified Distressed Property Specialist
• Certified 1031 Tax Exchange Agent
• Relocation Certified with SIRVA, CARTUS, and others
What’s new in RE?
• Virtual/Video Tours• YouTube Video• craigslist• Social Networks
– Facebook/Twitter– Linked In/Plaxo
• Blogging• Texting/Mobile Web• GPS tools