Two years of turbulence in the real estate market and recent actions by the Federal Housing Authority has created a nearly ideal climate for house hunters in search of a bargain or their first home.
Twin Cities real estate
prices posted a decline of 12.5 percent in February — the steepest drop since the area's prices first started falling in late 2006. The metro's median sale price is now $195,060, the lowest it has been since May 2003.
Also, according to Minneapolis Area Association of REALTORS®, the number of homes for sale in the Twin Cities area continues to post record levels. At the end of February, there were about 8.72 homes to each expected buyer for the month of March.
With banks, Realtors, and home sellers facing this challenging environment, concessions are being made and prices are being lowered.
There is more! With the troubles that the subprime mortgage industry has been experiencing, available credit has been tightening, even as interest rates are falling. The Federal Housing Administration’s temporary changes to the limits on the loans it guarantees has re-opened doors for home buyers which had been closing. The availability of secure financing is expected to have a positive effect on the real estate market.
This is almost as good as it gets for a buyer’s market. In fact, this is the best buyer’s market that the Twin Cities area has seen in about ten years. And prospective home buyers are beginning to take notice. Those who know where to look are making some serious deals.
But what if you already have a home and the idea of being a landlord isn’t exactly your cup of tea? Well, if you have ever wanted a bigger house, now is a good time to look. You’ll likely get a modest price for your current home, but a larger home could be within your price range now than when you were house hunting. Also, if a vacation property on one of Minnesota’s 10,000 lakes has ever appealed to you, now could be the time to get that lakeside cabin. A third option would be to help your children make the leap from being renters to home owners.
It is expected that prices will drift a bit before they begin to rebound. Purchasing a home this year can ensure you catch the wave early. Kick your search for a home into high gear today! You may just find what you’re looking for at a more-than reasonable price!