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        <title>Real Estate Blog</title>
        <link>http://www.minneapolisurbanhomes.com/blog/2015-08/</link>
        <description></description>
<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/real-estate-again-seen-as-best-investment.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/real-estate-again-seen-as-best-investment.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Real Estate Again Seen as Best Investment </title>
    <description> <![CDATA[ 
Keeping Current Matters, 8/19/15


We are almost back to ‘pre-housing crash’ home values. The inventories of distressed properties (foreclosures &amp; short sales) are shrinking dramatically. The economy is improving. The job numbers are headed in the right direction. The big question that still remains: Have Americans regained their confidence in real estate as a worthy investment? According to a survey conducted by Princeton Survey Research Associates, Americans have put real estate back into first place as the best of all investments.


Here are the results of the survey:





Bottom Line


Homeownership never lost its place as a key component of the American Dream for a host of financial and non-financial reasons. It is good to see that it has regained the top spot as best overall investment.
 ]]> </description>
    <pubDate>Wed, 19 Aug 2015 15:13:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/home-values-where-are-they-headed-over-the-next-5-years.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/home-values-where-are-they-headed-over-the-next-5-years.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Home Values: Where Are They Headed Over The Next 5 Years? </title>
    <description> <![CDATA[ 
Keeping Current Matters, 8/18/15


Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment &amp; market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.


The results of their latest survey




Home values will appreciate by 4.1 in 2015.


The cumulative appreciation will be 18.1 by 2019.


That means the average annual appreciation will be 3.4 over the next 5 years.


Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 10.5 by 2019.




Individual opinions make headlines. We believe the survey is a fairer depiction of future values.
 ]]> </description>
    <pubDate>Tue, 18 Aug 2015 10:55:00 -0500</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/when-is-it-a-good-time-to-rent-definitely-not-now.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/when-is-it-a-good-time-to-rent-definitely-not-now.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>When is it a good time to rent?  Definitely not now</title>
    <description> <![CDATA[ 
Keeping Current Matters, 8/13/15


People often ask whether or not now is a good time to buy a home. No one ever asks when a good time to rent is. However, we want to make certain that everyone understands that today is NOT a good time to rent. The Census Bureau just released their second quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:





At the same time, a report by Axiometrics revealed:


“The national apartment market’s annual effective rent growth rate of 5.1 in June 2015 represented a 47-month high, and continued a streak of 5.0-plus rent growth that is now the longest in at least six years, according to apartment market research. The effective rent growth in June 2014 was 3.7, putting June 2015’s exceptional performance into perspective. This is the highest rate since the 5.3 of July 2011. The metric has reached at least 5.0 for five straight months, the longest such streak since Axiometrics started monthly reporting of annual apartment data in April 2009.”


Where will rents be headed in the future?


Stephanie McCleskey, Axiometrics vice president of research, commented on the above report in an article by Real Estate Economy Watch:


“Rent growth is just shy of the post-recession peak, and the June metrics reflect the continued strength of the apartment market. The demand for apartments is still strong, despite the record number of new units being delivered this year. Tight occupancy is why landlords can push rents higher.”


Bottom Line


If you are ready, willing and of course able to buy, now may make sense.
 ]]> </description>
    <pubDate>Thu, 13 Aug 2015 15:35:00 -0500</pubDate>
</item>
<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/mortgage-lending-is-not-out-of-control.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/mortgage-lending-is-not-out-of-control.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Mortgage Lending is NOT Out of Control</title>
    <description> <![CDATA[ 






Mortgage Lending is NOT Out of Control


Posted: 12 Aug 2015, Keeping Current Matters


This year, both Freddie Mac &amp; Fannie Mae have introduced new programs that only require a 3 down payment on a mortgage in order to purchase a home. Earlier this month, the Mortgage Bankers’ Association reported that adjustable-rate mortgages (ARMs) may be making a slow comeback as the share of ARMs increased to 7.4 percent of total mortgage applications. Some see this loosening of lending standards as a point of concern. We know that the ridiculously low lending standards of the early 2000’s were part of the reason a housing bubble formed and burst last decade. Some are worried that we are headed down the same road that caused that housing crisis. However, a recent survey of a distinguished panel of over 100 economists, investment strategists, and housing market analysts conducted by Pulsenomics showed the vast majority disagree. The survey revealed that only 4 of the experts felt that over the next twelve months lending standards would “ease too much, become too lax”.


Here are the results of that survey:


 


Bottom Line


There is no question that lending standards are easing; thereby giving more families the opportunity of accomplishing the American Dream of homeownership. However, we are not going back to the ridiculousness of the last decade.









 


 










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    <pubDate>Wed, 12 Aug 2015 10:43:00 -0500</pubDate>
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