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        <title>Real Estate Blog</title>
        <link>http://www.minneapolisurbanhomes.com/blog/2020-08/</link>
        <description></description>
<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/why-is-it-so-important-to-be-pre-approved-in-the-homebuying-process.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/why-is-it-so-important-to-be-pre-approved-in-the-homebuying-process.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Why Is It So Important to Be Pre-Approved in the Homebuying Process?</title>
    <description> <![CDATA[ 



 




You may have heard that pre-approval is a great first step in the homebuying process. But why is it so important? When looking for a home, the temptation to fall in love with a house that’s outside your budget is very real. So, before you start shopping around, it’s helpful to know your price range, what you’re comfortable within a monthly mortgage payment, and ultimately how much money you can borrow for your loan. Pre-approval from a lender is the only way to do this.


According to a recent survey from realtor.com, many buyers are making the mistake of skipping the pre-approval step in the homebuying process:




“Of over 2,000 active home shoppers who plan to purchase a home in the next 12 months, only 52 obtained a pre-approval letter before beginning their home search, which means nearly half of home buyers are missing this crucial piece of paperwork.”




This paperwork (the pre-approval letter) shows sellers you’re a qualified buyer, something that can really help you stand out from the crowd in the current ultra-competitive market.


How competitive is today’s market? Extremely – especially among buyers.


With limited inventory, there are many more buyers than sellers right now, and that’s fueling the competition. According to the National Association of Realtors (NAR), homes are receiving an average of 2.9 offers for sellers to negotiate, so bidding wars are heating up.


Pre-approval shows homeowners you’re a serious buyer. It helps you stand out from the crowd if you get into a multiple-offer scenario, and these days, it’s likely. When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war and land the home of your dreams.


Danielle Hale, Chief Economist for realtor.com notes:




“For ‘a buyer in a competitive market, it’s typically essential to have pre-approval done in order to submit an offer, so getting it done before you even look at homes is a smart move that will enable a buyer to move fast to put an offer in on the right home.’”




In addition, today’s housing market is also changing from moment to moment. Interest rates are low, prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals (a loan officer and a real estate agent) making sure you take the right steps along the way and can show your qualifications as a buyer at the time you find a home to purchase.


Bottom Line


In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. If you’re ready to buy this year, let’s connect before you start searching for a home.


From Keeping Current Matters 8/27/20


 ]]> </description>
    <pubDate>Thu, 27 Aug 2020 16:10:00 -0500</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/mortgage-rates-payments-by-decade.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/mortgage-rates-payments-by-decade.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Mortgage Rates &amp; Payments by Decade</title>
    <description> <![CDATA[ 



 




Some Highlights




Sometimes it helps to see the dollars and cents you’ll save when you purchase a home while mortgage rates are low.


Today’s low rates mean it’s less expensive to borrow money, so the savings over the life of your loan is significant.


Let’s connect to determine the best way to position your family for a financially-savvy move in today’s market.




 ]]> </description>
    <pubDate>Fri, 14 Aug 2020 13:30:00 -0500</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/homes-are-more-affordable-right-now-than-they-have-been-in-years.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/homes-are-more-affordable-right-now-than-they-have-been-in-years.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Homes Are More Affordable Right Now Than They Have Been in Years</title>
    <description> <![CDATA[ 



 




Today, home prices are appreciating. When we hear prices are going up, it’s normal to think a home will cost more as the trend continues. The way the housing market is positioned today, however, low mortgage rates are actually making homes more affordable, even as prices rise. Here’s why.


According to the Mortgage Monitor Report from Black Knight:




“While home prices have risen for 97 consecutive months, July’s record-low mortgage rates have made purchasing the average-priced home the most affordable it’s been since 2016.”




How is that possible?


Black Knight continues to explain:




“As of mid-July, it required 19.8 of the median monthly income to make the mortgage payment on the average-priced home purchase, assuming a 20 down payment and a 30-year mortgage. That was more than 5 below the average of 25 from 1995-2003.


This means it currently requires a $1,071 monthly payment to purchase the average-priced home, which is down 6 from the same time last year, despite the average home increasing in value by more than $12,000 during that same time period.


In fact, buying power is now up 10 year-over-year, meaning the average home buyer can afford nearly $32,000 more home than they could at the same time last year, while keeping their monthly payment the same.”




This is great news for the many buyers who were unable to purchase last year, or earlier in the spring due to the slowdown from the pandemic. By waiting a little longer, they can now afford 10 more home than they could have a year ago while keeping their monthly mortgage payment unchanged.


With mortgage rates hitting all-time lows eight times this year, it’s now less expensive to borrow money, making homes significantly more affordable over the lifetime of your loan. Mark Fleming, Chief Economist at First American, shares what low mortgage rates mean for affordability:




“In July, house-buying power got a big boost as the 30-year, fixed mortgage rate made history by moving below three percent. That drop in the mortgage rate from 3.23 percent in May to 2.98 percent in July increased house-buying power by nearly $15,000.”




The map below shows the last time homes were this affordable by state:In six states – Arkansas, Iowa, Kentucky, Louisiana, Maryland, and West Virginia – homes have not been this affordable in more than 25 years.


Bottom Line


If you’re thinking of making a move, now is a great time to take advantage of the affordability that comes with such low mortgage rates. Whether you’re thinking of purchasing your first home or moving into a new one and securing a significantly lower mortgage rate than you may have on your current house, let’s connect today to determine your next steps in the process.


Keeping Current Matters 8/13/20


 ]]> </description>
    <pubDate>Thu, 13 Aug 2020 10:07:00 -0500</pubDate>
</item>
<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/current-buyer-seller-perks-in-the-housing-market.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/current-buyer-seller-perks-in-the-housing-market.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Current Buyer &amp; Seller Perks in the Housing Market</title>
    <description> <![CDATA[ 



 




Today’s housing market is making a truly impressive turnaround, and it’s also setting up some outstanding opportunities for buyers and sellers. Whether you’re thinking of buying or selling a home this year, there are perks today that are rarely available, and definitely worth looking into. Here are the top two.


The Biggest Perk for Buyers: Low Mortgage Rates


The most impressive buyer incentive today is the average mortgage interest rate. Just last week, mortgage rates hit an all-time low for the eighth time this year. The 30-year fixed-rate is now averaging 2.88, the lowest rate in the survey’s history, which dates back to 1971 (See graph below):This is a huge advantage for buyers. To put it in perspective, it means that today you can get a lower rate than any of the past two generations of homebuyers in your family if you decide to purchase at this time.


In addition, the National Mortgage News notes how today’s buyers have increasing purchasing power due to these low mortgage rates:




“Purchasing power rose 10 year-over-year...With interest rates hitting record lows, buyers were able to afford $32,000 &quot;more house&quot; as of July 23 than they could the year before with the same monthly payment.”




This is a great perk for buyers who are hoping to potentially get more for their money in a home, something many are considering today as they re-evaluate the amount of space they ideally need for their families. It is an opportunity not seen in 50 years, and one not to be missed if the time is right for you to buy a home.


The Biggest Perk for Sellers: Low Inventory


Today, there are simply not enough houses on the market for the number of buyers looking to purchase them. According to the National Association of Realtors (NAR):




“Total housing inventory at the end of June totaled 1.57 million units, up 1.3 from May, but still down 18.2 from one year ago (1.92 million).”




The red bars in the graph below indicate that the inventory of homes coming into the market continues to decline. It was low as we entered the pandemic and has reduced even further this year. Houses today are selling faster than they’re being listed, and that’s creating an even greater supply shortage (See graph below):The lack of inventory has been a challenging situation for a while now, and with low mortgage rates fueling buyer demand, inventory is even harder for buyers to find today. Buyers are eager to purchase, and because of the shortage of homes available, they’re encountering more bidding wars. This is one of the factors keeping home prices strong, an advantage for sellers. Lawrence Yun, Chief Economist for NAR notes that this trend may continue, too:




“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.”




With low inventory and high buyer demand, homeowners can potentially earn an increasing profit on their houses and sell them quickly in this sizzling summer market.


Bottom Line


Whether you’re thinking about buying or selling at home, there are some key perks available right now. Let’s connect today to discuss how they may play to your advantage in our local market.


From Keeping Current Matters, 8/11/20


 ]]> </description>
    <pubDate>Tue, 11 Aug 2020 13:16:00 -0500</pubDate>
</item>
<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/todays-buyers-are-serious-about-purchasing-a-home.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/todays-buyers-are-serious-about-purchasing-a-home.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Today’s Buyers Are Serious about Purchasing a Home</title>
    <description> <![CDATA[ 



 




Today’s homebuyers are not just talking about their plans, they’re actively engaged in the buying process – and they’re serious about it. A recent report by the National Association of Home Builders (NAHB) indicates:




“…. Of American adults considering a future home purchase in the second quarter of 2020, about half (49) are not simply planning it, they are actively engaged in the process to find a home. That is a significantly higher share than the comparable figure a year ago (41), which suggests that the COVID-19 crisis and its accompanying record-low mortgage rates have converted some prospective buyers into active buyers.”




It’s no surprise that buyers are out in full force today. Many Americans now need more space to work from home, and the current low mortgage rates are providing an extra boost of motivation to enter the housing market.


If you’re considering selling your house, know that today’s buyers are serious about making a move. Your opportunity to sell your house in a market with high demand is growing, especially as more millennials enter the housing market too. The same report also notes:




“Of Millennials planning a home purchase in the next year, 57 are already actively searching for a home.”




Odeta Kushi, Deputy Chief Economist at First American, explains:




“When breaking down house-buying power by educational attainment for millennials in 2019, we find that the higher the education, the higher the household income, and the higher the house-buying power. In 2019, median house-buying power for millennials increased 16 percent relative to 2018.”




As demand for homes to buy grows and more millennials enter the market with growing buying power, the opportunity to sell your house grows too.


Bottom Line


Today’s buyers are serious ones and more millennials are helping to fuel that charge. So, if you’re considering selling your home, let’s connect today to determine your next steps in the process while buyers are actively looking.


From Keeping Current Matters 8/4/20


 


 ]]> </description>
    <pubDate>Wed, 05 Aug 2020 10:15:00 -0500</pubDate>
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