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        <title>Real Estate Blog</title>
        <link>http://www.minneapolisurbanhomes.com/blog/2022-08/</link>
        <description></description>
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    <guid>https://www.minneapolisurbanhomes.com/blog/what-sellers-need-to-know-in-todays-housing-market.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/what-sellers-need-to-know-in-todays-housing-market.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>What Sellers Need To Know in Today’s Housing Market</title>
    <description> <![CDATA[ 



 




If you’re thinking about selling your house, you may have heard about the housing market slowing down in recent months. While it’s still a sellers’ market, the peak frenzy the market saw over the past two years has cooled some. If you’re asking yourself if you’ve missed your chance to sell your house and make a move, the good news is you haven’t – motivated buyers are still out there. But you do need to price your house right for today’s market. Here’s why.


As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:




“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”




It’s true buyer demand has slowed over the past few months as higher mortgage rates made it more expensive to buy a home. The result is fewer bidding wars and less competition among buyers (see visual below):





But don’t forget – that’s compared to the severely overheated market we saw over the past two years. According to the latest Confidence Index from NAR:




“. . . 39 of homes sold above list price, down from 51 a month ago and 50 a year ago.”




While this is a slower pace than even one month ago, serious buyers are still actively in the market, and they’re buying homes that are priced right. In fact, the Confidence Index also notes the average home is selling in just 14 days.


If you’re aiming to sell your house, be sure you’re working with your agent to price it for today’s housing market. As buyer demand softens, it’s important to understand this isn’t the same market as last year. It’s not even the same market as just a few months ago. But it is still a sellers’ market.


If you’re ready to sell your house, seek the advice of a real estate professional. In some cases, you’ll need to adjust your expectations accordingly to meet the market where it is today. Selma Hepp, Interim Lead, Deputy Chief Economist at CoreLogic, explains what’s happening and what it means when you sell:




“Signs of a broader slowdown in the housing market are evident, . . . This is in line with our previous expectations and given the notable cooling of buyer demand due to higher mortgage rates. . . . Nevertheless, buyers still remain interested, which is keeping the market competitive — particularly for attractive homes that are properly priced.”




Bottom Line


While the housing market has cooled from its overheated frenzy, it’s still a sellers’ market. Let’s connect so you understand what’s happening with buyer demand and home prices in our local area as you get ready to enter the market.


 ]]> </description>
    <pubDate>Tue, 23 Aug 2022 15:17:00 -0500</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/3-tips-for-buying-a-home-today.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/3-tips-for-buying-a-home-today.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>3 Tips for Buying a Home Today</title>
    <description> <![CDATA[ 



 




If you put off your home search at any point over the past two years, you may want to consider picking it back up based on today’s housing market conditions. Recent data shows the supply of homes for sale is increasing, giving buyers like you additional options.


But it’s important to keep in mind that while inventory is improving, it’s still a sellers’ market. And that means you need to be prepared as you set out on your home search. Here are three tips for buying the home of your dreams today.


1. Understand How Mortgage Rates Impact Your Homebuying Power


Mortgage rates have increased significantly this year, and over the past few weeks, they’ve been fluctuating quite a bit. It’s important to stay up to date on what’s happening with rates and understand how they can impact your purchasing power when you’re thinking of buying a home. The chart below can help.


Let’s say your budget allows for a monthly mortgage payment in the $2,100-$2,200 range. The green in the chart indicates a payment within or below that range, while the red is a payment that exceeds it.





As the chart shows, even a small change in mortgage rates can have a big impact on your monthly payments. If rates rise, you could exceed your budget unless you pursue a lower home loan amount. If rates fall, your purchasing power may increase, which could give you additional options for your search.


2. Be Open to Exploring Different Options During Your Search


The supply of homes for sale is improving, which gives you more homes to choose from. But historically, supply is still low. That means as you search for homes, if you still don’t find something that meets your needs, it may be worth expanding your search.


A recent article from the Washington Post highlights a few things buyers can consider today. It encourages opening yourself up to more areas. For example, if there’s a location you’ve previously ruled out (like a particular town, for example) it may be worth taking another look.


And if you’re able to, opening your search up to include other housing types, like newly built homes, condominiums, or townhomes can further increase your pool of options. Even as the inventory of homes for sale improves today, finding ways to cast a wider net during your search could help you find a hidden gem.


3. Work with a Local Real Estate Professional for Expert Guidance


Ultimately, you need to be prepared when you set out to buy a home. Jeff Ostrowski, Senior Mortgage Reporter for Bankrate, explains:




“Taking the leap to homeownership can provide a feeling of pride while boosting your long-term financial outlook, if you go in well-prepared and with your eyes open.”




No matter where you’re at in your homeownership journey, the best way to make sure you’re set up for success is to work with a real estate professional. If you’re just starting your search, a real estate professional can help you understand your local market and search for available homes. And when it’s time to make an offer, they’ll be an expert advisor and negotiator to help yours stand out above the rest.


Bottom Line


Strategically planning your home search by understanding today’s mortgage rates, casting a wide net, and building a team of experts can be the keys to finding the home of your dreams. To make sure you have expert advice each step of the way, let’s connect.


 ]]> </description>
    <pubDate>Mon, 22 Aug 2022 10:56:00 -0500</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/is-the-shifting-market-a-challenge-or-an-opportunity-for-homebuyers.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/is-the-shifting-market-a-challenge-or-an-opportunity-for-homebuyers.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Is the Shifting Market a Challenge or an Opportunity for Homebuyers?</title>
    <description> <![CDATA[ 



 




If you tried to buy a home during the pandemic, you know the limited supply of homes for sale was a considerable challenge. It created intense bidding wars which drove home prices up as buyers competed with one another to be the winning offer.


But what was once your greatest challenge may now be your greatest opportunity. Today, data shows buyer demand is moderating in the wake of higher mortgage rates. Here are a few reasons why this shift in the housing market is good news for your homebuying plans.


The Challenge


There were many reasons for the limited number of homes on the market during the pandemic, including a history of underbuilding new homes since the market crash in 2008. As the graph below shows, housing supply is well below what the market has seen for most of the past 10 years (see graph below):





The Opportunity


But that graph also shows a trend back up in the right direction this year. That’s because moderating demand is slowing the pace of home sales and that’s one of the reasons housing supply is finally able to grow. For you, that means you’ll have more options to choose from, so it shouldn’t be as difficult to find your next home as it has been recently.


And having more options may also lead to less intense bidding wars. Data from the Realtors Confidence Index from the National Association of Realtors (NAR) shows this trend has already begun. In their recent reports, bidding wars are easing month-over-month (see graph below):





If you’ve been outbid before or you’ve struggled to find a home that meets your needs, breathe a welcome sigh of relief. The big takeaway here is you have more options and less competition today.


Just remember, while easing, data shows multiple-offer scenarios are still happening – they’re just not as intense as they were over the past year. You should still lean on an agent to guide you through the process and help you make your strongest offer up front.


Bottom Line


If you’re still looking to make a move, it may be time to pick your home search back up today. Let’s connect to kick off the homebuying process.


 ]]> </description>
    <pubDate>Fri, 19 Aug 2022 16:41:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/experts-increase-2022-home-price-projections.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/experts-increase-2022-home-price-projections.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Experts Increase 2022 Home Price Projections</title>
    <description> <![CDATA[ 



 




If you’re wondering if home prices are going to come down due to the cooldown in the housing market or a potential recession, here’s what you need to know. Not only are experts forecasting home prices will continue to appreciate nationwide this year, but most of them also actually increased their projections for home price appreciation from their original 2022 forecasts (shown in green in the chart below):


As the chart shows, most sources adjusted up, and now call for more appreciation in 2022 than they originally projected this January. But why are experts so confident the housing market will see ongoing appreciation? It’s because of supply and demand in most markets. As Bankrate says:




“After all, supplies of homes for sale remain near record lows. And while a jump in mortgage rates has dampened demand somewhat, demand still outpaces supply, thanks to a combination of little new construction and strong household formation by large numbers of millennials.”




Knowing that experts forecast home prices will continue to appreciate in most markets and that they’ve actually increased their original projections for this year should help you answer the question: will home prices fall? According to the latest forecasts, experts are confident prices will continue to appreciate this year, although at a more moderate rate than they did in 2021.


Bottom Line


If you’re worried home prices are going to decline, rest assured many experts raised their forecasts to say they’ll continue to appreciate in most markets this year. If you have questions about what’s happening with home prices in our local area, let's connect.


 ]]> </description>
    <pubDate>Wed, 17 Aug 2022 11:17:00 -0500</pubDate>
</item>
<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/the-us-homeownership-rate-is-growing.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/the-us-homeownership-rate-is-growing.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>The U.S. Homeownership Rate Is Growing</title>
    <description> <![CDATA[ 



 




The desire to own a home is still strong today. In fact, according to the Census, the U.S. homeownership rate is on the rise. To illustrate the increase, the graph below shows the homeownership rate over the last year:





That data shows more than half of the U.S. population live in a home they own, and the percentage is growing with time.


If you’re thinking about buying a home this year, here are just a few reasons why so many people see the value of homeownership.


Why Are More People Becoming Homeowners?


There are several benefits to owning your home. A significant one, especially when inflation is high like it is today, is that homeownership can help protect you from rising costs. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:




“In the 1970s, when inflation was running around 10, home prices were rising at approximately the same rate. Renters actually have a harder time in inflationary periods, because rents tend to rise along with inflation, whereas mortgage payments stay the same for homeowners with fixed-rate mortgages.”




When you buy a home with a fixed-rate mortgage, you can lock in what's likely your biggest monthly expense – your housing payment – for the duration of that loan, often 15-30 years.


That gives you a predictable monthly housing expense that can benefit you in the short term, but you’ll also gain equity over time as your home appreciates in value and you make your monthly mortgage payment.


And with that growing equity, your net worth will increase as well. In fact, the latest data from NAR shows the median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only about $8,000. That means a homeowner’s net worth is nearly 40 times that of a renter.





Bottom Line


The U.S. homeownership rate is growing. If you’re ready to purchase the home of your dreams, let’s connect so you can begin the homebuying process today.


 ]]> </description>
    <pubDate>Tue, 16 Aug 2022 16:52:00 -0500</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/selling-your-house-your-asking-price-matters-more-now-than-ever.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/selling-your-house-your-asking-price-matters-more-now-than-ever.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Selling Your House? Your Asking Price Matters More Now Than Ever</title>
    <description> <![CDATA[ 



 




There’s no doubt about the fact that the housing market is slowing from the frenzy we saw over the past two years. But what does that mean for you if you’re thinking of selling your house?


While home prices are still appreciating in most markets and experts say that will continue, they’re climbing at a slower pace because rising mortgage rates are creating less buyer demand. Because of this, there are more homes on the market. And in a shift like this one, the way you price your home matters more than ever.


Why Today’s Housing Market Is Different


During the pandemic, sellers could price their homes higher because demand was so high, and supply was so low. This year, things are shifting, and that means your approach to pricing your house needs to shift too.


Because we’re seeing less buyer demand, sellers have to recognize this is a different market than it was during the pandemic. Here’s what’s at stake if you don’t.


Why Pricing Your House at Market Value Matters


The price you set for your house sends a message to potential buyers. If you price it too high, you run the risk of deterring buyers.


When that happens, you may have to lower the price to try to reignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag for some buyers who will wonder what that means about the home or if in fact it’s still overpriced. Some sellers aren’t adjusting their expectations to today’s market, and realtor.com explains the impact that’s having:




“. . . the share of listings with a price cut was nearly double its year ago level even as it remains well below pre-pandemic levels.”




To avoid the headache of having to lower your price, you’ll want to price it right from the onset. A real estate advisor knows how to determine that perfect asking price. To find the right price, they balance the value of homes in your neighborhood, current market trends and buyer demand, the condition of your house, and more.


Not to mention, pricing your house fairly based on market conditions increases the chance you’ll have more buyers who are interested in purchasing it. This helps lead to stronger offers and a greater likelihood it’ll sell quickly.


Why You Still Have an Opportunity When You Sell Today


Rest assured, it’s still a sellers’ market, and you’ll still get great benefits if you plan accordingly and work with an agent to set your price at the current market value. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:




“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”




Mike Simonsen, the Founder and CEO of Altos Research, also notes:




“We can see that demand is still there for the homes that are priced properly.”




Bottom Line


Homes priced right are selling quickly in today’s real estate market. Let's connect to make sure you price your house based on current market conditions so you can maximize your sales potential and minimize your hassle in a shifting market.


 ]]> </description>
    <pubDate>Tue, 09 Aug 2022 13:23:00 -0500</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/why-its-still-a-sellers-market.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/why-its-still-a-sellers-market.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Why It’s Still a Sellers’ Market</title>
    <description> <![CDATA[ 



 




As there’s more and more talk about the real estate market cooling off from the peak frenzy it saw during the pandemic, you may be questioning what that means for your plans to sell your house. If you’re thinking of making a move, you should know the market is still anything but normal.


Even though the supply of homes for sale has been growing this year, there’s still a shortage of homes on the market. And that means conditions continue to favor sellers today. That’s because the level of inventory of homes for sale can help determine if buyers or sellers are in the driver’s seat. Think of it like this:




A buyers’ market is when there are more homes for sale than buyers looking to buy. When that happens, buyers have the negotiation power because sellers are more willing to compromise so they can sell their house.


In a sellers’ market, it’s just the opposite. There are too few homes available for the number of buyers in the market and that gives the seller all the leverage. In that situation, buyers will do what they can to compete for the limited number of homes for sale.


A neutral market is when supply is balanced and there are enough homes to meet buyer demand at the current sales pace.




And for the past two years, we’ve been in a red-hot sellers’ market because inventory has been near record lows. The blue section of this graph highlights just how far below a neutral market inventory still is today.





What Does This Mean for You?


Ed Pinto, Director of the American Enterprise Institute’s Housing Center, gives a perfect summary of what’s happening in today’s market, saying:




“Overall, the best summary is that we'll move from a gangbuster sellers' market to a modest sellers' market.”




Conditions are still in your favor even though the market is cooling. If you work with an agent to price your house at market value, you’ll find success when you sell your house today. While buyer demand is softening due to higher mortgage rates, homes that are priced right are still selling fast. That means your window of opportunity to list your house hasn’t closed.


Bottom Line


Today’s housing market still favors sellers. If you’re ready to sell your house, let’s connect so you can start making your moves.


 ]]> </description>
    <pubDate>Thu, 04 Aug 2022 10:19:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/a-real-estate-professional-helps-you-separate-fact-from-fiction.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/a-real-estate-professional-helps-you-separate-fact-from-fiction.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>A Real Estate Professional Helps You Separate Fact from Fiction</title>
    <description> <![CDATA[ 



 




If you’re following the news, chances are you’ve seen or heard some headlines about the housing market that don’t give the full picture. The real estate market is shifting, and when that happens, it can be hard to separate fact from fiction. That’s where a trusted real estate professional comes in. They can help debunk the headlines so you can really understand today’s market and what it means for you.


Here are three common housing market myths you might be hearing, along with the expert analysis that provides better context.


Myth 1: Home Prices Are Going To Fall


One piece of fiction many buyers may have seen or heard is that home prices are going to crash. That’s because headlines often use similar, but different, terms to describe what’s happening with prices. A few you might be seeing right now include:




Appreciation, or an increase in home prices.


Depreciation, or a decrease in home prices.


And deceleration, which is an increase in home prices, but at a slower pace.




The fact is, experts aren’t calling for a decrease in prices. Instead, they forecast appreciation will continue, just at a decelerated pace. That means home prices will continue rising and won’t fall. Selma Hepp, Deputy Chief Economist at CoreLogic, explains:




“. . . higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”




Myth 2: The Housing Market Is in a Correction


Another common myth is that the housing market is in a correction. Again, that’s not the case. Here’s why. According to Forbes:




“A correction is a sustained decline in the value of a market index or the price of an individual asset. A correction is generally agreed to be a 10 to 20 drop in value from a recent peak.”




As mentioned above, home prices are still appreciating, and experts project that will continue, just at a slower pace. That means the housing market isn’t in a correction because prices aren’t falling. It’s just moderating compared to the last two years, which were record-breaking in nearly every way.


Myth 3: The Housing Market Is Going To Crash


Some headlines are generating worry that the housing market is a bubble ready to burst. But experts say today is nothing like 2008. One of the reasons why is because lending standards are very different today. Logan Mohtashami, Lead Analyst for HousingWire, explains:




“As recession talk becomes more prevalent, some people are concerned that mortgage credit lending will get much tighter. This typically happens in a recession, however, the notion that credit lending in America will collapse as it did from 2005 to 2008 couldn’t be more incorrect, as we haven’t had a credit boom in the period between 2008-2022.”




During the last housing bubble, it was much easier to get a mortgage than it is today. Since then, lending standards have tightened significantly, and purchasers who acquired a mortgage over the last decade are much more qualified than they were in the years leading up to the crash.


Bottom Line


No matter what you’re hearing about the housing market, let’s connect. That way, you’ll have a knowledgeable authority on your side that knows the ins and outs of the market, including current trends, historical context, and so much more.


 ]]> </description>
    <pubDate>Mon, 01 Aug 2022 15:08:00 -0500</pubDate>
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