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        <title>Real Estate Blog</title>
        <link>http://www.minneapolisurbanhomes.com/blog/2023-07/</link>
        <description></description>
<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/pricing-your-house-right-still-matters-today.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/pricing-your-house-right-still-matters-today.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Pricing Your House Right Still Matters Today</title>
    <description> <![CDATA[ 



 


While this isn’t the frenzied market we saw during the ‘unicorn’ years, homes that are priced right are still selling quickly and seeing multiple offers right now. That’s because the number of homes for sale is still so low. Data from the National Association of Realtors (NAR) shows 76 of homes sold within a month and the average saw 3.5 offers in June.


To set yourself up to see advantages like these, you need to rely on an agent. Only an agent has the expertise needed to find the right asking price for your house. Here’s what’s at stake if that price isn’t accurate for today’s market value.


The price you set for your house sends a message to potential buyers.


Price it too low and you might raise questions about your home’s condition or lead buyers to assume something is wrong with it. Not to mention, if you undervalue your house, you could leave money on the table, which decreases your future buying power.


On the other hand, price it too high and you run the risk of deterring buyers from ever touring it in the first place. When that happens, you may have to do a price drop to try to re-ignite 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 why the price was reduced and what that means about the home.


A recent article from NerdWallet sums it up like this:


&quot;Your house’s market debut is your first chance to attract a buyer and it’s important to get the pricing right. If your home is overpriced, you run the risk of buyers not seeing the listing . . . But price your house too low and you could end up leaving some serious money on the table. A bargain-basement price could also turn some buyers away, as they may wonder if there are any underlying problems with the house.&quot;


Think of pricing your home as a target. Your goal is to aim directly for the center – not too high, not too low, but right at market value.


Pricing your house fairly based on market conditions increases the chance you’ll have more buyers who are interested in purchasing it. That makes it more likely you’ll see multiple offers too. Plus, when homes are priced right, they still tend to sell quickly.


To get a high-level look into the potential downsides of over or underpricing your house and the perks that come with pricing it at market value, see the chart below:





Lean on a Professional’s Expertise to Price Your House Right


So why is an agent essential in finding the right price? Your local agent has the skill and the insight necessary to find the market value of your home. They’ll use their expertise to determine a realistic listing price by assessing:




The prices of recently sold homes


The current market conditions


The size and condition of your house


The location of your house




Bottom Line


Pricing your house at market value is critical, so don’t rely on guesswork. Let’s connect to make sure your house is priced right for today’s market.
 ]]> </description>
    <pubDate>Mon, 31 Jul 2023 09:55:00 -0500</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/homebuyers-are-still-more-active-than-usual.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/homebuyers-are-still-more-active-than-usual.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Homebuyers Are Still More Active Than Usual</title>
    <description> <![CDATA[ 



 


Even though the housing market is no longer experiencing the frenzy that was so characteristic of the last couple of years, it doesn’t mean today’s market is at a standstill. In actuality, buyer traffic is still strong today.


The ShowingTime Showing Index is a measure of how much buyers are touring homes. The graph below uses that index to illustrate buyer activity trends over time to help put today into the proper perspective.





It shows there’s seasonality in real estate. If you look at the last normal years in the market (shown in gray), there was a consistent pattern as buyer activity peaked in the first half of each year (during the peak homebuying season in the spring) and slowed as each year came to a close.


When the pandemic hit in March of 2020, that trend was disrupted as the market responded to the resulting uncertainty (shown in blue in the middle). From there, we entered the ‘unicorn’ years of housing (shown in pink). This is when mortgage rates were record-low and buyer demand was sky high. Similar seasonal trends still existed even during that time, just at much higher levels.


Now, let’s look at 2023. Traffic is down from the previous month and it’s also lower than the peaks we saw in the ‘unicorn’ years. But what’s happening isn’t a steep drop off in demand – it’s a slow return toward more normal seasonality. As the ShowingTime report explains:


“Showing traffic declined about 10 in May . . . This follows a typical seasonal pattern – disrupted by the pandemic but now beginning to return . . .”


And, to highlight this isn’t a drastic decline, let’s zoom in. Here’s a graph using just the May data for the last five years. It shows just how strong buyer demand still is.





What Does That Mean for You?


Buyers are still out there touring homes. They’re more active than they were in May 2022 (when sticker shock over higher mortgage rates started to set in) and certainly more than they were in the last normal years. So, remember, buyer activity is still strong. And it could actually be even stronger if it wasn’t constrained by the limited supply of homes for sale. According to U.S. News:


“Housing markets have cooled slightly, but demand hasn’t disappeared, and in many places remains strong largely due to the shortage of homes on the market.”


Bottom Line


Don’t lose sight of just how active the market still is today. If your house isn’t on the market, it’s not getting in front of all those buyers who are looking to make a purchase right now. Let’s connect to start the process.
 ]]> </description>
    <pubDate>Thu, 27 Jul 2023 10:30:00 -0500</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/tips-for-making-your-best-offer-on-a-home.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/tips-for-making-your-best-offer-on-a-home.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Tips for Making Your Best Offer on a Home</title>
    <description> <![CDATA[ 



 


While the wild ride that was the ‘unicorn’ years of housing is behind us, today’s market is still competitive in many areas because the supply of homes for sale is still low. If you’re looking to buy a home this season, know that the peak frenzy of bidding wars is in the rearview mirror, but you may still come up against some multiple-offer scenarios.


Here are a few things to consider to help you put your best foot forward when making an offer on a home.


1. Lean on a Real Estate Professional


Rely on an agent who can support your goals and help you understand what’s happening in today’s housing market. Agents are experts in the local market and on the national trends too. They’ll use both of those areas of expertise to make sure you have all the information you need to move with confidence.


Plus, they know what’s worked for other buyers in your area and what sellers may be looking for in an offer. It may seem simple, but catering to what a seller needs can help your offer stand out. As an article from Forbes says:


&quot;Getting to know a local realtor where you’re hoping to buy can also potentially give you a crucial edge in a tight housing market.&quot;


2. Get Pre-Approved for a Home Loan


Having a clear budget in mind is especially important right now given the current affordability challenges. The best way to get a clear picture of what you can borrow is to work with a lender so you can get pre-approved for a home loan.


That’ll help you be more financially confident because you’ll have a better understanding of your numbers. It shows sellers you’re serious, too. And that can give you a competitive edge if you do get into a multiple-offer scenario.


3. Make a Fair Offer


It’s only natural to want the best deal you can get on a home. However, submitting an offer that’s too low does have some risks. You don’t want to make an offer that will be tossed out as soon as it’s received just to see if it sticks. As Realtor.com explains:


“. . . an offer price that’s significantly lower than the listing price, is often rejected by sellers who feel insulted . . . Most listing agents try to get their sellers to at least enter negotiations with buyers, to counteroffer with a number a little closer to the list price. However, if a seller is offended by a buyer or isn’t taking the buyer seriously, there’s not much you, or the real estate agent, can do.”


The expertise your agent brings to this part of the process will help you stay competitive and find a price that’s fair to you and the seller.


4. Trust Your Agent’s Expertise Throughout Negotiations


During the ‘unicorn’ years of housing, some buyers skipped home inspections or didn’t ask for concessions from the seller in order to submit the winning bid on a home. An article from Bankrate explains this isn’t happening as often today, and that’s good news:


“While the market has largely calmed down since then, sellers are still very much in the driver’s seat in this era of scarce housing inventory. It’s not as common for buyers to waive inspections anymore, but it does still happen. . . . It’s in the buyer’s best interest to have a home inspected . . . Inspections alert you to existing or potential problems with the home, giving you not just an early heads up but also a useful negotiating tactic.”


Fortunately, today’s market is different, and you may have more negotiating power than before. When putting together an offer, your trusted real estate advisor will help you think through what levers to pull and which ones you may not want to compromise on.


Bottom Line


When you buy a home this summer, let’s connect so you have an expert on your side who can help you make your best offer.
 ]]> </description>
    <pubDate>Wed, 26 Jul 2023 09:56:00 -0500</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/real-estate-continues-to-be-the-best-investment.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/real-estate-continues-to-be-the-best-investment.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Real Estate Continues To Be the Best Investment</title>
    <description> <![CDATA[ 



 





Some Highlights




According to a recent Gallup poll, real estate has been voted the best long-term investment for 11 years in a row, beating gold, stocks, bonds, and more.


Owning real estate means more than just having a home—it’s an investment in your future. That’s because it’s typically a stable and secure asset that tends to increase in value as time goes on.


Let’s connect if you’re ready to buy a home and invest in your future.




 
 ]]> </description>
    <pubDate>Fri, 21 Jul 2023 15:54:00 -0500</pubDate>
</item>
<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/owning-your-home-helps-you-build-wealth.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/owning-your-home-helps-you-build-wealth.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Owning Your Home Helps You Build Wealth</title>
    <description> <![CDATA[ 



 


You may have heard some people say it’s better to rent than buy a home right now. But, even today, there are lots of good reasons to become a homeowner. One of them is that owning a home is typically viewed as a good long-term investment that helps your net worth grow over time.


Homeownership Builds Wealth Regardless of Income Level


You may be surprised to learn homeowners across various income levels have a much higher net worth than renters who make the same amount. Data from First American helps illustrate this point (see graph below):





What makes wealth so much higher for homeowners? A recent article from Realtor.com says:


“Homeownership has long been tied to building wealth—and for good reason. Instead of throwing rent money out the window each month, owning a home allows you to build home equity. And over time, equity can turn your mortgage debt into a sizeable asset.”


Basically, the wealth you accumulate when you own a home has a lot to do with equity. As a homeowner, equity is built up as you pay down your loan and as home prices appreciate over time. Mark Fleming, Chief Economist at First American, explains how this same benefit isn’t true for renters in a recent podcast:


“Renters as non-homeowners gain no wealth benefit as home prices rise. That wealth actually accrues to the landlord.”


Before you decide to sign another rental agreement, now is a good time to think about whether it would be better for you to buy a home instead. The best way to figure out what makes sense for you is to have a conversation with a real estate expert you trust. That professional can talk you through the benefits that come with owning to determine if that’s the right next step for you. 


Bottom Line


If you're not sure whether to keep renting or to buy a home, know that owning a home, no matter how much money you make, can help build your wealth. Let's connect now to get started on the path to homeownership.
 ]]> </description>
    <pubDate>Thu, 20 Jul 2023 16:59:00 -0500</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/homebuyers-are-getting-used-to-the-new-normal.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/homebuyers-are-getting-used-to-the-new-normal.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Homebuyers Are Getting Used to the New Normal</title>
    <description> <![CDATA[ 



 


Before you decide to sell your house, it’s important to know what you can expect in the current housing market. One positive trend right now is homebuyers are adapting to today’s mortgage rates and getting used to them as the new normal.


To better understand what’s been happening with mortgage rates lately, the graph below shows the trend for the 30-year fixed mortgage rate from Freddie Mac since last October. As you can see, rates have been between 6 and 7 pretty consistently for the past nine months:





According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), mortgage rates play a significant role in buyer demand and, by extension, home sales. Yun highlights the positive impact of stable rates:


“Mortgage rates heavily influence the direction of home sales. Relatively steady rates have led to several consecutive months of consistent home sales.”


As a seller, hearing that home sales are consistent right now is good news. It means buyers are out there and actively purchasing homes. Here’s a bit more context on how mortgage rates have impacted demand recently.


When mortgage rates surged dramatically last year, escalating from roughly 3 to 7, many potential buyers felt a bit of sticker shock and decided to hold off on their plans to purchase a home. However, as time has passed, that initial shock has worn off. Buyers have grown more accustomed to current mortgage rates and have accepted that the record-low rates of the last few years are behind us. As Doug Duncan, SVP and Chief Economist at Fannie Mae, says:


“. . . consumers are adapting to the idea that higher mortgage rates will likely stick around for the foreseeable future.”


In fact, a recent survey by Freddie Mac reveals 18 of respondents say they’re likely to buy a home in the next six months. That means nearly one out of every five people surveyed plan to buy in the near future. And that goes to show buyers are planning to be active in the months ahead.


Of course, mortgage rates aren’t the sole factor affecting buyer demand. No matter where mortgage rates stand, people will always have reasons to move, whether it’s for job relocation, changing households, or any other personal motivation. As a seller, you can feel confident there is a market for your house today. And that demand is pretty strong as buyers settle into where rates are right now. 


Bottom Line


The way buyers perceive today’s mortgage rates is shifting – they’re getting used to the new normal. Steady rates are contributing to strong buyer demand and consistent home sales. Let’s connect so we can get your house on the market and in front of those buyers.
 ]]> </description>
    <pubDate>Tue, 18 Jul 2023 09:29:00 -0500</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/home-prices-are-rebounding.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/home-prices-are-rebounding.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Home Prices Are Rebounding</title>
    <description> <![CDATA[ 



 


If you’re following the news today, you may feel a bit unsure about what’s happening with home prices and fear whether or not the worst is yet to come. That’s because today’s headlines are painting an unnecessarily negative picture. If we take a year-over-year view, home prices did drop some, but that’s because we’re comparing to a ‘unicorn’ year when prices peaked well beyond the norm.


To avoid an unfair comparison to that previous peak, we need to look at monthly data. And that tells a very different and much more positive story. While local home price trends still vary by market, here’s what the national data tells us.


The graphs below use recent monthly reports from three sources to show the worst home price declines are already behind us, and prices are appreciating nationally.


 


Looking at this monthly view, we can see the past year in the housing market can be divided into two parts. In the first half of 2022, home prices were going up, and fast. However, starting in July, prices began to go down (shown in red in the graphs above). By around August or September, the trend started to stabilize. But, looking at the most recent data for early 2023, these graphs also show that prices are going up again.


The fact that all three reports show prices have been going up for three or more straight months is an encouraging sign for the housing market. The month-over-month data indicates a national shift is happening – home prices are rising again.


Craig J. Lazzara, Managing Director at S&amp;P Dow Jones Indices, says this about home price trends:


“If I were trying to make a case that the decline in home prices that began in June 2022 had definitively ended in January 2023, April’s data would bolster my argument.” 


Experts believe one of the reasons prices didn’t crash like some expected is because there aren’t enough available homes for the number of people who want to buy them. Even with today’s mortgage rates, there are more people looking to buy than there are homes available for sale.


Mark Fleming, Chief Economist at First American, explains how more demand than supply keeps upward pressure on prices:


“History has shown that higher rates may take the steam out of rising prices, but it doesn’t cause them to collapse entirely. This is especially true in today’s housing market, where the demand for homes continues to outpace supply, keeping the pressure on house prices.&quot;


Doug Duncan, Senior VP and Chief Economist at Fannie Mae, states home price growth is exceeding expectations thanks to that high demand:


“. . . housing prices continue to show stronger growth than what was previously expected . . . Housing’s performance is a testimony to the strength of demographic-related demand . . .”


Here’s How This Affects You




Buyers: If you've been holding off on buying because you were worried the value of your home would go down, knowing home prices have bounced back should bring you some relief. It also gives you the opportunity to own something that usually becomes more valuable as time goes on.


Sellers: If you've been waiting to sell your house because you were concerned about how changing home prices would affect its value, it might be a good idea to team up with a real estate agent to list your house. You don't have to wait any longer because the latest data suggests things are turning in your favor.




Bottom Line


If you delayed your moving plans because you were concerned about home prices dropping, the latest data reveals the worst is already over, and prices are appreciating nationally. Let's get in touch so you know what's happening with home prices in our area.
 ]]> </description>
    <pubDate>Mon, 17 Jul 2023 09:47:00 -0500</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/how-remote-work-expands-your-homebuying-horizons.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/how-remote-work-expands-your-homebuying-horizons.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>How Remote Work Expands Your Homebuying Horizons</title>
    <description> <![CDATA[ 



 


Even as some companies transition back into the office, remote work remains a popular choice for many professionals. So, if you currently enjoy working from home or hope to be able to soon, you’re not alone. According to a recent survey, most working professionals want to work either fully remote or hybrid (see below):





This trend is good news if you’re looking to buy a home because a remote or hybrid work setup can help you overcome some of today’s affordability and housing inventory challenges.


More Work Flexibility Equals More Home Options


Remote or hybrid work opens up a world of opportunities. That’s because it allows you to broaden your search for your next home since you’re no longer limited to living close to your workplace. With the freedom to work from anywhere, you can explore more affordable areas that may be located farther away from bustling city centers or your office. This flexibility can be a game changer while higher mortgage rates are making it difficult for some homebuyers to afford a home.


An article from the New York Times (NYT) highlights how remote work can greatly assist you in overcoming that challenge:


“. . . take advantage of the opportunity remote work has presented to move to more affordable communities (either farther out in the suburbs, or in another part of the country).”


And, since the supply of homes for sale is still so low, another key challenge for you today may be finding something with all of the features you want and need. Because remote work allows you to broaden your search radius to include additional areas, you may actually have less trouble finding a home with the features you want the most because you’ll have a bigger pool of options to pick from.


Working remotely gives you the flexibility to find an affordable home with the features you want. In other words, you have a better chance of getting what you need without blowing your budget. 


Bottom Line


Working remotely not only gives you more flexibility in your job but also presents a great chance to broaden your search for a home. Since you're not limited to a specific location, you have the opportunity to explore more options. Let's get in touch to discuss how this can expand your choices and help you find the perfect home.
 ]]> </description>
    <pubDate>Thu, 13 Jul 2023 10:48:00 -0500</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/renting-or-selling-your-house-whats-the-best-move.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/renting-or-selling-your-house-whats-the-best-move.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Renting or Selling Your House: What's the Best Move?</title>
    <description> <![CDATA[ 



 


If you’re a homeowner ready to make a move, you may be thinking about using your current house as a short-term rental property instead of selling it. A short-term rental (STR) is typically offered as an alternative to a hotel, and they’re an investment that’s gained popularity in recent years.


While a short-term rental can be a tempting idea, you may find the reality of being responsible for one difficult to take on. Here are some of the challenges you could face if you rent out your house instead of selling it.


A Short-Term Rental Comes with Responsibilities


Successfully managing your house as a short-term rental takes a lot of time and effort. You’ll have to juggle tasks like dealing with reservations, organizing check-ins, and tackling cleaning, landscape, and maintenance duties. Any one of those can feel demanding, but all together it’s a lot to handle.


Short-term rentals experience high turnover rates, as new guests check in and out frequently. This home traffic can lead to increased wear and tear on your property—meaning you may need to make more frequent repairs or replace your furniture, fixtures, and appliances more often. 


Think through your ability to make that level of commitment, especially if you plan to use a platform that advertises your rental listing. Most of them have specific requirements hosts must meet. An article from Bankrate explains:


&quot;Managing a rental property can be time-consuming and challenging. Are you handy and able to make some repairs yourself? If not, do you have a network of affordable contractors you can reach out to in a pinch? Consider whether you want to take on the added responsibility of being a landlord, which means screening tenants and fielding issues, among other responsibilities, or paying for a third party to take care of things instead.&quot;


There’s a lot to consider before taking the leap and converting your house into a short-term rental. If you aren’t ready for the work it takes, it could be wise to sell instead.


Short-Term Rental Regulations


As the short-term rental industry continues to grow, regulations have increased. Legal restrictions commonly include limits on the number of vacation rentals in a particular location. This is especially true in larger cities and tourist destinations where there may be concerns about overcrowding or housing shortages for permanent residents. Restrictions may also apply to the type of property that can be used for short-term rentals.


Many cities also require homeowners to obtain a license or permit before renting out their properties. Nick Del Pego, CEO at Deckard Technologies, explains:


“Renting short-term rentals is considered a business by most local governments, and owners must comply with specific workplace regulations and business licensing rules established in their local communities.”


It is important to thoroughly check whether short-term rentals are regulated or prohibited by the local government and your homeowners association (HOA) before even considering renting out your home. 


Bottom Line


Converting your home into a short-term rental isn’t a decision you should make without doing your research. To decide if selling your house is a better alternative, let’s connect today.
 ]]> </description>
    <pubDate>Wed, 12 Jul 2023 16:36:00 -0500</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/todays-housing-inventory-is-a-sweet-spot-for-sellers.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/todays-housing-inventory-is-a-sweet-spot-for-sellers.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Today’s Housing Inventory Is a Sweet Spot for Sellers</title>
    <description> <![CDATA[ 



 


One of the biggest challenges in the housing market right now is how few homes there are for sale compared to the number of people who want to buy them. To help emphasize just how limited housing inventory still is, let’s take a look at the latest information on active listings, or homes for sale in a given month, as it compares to more normal levels.


According to a recent report from Realtor.com: 


 “On average, active inventory in June was 50.6 below pre-pandemic 2017–2019 levels.”


The graph below helps illustrate this point. It uses historical data to provide a more concrete look at how much the numbers are still lagging behind the level of inventory typical of a more normal market (see graph below):





It’s worth noting that 2020-2022 are not included in this graph. That’s because they were truly abnormal years for the housing market. To make the comparison fair, those have been omitted so they don’t distort the data.


When you compare the orange bars for 2023 with the last normal years for the housing market (2017-2019), you can see the count of active listings is still far below the norm.


What Does This Mean for You? 


If you’re thinking about selling your house, that low inventory is why this is a great time to do so. Buyers have fewer choices now than they did in more normal years, and that’s continuing to impact some key statistics in the housing market. For example, sellers will be happy to see the following data from the latest Confidence Index from the National Association of Realtors (NAR):




The percent of homes that sold in less than a month ticked up slightly to 74. 


The median days on market went down to 18 days, showing homes are still selling fast when priced right. 


The average number of offers on recently sold homes went up to 3.3 offers.




Bottom Line


When supply is so low, your house is going to be in the spotlight. That’s why sellers are seeing their homes sell a little faster and get more offers right now. If you’ve thought about selling, now’s the time to make a move. Let’s connect to get the process started.
 ]]> </description>
    <pubDate>Thu, 06 Jul 2023 10:16:00 -0500</pubDate>
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