West Savage Real Estate Blog

"The Skinny" - November 2009

Just SOLD in the Woodhill Neighborhood!

SOLD in 58 Days!

 

This rare-find rambler has a full brick front and sits on an almost half-acre, walkout cul de sac lot.  This home boasts features such as tile floors, custom cherry cabinets in the kitchen and bathrooms, maple trim, solid doors throughout and 12' knockdown ceilings.

The foyer is spacious and opens to a bright den with French doors.  The main floor living room has large windows overlooking the private, wooded backyard.  The kitchen has a center island with breakfast bar, Corian countertops, and an incredible amount of cupboard space.  A custom backsplash adds a warm and rich touch.  The kitchen opens to a huge sunroom/dining room with walls of windows!   The sunroom walks out to a large, maintenance-free deck with stair access to the backyard.  A half bath and laundry room with custom cherry cabinets also lies on the main floor, just off the kitchen. 

Walk down the hall past a large linen closet to the vaulted master suite with luxurious private bathroom.  The bathroom features tile floors, his-and-hers vanities, corner whirlpool tub, and a separate shower.  The master closet is enormous and features two windows to let in natural light.

The walkout lower level features a large family room with gas fireplace and cherry bar.  Two bedrooms and another full bathroom are just down the hall.  The exercise room can be coverted into a fourth bedroom if needed.

This home is located in Woodhill in the Prior Lake Savage School District 719 and is close to parks, walking trails and shopping. 

For more information on this fine home, view our online flyer, or check out other details here.

$6500 EXISTING HOMEOWNER Tax Credit Details

Here are some details on the tax credits, including the newly added $6,500 Tax Credit. We will also email a copy to this flyer to you upon request.

West Savage Market Is Cooling...and Some Interesting Inventory Tidbits

By Chad Huebener

 

The market is cooling in West Savage, both in terms of active listings and sales.  Total listings are down to just 13 – sitting at about 43% of the typical supply.  This is amazingly low.   15% of these active properties are short sales or foreclosures.  Fortunately this number is far below the metro market average of about 50%.  

 

Even more noteworthy, for the month of October, the most fascinating statistic lies in The Pointe neighborhood – a neighborhood of 242 homes which, for most of the month, had only one home on the market.   There are now two active listings in The Pointe, and 50% fall into the short sale/foreclosure category.   

 

The absence of For Sale signs has become an interesting trend.   31% of West Savage inventory, including 100% of the inventory in The Pointe, Hamilton Hills, and Hamilton Hylands, have no yard signs.  One property in Hamilton Hills has been converted into a rental, but remains on the market with no sign.   Residents should be aware that some homes with For Sale signs are no longer active on the market, but the signs remain posted.  

 

What to watch for:    It will be interesting to observe the effect of the new $6,500 Tax Credit for existing homeowners.  The tax credit applies to those who have lived in their homes for at least five years and will purchase a new primary residence, with a binding Purchase Agreement secured by April 30, 2010, closing no later than June 30, 2010.   We predict we might see an early spring.  In real estate terms, this means we think sellers will enter the market (and buyers begin looking for homes) sooner rather than later, in order to get their Purchase Agreements solidified before the tax credit expires. 

 

Inventory is down for Savage as a whole and Scott County.  This is typical of this time of year, and we expect to see this remain steady through the winter.

 

Our West Savage absorption rate is 4.5%.   That means if zero new homes come on the market, it will take 4.5 months to sell our existing inventory.  This is a nice, low absorption rate!

Tax Credit for Existing Homeowners Now Available

Regarding our earlier post on the hopeful extension of the tax credit....  The extension and modification of the tax credit was just approved and signed by the President.  This is great news for first time homebuyers and existing homeowners alike.

First time buyers will continue to receive the $8000 tax credit, and existing homeowners who have owned their home for at least five years are eligible to receive a $6500 tax credit if they purchase a new home.  The new home must be their principal residence costing $800,000 or less   - i.e. no vacation homes apply.   To be  eligible to receive the new tax credit, parties must have entered into a valid purchase agreement by April 30, 2010 and close on their home by June 30, 2010. 

There are some income limitations on the tax credit.  Individuals with incomes higher than $125,000, or join filers with incomes above $225,000 are not eligible.   Below is a 6-minute video on the tax credit (about 1-1/2 minutes of it are a thank you message). 

If you have hesitated about moving, consider the tax credit, paired with the incredibly low inventory in West Savage right now -  (50% of the norm).   While we have always felt the first time buyer tax credit had a positive impact on our market, we are glad to see  that the newly revised tax credit finally is applicable for existing homeowners in our West Savage marketplace.

"The Skinny" - November 2009

Tax Credit Might Be for Existing Homeowners .... Stay Tuned

By Sara Huebener

Some popular news is being discussed in the real estate industry these days.  Chris Galler, a highly respected former colleague of mine from my days at the REALTOR Association, frequently puts out information to local REALTORS covering timely topics.  Here is one that we thought might be of interest to ALL West Savage homeowners:

The First Time Homebuyer Tax Credit is set to expire on November 30 of this year.  Right now, the House and the Senate are modifying the tax credit to include the following alterations.   Stay posted to our blog where we will be notifying homeowners if and when these changes get approved. 

PROPOSED CHANGES INCLUDE:

1.  The $8000 First Time Homebuyer Tax Credit would remain in effect for those purchasing their first home. 

2.   Existing homeowners who have lived in their home for at least 5 years would be eligible for a $6,250 tax credit if they choose to sell their home and purchase another home.

3.  The tax credit would be extended from December through April 30, 2010. 

4.   The tax credit would not have a hard close date like the current tax credit does.   Currently, first time buyers must CLOSE on the property on or before November 30, 2009.   The new plan would allow first or existing homeowners to secure a purchase agreement by April 30, 2010, allowing 60 days to close on the home after the purchase agreement has been secured. 

Again, these details are not yet set in stone and are still moving through the House and Senate.  Keep watching www.WestSavageBlog.com for status updates!

60 Minutes - Predictions on the Market

The following is a 60 Minutes video that is interesting. When watching the video, the initial feeling might be somewhat depressing. However, keep in mind a number of factors:

1. The video pertains to the housing market on a national level. It discusses inventory on the rise. In our pocket of West Savage, inventory has dropped steeply. As of November 2, 2009, inventory in West Savage is down 50%.

2. The video predicts another wave of foreclosures coming in 2010 and 2011. This is something we have long been discussing in communications with West Savage homeowners. We expect that many of the ARMS will be resetting in these upcoming couple of years. Knowing that, many lenders are offering loan modifications to troubled borrowers. While the long-term success of these programs is yet to be discovered, we know that from an initial standpoint, it has staved off a few of the foreclosures that would have otherwise hit our local market. It can be expected that some of those who underwent loan mods will eventually default on those as well. The rate of this is still to be determined.

3. The video discusses that home prices will continue to fall. On a national scale that is most certainly true. And we really cannot predict what will happen to us locally. We can state that, at least in this part of West Savage, the steep drops in inventory have helped slow the pricing fall. What winter will bring is anybody's guess. But right now, here in West Savage, we are seeing a stabilizing of pricing, as we head into winter. We hope that trend will continue through Minnesota's coldest months.

So then, why are we posting this video? We think it contains some interesting points of value on a national scale. Homeowners with any plans for selling in the future should be aware that these ARMS are going to resetting in large waves. How they are dealt with (i.e. refinancing, loan modifications, foreclosure, etc.) is anybody's guess at this point. And how many will affect our local market, no one knows.