West Savage Real Estate Blog

2 to Watch

Realtor Magazine lists these as two things to watch over the next year:  

1.   Closing Costs Up 8.8 Percent

Closing costs on mortgages have increased an average of 8.8 percent from a year ago.  Analysts attribute the increase to lenders having to do extra work in approving mortgage applications due to increased scrutiny and tighter lending regulations.  

2.   $5,000 Grants for First-Time Military Buyers

Active duty personnel, veterans, retired memebers fo the military, and employees of the US Department of Defense and the US Department of Homeland Security are eligible to apply for up to $5,000 in downpayment and closing costs in the purchase of a first home.  The national nonprofit Pentagon Federal Credit Union Foundation is offering the assistance through its Dream Makers program and says the grants can be applied to a mortgage from any financial institution.  More can be found at www.PentagonFoundation.org (Dream Makers link)

Weekly Market Activity Update - for the Week of August 29

 Our local housing Association reports: 

For the week ending August 20, Twin Cities home sellers continued to list fewer properties than last year at this time, as new listings were down 11.8 percent to 1,342. That makes for 11 consecutive weeks of (still welcome) declines. Meanwhile, buyer activity was up 53.3 percent over last year, the largest increase in 12 weeks and the 15th consecutive week of double-digit gains.

Inventory has been a winner all summer, and we haven't broken the positive pattern yet. The number of active listings for sale was down 20.0% from 2010 to 24,183 homes. That's the largest decline since the beginning of 2004 and represents more than 6,000 fewer homes on the market than at this time last year.

A flurry of housing and employment reports due out this week could set the stage for the rest of the year. These two economic indicators are more closely tied than ever.

 

Patience is a Virtue in Our Housing Marathon

It can be very difficult to explain why patience is so important in this market.  But it is.    It’s true that most sellers want a quick sale, and four months on the market can feel like forever.   A couple weeks ago we held our quarterly Open House Blitz,  a two-day marathon of open houses, and the comments from buyers resonated with us, because it speaks to the timing of our market.  

On a few of our listings, buyers indicated that they had been watching the house on the market and were hoping to get their current home sold so they could make an offer.  Until then, everyone will play the waiting game.   This is normal in our market, and not a sign that anything is wrong.  

That said, some homes are priced for a very quick sale - typically foreclosures.  This month, we saw the TRADITIONAL SALE home in The Pointe that was listed for $269,000 hit the market, and cars lined the street to get in. Everyone has been wondering, and the answer posted on MLS recently: It sold for $297,500 with $7,500 in seller concessions (i.e. net sales price of $290,000.)  

Let’s do a quick breakdown of the nature of our ACTIVE West Savage housing inventory:  There is 1 foreclosure on the market, 5 short sales and 15 traditional sales.   That equates to 29% of our market being distressed.   This number has come down quite a bit since early spring.    PENDING inventory equates to 1 short sale and 5 traditional sales.  Recent SALES (this Update) contain 2 distressed sales and 1 traditional sale (the one we just discussed in The Pointe.)

Our West Savage absorption rate is 6.63.   That means if zero new homes come on the market, it will take 6.63 months to sell our existing inventory.

Weekly Market Activity Update - Week of August 22

Our local REALTOR Association reports"

As the final days of summer start to wane, Twin Cities home buyers posted their 14th consecutive week of double-digit, year-over-year gains. For the week ending August 13, there were 47.4 percent more purchase agreements signed than during the same week last year. A total of 952 buyers entered contract.

Sellers continued their slowdown,  introducing only 1,387 new properties to the marketplace. That's 13.7 percent fewer than last year at this time. Slowed listings and comparatively strong sales figures have helped inventory levels post their largest weekly decline on record. The 24,232 active listings for sale were down 19.7 percent from last year. That record will likely be broken next week.

Renewed economic uncertainties combined with the Fed's announcement to maintain low interest rates could motivate some buyers to postpone their purchases. Though apparent in financial markets, the trepidation has yet to show up in local housing numbers. July's monthly data actually brought relief to some critical market indicators. Price declines are shrinking along with seller concessions, and absorption rates are finally moving in the right direction – toward balance.

While our market is experiencing the normal pre-Labor Day slowdown as people get kids ready for school and wrap up summer vacations, we ARE continuing to see buyers emerge into the marketplace.   The first week in August, we had two homes sell in one day - the day 30-year rates dropped to 3.75 percent - and the buyers on both homes had stipulations that our sellers needed to sign the purchase agreements by 9:00am the following morning before rates changed.    i.e. the low rates are definitely helping the market!  

JUST SOLD!*** Elegant POINTE Home - 8532 Carriage Hill Circle

***SOLD !!! *** This storybook, full-brick front POINTE home has everything one could desire!  A paver walkway leads to a custom front door opening into a grand foyer with open staircase. A formal living room with a soaring ceiling and a curved den flank the foyer. The kitchen is updated with stainless appliances, Cambria countertops and floors and oil-rubbed hardware. The formal dining room lies just off the kitchen. The main floor family room offers a huge, stone, wood-burning fireplace with built-ins, and a wall of windows overlooking the Minneapolis-St. Paul skyline. A deck lies off the kitchen. The main floor also offers a mud room and ½ bath.

The second floor boasts four bedrooms, including a large, vaulted master with private bath, dual sink vanity, whirlpool tub in breathtaking views. The master bedroom closet has an extensive custom shelving system. Another bath lies on the second floor.

The walkout basement was finished by TimberRidge and offers a wet bar, family room with gas fireplace, bedroom with French doors, ¾ bath, laundry (which can be placed upstairs) and patio access.

This home offers custom window treatments, many built-ins, jaw-dropping lighting, extensive landscaping and an in-ground sprinkler system.

24 Hour Recorded Message 1-800-605-6994 Ext. 530

VIEW OUR VIRTUAL TOUR or our ONLINE FLYER. 

Offered at $384,700

For more information on 8532 Carriage Hill Circle in The POINTE neighborhood of Savage, please contact Chad and Sara Huebener in the Scott County Regional office of Coldwell Banker Burnet at 952-212-3597. 

Weekly Market Activity Report

Our local REALTOR Association reports:  

While day traders continue along their roller coaster ride, 997 Twin Cities home buyers made the smart investment in real estate. That's 40.0 percent more than those who made the investment last year. As this year's pending sales trend line rounds off its seasonal peak, you'll notice that purchase demand is coming back in line with historical trends.     

Sellers were another story. There were 1,433 new listings, 18.7 percent fewer than this time last year. Seller activity has also likely reached its seasonal peak but remains below historical levels for this time of year. Consequently, buyers have effectively absorbed existing supply. That's a good thing. The number of active listings is down 18.5 percent to 24,362 available homes for sale.

With strong sales and less new supply entering the market, the balance is shifting toward neutral. Both the prevalence and magnitude of seller concessions have stabilized, and absorption rates improved in July after 12 months of sizable increases. Though still slightly lower than last summer, prices have increased nearly 18.0 percent from March to June of this year.

"The Monthly Skinny" - August 2011

Buyer activity is strong due, in part, to highly attractive financing rates.

JUST SOLD! Updated Ramber, Easy Style! 155 Pottok Lane

JUST SOLD!  This updated and comfortable rambler boasts easy living with updated style!   The kitchen includes wide-plank hardwood floors, 42” cabinetry, stainless appliances and a center island.  The vaulted living room has a triple panel window/door that looks out on a wetland. 

Just down the hall lies a full bathroom and two bedrooms.  The master bedroom has its own walk-in closet, private ¾ bath with curved shower and tile floors.  The walkout lower level awaits your finishing touches. 

This home includes the laundry appliances.  Surround sound and knockdown ceilings are additional amenities.  A concrete driveway and finished garage complete this home.  Move right in!

24-Hour Recorded Message   1-800-605-6994 Ext. 555

Offered at $184,700

This home is proudly marketed by Chad and Sara Huebener of Coldwell Banker Burnet.  For more information on 155 Pottok Lane, call 952-212-3597. 

Just SOLD in Summit Ponds! 13954 AQUILA COURT

JUST SOLD!   This exceptional home in the Summit Ponds neighborhood of Savage  offers updates galore!  Enjoy formal living and dining rooms, a kitchen with granite countertops, stainless appliances, brushed nickel hardware, center island and hardwood floors.  The spacious family room has a gas fireplace.  The second floor boasts a bright loft area perfect for reading or working, and three bedrooms, including a huge vaulted master suite with walk-in closet, private bathroom and whirlpool tub.  Another full bath lies on the second floor, and one of the secondary bedrooms also has a walk-in closet.

The finished lower level boasts 9’ ceilings and offers a huge wet bar for entertaining, including 42” maple cabinets, tile floors and a dishwasher.  Another family room, a large bedroom with French door entry, and several storage areas, also lie in the lower level. 

The home is outfitted with solid 6-panel doors, newer carpet and fresh paint.   The home has a new storm door, ceiling fans and paint.  The home includes a deck and a patio, as well as a fenced yard with in-ground sprinkler system and a shed.  The driveway has a new apron and has been seal-coated each year. 

24 Hour Recorded Message   1-800-605-6994   Ext. 560

VIEW OUR VIRTUAL TOUR or ONLINE FLYER.

Offered at $289,700

For more information on 13954 AQUILA COURT, please contact Chad and Sara Huebener in the Scott County Regional office of Coldwell Banker Burnet at 952-212-3597. 

JUST SOLD! - 3777 Burgundy Drive

JUST SOLD!!!   Welcome to Seneca Hills! This fabulous end-unit townhome offers maintenance-free living with upscale amenities! This impeccable home offers a two-story Great Room with gas fireplace, kitchen with hardwood floors and 42" cabinets, and a fabulous sun porch with French door entry, skylights and a wall of glass! Enjoy an enormous owner's suite with vaulted ceiling, grand windows and private bathroom with corner whirlpool tub. A large entryway, laundry room and deck also lie on the main floor. The second floor has a loft overlooking the Great Room and a large guest suite.

The walkout lower level is includes a large family room with gas fireplace, den with French door entry, bedroom with walk-in closet, storage room and huge utility room. The lower level has a covered patio.

This turnkey home offers beautiful architectural details, solid-6-panel doors, sconce and recessed lighting, tile and hardwood floors and wood blinds. Unpack your bags and enjoy!

Offered at $274,900

24 Hour Recorded Message 1-800-605-6994 Ext 569

View our ONLINE FLYER or VIRTUAL TOUR for 3777 Burgundy Drive!   View our COLDWELL BANKER ON LOCATION video!

This home is proudly marketed by Chad and Sara Huebener of Coldwell Banker Burnet in the Scott County Regional office.   For more information call 952-212-3597.