Twin Cities West Metro Real estate

Commentary:Mortgage investors continue to deal with headlines from Greece and today those headlines are shaded towards the possibility that the long awaited financial rescue agreement will be in place before the end of the day on Monday. Investors will likely be hesitant to move mortgage interest rates lower as the long weekend approaches and negotiations over Greece’s debt restructuring are still unresolved. The risk of a Greek sovereign debt default is not yet off of the table.

Here at home the Labor Department reported a 0.9% spike in gasoline prices in January pushed the overall consumer price index up to its fastest clip in four months. The 0.2% increase in the headline Consumer Price Index was just below most economists’ projections calling for a 0.3% surge in the pace of inflation at the consumer level. The so called “core rate”, a value that strips out the more volatile food and energy components, rose 0.2% — generally in-line with expectations. Most mortgage investors were quick to note the rate of core price increases over the 12-month period ending in January unexpectedly climb to 2.3%.

Here’s the “so what” factor buried within this pile of statistical mumbo-jumbo – the increase in the 12-month core reading, which is viewed by most investors as a barometer of inflation trends, is starting to suggest the underlying pace of inflation pressure may not be as benign as previously thought – a condition that is almost certain to make investors think twice before considering a move to nudge mortgage interest rates noticeably lower from current levels.

Looking ahead to the coming holiday shortened trading week Uncle Sam will be in the credit markets from Tuesday through Thursday conducting auctions to sell a total of $99 billion worth of debt in the form of 2-, 5- and 7-year notes. This week’s sell-off in the Treasury market has probably pushed the price of these three securities down to levels that will likely prove attractive to the global investment community. If so, well bid auctions will tend to be supportive of steady mortgage interest rates.

In terms of macro-economic data — mortgage investors will get a look at the condition of the single-family housing sector when the National Association of Realtors releases their January Existing Home Sales figures on Wednesday. On Friday the government will release last month’s New Home Sales figures. Both reports are expected to show demand in the housing sector remains soft – a condition that will not likely influence the trend trajectory of mortgage interest rates one way or the other.

Mortgage Rates as of Friday February 17, 2012 ( purchase transactions )

30 day rate locks, subject to credit score and loan to value edits

FHA

30 year fixed 3.75% 0% origination fee or 3.5% with 1.0% origination fee

Conventional

30 year fixed rate 3.875%

15 year fixed rate 3.25%

5/1 ARM 2.875%

7/1 ARM 3.125%

Rates change constantly, call or email me for an update anytime!

The National Association of Homebuilders index recently rose to levels not seen since 2007. Historically, it’s been a great leading indicator of housing starts. We lead with this information because it is just the latest in a series of testimonials toward a market with some wind in its sails. In as few as four months, the residential real estate scene could look quite different than it has in recent years. That’s not to say that we’re wave riding our way to a national housing boom, but market fundamentals could be steering the rudder in the direction of calmer waters. For sellers eager to get out but unwilling to take capital losses, that’s more relieving than the usual threat of hull breach.

In the Twin Cities region, for the week ending February 11:

• New Listings decreased 0.4% to 1,313 • Pending Sales increased 28.9% to 928 • Inventory decreased 23.5% to 17,690

For the month of January:

• Median Sales Price decreased 3.4% to $140,000 • Days on Market decreased 8.5% to 142 • Percent of Original List Price Received increased 3.4% to 91.2% • Months Supply of Inventory decreased 34.6% to 4.7

Local Market Updates

Uptown Minneapolis:

There are 112 ACTIVE LISTINGS. There were 10 NEW LISTINGS, 3 PENDING & 1 SOLD LISTING last week.

Columbia Heights:

There are 42 ACTIVE LISTINGS. There were 5 NEW LISTINGS, 3 PENDING & NO SOLD LISTINGS last week.

Original article By Erica Christoffer, multimedia Web producer, REALTOR® Magazine

Looking for quick, easy ideas to bring a home to life, add value, or prep for sale without spending a lot? Learn from the pros! Designers who presented at the International Builders’ Show in Orlando last week had a plethora low-cost, chic ideas to make the most of an interior space.

1. Transform closets: You might consider turning a smaller, awkward closet into a built-in with cabinetry and shelving, or if there’s enough space, even a desk nook. Add dramatic dimension with disc lighting on each shelf. People are looking to maximize every inch of a home with workspaces and storage solutions they’ll actually use. (Jerry Collin, Kay Green Design) [Here are some great before and after closet transformations from Real Simple.]

2. Create a ‘Garage Mahal’: Make the garage an attractive space with a dedicated recycling area, wall mounted shop-vacuum, and maybe a mini (or big) refrigerator for adult beverages. When in doubt, hang it up – provide hanging areas for bikes, tools, equipment, etc. Consider installing a workbench and storage. (Jillian Prichard Cooke, DES-SYN)

3. Avoid seasonal colors: Greys and stone colors are the new neutrals. Accent them with bursts of bright blues, oranges or reds. (Marc Thee, Marc-Michaels Interior Design)

4. Provide simple luxury: A foldout cabana, two outdoor lounge chairs, and a small table is an inexpensive way to give a backyard living space a sense of luxury. Stage it with candles, flowers or cool drinks (iced tea, lemonade, water, etc.)  (Jillian Prichard Cooke, DES-SYN)

5. Set the mood:  Try halogen narrow spot bulbs to create warm, pooled light for romantic shadows and definition. (Marc Thee, Marc-Michaels Interior Design)

6. Faux wood: Textured wall finishes add weight to a space, which can provide warmth and richness to great rooms. Wood mimicking wallpaper is a great way to get the look of wood paneling without big cost or long-term commitment. (Marc Thee, Marc-Michaels Interior Design)

7. Inexpensive creativity: Molding brings depth and clever detail to a space a low-cost: for example, use molding assembled as a square over a bed with two smaller pictures hung side-by-side within the square. (Jillian Prichard Cooke, DES-SYN)

These are just a few easy ways to transform the look of your house without spending a lot. For more ideas and creative tips, check back next week!

By Dian Hymer, Monday, February 13, 2012 for Inman News®

Some homeowners have been waiting for years for a better  housing market and a good time to sell. Is it better to wait a few more years  and see if you can realize a higher sale price, or sell now and move on with  your life?

The motivation for selling is a key factor. Are you  commuting to work several hours a day and the commute is killing you? Are your  children grown and your home is now too big, in addition to being a burden to  maintain? Is your home too small? Have you taken a job out of the area? Can you  no longer afford to own your home? Or do you no longer want to pay the price it  costs to own your home?

These are all good reasons for considering making a move.  Not only do current market conditions enter into the equation, but making a  move like this is usually more complicated than it was the first time you  bought a home.

HOUSE HUNTING TIP: First, you need to find out the probable  sale price of your home and access the state of the current home-sale market in  your area. You also need to know what you can do to maximize the salability of  your home. Then you should consider where you’ll live next and how much that  will cost.

You’ll also want to know how long you can expect it to take  to sell your home. How many homes like yours have sold recently? Are homes like  yours in high demand? Or, is it located in a less desirable area that could  mean a longer marketing time and, perhaps, a lower price than you were  expecting?

Ask your agent to walk through your home with you and point  out what should be done to make your home marketable. Homes that sell today are  priced right for the market and are in move-in condition.

You want to make cost-effective improvements. If the kitchen  and bathrooms are outdated, consider a cosmetic redo. Update paint, hardware,  light fixtures and floor coverings, if necessary. Don’t do a complete remodel  unless you plan to stay in your home for years; otherwise, you won’t recoup  your investment.

Deciding where to move — and when — can be difficult. Some buyers can afford to buy a new home  before selling, and prefer to make the move that way. Most repeat buyers can’t  afford to buy first. Others who can won’t buy first due to market uncertainty  and the stress of owning two homes at once.

The most prudent approach to making a move from one home to  another is to sell first and rent if necessary until you find the right home to  buy. By selling first, you will know exactly how much money you have to apply  to a new home. Today’s housing market is volatile. A dip in the market could  shave tens of thousands of dollars, or more, off your selling price.

The other benefit of renting before buying is that you’re  under no pressure to buy the first listing you see. Interest rates are low and  are expected to stay low through 2012. Prices are also low and aren’t expected  to move up much for the next several years.

THE CLOSING: This gives you time to find the home that will  suit you for the long term.

It was a week full of intrigue if ever there was one. A positive jobs report gave way to bullish activity on Wall Street backed by heroics from the hometown team, as the Giants showcased their Manning(ham) magic. Meanwhile, dozens of state attorneys general brokered a deal that will likely include principal write-downs. In local housing news, buyers made more purchases while sellers listed fewer properties than during the same week in 2011. Other indicators have recently showcased key improvements elsewhere in the marketplace. The most notable trend is fewer active listings. Buyers in wait-and-see mode may find themselves with more competition for fewer properties come spring.

In the Twin Cities region, for the week ending February 4:

• New Listings decreased 6.7% to 1,236 • Pending Sales increased 35.8% to 888 • Inventory decreased 23.2% to 17,697

For the month of January:

• Median Sales Price decreased 3.4% to $140,000 • Days on Market decreased 8.4% to 142 • Percent of Original List Price Received increased 3.4% to 91.2% • Months Supply of Inventory decreased 35.2% to 4.6

Local Market Updates:

Crystal-
There are 42 ACTIVE LISTINGS. There were 4 NEW LISTINGS, 4 PENDING & NO SOLD LISTINGS last week.

Uptown-
There are 103 ACTIVE LISTINGS. There were 8 NEW LISTINGS, NO PENDING & NO SOLD LISTINGS last week.

For more local market updates, visit The Skinny.