City View Photo

Greetings!

1550 Zarthan front photo

The return of headlines regarding real estate prices and activity levels - namely pended home sales for the Twin Cities hitting record lows - is causing me to venture back to providing a market update. The question you might ask is why are the real estate sales numbers so bad?

After all, housing affordability is way up; interest rates 1550 Zarthan front photo

are at unimaginable lows.

While we could dive deep and look at the many economic forces at play, I think there are also some simple and logical points to consider.

First, current "demand", in my opinion, was compromised by the federal tax-credit stimulus program.

For part of 2008 and most of 2009 the real estate market was supported by multiple federal stimulus packages. You may remember the original first-time buyer tax credit which started in April of 2008. It was then extended until November 30, 2009 and then in the eleventh hour it was again extended and expanded to assist buyers through April of 2010. It's hard to remember and keep track of it all.

Because of the "free money", in my opinion, many people purchased a home well in advance of their time-table. As a result, "demand" currently appears to be sagging. It does not appear there is additional federal government funding on the horizon so we are going to have to wait for demand to naturally ramp back up. Only time (and perhaps improved employment numbers) will tell.

Second, year-to-date numbers may indicate a different story.

While many newspapers focused solely on July 2010 numbers, I think year-to-date numbers will be the most useful. While July pended sales were down 37% from last year, year-to-date pended sales are down a more modest 13% and the two year change is actually up 3.7%. Closed sales were down 42% in July but down 3% for the year. Here, the two year change is a healthy +9%.

Again, we need to see what the market does when it is not coming off of a long stretch of artificial stimulation. I'm looking forward to our final numbers in December for a more complete picture of our market.

Here is my plug - I'm still looking for a house because I do not want to miss the opportunity to buy!

Next time: possibly a housing search update

Happy Summer!

Kricket and Mike
KricketandMike.com Inc

TimberTech

Are you thinking about replacing your old warped and rotted deck? Or, are you just thinking about building a new deck, fence or even a dock? If you are looking for a low maintenance alternative to wood, check out TiberTech.

To learn more....

Current Market Information
Statistics from Minneapolis Association of Realtors

Weekly Update:

Monthly Market Indicators:

Foreclosure Report July 2010:

Now Available...

9905 Oak Ridge Trail

This elegant Oak Ridge Country Club area home was completely rebuilt in 2001. It was meticulously designed and finished with style and grandeur. From the dramatic foyer to the sophisticated master suite; this home is special from top to bottom.

Offered For: $799,900

Virtual Tour

Mortgage Minute

News from Rita Welton, PHH Home Loans

UNDERSTANDING YOUR CREDIT SCORE

Your credit score can affect your ability to get a good rate on a mortgage, car insurance, cell phones, etc. Credit scores are comprised of five factors. Points are awarded for each component, and a high score is most favorable. The five factors are listed below.

PAYMENT HISTORY - 35% impact of total score

Paying debt on time and in full has the greatest positive impact on your credit score. Late payments, judgments and charge-offs all have a negative impact. Delinquencies that have occurred in the last two years carry more weight than older items.

OUTSTANDING CREDIT CARD BALANCES - 30% impact

Make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit.

CREDIT HISTORY - 15% impact

This score indicates the length of time since a particular credit line was established. A consumer with seasoned accounts will be stronger in this area.

TYPE OF CREDIT - 10% impact

A mix of auto loans, credit cards and mortgages is more positive than a concentration of debt from credit cards only. You should always have 1-2 open major credit card accounts.

INQUIRIES - 10% impact

This score quantifies the number of inquiries made on a consumer's credit within a twelve-month period. Note that if you pull your credit report yourself, it will have no effect on your score.

CALL ME TODAY WITH YOUR CREDIT SCORE QUESTIONS!

Rita Welton
Loan Officer
PHH Home Loans
612-925-8423 direct
rita.welton@phhonline.com

This statement of current rates is not an offer to enter into an agreement for a loan at a specified interest rate or number of discount points or both. (In Minnesota: an offer to enter into such an agreement may only be made pursuant to Minnesota statutes section 47.206.) Current interest rates and discount points are subject to change at any time without notice to you.

Kricket's Social Korner

Restaurant Suggestions

Vincent -A Restaurant

Summer isn't over yet which means it is still patio dining season. A favorite restaurant of mine for al fresco dining is Vincent -A Restaurant which has a great patio right along Nicollet Mall in downtown Minneapolis. The patio is quaint with a French vibe. In addition to the wonderful patio, I love Vincent for its delectable hamburger.

The Vincent burger is in a category of its own. It is a hamburger stuffed with braised short ribs and smoked Gouda cheese. Yes, you read that correctly; it is stuffed with short ribs! You can't beat a summer evening on the Nicollet Mall with a glass of red wine and this decadent sandwich. For the non-meat eaters this highly awarded chef and restaurant has many other lovely choices too.

Historically happy hour is the time to visit Vincent -A Restaurant. During the summer, not only is the Vincent burger half-off ($8.00) but the hamburgers are grilled right on the mall. At this time, Vincent's great happy hour can only be enjoyed inside in the lounge. I look forward to the outdoor grilling tradition resuming in the spring.

In case you do not feel like going to a fancy French restaurant to enjoy the Vincent hamburger, do not worry Vincent has teamed-up with its neighbor Brit's Pub. At this time, the Vincent burger is offered at the Brit's Pub roof-top patio on Sundays. The Vincent hamburger is also available at Target Field during Twins games.

My personal recommendation is to enjoy the patio dining on Nicollet Mall, order a bottle of French wine and have Minneapolis' best gourmet hamburger.