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Get ready! Home values and sales are expected to get hot this summer….

Wednesday, March 6, 2013 - Article by: JoshL - Gold Star Financial - Message

With what I hope is the last of the snow we’ll get this season in Minnesota (yesterday dumping almost 12 inches of snow in Minneapolis), I’m starting to daydream about summer. This summer is expected to get really hot in the housing market. We’re already seeing it here in Minnesota over the past few months…which are typically the slowest of the year.

Recent news in the media help prove that the housing market and economy are getting stronger and stronger. Just announced this week, the Home Price Index (HPI) had the largest annual increase (9.7%+) of home values since April 2006. What that means is this: home values are going up and people are starting to get financial stability and increasing wealth. The 9.7% increase over last year at this time, is huge. Let’s say you have a house that was worth $100,000 (for sake of easy math) in January of 2012. Fast-forward to January 2013, and that same house is now worth $109,700…. So, you’ve added $9,700 extra to your assets.

The major trends I’m also seeing are sellers becoming more confident by rejecting offers, and countering with several buyers. Housing supply in the Twin Cities is limited. So, if you’re a 1sttime homebuyer, your price point is the same as real estate investors. The investors, like me, scoop up these properties, renovate and turn them into a rental property or sell them for profit. The real estate investorstend to move quicker because of their experience, which is resulting in a shortage of homes for the 1st timers. I have clients who are even looking for anything in the $200k-$300k range and can’t find a thing. This type of demand is only going to get greater and greater and my team and I are ready for the fun ride ahead!

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