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According to DSNews.com several market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability which could all lead the beginning of the end to the housing crisis.
The loan-to-value ratios are up from their low point of 74% in 2010 to 82% and lending amounts have increased to 3.5 times borrower earnings up from 3.2 times.
The banks are loosening credit standards, but the credit requirements are still a tough hurdle for many to get over. The average credit score has been remaining right around 700 which is slightly higher than before the crisis but is a reasonable number. 8% of purchase contracts that fell through in 2011 were due to the buyer’s inability to secure financing.
Are you planning on buying a home this spring? This video clip goes over many of the steps you need to take and things you need to consider when starting your home search. Contact me for more information, I can assist you in your search for the perfect home!
It is pretty clear that we need to get the short sales and foreclosures off the market in order for real estate to rebound. The question is: are investors good for real estate? The past few months investors have purchased about 23% of the homes on the market. At first glance this is a good thing but the problem is that they are making more and more cash offers, actually about 74% are cash deals. Still wondering where the problem lies? The banks negotiating the short sales and foreclosures prefer the cash transactions over financed ones as they are a sure thing and quicker to close with financed buyers needing 30+ days to close. The cash buyers are also offering 10-20% less on the properties and the banks are still taking these cash offers over financed offers. What it all comes down to is that the cash investors are driving the low prices down even further and taking properties away from traditional financed buyers. You be the judge, is this a good or bad thing for the real estate market? Statistics from USA Today.
Once again the mortgage rates hit new lows, the 15 year fixed rate is the lowest since the Freddie Mac has been keeping track back in 1971. Because of the low rates, 8 out of 10 mortgage applications right now are for refinancing! The 30 year fixed rate is at 3.87% down from 4.81% just a year ago, the 15 year fixed rate is at 3.14%. Click here for the full article from Inman News.
The January Monthly Skinny will show you where the Twin Cities real estate market has been and where it is heading.
Spring is just around the corner and with the mild winter we have been having spring fever is already starting! Maybe you are going to put your home on the market or perhaps you just want to spruce up your home for spring. I have a few simple fairly inexpensive tips to help you do just that!
With a little time and effort your home will be ready for spring and summer!
Right now it is looking like 2012 is on the way to an increase in new construction as building permits are up! Estimates say that we may see a 10-12% increase in new construction this year which would be great news! In January, Minneapolis led the way with the number of building permits issued followed by St. Paul, Hudson, WI, Eagan and Maple Grove. Click here for more.
If you were in love with my old website, no worries, my new website has all the same features and more. Welcome to my new website! The biggest notable change is that my new site is mobile friendly. You will now be able to view my website on your phone or tablet when you are on the go! My website is a useful tool for buyers, sellers and those that just need information on real estate related topics. Stay abreast of the current real estate trends on my home page blog, use my resource list to find services in the metro area, if you are relocating to Minnesota you will find useful tips under the relocation tab and my Minnesota blog provides insight into life in Minnesota, I provide information on Short Sales and Foreclosures whether you need to sell or want to buy, if you need information on schools or communities I have links to many useful websites that can answer your questions or maybe you are just wondering what your home is worth these days, I have a complimentary CMA form. As always I have my listings and a property search tool. Welcome to my new website – enjoy!