Friday, June 17, 2022 / by Brittany Aspenson
Here’s what buyers and sellers should know about our shifting market.
“Is our market starting to cool down?” A lot of clients have been asking me this recently, and I understand their concern. A slower market could mean fewer opportunities. Did homebuyers and sellers miss the boat on a great deal? Today I want to look at the latest statistics from our market and discuss what they mean for both buyers and sellers moving forward.
Over the last few months, our number of pending sales has decreased while inventory has increased. May was a pivotal month since it was the first time sales decreased and inventory rose during a season where the opposite usually happens.
Why are sales decreasing? One explanation could be our rising interest rates. As rates increase, buyers have less purchasing power. Some buyers have had to leave the market as buying a home becomes more expensive.
So sellers have missed the boat on a great deal, right? I don&rsq ...
Friday, June 3, 2022 / by Brittany Aspenson
A few financial and logistical considerations before you retire.
Every day in the U.S., around 10,000 people turn 65. As a result, many people are trying to make the right financial decisions before they retire. For example, should you buy a home before you retire, even if you own your home outright? Today I want to go over a few things you should consider before answering that question.
The first thing you need to consider is your financial situation. Only 23% of retirees have mortgage debt, so they plan on using their equity to downsize. This is a great position to be in, but it can be difficult to get to your equity sometimes.
If your equity is not sufficient to purchase your next home, or you’d rather not pay cash and have a mortgage, waiting until after you retire could prevent you from qualifying for a loan. Because of this, it might make sense to purchase your next property before you retire. The best way to do this is to use a home equity line ...
Tuesday, May 24, 2022 / by Brittany Aspenson
I still believe it’s a great time to buy, and today I want to explain why.
If you’ve been paying attention to the news, you know that interest rates and home prices are rising. As a result, many first-time buyers have asked me recently, “Should I wait until the market changes?” My short answer is no, and today I want to explain why.
The first reason why you shouldn’t wait to buy is that interest rates will only continue to rise. If you check out the graph at 0:34 in the video above, you can see that our current rates are still low from a historical perspective. However, they’re likely to increase further to combat inflation. Interest rates have a huge impact on your monthly payment and what you can afford, so I recommend getting into the market now while they’re still good.
"Homes are appreciating rapidly, so you’ll accrue equity fast."
Another reason not to wait is demographic trends. If you look at the gr ...
Thursday, May 5, 2022 / by Brittany Aspenson
A few markets where buyers will face less competition for homes.
Many buyers are either uncomfortable or unable to compete in the many multiple-offer situations throughout our Twin Cities market. Today I wanted to talk about some of the less-competitive markets where you may have more time to make a decision and less pressure to offer so much over asking price.
The first market to look at is the downtown condo market of Minneapolis and St. Paul. Minneapolis has 3.5 months of inventory, and St. Paul has 2.5 months, which is quite a bit more than most markets. The suburbs of these areas are more competitive, with just 0.9 months of inventory. Given that there’s more supply to choose from, you’ll have more time to consider your decision and make the best choice.
The prices in this market are good, too. The list-to-sales price ratio in Minneapolis is 99%, St. Paul’s is 100%, and it’s 102% in the outer suburbs. That means you won’t have to bid as ...
Monday, April 18, 2022 / by Brittany Aspenson
Three things to consider when deciding whether to buy or rent.
Today I am pleased to be joined by a great realtor from my team, Gary Raeker. We’re addressing the question, “When does it make sense to buy?” Right now, a lot of people seem stuck; home prices are increasing, but so is rent. Today we will discuss three factors to consider before buying a property:
1. Your finances. For most people, buying a home is the largest purchase they’ll make in their lifetimes. It’s a big cost upfront, but once you buy, you can build equity, increase your net worth, take advantage of tax breaks, and more. Plus, you’ll have a defined monthly payment that won’t rise with the cost of living as rent does.
“Real estate transactions are always emotional.”
2. Market conditions. Depending on interest rates and home prices, your monthly mortgage could increase or decrease. Interest rates may be going up, but they are still historically low. If y ...