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Author: Watermark Title

How to Navigate A Low-Inventory Housing Market

Posted on by Watermark Title

If you ask around with home buyers, Realtors, Loan officers and read real estate industry publications, you’ll hear the same, consistent concern; low housing inventory. Low inventory has been consistent in many markets throughout the country, however we know one thing that is even more consistent in real estate; ALL REAL ESTATE IS LOCAL. And on that note, our local Minneapolis/St. Paul housing market is also currently consistent with most national metropolitan real estate markets with regard to inventory; the amount of available homes for sale is not sufficient for the amount of active buyers.

This creates quite the conundrum for buyers, Realtors and lenders. Buyers are experiencing much frustration, both in having to wait exceptional amounts of time for the right home to come on the market, and yet when it does, most buyers are competing with multiple buyers and multiple offers. Oftentimes when the right home for you hits the market, it’s also the right home for many other buyers who’ve been experiencing the same difficulty you have been, and thus the multiple offer scenario (oftentimes as many as 25 – or more – offers per home) becomes overwhelming, and frustrating. Your exciting dream of buying the right home becomes almost like a game of chance, when your offer is submitted, in competition with others. This is also very difficult for the Realtor. And this is why we suggest teaming with a very good and hard-working professional. You’ll need every tool in your arsenal, to make your home purchase successful.

This is a great article for all involved, called ‘Tips for Succeeding in a Low Inventory Market.’

Great article – Wall Street Journal – How to be Healthier, Happier and More Productive in 2018

Posted on by Watermark Title

Here is a great article from the Wall Street Journal on how to be healthier, happier and more productive in 2018;

https://www.wsj.com/article_email/how-to-be-healthier-happier-and-more-productive-its-all-in-the-timing-1514560647-lMyQjAxMTA3MTMwMDAzNzAxWj/

There are many great points within this article – many of which are simple, block-and-tackle logic, but a productive read, nonetheless.

July 2017 Minneapolis & St. Paul Housing Update

Posted on by Watermark Title

The data (courtesy of MAAR) for July 2017 is in, and the results are consistent with what we’ve been seeing for quite some time. The data – compared with one year prior, in July 2016 – are as follows;
1. New Inventory for the month is down, by -3.9%
2. Housing inventory – overall – is down, by -18.3%
3. The median sales price is up, by +5.9%
4. Closed sales are down, by -2.6%

There are many, pre-approved buyers, ready to purchase. The issue is inventory. Certainly the lower levels of inventory put upward pressure on pricing. +5.9% is above average (in a balanced market, it should be @ 3.0%, +/-).

I also hear the same thing among friends of mine in the Realtor and Lending world; inventory is the issue. And this is not a new thing.

Lastly, this inventory problem is NOT predicted to change, anytime soon.

Home-buying Millennial Market

Posted on by Watermark Title

Millennials are the largest living population in the United States, and have become a big player in the housing market.  According to a Zillow group report, millennials made up 42 percent of home buyers in 2016 – more than any other generation.

Some of their buying habits mirror those of their grandparents’ generation, like skipping ‘starter’ homes and going straight for purchasing larger properties at higher prices.  They also veer towards townhouses and homes with shared community amenities, while also looking for neighborhoods that are walkable to shopping and stores, and give access to public transportation.

One way they differ compared to older generations is that they are waiting a little longer to purchase their first home.  Millennials want to buy a home, but need to get other finances in order first, including student loan debts that are plaguing the generation.  These debts have caused some to move back in with their parents immediately after college, waiting until they have a better handle before heading into the housing market.

Unsurprisingly, we are seeing mortgage companies vying for the millennial market.  Recently, lenders started offering ‘reward points’ to attract the young generation.  However, advisors would still recommend looking for the mortgage with the best rates and closing costs instead of basing a major financial decision on reward points.