Park Company Realtors Blog

Go Meat!

I love the Hillshire Farms "Go Meat" commercials...I'm not sure if it's the Saturday Night Live-esque cheerleader skit or just the general enthusiasm for meat, but I love them.

Our "Go Meat" moments have come to us in the form of statistics behind what's going on in our market...you know, "The Meat." If you missed our May Market Update with Kari Myhre and Jenny Schuster, take 2 and 1/2 minutes to check it out.  They shared some great information such as our April average sales price increasing $14,000 over April, 2010 due in large part to the expiration of the home buyer tax credits, but more importantly...11 more homes priced over $300,000 sold in 2011 than in 2010.  That's big. Really BIG. 

What's the big deal?.  Read If Prices Are Falling Why Are the Rich Buying? on the KCM Blog. People with some degree of wealth are realizing that with today's low interest rates, along with the unfortuate decline in prices it is the time to buy. The best statement in the entire blog post is "They realize that the COST of real estate is a much more important than its PRICE."

The second stat I wanted to draw attention to is the Inventory of Homes. Kari shared with us that the inventory of homes is under 7 months.  What does this mean? At the rate homes are selling, in less than 7 months, we would run out of homes to sell if no new homes were brought into the market. That is a balanced market - good for buyers and good for sellers and the scales aren't tipped greatly in either direction.

Now you've learned the "Real Estate Meat" for the month...it might change your frame of mind when you hear "Go Meat!"

Kristi Hardy
Director, Marketing Services
Park Co. Realtors
701.237.5031
www.ParkCompany.com
www.Facebook.com/ParkCoRealtors

 

 

May Video Market Update

Download Apr 11 Market Update Broken Down by Area

Dear Zillow, You Are In Need of a Geography Lesson.

As part of my job, I am constantly looking at market trends and statistics.  Yesterday, a post on Inman News' Facebook feed caught my attention. "Interesting stats coming from Zillow this AM - Of the 132 markets covered by Zillow, 97 percent saw home values decline."

Not totally excited, I clicked on their link and came across Zillow's Home Value Index.  Below is the screen for North Dakota...do you see something missing?

 
Evidently, Fargo is not in North Dakota, but in Minnesota, according to Zillow.  Thus the title for this blog post. 

Yes, Zillow, we do serve Minnesota, however if you are going to categorize our market by Fargo, you should probably correctly identify the state...that is Fargo, NORTH DAKOTA. *For the record, the Fargo-Moorhead area's median list price in April 2011 is $154,900 down from $159,900 in April 2010.  Zillow's data is a few thousand dollars off.

Many people use Zillow for its fancy bells and whistles...market statistics, Zestimates, etc.  I agree that Zillow provides some very visually appealing graphs, charts and widgets.  However, after finding this "little" error, it makes me question the reliability of their information even more than I had before.  Frankly, their Zestimates are rarely accurate and their comparables are sometimes so far off the mark, they aren't comparing apples to apples, but apples to watermelons. (I once saw a 2-story single family home in Osgood compared to a rambler twinhome in the same neighborhood (YIKES!))

If you would like accurate market information, look to your LOCAL real estate professional.  On this blog, we consistently post monthly statistics and base our information on what is happening here, not in California or New York.  Park Co. Realtors' sales associates are armed with the most current information for your neighborhood and home style.

With that said, we are "amping up" our market updates - be sure to keep an eye on Facebook, Twitter and YouTube later this week - we hope you like what you see!  In the mean time, here's to hoping Zillow pulls out the map and checks our location!

*Source: Fargo Moorhead Area Association of Realtors

Kristi Hardy
Director, Marketing Services
Park Co. Realtors
701.237.5031
www.ParkCompany.com
www.Facebook.com/ParkCoRealtors

Why Hide the Address?

 
Oftentimes when browsing real estate websites, I run across a listing or two in which the address is not disclosed.  Why would a real estate brokerage not disclose an address?  It makes no sense to me.

In representing the seller, it is the task of the brokerage to sell a listing. Choosing not to disclose an address may make that task quite difficult.  I also think it almost borders on not fulfilling your fiduciary responsiblity to your seller, but I'm sure someone would debate me on that one.  When 91% of all home buyers start their home search online, shouldn't the address be the first thing they see beyond a photo of the home?  How would a buyer know where to find this fabulous home or drive by to see if it's the neighborhood they've been dreaming of?

I won't reserve my judgement just for online advertising, but print as well.  We advertise in the Real Estate Book, much like other companies in our area.  After all these years, I am still amazed when I see a photo ad with no address, just the phone number for the seller's agent. Really? 

The days of real estate agents being information gatekeepers is over.  Buyers are smart, they're intuitive and they want information NOW and quite honestly if you won't give it them, they will go find the information elsewhere.

Just so you know, Park Co. Realtors never keeps the addresses of our listings a secret!  We want you to drive by, we want you to call, we want you to text, we want you to visit our website.  We like to make buyers happy, after all, happy buyers make our sellers very happy!

Kristi Hardy
Director, Marketing Services
Park Co. Realtors
701.237.5031
www.ParkCompany.com
www.Facebook.com/ParkCoRealtors

 

MORE Pictures, Please

After every transaction, Park Co. Realtors sends out surveys to all of our clients to gauge our overall performance. One question we in the Marketing Department find of particular interest is “Do you have any suggestions for improving our website www.ParkCompany.com?” Over and over again we see the comment that our clients are disappointed that some of the homes on our website do not have enough photos (or any at all for that matter).

As a member of the Multiple Listing Service (MLS) system, we are allowed to advertise not only our client’s listings on our website, but the listing of the other companies in the MLS system.  The effect is that every home in our area gets the most exposure as possible. This is a perk for both buyers and sellers.

The only problem with this system is that we cannot control the information that is supplied by the other companies. This includes the number and quality of photos.

At Park Co., we have an entire photography team dedicated to providing high quality photos for every one of our listings. These photos are available the day the listing is added to our website.

So the next time you are wondering why we are skimping on the photos for a particular listing, the answer is that home is most likely listed by another company. But, of course we would be more than happy to show you that home in person (which is more fun than pictures anyway!)

Interesting view of national unemployment

Yesterday (April 20th, 2011) the National Labor Department released the March 2011 unemployment numbers. It seems that our country has slight decreases in unemployment (8.8% down from 9.8% in November 2010) and in North Dakota the unemployment rates has dropped to the lowest in the country to 3.6%.

Below is a link to an interesting visual of what has been happening with our national unemployment situation over the last few years. It is nice to know that our local economy is still holding strong.

Click Here

 

March Market Update

Spring has finally arrived in the Red River Valley!  The weather is great, but we sure could do without the flooding.  Our market stats say the same thing. 

Usually, we compare year over year but this month, it's necessary to compare 2009, 2010 & 2011 so that we are comparing apples to apples.  2009 and 2011 are similar mainly because of our spring flood event. 2010 is quite different - (1) flooding was not as severe; (2) the home buyer tax credits were expiring April 30, which created an influx of "last-minute" buyers.

When comparing 2011 to 2009 - business is up in regards to pending sales and sold listings.  Active listings and new listings are down 7% & 11%, respectively. It is not too far of a stretch to say that some folks have decided to hold off on listing their homes this year until after the flood. 

If 2011 follows 2009's trend - business will spring back nicely in April and May.  The one factor to consider is that in 2009, we had tax credits for first-time home buyers that were to expire November 30, so that may have created an influx that we many not see in 2011.  However, with continued low rates and our stable, local economy - homeownership continues to be an option many renters consider.

Please note that the comparison chart above is for January 1 - March 31 and the March statistics below are just for March.

Download Download Mar 11 - Statistics broken down by area.

March 2011 (Residential Only) for the entire MLS
Current Active Listings: 1,333
Avg. List Price: $187,649
Avg. Days on the Market: 174

Total SOLD Listings: 144
Avg. List Price: $155,098
Avg. Sales Price: $152,407
List Price/Sold Price Ratio: 98%
Avg. Days on the Market: 147

Absorption Rate: 6.61 months of inventory

SOURCE: Fargo Moorhead Area Association of Realtors

What's Ahead?
One date to keep in mind if you're thinking of buying this spring...April 18. 

On April 18, FHA Monthly Mortgage Insurance Premiums go up .25 basis points or approximately $20.83 per $100,000. ($30 on a $160,000 home).* FHA requires mortgage insurance for borrowers making a down payment of less than 20 percent.

Effect on buyers: Let's say you are looking at a mortgage on a $160,000 home with a 10% down payment for 30 years. Add a forecasted mortgage rate hike of .3% APR in the second quarter and you're looking at an additional $56.90 to your monthly payment or $7,100 less in buying power. Since the rate hike takes effect on April 18 - any purchase agreements not accepted by that date will be subject to the new rate.

Park Co. Volunteer Corp - Making Good Work!

 

Giving back to our communities is a top priority for all sales associates and staff at Park Co. Realtors. While we have been providing donations to several community groups through our Good Works Committee for years, we felt there was a need to provide a physical volunteer presence in our community. In 2010, we formed the Park Co. Volunteer Corp to help physically serve individuals and not-for- profit organizations throughout our communities with a variety of projects. Some of the projects the Volunteer Corp has participated in include: United Way Day of Caring, REACH office/food pantry organization, Salvation Army Kettle Drive, Prairie Public phone staffing, sandbagging, Habitat for Humanity builds and several others.

If your organization has a need for volunteers for service projects, please contact Amy Redland at 701-237-5031or Amy@ParkCompany.com.

 

February Fargo-Moorhead Area Market Update

Before the time of tax credit deadlines and real estate booms, February has typically been the start of spring in real estate.  Much like our weather this year, spring in real estate is a bit delayed.  If you've spent any time in Minnesota or North Dakota, you've come to realize that the motivation to do something typically coincides with the weather warming up and we see that with real estate. Many buyers are "window-shopping"...we see it in our website visits, our phone calls and our text for info requests - they seem to be waiting for warmer weather to make decisions!

When we share statistics, many times it is based on percentages. Numbers, oftentimes, tell the story more accurately.  For February if you look at percentages, you may think our market is way down, however, a closer look at numbers tells something different.  Sold listings are down 41 units, yet our inventory has actually decreased 41 units as well.  With less inventory, naturally there are fewer sales.

 

To point out more bright spots, check out the sold listings below. Several prices ranges have had more sales in 2011 than 2010. You'll notice it is more so in the $180,000+ prices ranges, which may also contribute to the higher average sales price in 2011 ($161,956 vs. $144,184 in 2010).  We are still seeing the hangover effect of the tax credits in the typical first-time homebuyer price ranges. 

 
 
 
Download Feb 11 - Statistics broken down by area.

February 2011 (Residential Only) for the entire MLS
Current Active Listings: 1,368
Avg. List Price: $186,706
Avg. Days on the Market: 169

Total SOLD Listings: 92
Avg. List Price: $166,597
Avg. Sales Price: $161,956
List Price/Sold Price Ratio: 97%
Avg. Days on the Market: 126

Absorption Rate: 6.5 months of inventory

SOURCE: Fargo Moorhead Area Association of Realtors

What's Ahead?
One date to keep in mind if you're thinking of buying this spring...April 18. 

On April 18, FHA Monthly Mortgage Insurance Premiums go up .25 basis points or approximately $20.83 per $100,000. ($30 on a $160,000 home).* FHA requires mortgage insurance for borrowers making a down payment of less than 20 percent.

Effect on buyers: Let's say you are looking at a mortgage on a $160,000 home with a 10% down payment for 30 years. Add a forecasted mortgage rate hike of .3% APR in the second quarter and you're looking at an additional $56.90 to your monthly payment or $7,100 less in buying power. Since the rate hike takes effect on April 18 - any purchase agreements not accepted by that date will be subject to the new rate.

Bring on Spring - we are ready!

*Source: http://www.myfhamortgageblog.com/2011/02/fha-changes-to-mortgage-insurance-april-18-2011-alameda-ca/

Preparing Your “Someday-For Sale” Home for an FHA Inspection

Did you know that in 2010, 56% of entry level buyers financed through an FHA Loan, 37% through a conventional loan and 7% used the VA loan program.* 

Below are some items that often need to be addressed after an inspection when buyers finance through an FHA or VA loan.  If you’re thinking about projects that can get your home sold with few hassles, these items should be at the top of your to-do lists!

1. Chipped or peeling paint on any property built before 1978 must be scraped and painted (interior & exterior).
2. Roof should have 2-3 years of useful life remaining.
3. Staircases should have handrails.
4. Cover exposed electrical wires and repair leaky plumbing.
5. The cause of wet basements must be cured.
6. Structural foundation problems need to be repaired.
7. All utilities must be in functioning order.
8. Broken windows need to be repaired and they also must open.
9. Access is needed to the crawl space & attic


*Source: National Association of Realtors 2010 Home Buyer and Seller Survey