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

 

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.

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

 

 

 

Do Foreclosures & Short Sales Affect My Home’s Value?

We would be lying if we told you a neighborhood foreclosure or short sale has no effect on your home’s value.  In contrast, we're going to tell you not to worry about it, too much. We are lucky to live where we do – lenders, appraisers and Realtors®  took very good care of our communities in the “gold rush of real estate”, relying on strict lending practices, moderate inflation of home values and common sense.

What really decides the value of your home?  The quick and easy answer is “what a buyer is willing to pay for it.”  That answer would make our jobs as Realtors® far easier, but realistically when an appraisal is completed, that is what the bank sees as the value of your home.  This is where short sales or foreclosures typically affect your value.

In our area, there are relatively low rates of foreclosures and short sales, which keeps our market values stable.  Most appraisers work hard to find comparable sales at market value, meaning that the sellers were not under distress.  Unfortunately, sometimes there are so few (or no) recent sales in an area that a foreclosure or short sale has to be used.  Most appraisers who use a foreclosure make sure they explain that: it is a foreclosure, it is not a good comparable and it isn’t given a lot of weight.

When we list a home and there are foreclosures or short sales nearby, we are up-front with our sellers and we discuss it.  It sometimes comes into play when pricing a home to sell, as much as we wish it did not.

The best advice we can give you to protect yourself and your neighborhood is to keep building equity in your home – it is the best safety net.  Be vigilant about paying off home equity loans and home equity lines of credit, and keeping current on your mortgage. 

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

 

The Sign Says It ALL!

You may ask what the big deal is about signs, afterall they are just signs. Real estate companies love signs. They're mini-billboards for homes that scream "I AM FOR SALE!" 

Signs are also a big deal to our sellers...in 2010, 63% of our phone calls came from our signs.  That is a lot of phone calls we'd wouldn't get if potential buyers didn't have a sign to see the home is for sale.  Sure, 90% of buyers start their search online, but most won't pick up the phone until they physically drive by, scope out the neighborhood and fall in love with the house. 

In the fall of 2009, we added text codes to all of our signs, so when people drive by and want to know quick details, like the price, bedrooms and bathrooms, they simply text the code and receive information.  It was a HIT!  We were surprised how often the system was used.  In fact, we received over 1,800 text message requests on our listings in 2010. At the end of the year we thought, "How can we make this better, yet?" and we upgraded our system. 

Now it is simply, text PARK to 59559.  Once you do that, one of two things will happen.

1) If you have a Droid or and iPhone and your GPS is enabled, the system automatically figures out where you are at or...

2) If you do not have GPS on your phone, it will ask you to provide the house number and/or street.  

Once the system figures out where you are, it sends you information on the listing you are at AND the 5 closest properties for sale (not just Park Co. listings, but all MLS listings)! Talk about shopping a neighborhood (and you probably didn't even make it to the end of the street!)

One unique feature of the new system is that once you do text for information, one of Park Co.'s sales associates will call you.  Yes, call you.  We want to make sure that if you do have any further questions you get them answered immediately.  If you are out driving around this weekend, give the system a try...find a neighborhood you love, text PARK to 59559 and see what results pop up - you may find your next home through your phone!  Just a reminder, please don't text and drive.  Pull over and text or have your passenger do it for you.

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

 

 

January 2011 Real Estate Update

After spending the month hoping January real estate numbers turned out better than our weather, it's safe to say - The Numbers Are Better Than January's Weather!

Overall, our numbers are somewhat comparable to 2010, with the exception of the number of pending listings, which were down quite a bit.  Average sales price is considerably higher than last January, and that could be attributed to the fact we are seeing more sales activity in homes priced above $180,000. The previous years' tax credits did a number on our statistics and it'll be nice to see how 2011 ends up after a foreseeable "normal" year in real estate.

 
Download Jan 11 - Statistics broken down by area.

January 2011 (Residential Only) for the entire MLS
Current Active Listings: 1,472
Avg. List Price: $186,433
Avg. Days on the Market: 165

Total SOLD Listings: 98
Avg. List Price: $169,682
Avg. Sales Price: $166,099
List Price/Sold Price Ratio: 98%
Avg. Days on the Market: 109

Absorption Rate: 6.5 months of inventory

SOURCE: Fargo Moorhead Area Association of Realtors

What's Ahead?
Surprisingly, interest rates took a jump today, above 5%.  From what we'd been hearing it seems that rates would slowly rise this year, but economic reports, etc. are moving the mortgage rates earlier than anticipated.  If you're thinking about purchasing a home soon, it would be in your best interest to get in to visit with a lender this week to evaluate your options.

The weather's warming up! Happy House Hunting!

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