Ohnstad Homes

This is the question we Realtors hear all the time, and the answer is first, another question…..how is the market doing where? 

Minneapolis is now in the top 10 cities in the country in terms of the recovery which is, indeed, underway, however when you ask us about “the market” it is very, very specific.  If you live in Edina, the answer is “fantastic”!  We recently had a buyer in the $200,ooo range who made 3 offers, and got beat out in mulitiples before finally getting an offer accepted.  When you search the MLS in the $200-300K range in Edina, over half the properties are already under contract contingent upon inspection, financing or 3rd party approval.  So if you are a buyer for Edina, you had better move quick.  If you are a seller, you need to price carefully…this does not mean overprice, but, it does mean that if you price right, you will probably get sold quick, for asking price or above in multiples.  The hope and  prediction is that this strong type of market will spread out geographically and in price range as well.  For now, even in the strong areas like Edina, over $500,000 is still not there yet (except for new construction which is going nuts right now as buyers take advantage of the prices and financing available).  How and when will the upper bracket rise from the ashes??  Anyone’s guess.  We still do have a wave of foreclosed homes yet to be released on the market and jobs affect all of it…..so watching and waiting….

Video marketing is making its place in our business world in such a big way it is almost impossible to quantify.

Watch for Ikea’s new Smart TV (Apple and Google arealso looking into launching something too)…which will make it possible to view YouTube videos in your family room.    For now, Ikea is testing the market in Sweden and other parts of Europe, but it is definitely coming.  We have not yet even scratched the surface in the power of video marketing.

Why does this matter to me or you?  Because if you list your home with us we could have people viewing it from their living rooms in HD.  A powerful first showing!

Waterfront Home Tour Blurb (2)

See the link above for success stories besides ours.  Jim and I sold our upper bracket waterfront listing last yearas a result of the Coldwell Banker Burnet waterfront tour.  The buyer offered full price just hours before the tour was underway as they were worried that someone else would see it and scoop it from them!  There were multiple offers and it sold for full price.  As a company, we literally “paint the town blue” with our signs and balloons.  A fun event that has produced multiple success stories. 

If you are thinking about selling your waterfront home anytime soon, don’t hesitate.  The deadline for participating in the full scale ad campaign is May 4th for the May 20th event.  Call me and let’s get your home on the water sold!

The simple answer is “yes”, however, it is important  to look at the bigger picture.  If you are a seller, or potential seller, then I would consider either moving my price down a bit (not too much, just enough to grab the attention of a different search group), and if my house is not yet on the market, I would get it on the market asap.  Although we cannot really predict things like people wish we could, one thing that seems certain is that interest rates will rise soon.  This will cause inflation in home prices, which may help sellers, but will then also hurt buyers (less house for the same money)…so the part of this point that is important is to take advantage of the low interest rates while you still can. (15 yr mortgages ar close to 3%) Right now, today, your pool of buyers is as big as it ever will be and once the market shifts again….well…then we don’t really know how buyers will react. (it is no different than trying to predict the stock market really)

The coming foreclosures will certainly cause prices to sink again in local areas surrounding those homes, however, remember that conventional sales have become a separate market.  Generally, different buyers buy foreclosed homes. Another bit of positive news about the coming batch of foreclosures is that now that the Robo-Signing issue has been resolved, the banks will now be more on track to deal with the foreclosures more expeditiously.   This is good news for all of us. (some people in our industry feel that the foreclosures will be gone by the end of 2012).  Too optimistic?  Maybe…  I guess we will all find out together.

Another thing to know about today’s market is that we know that the market under $500,000 has become balanced and that multiple offers have become the norm.  Waiting for prices to come down or for sellers to become desperate in this price range is currently not an option if you really want to purchase something.  This trend will follow up into the higher price ranges eventually, but we are not there yet…and remember, this does not mean a return to “bubble pricing” it means fewer days on market, and more buyers willing to make offers that sellers would consider negotiating (hopefully, no more lowballs on good homes).  Above $500,000 is still a buyer’s market and sellers need to prepare the home well and price it carefully also. 

The finish line will look like a balanced supply of buyers and sellers, mortgages that make sense, pricing that no longer has to chase the market downward. …  are we at the bottom?

Perhaps.  I do know for sure, that when everyone knows that the bottom has come….it will already be behind us. (no pun intended!)

Much of the time we “bloggers” wonder who is reading what we write, but, this week I was picked up as an award winner on the business website, eLocal.com.  Check out my answer as well as others to the question, “What was your favorite project at work?”
Most Thought-Provoking

Realtor Dawn Ohnstad, Coldwell Banker Burnet, Wayzata MN wins the award for most thought-provoking comment:

“In this difficult real estate market we had the opportunity to list a property on a lesser known, but spectacular lake west of Minneapolis. Typically, in the last several years, anything that is not close to city amenities is harder to sell. Quite frankly, it’s nearly impossible. I created a YouTube Realtor Hosted Video Tour of the property on a gorgeous spring day. The house had an accepted offer within a few days and, in fact, there were multiple offers which allowed the property to go for nearly asking price. This was a rewarding outcome on many levels for our sellers. Take a look and see my favorite video tour!“

Dawn didn’t shy away from a difficult sell when the housing market slumped. Instead, she came up with a creative solution that did wonders for her business.

See the rest of Dawn’s comment here.

Exclusive to eLocal Blog-Off Experts

Below is the text from the latest news from our area Realtor association.  It accurately gives you the important points to be aware of as our Spring season of buyers and sellers is underway. 

Those who follow the numbers already know that 2012 is shaping up to be a year of encouraging change in the market. Since all real estate is local, recovery won’t occur evenly across all areas or segments. People are watching closely for signs of bottom and signs of recovery without fully knowing exactly what to look for. Fewer for-sale signs is a good tip-off, so is an improving jobs picture. Absorption rates heading back down toward the four-to-seven month range is also a welcoming omen. Slowly but surely, sellers will start to see more of their asking price as they face less competition – particularly from banks. Low interest rates should prevail through 2014 but high-quality inventory may not.

Recovery is in the air I say!