Posts in Home Buyer Tools
Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.
The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more. Please click here to view the SEPTEMBER - 2013 Newsletter Housing Trends eNewsletter.
If you are interested in determining the value of your home, click the Home Evaluator link for a free evaluation report, or contact me directly.
Patti Ann Kasper, EXIT Realty Nexus, 763-54-SOLD-1 (google voice). Licensed real estate agent in Minnesota. Serving the north metro Twin Cities are including Minnepolis, Saint Paul, Anoka County, Blaine, and the surrounding areas.SEPTEMBER - 2013 Newsletter Housing Trends eNewsletter
Minneapolis Saint Paul Residential Real Estate Questions Answered!
Housing statistics, such as price - are often stated as either "average" or "median". So what's the difference and what does it all mean?
The word median, is a statistical measure and it is based on a "normal" bell curve (like the one above). By definition, it means the middle of the distribution - half of the distribution is below the median and half is above. In a perfect bell curve, the average and the median are the same. But in the real world, most things are not perfect.
In the case of housing prices, it is quite common to have a somewhat skewed distribution. This causes the average and the median to be different. The example below shows the number of homes listed for sale in each of the price ranges:
This curve is certainly not a nice clean bell curve like the previous one. There are several price ranges that are empty - zero homes, while others have a large number of homes in them.
The average home price in this example is $314,608 but the median is $259,900. The median is less sensitive to the extremes - like the small number of homes in the price ranges above $550,000 and the empty ranges. In this case, there are 61 homes in the price range between $200K and $250K which is where the peak of this curve occurs. The median is closer to the peak than the average - it occurs in the $250,000 to $300,000 price range.
The average is skewed by the fact that there is not a nice normal distribution of homes in all of the price ranges. The average falls in the range between $300,000 and $350,000 - in this range, there are only 30 homes.
So the median compensates for the amount of "skew" in the data. Some people like to say that the median and a weighted average are the same thing. Technically, that is incorrect, but the concept is similar.
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Happy House Hunting!
Licensed in Minnesota
Blaine MN Updated Housing Statistics - January 2013
...and what all of this means to you…
Often, we’ll hear housing statistics on the news that goes something like this: “housing is recovering” or “prices are up”, but what do these sound bites really mean to prospective home buyers or sellers? Quite frankly; they don’t mean very much at all.
To truly be useful, statistics need to be more specific to the local area or situation. For example, here are the latest updated January 2013 statistics for Blaine MN. These are the numbers for the month of January 2013 and are compared to the month of January 2012.
New listings down -17.9% at 87 listings – While at first glance this seems like bad news, actually it’s not. Last year we had a larger number of bank owned properties on the market at this time of year. Traditionally in Blaine, a large number of Fair Market Sellers take their homes off the market in the winter because of the Holidays, the inconveniences of winter weather, and the mistaken impression that homes do not sell in the winter. So this simply means there are fewer bank owned properties on the market this January when compared to last January. This is good news for Sellers as it will help prices rebound. It can also be good news for most home Buyers because it means the homes that are on the market are very likely to be in better condition and will have a better chance of passing an inspection and especially a FHA inspection.
Closed sales up +39.1% at 64 sales – When sales go up at the same time listings go down, that means that the homes that are on the market are Selling like hot cakes. Great news for Sellers, but this may somewhat limit the selection of homes for Buyers to choose from. So for the relocation Buyers coming into the Blaine area for their new jobs starting in January, this can be a motivating factor.
Imagine, if you will, the music from Dragnet... Dun Ta Dunt Dunt.... Dun Ta Dunt Dunt DUHHH!
You have the right to representation.
If you choose not to be represented, anything you say and do could be used against you in a real estate transaction.
You have the right to a REALTOR®.
If you feel you cannot afford a REALTOR®, your local MLS agreement may provide a REALTOR® for you free of charge.
Do you understand these rights and what you could be giving up without zealous Buyer Representation?
:-) Cute and serious all at the same time....
But Seriously, since the vast majority of the time there is absolutely no fee for the residential Buyer, why wouldn't you want to have your own representation?
Remember, the listing agent represents the Seller and MUST work to the full and exclusive benefit of their Seller.
I am proud to announce my 5 Star Agent rating in Zillow for service to my clients! Thanks to my clients for recommending me!
Updated Weekly Real Estate Market Activity
for Minneapolis Saint Paul Twin Cities Metro Area
Housing Affordability is High
and Sales are Picking Up!
We are starting to see multiple offers again, the number of bank owned properties has dwindled and sale prices in many areas are stabilizing. Several areas are experiencing price increases. The Parade of Homes is wrapping up this weekend and our real estate season is off to a good start!
Legislative Update - Real Estate Issues (update for Feb 2012):At the Federal level, efforts to eliminate the Mortgage Interest Deduction (tax deduction) for homeowners have been quashed (at least for the time being) by all of the good work by the National Association of REALTORS® on the Federal level and the Minnesota Association of REALTORS® on the State of Minnesota level. While this may be brought back up in the future, it is unlikely that it will be an issue again until after the 2012 elections. House Resolution 25 "Expressing the sense of the Congress that the current Federal income tax deduction for interest paid on debt secured by a first or second home should not be further restricted". Thanks to the efforts of the Minnesota Association of REALTORS®, there are no changes expected to the Capital Gains exemption for homesellers. The current exemption for the $250,000 of Capital Gains (single) or $500,000 of Capital Gains (married couple) remains in effect. Efforts to eliminate the Minnesota Property Tax Refund for homeowners have not been successful, again thanks in part to the efforts of the Minnesota Association of REALTORS®. In the Minnesota legislature, a bill has been introduced that would increase the maximum refund allowed for homeowners with household incomes from $37,280 to $100,779. On the Federal level, there are efforts to eliminate the Mortgage Forgiveness Debt Relief Act and Debt Cancellation. This is going to be a big issue for anyone who is unfortunate enough to have to do a short sale of their home. Currently, homeowners can apply to the IRS for a waiver of the taxes on the amount of mortgage debt that is wiped out during the short sale process. In other words, if you owe $200,000 on your mortgage and you do a short sale and the house sells for $150,000, your lender will send you a 1099 for the taxes on the $50,000 that you didn't end up paying.