Sandless Wood Floor Refinishing?

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I sell a lot of homes with hardwood floors. I have hardwood floors in my hose and I have been wondering when I can take my wife and child and 3 dogs and 1 cat on a cruise so that we can be out of the house for a week and I can pay someone a MILLION dollars to get my floors redone.

Yep. We're talking pure Fantasy Island.

But wait! I open my e-mail spam today and I read this:

Mr. Sandless™ makes refinishing wood floors quick, affordable and painless! There is no mess to clean up, no odors, and service is complete in just hours. We are always less expensive than sanding, and everything we use is kid and pet safe. There is no better way for your wood floor refinishing needs!

I checked out the WEBSITE and it looks legit! Could this be the answer to my hard wood dreams? I am curious, gentle readers, if any of you have used this service. If so, please post your comments here. If not...perhaps I will be the Guinea pig and check these guys out...

TODAY'S REDUCTION is TOMORROW'S GAIN

I realize that the plural of "anecdotal" is not "data" but here's what I have seen in the market lately.

A house that sold Fall of 2006 now listed for $214,000.

A house that sold for $230,000 in 2004 now listed for $114,000.

A house that sold for $235,000 in 2005 now listed for $199,000.

It goes ON and ON and ON.

If you are a renter or a first time buyer or an investor I urge you to seriously consider some of the opportunities that are out there. I have never seen prices like this in my career and something tells me this can't last. Once the inventory gets thinned out prices will stabilize.

And the news is not bad for all Sellers. I still see properties that are competitively priced selling in MULTIPLE OFFERS. But if your equity is tapped out it's not a great time to be on the market.

And for Buyers consider this - TODAY'S REDUCTION is TOMORROW'S GAIN.

Whether or not you reap this windfall is entirely up to you...

Weekly Twin Cities Real Estate Market Activity Report

Slow Train Comin'

Here's the Latest from MAAR:

Despite recent favorable drops in mortgage rates and improvement in housing affordability, buyer activity remains slow in the Twin Cities housing market. For the week ending November 17, there were 545 new purchase agreements signed, down 17.7 percent from the same week in 2006. As we enter the holiday season, sellers continue their annual pause, as the number of new listings on the market and the total number of homes for sale have been in a general seasonal decline for more than eight weeks.

Click HERE for the full report.

Local Mortgage Brokers Drop by Two-Thirds!

Of all the sad and scary stats this one really defined what is happening in the local housing industry:

Minnesota Mortgage Association President Tim Bendel said his industry has taken a hit, too. Brokerage license applications came up for regular review at the end of last month, Bendel said, and early indications are the number of licenses dropped from 4,000 to about 1,400.

Wow. That is staggering. It seems the Day of Reckoning is here for the Realtor as well. Dues to the tune of about $400 bucks are due in the beginning of December and are required for anyone who wants to keep their license. I remember last year at this time the Executive Director of the Minnesota Association of Realtors was actively campaigning members NOT to renew in an effort to thin the herd. I have heard very little of that this year, it seems the market is doing that all on its own...

Weekly Twin Cities Real Estate Market Activity Report

Here's the latest from MAAR:

The rapid flattening in fourth-quarter sales can be viewed as a positive sign, as compared to the third quarter, when buyer activity was in rapid decline.

Over the last two weeks, newly signed purchase agreements (pending sales) are behind the same period in 2006 by 15.2 percent, as compared to the last three months when sales dropped by 21.5 percent. Recent listing activity has declined by 4.6 percent, as compared to last year. The total inventory of homes for sale is dropping as we near the holiday season.

CLICK HERE to see this week's stats.

November Market Update

While we experienced exceptional activity in our local real estate markets from about 2001 - 2005, it’s important to remember that real estate is a cyclical business. Historically, the Midwest has always been slower than coastal markets, remaining steady and somewhat predictable; we tend not to undergo some of the extreme highs and lows that other markets do. And, similar to its cyclical nature, real estate is seasonal with activity slowing in autumn and around the holidays.

Builders and buyers continue to exercise caution, which has resulted in inventory growing at a slower pace than the record levels of 2006. In fact, while it’s still at historic highs, inventory is only 10 percent above this same time last year. This is good news for thinning out the number of homes for sale, which, combined with the average selling price coming down, indicates that we’re poised for a slow, steady market comeback. To help put the current market into perspective, we should recognize that according to the National Association of REALTORs® (NAR), 2007 will be the fifth highest year on record for existing homes sales!

We see motivated buyers and sellers, but at the same time, we’re now experiencing a return to more traditional, stricter lending practices that were in effect before the boom. According to NAR, conditions in the mortgage market are improving overall for consumers, which will help to release some pent up demand in early 2008. And, while tighter credit standards are believed to be a factor in the recent decline in home sales, the decline in home prices and interest rates have also helped keep housing affordable. While some sellers may wish for a higher sale price, it’s important to remember that most sellers are also buyers – and this market offers great buyer opportunities, whether it’s your first home, next home, vacation home, or an investment property.

Another Negative Strib Article about Real Estate

Sometimes I wonder why I subscribe to this paper! Seriously they seem to get off on mentioning every possible negative twist the market takes. So here's the article for your perusal but I did want to highlight the interesting ray of hope it contains:

Sales of existing homes last month were down 17.7 percent from October 2006, but more purchase agreements were signed than in September, perhaps reason for optimism.

Hooray!

Weekly Twin Cities Real Estate Market Activity Report

Here's the Latest from MAAR:

As mortgage rates decline and home sellers appear increasingly willing to accept moderate offers, home sales have picked up slightly in recent weeks. Newly signed purchase agreements (pending sales) for the week ending November 3 were behind last year at this time by only 13.6 percent. New listings on the market also increased, up 7.3 percent for the same time period comparison. This week's edition of MAAR's Weekly Market Activity Report features updated figures for several key metrics:

Days on Market Until Sale in October was 142 days, an increase of 20.3 percent from one year ago.
Percent of Original List Price Received at Sale declined further to 93.1 percent and should continue to fall until early 2008.
The November Housing Affordability Index increased dramatically to 138 due to declines in mortgage rates and home prices, an important trend for the long-term health and accessibility of our market.
Months Supply of Inventory declined slightly to 9.5 months due to the annual drop in the number of homes for sale that takes place in November.

We have also updated figures for The 100, our popular city-by-city market snapshots for more than 100 Twin Cities communities. view the latest figures for The 100

Tricks of the Trade Part 1

Minneapolis Truth in Housing

All properties sold in Minneapolis, as well as several other communities in the metro, require a Truth in Sale of Housing Inspection Report.

In Minneapolis it works like this:

The Truth-in-Housing ordinance is meant to provide accurate information on the condition of property for sale and to help Minneapolis keep up the quality of housing available in the city.

Types of residence

Single-family houses
Duplexes
Townhouses
First-time condo conversions

Types of sales

Sale by owner
Sale by real estate agent
Real estate agent-assisted sale
Contract-for-deed
Other title transfer

The Truth in Housing Ordinance requires:

1. An evaluation to say what condition a house is in.

After February 26, 2007, a copy of the evaluation, the Certificate of Approval (if issued), the list of violations, can be found on the City of Minneapolis website.

2. Repairs must be made when a house is sold. (Learn more about required repairs.)

A licensed evaluator must complete a Truth in Housing evaluation and provide a disclosure report before any single-family house, duplex, townhouse, or first-time condo conversion can be shown to prospective buyers.

The Truth in Housing Evaluation, also known as the disclosure report, must be displayed on the property so potential buyers can look at it.

A re-inspection must be done after any required repairs have been completed. This is separate from the initial evaluation.

If you are ever curious about a specific property you see listed check out this Minneapolis Property Info page.

Not only can you see and print the latest Truth in Housing Inspection but you can also see a history of other permits that were pulled on the property.

Information is power! Your agent should always be getting you as much info as possible about the properties you are interested in and there are many resources available. Knowledge is power!

Could Mortgage Rates Drop to 5 Percent?

Plus- Every Home to Come with Five Pound Box of Money!!!

OK... so this sounds too good to be true but someone, and not just someone (Bill Gross, chief investment officer of Pacific Investment Management Co - the Worlds LARGEST Bond Fund) said this on CNBC:

"The Federal Reserve cannot afford to let U.S. housing prices fall and will have to cut interest rates aggressively to prevent it from happening."

A Fed cannot afford to let homes go down by 10 to 15 percent like we saw in Japan. We've only begun to see the pain from the standpoint of the home owner in terms of those monthly payments. Defaults and delinquencies will increase as we extend throughout 2007 and then into 2008."

Gross expects the Fed to cut the federal funds short-term rate to 3.5 percent, which implies that the 30-year mortgage rates will come down to 5 percent to 5.5 percent.

So...will THAT finally be the straw that stirs the Buyer's drink?

Stay tuned...

Great Resources for Fixer Uppers!

Communities Offer Grants & Loans to Fix Up Homes!

There are some TREMENDOUS opportunities in the current market. Not only are there foreclosures (which still are only a very small percentage of available homes -don't believe all the media hype!) but a number of other homes priced very low. A couple of years ago it seemed impossible to find anything under $200,000 and if you did it sold quickly in competitive offers or was beyond saving (needed too many repairs).

Now I am seeing single family homes around $150,000 - and below- that with some minor repairs and hard work can be made into gems. You have to look for GOOD BONES when looking at these kind of properties.

What are GOOD BONES?

1. Solid Mechanicals
Are the furnace, plumbing, electrical in decent shape? Look for copper pipes and make sure check to see if the electrical has been updated to 100 Amp circuits rather than 60 Amp fuses.

2. Demand Features
Is there hardwood under the carpet? Are there other features - built in buffet, breakfast nook, fireplace, that add intrinsic charm and value?

3. How's the Roof?
Replacing a roof can be expensive. The good news is that most will last 20 years. Looking at the roof you can usually tell if it looks old (but always hire an inspector) and you can check the City's records to see when the last permit was pulled to do the roof to determine the age.

4. What about Water Troubles?
If you detect a lot of water in the basement, which can often be addressed through landscaping, it can sometimes mean foundation or mold issues. Give it the "sniff test" and proceed with caution if things seem musty. Like my Inspector friend has told me several times: "If it's wet, there's mold. It's all just a matter of how much."


5. Truth in Housing Report
In Minneapolis, and other cities, a Truth in Housing Report is REQUIRED for all properties sold. Often times with estates and foreclosures the Seller requires the Buyer to assume these. Always check the cities' website -CLICK HERE FOR MINNEAPOLIS- for access to the Truth in Housing Report.


WHERE TO FIND HELP

Here is an excellent resource guide published by the city that lists all of the available loans for fixing up your home as well as programs to help pay the costs of city required repairs.

You can download it here: Housing Programs Resource Guide

Here are some other excellent resources for Buyers:

Association of Community Organizations for Reform Now Housing (ACORN)
-First time buyer classes, help with lending.

Community Action Partnership of Suburban Hennepin
-Programs include mortgage foreclosure prevention and rehab advice.

Minnesota Housing Finance Agency
-Housing assistance programs for low and moderate income residents including down payment assistance.

Community Neighborhood Housing Services
-A resource for St. Paul

Please contact me with any questions and Happy Hunting!

Housing Supply Outlook

This Report bears spotlighting:

New construction listing inventory continues to drop as builders cut back on new projects and focus on selling existing units. The number of new constructionunits on the market has fallen by 17.5 percent when compared to this time last year and are being sold at 7.4 percent less per square foot.

Condominuims face a tough road ahead. Their sales have dropped the most of any property type, keeping their supply levels high despite a dropoff in new listings.

The middle-upper price ranges found between $250,000 and $500,000 are more stable than others, seeing far less growth in inventory than other price ranges and a relatively smaller drop in buyer demand.

Massive inventory growth is taking place in the lowest price ranges, possibly due to the role of subprime foreclosures.

CLICK HERE for the complete report.

Weekly Twin Cities Real Estate Market Activity Report

Here's the Latest from MAAR:

With mortgage rates falling and a plentiful harvest of homes to choose from for area buyers, the pace of declining home sales in the Twin Cities has slowed slightly in recent weeks. Newly signed purchase agreements (pending sales) were behind this time last year by 16.7 percent for the week ending October 27, an improvement from the large declines seen in late September. While the inventory of homes for sale is still at a record high, it is beginning its annual autumnal drop and should continue to wane through the rest of 2007.

This week's edition of the MAAR Weekly Market Activity Report features updated figures for Mortgage Rates and Supply-Demand Ratio. Rates have fallen dramatically in the last two months, teaming up with home price declines to create important improvements in affordability that will benefit our market down the road. The Supply-Demand Ratio of 11.22 means there are 11.22 homes on the market for every buyer.

For a detailed look at the way our changing market is affecting buyers and sellers in various submarkets affected by price range, property type and construction status, take a look at our Housing Supply Outlook. Dig deeper.

Mortgage Rates Continue to DROP!

The buzz today is all about the latest Fed Cut to the rates:

Mortgage rates drop to five-month low

Mortgage rates hit lowest levels since May

Fed Cuts Rates a Quarter-point

So...while this no doubt is good news it will be interesting to see if the Strib manages to spins some GLOOM into this story. It probably won't be very hard - some of the stories are already blaming the poor housing market for the rate decline. Interesting dichotomy at work there!

In any event, those looking to BUY are finding it a bit eassier today than yesterday and that can do nothing but help break the ice!