Real Estate Advice
Is the Sky Falling?
Dear Pat
We’ve been planning to buy a home in Longfellow this fall, but we
recently read an article in the Star Tribune that is making us
hesitate. The article says that August was the worst month for local
real estate sales since 1994, and that the downturn is likely to
continue. We don’t want to get stuck with a house we can’t sell.
What’s your take on this? Is the sky really falling?
--- Chickens Little
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Dear Chickens,
There you go, clucking around the barnyard, all upset just because the
Strib wants to sell papers.
The article you mentioned, front-page September 13, begins by wailing,
“The bottom continues to fall out of the real estate market (italics
mine) as area home sales posted their worst monthly showing in August
in more than a decade, and the downturn is likely to continue,”
further citing, “the number of homes sold fell 17.8 percent compared
with a year ago while pending sales dropped 18.1 percent, according to
data released…by the Minneapolis Association of Realtors.” It all
sounds pretty dire, but the article goes on to reveal (once you’ve
turned to page 13) that the depressed market in new condominiums, off
37.4 percent, dragged down the volume average significantly. As to
prices: while condos dropped 8.7 percent, single-family homes held
their value at nearly an even pace with last year, down less than 1
percent.
Remember, Chickens, these are area-wide figures. What do they mean to
us in our end of the city? Well, if you’re looking in Longfellow, you
might be interested to know that single-family home sales in the
neighborhood did decline this summer compared to last, but only by a
total of 5 houses. Updated sold price comparisons aren’t available
yet, but listings have been generally |
priced about the same as last
year. And last month, contrary to the bleak
picture painted in the media, River Realty tallied
its third-highest August volume since 1999. Of
course, even the best available homes take much
longer to sell than they did two years ago; but
fire-sale pricing is not happening in this slower
market.
And don’t discount the advantages of a slower
market. Today’s buyers have the time and inventory
available to find a well-priced, well-maintained
home. You’ll soon find yourself becoming savvy
about pricing and condition. This can be a real
comfort compared to the stress of a fast-rising
market, when buyers felt the pressure to compete
for any house in any condition. And with interest
rates hovering around 6 percent, you Little
Chickens just might scratch up something to crow
about!
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Pat
Rosaves is broker/owner of River Realty.
She has over 30 years experience helping
people with their real estate needs.
Questions may be sent to her at River
Realty, 2543 38th Ave S. Minneapolis, MN
55406. She can also be reached at
612-724-1314, or at www.riverrealty.net |
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