Shelli Wappes, Realtor

Congrats to all residents and fellows who will match with Mayo Clinic Rochester MN on upcoming Match Day!  I have lived in Rochester all my life and am proud to call it home. Let me know how I can help you with your housing needs, as you have heard, rates are historically low and it's a great time to buy and sell real estate!

If you have been on the fence about selling your home in or near Rochester, MN, now is the time to get off the fence!  There is very low inventory on the market and this makes it a good time to sell for higher prices!  We are trending towards a seller's market, after several years of a buyer's market.

Congrats on your 2013 match with Mayo Clinic!  Welcome to Rochester, MN.  It's a great time to buy a house, rates are low, home values are increasing.  Give me a call and we will get you into a house by June!

Is 2013 going to be the last year for "good deals" in Real Estate??  Interest rates are historically low, home inventory is low...both of these factors will cause home prices and interest rates to rise.  Is this year a good year to buy a home...answer is yes.  Good year to sell...answer is yes, and getting better!!

2012 saw improvement in homes sales and prices in the US.  Forbes says that 2013 will continue to show modest increases in home values, but will be nothing to get excited about. Distressed home sales (short sales, foreclosures) will remain steady and we still have more houses than the current demand is calling for.  With historically low mortgage rates, it is a great time to invest in real estate.

Looking ahead to 2013, the Freddie Mac expects long-term mortgage rates to stay near record-lows for at least the first half of the year, and then rise steadily for the second half of the year.  Is it a good time to buy or should a qualified buyer wait for lower rates?  The answer:  BUY Now!!  Rates are at historic lows.

Foreclosure rates in the Twin Cities and most large metro areas in the state fell slightly at the end of last year, according to the lastest CoreLogic report. It says that year-over-year foreclosure rates in the Twin Cities metro were down .33 percentage points compared to December of 2010 when the rate was 2.27 percent.

• In Duluth the foreclosure rate was 1.42 percent, down .27 percent from last year. Delinquencies stood at 3.76 percent.
• In Rochester the foreclosure rate was 1.07 percent, down .16 percent from last year. Delinquencies stood at 3.10 percent
• In St. Cloud the foreclosure rate was 1.23 percent, down .13 percent from last year. Delinquencies stood at 3.60 percent.

Could Fiscal Cliff push economy into another recession in early 2013, just when signs of improvement were being celebrated?

The Real Estate market has been showing signs of recovery this year but with the looming fiscal cliff, that recovery is threatened.

If the cliff becomes a reality, we expect to see a pull back in housing. Faced with higher taxes, many potential homebuyers on the fence could very well be forced to rent. While affordability across the country remains a draw for demand, we’ve already seen it come down off the highs as prices rise. And at the end of the day, going over the cliff translates to reduced net income for potential buyers. Even if prices remain attractive, taking a hit on income will surely deter some demand at a time when markets need it the most.” 

(Alex Villacorta, director of research and analytics)

Big, open spaces are more appealing to buyers, who want to picture themselves living in your home. When listing a home for sale, maximize your space using these great tips from Forbes.

First, glass creates the illusion of extra space while also letting in extra light. Install lower and wider windows to optimize this effect, keeping in mind that green home improvements may be eligible for tax deductions. If you’re on a small budget, add a large mirror or collage of mirrors to get the same effect.

Next, clutter be gone! Whether you buy benches and closed cabinets that hide your stuff, or take this opportunity to throw away some of your belongings, make sure your spaces are clear of small knick-knacks, stacks of books or magazines, and other clutter.

Another round of foreclosures will be hitting the market as we we enter the 4Q of 2012.  Long redemption periods make the foreclosure process seem endless. Are we too lenient in the Midwest with our redemption period?

Home values are showing signs of improving...slightly in the Rochester, MN market.

Home sales up 17% from one year ago. Home prices up 1.2%.

Inventory for homes for sale in Rochester is low.  Buyers are looking for new listings, new prices, or both.

Pent up demand and historically low interest rates resulted in a real estate sales boom in January of 2011...will we see the same this year?  Kiplinger predicts we will see an increase in sales of existing housing and no changes in sales of new construction.  The low interest rates have not made the impact we have expected on home sales because many buyers are unable to meet the down payment requirements to qualify for a mortgage.

Mortgage Reform must start with eliminating all of Fannie Mae and Freddie Mac's inventory and privatizing the mortgage industry. Six years into this mess, another 6 years to get out.

CMN-NEWS

A whopping 46% of homes sold in November were either short sales or REOs -- as homes repossessed by lenders are called, according to a survey by Campbell/Inside Mortgage Finance.

One problem: Distressed homes sell for a lot less than homes sold by conventional sellers. The average price for a short sale (when borrowers owe the bank more than their homes are worth) was $209,000 in November. For a regular sale, the average was about $259,000.

We will be in an unstable housing market for the next 18 months to 2 years before prices and inventory stabilize. This resulting from another round of foreclosures that have an incubation period of around 18 months before they show up as inventory on the market. Rochester, MN

What is the difference between a HUD home and a foreclosure?   Both homes are foreclosure homes but the HUD defined homes were financed with an insured FHA mortgage.  When a borrower defaults on an FHA mortgage the federal government pays back the lender of record, and instead of the home going back to the bank, it goes back to HUD (department of housing and urban development.

Average Rate on 30-year Fixed Mortgage Falls to 4.15 Percent, lowest on records dating to 1971.  Time to buy a house!!