Blaine MN | A Tale of Two Markets...or Three

Blaine, MN | A Tale of Two Markets...or Three

While it is said that all real estate is local, the market in Blaine, Minnesota is following a pattern seen across the country, there is a discrepancy across markets. There is a continued lack of inventory in the starter homes while in high end homes there is an abundance. 

One difference I am seeing in and around the greater Blaine 55449 zip code is that there is a bit of a leveling off of the mid-range or move-up homes sales as the market seems to be come a bit more balanced for this price point. A quick look at the MLS today showed that there were only 7 homes available under $200K but more than triple the amount in the $200K to 300K price point with 21 active homes. Over $300K there were quadruple active listings with 109 homes currently available.

Real estate is often the biggest investment a person will make in their lifetime. Understanding the nuances of the local neighborhoods is essential. 

Today I would like to explore this further with A Tale of Two Markets 

Six months ago, I reported that the mismatch between the type of inventory of homes for sale and the demand of buyers in the US was causing the formation of two markets.
In the starter and trade-up home categories, there were significantly more buyers than there were homes for sale, causing a seller’s market. In the premium, or luxury, home categories, the opposite was true as there was a surplus of these homes compared to the buyers that were out searching for their dream homes, which created a buyer’s market.
According to the National Association of Realtors latest Existing Home Sales Report, the inventory of existing homes for sale in today’s market is at a 4.2-month supply. Inventory is now 6.5% lower than this time last year, marking the 27^th consecutive month of year-over-year decreases.

Looking at the latest report from Trulia, we can see that not much has changed, and in fact, recent natural disasters across the country have made inventory conditions even more dire.
Trulia’s market mismatch score measures the search interest of buyers against the category of homes that are available on the market. For example: “if 60% of buyers are searching for starter homes but only 40% of listings are starter homes, [the] market mismatch score for starter homes would be 20.”

The results of their latest analysis are detailed in the chart below.



Nationally, buyers are searching for starter and trade-up homes and are coming up short with the listings available, which is leading to a highly competitive seller’s market in these categories.

Premium home buyers, on the other hand, have the best chance of less competition and more inventory of listings in their price range with a 14.7-point surplus, which is creating more of a buyer’s market.

Bottom Line

Real estate is local. If you are thinking about buying OR selling this fall, let’s get together to discuss the exact market conditions in your area.

Source: KCM Teri Eckholm Blog

READY to Make YOUR Move? It IS essential to have a knowledgeable agent at your side. If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of BOARDMAN Realty, a call at 651-336-7073 or visit my website for a FREE Home Buyer Success Guide or FREE Home Value Report. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.
 
Copyright 2017 terieckholm.com

On or Off the Market this Holiday Season? What Should a Home Seller Do?

Thanksgiving is only a week away...the relatives are planning for a visit...the turkey is in the freezer and grandma's secret stuffing recipe has been pulled from the vault. Yes, the holiday season is almost here but the house hasn’t sold.

What should a home seller do?
A first inclination for most home sellers would be to withdraw their home from the market for a few months. This is especially true in Minnesota where a white Christmas is pretty common. There is a belief that the home buyers will be preoccupied with the holiday season and only a handful of people in the market. While there is some truth to this belief, sellers can be ignoring another more important truth: Buyers looking at houses during the holidays are V-E-R-Y serious buyers. 

There are not many tire-kickers running around with a REALTOR® when there are presents to buy and gifts to wrap. November, December and January showings are a seller’s opportunity as most homes that buyers will visit at this time of the year are vacant. A buyer’s choices are down to model homes, empty relocation properties and foreclosures. Just imagine how a buyer perceives a warm home filled with the colorful sights, delightful sounds and wonderful aromas of the season. Staging a home for a sale during the holidays is a unique opportunity giving the traditional home seller the edge!

Tips for Showing & Selling During the Holidays

1. Decorate! Tastefully of course. This might not be the year that you do the Griswold display of lights as in National Lampoon’s Christmas Vacation, but a decorated tree, candles and wreaths can add a special touch.
2. Bake and leave out a plate of Christmas Cookies. Why should Santa have all of the extra calories?
3. Keep the home fires burning! Make sure the fireplace is burning bright, warm and welcoming!
4. Play holiday music. Leave out the barking version of Jingle Bells and go for instrumentals or uniquely Minnesota regional artists like The Blenders.
5. Shovel and salt the sidewalk and driveway if necessary. No one wants to spend the holidays in the emergency room with a twisted ankle.
6. Leave the front light on! Don’t forget it is dark during those early evening showings. Make certain buyers and their agents are able to see their way to your front door and lockbox. 
   
   

  Copyright 2012 www.terieckholm.com

How Invested are YOU in Selling Your Home?

When a home owners contact a REALTOR® for a market analysis, they often have a myriad of questions to ask me as their potential agent about what I can do to get their home sold. They want a person with a good, solid track record of getting a home sold quickly and for the best price possible. This is what I want too and it does take a good strong marketing plan. One key to the process is when I work with a motivated home seller who is on the same page with me and who asks, “What can I do to make my home appealing to a buyer?” And even if the home seller doesn't ask, I will work the topic into the conversation. There is nothing worse than trying to represent an apathetic or reluctant home seller.

If a homeowner doesn’t want to do the work and partner with me to get there home sold, it will be an uphill battle to the closing table. It is imperative for a home seller to be totally invested in the home selling process. And this starts even before the home is listed on the market.

Steps to being an INVESTED Home Seller!

• Preparation—Having the home freshly painted, cleaned and staged are essential before the home is listed. Special touches really do add a welcoming touch like a seasonal wreath on the front door. Dust free vents, spotless floors, cobweb-free ceilings and light fixtures do make a difference.
• Pricing—Listen to the advice of experts when it comes to setting the price. Don’t go by an old appraised value or what your dad said he would ask for your home. Unless Pops is a real estate professional, it is best to stick to the market statistics to come up with your list price.
• Presentation—Interior and exterior appeal should be optimized for each and every showing.  Beyond clean and staged, light a fire in the fireplace, place a plate of warm cookies on the counter and make a potential homebuyer feel welcome!
• Availability—Allow buyers in! Don’t say no to a showing unless it is absolutely necessary. Sometimes relocation homebuyers are just in town for a limited time and make their decision based on the homes they see that day. If you refuse a showing, you might miss out.

A potential home seller really wants and needs for their listing agent to be invested in getting their home sold quickly. But all the marketing in the world cannot get a home sold if the homeowner isn’t invested in getting the home sold too!

Copyright 2012 www.terieckholm.com