Should Banks Convert ARMs into Fixed Rate Loans?

CNBC has a great aricle titled: “Loan Modification Anyone?”

The article does bring up a good point… while saving buyers that are in danger of losing their homes is a good policy, going too far is not fair for everyone else and can potentially lead to more fraud in the market.  It’s amazing to see the differences in opinion and direction this market seems to be taking.

All I know is that they better come up with something… the foreclosure market continues to grow as a percentage of listings for sale on the MLS and that isn’t good for the long-term health of our housing market.

Posted by Aaron Dickinson - Edina Realty on 11-26-2007 at 03:11 pm
Posted in Foreclosures & Short Sales, Info for Buyers, Mortgage Market, Opinion with 0 Comments

Minneapolis/St. Paul Median Home Sales Price Falls

The October 2007 Median Sales Price for Twin Cities homes fell 3.5% from a year ago and 4.3% from two years ago, to $220,000.  The Median Sales Price is the price at which 1/2 of the homes sold for more and 1/2 of the homes sold for less.

While this sounds like negative news, pricing is all relative.  The only people who suffer in a falling real estate market are the downsizing & downpricing homeowners.  For those who bought in the last few years that are trying to sell today will see red ink on the sell side but will see savings on the purchase of their new home.  Most of all, first time buyers and move-up buyers are definitely winning in this market.

Posted by Aaron Dickinson - Edina Realty on 11-16-2007 at 12:11 pm
Posted in Info for Buyers, Info for Sellers, Market Stats with 0 Comments

Minneapolis/St. Paul Housing Affordability Up 4.5%

According to the Minneapolis Area Association of REALTORS newest figures, the Housing Affordability Index is up 4.5% in November 2007 versus November 2005, from a value of 132 in 2005 to 138 today.

While this is an improvement from much of 2006 and 2007, it is still substantially lower than the index’s record of 160, set in 2003.  The index’s low of 122 was set in 2006.

The Housing Affordability Index formula measures housing affordability for the Minneapolis/St. Paul market. An HAI of 138 means the median family income is 138% of the necessary income to qualify for the median priced home using a 20% down payment, 30-year fixed mortgage.

Posted by Aaron Dickinson - Edina Realty on 11-15-2007 at 12:11 pm
Posted in Info for Buyers, Market Stats with 0 Comments