Archive for September, 2008
More Good News for the Twin Cities Real Estate Market
September 30th, 2008 Categories: Minneapolis Home Buyers and Sellers, Real Estate News, Twin Cities Real Estate Economy
Weekly Market Activity Report
September home sales in the Twin Cities housing market continue to post huge gains over 2007. For the week ending September 20, there were 42.8 percent more pending sales than the same week last year. Over the last seven weeks, there have been 5,866 signed purchase agreements, up more than 1,500 units from the 4,363 posted during this period in 2007. However, here are some items to keep in mind that temper the good news:
- September 2007 was a particularly slow month, which inflates the appearance of this year’s increase. Current sales levels are on par with September 2006.
- Lender-mediated foreclosures and short sales are a growing part of the market. For the most recent week, 39.1 percent of pending sales were lender-mediated, compared to 13.4 percent for the same week last year.
- Home sales in September of this year may be temporarily propped up by buyers taking advantage of the final days of the FHA seller-funded downpayment assistance program, which disappears on October 1.
The supply of homes for sale remains lower than last year—7.8 percent down from the same time last year for the most recent reporting week.
That’s a wrap!
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What is TARP?
September 29th, 2008 Categories: Mortgage Stuff, Real Estate News, Twin Cities Real Estate Economy
Following are provisions compromise legislation is expected to incorporate, based on a draft bill and comments from lawmakers about the state of negotiations.
* The bill would create a Troubled Assets Relief Program (TARP) to purchase mortgage-related assets originated or issued on or before March 14, or any assets if needed to promote financial stability.
* $700 billion overall to be authorized in installments of $250 billion. That could be increased to $350 billion upon notification to Congress by the president.
* Assets could be purchased from any financial institution having significant operations in the United States.
* Government to get warrants for equity in participating companies as a way of protecting taxpayers and allowing them to benefit from any profit gains.
* Foreclosure mitigation for Americans at risk of losing home. However, a provision House Democrats had sought to help save homes in bankruptcy proceedings has been dropped.
* Restrictions on executive compensation at companies that participate.
* Incorporates House Republican proposal to allow for private-sector funded mortgage insurance prog
ram as an option for Treasury secretary.
* Financial Stability Oversight Board comprised of the chairmen of the Federal Reserve, Securities and Exchange Commission and Federal Deposit Insurance Corp, and two members appointed by Congress to oversee activities of the program.
* Requires a government investigation into causes of crisis, with report delivered to Congress by June 2009.
* Regular and detailed reports on transactions and other activities under the rescue program.
* Establishes a congressional oversight panel that would also submit a report on regulatory reform no later than January 20, 2009, the date a new president takes office.
* Would direct 20 percent of any future profits from the bailout fund to the Affordable Housing Fund and the Capital Magnet Fund to meet U.S. housing needs. House Republicans, however, have made clear they oppose this provision.
* Authorizes a temporary money market mutual fund guarantee program for up to one year; requires U.S. Treasury to restore any funds to the Exchange Stabilization Fund that had been used for that purpose and prohibits their further use.
* Requires federal financial regulatory agencies to cooperate with federal law enforcement to investigate fraud or misrepresentation with respect to financial products.
* Investors who sold preferred stock in mortgage finance giants Fannie Mae and Freddie Mac, between January 1, 2008, and before September 7, 2008, to pay higher ordinary income taxes on any gains rather than the lower capital gains tax.
The government announced the seizure of Fannie Mae and Freddie Mac on September 7.
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Why I Am Happy About Twin Cities Real Estate and Why You Should Be, Too!
September 17th, 2008 Categories: Minneapolis Current Housing Statistics, Real Estate News, Twin Cities Home Buyers, Twin Cities Real Estate Economy, Twin City Sellers
If you thought that things were bad for the Twin Cities real estate market, wait until you see this! I told you so!
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Great Big Flowers in North Minneapolis…I Challenge You to Find Bigger Ones!
September 8th, 2008 Categories: Minneapolis Home Buyers and Sellers, My Listings, North Minneapolis, Real Estate News, That Flippin' House, Twin Cities Home Buyers, Twin City Sellers
On our latest home buyer excursion in North Minneapolis this past Saturday, we had the pleasure to see some lovely homes and landscaping. My client is listing her new refurbished home at 3346 Girard and has done a great job of planting flowers and even laying new sod. It is absolutely gorgeous.
But, as we began to look for a new home for her to perform her magic we stumbled on this house with gigantic sun flowers! Wow! Just another great day in North!
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