The market's gone wild

Ladies and gentleman the real estate markets gone wild. Well, at least parts of it have. If you're looking in the lower end, really anything under 300k, you're going to run in to competition. The $8000 tax credit has really made an impact.

We're seeing multiple offers more often than not. There was a home in Minneapolis' Longfellow neighborhood that three agents in my office had buyers put an offer in on, the house ended up with 20+ offers after being on the market only 3 days. This house was a foreclosure and that's where we're seeing most of the multi-offer situations. The market is still filled with foreclosures and short sales, but the numbers have dropped some this year already (watch the video in my previous post for more on that).

The more expensive homes are still selling but not nearly at the rate that we're seeing in the low end. The main reason behind this is the mortgage rates for a jumbo loan (a loan for 417k or higher). While the mortgage rates for conforming loans (under 417k) ares still low the rates for jumbo loans are higher than they normally would be. Traditionally jumbo rates are 1-1.5% above conforming but in today's market they are closer to 3% higher. These higher rates are making people hesitate, and until something changes the higher end market will remain where it currently is.

All in all now is a great time to be buying, whether or not your a first time buyer. The rates are great and housing prices are still good despite the uptick in demand.

Stay tuned for more good news.