Will Sellers Get More Money If They Wait?

Selling  Your Home,Townhome, Condo or Loft in 2011

Sellers in any real estate market are looking to get the best possible price. If you are looking to sell in the next year, today’s price may well be the best price. Home values stabilized somewhat in 2010. Many hoped that was a sign that values had bottomed out and we would see price appreciation in 2011. Studies released this week have painted a different picture.

If we look at CoreLogics January Home Price Index (HPI), we see that prices are again beginning to decline:

National home prices, including distressed sales, declined by 5.7 percent in January 2011 compared to January 2010

Mark Fleming, chief economist with CoreLogic, said, “A number of factors continue to dampen any recovery in the housing market. Negative equity, which limits the mobility of homeowners, weak demand and the overhang of shadow inventory all continue to exert downward pressure on housing prices. We are looking out for renewed demand in the coming months as the spring buying season gets underway to hopefully reduce the downward pressure.”

They are not talking about the spring market increasing or even stabilizing prices. They hope it will “reduce” the pressure to drive prices lower.

Radar Logic’s RPX Composite Price comes to virtually the same conclusion:

Radar Logic believes the RPX Composite price will continue to exhibit year-on-year declines throughout 2011 due to a growing supply of homes for sale and in the inventories of financial institutions, and weakening demand due to the reduction of government incentives for home buyers. Moreover, banks are facing uncertainty over whether they will be forced by regulators to expand mortgage modifications, and may reduce lending and tighten standards as a result.

“No matter what you call it, a ‘double dip’ or the continuation of a long process of deterioration, the current trend in home prices is evidence that housing markets are continuing to languish,” said Quinn Eddins, Director of Research at Radar Logic. “We expect the negative trend to continue under a severe supply overhang that includes a large and growing ‘shadow inventory’ of homes in default or foreclosure.”

Bottom Line

It seems that prices have again begun to fall nationally. With the overhang of existing and shadow inventory, prices will probably continue to decline in the Minneapolis condo market throughout most of 2011. If you’re thinking of selling, now might be the best time. Contact me today to see how this may impact you if you are thinking of selling.

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Minneapolis Condo, Loft and Townhome Rentals Management: Downtown Resource Group [Video]

DRG Condo, Loft and Townhome Rentals Mangement: Company Profile

 

Rick Gendreau : Downtown Resource Group – Rentals Management from South of Canada on Vimeo.

A serial entrepreneur from a family of entrepreneurs based in Minneapolis, MN, Rick has been involved in over forty small businesses, in nine industries, in seven different states.

After graduating from St. John’s University in Collegeville, MN with a degree in accounting, he opened the first of what was to be over thirty franchise businesses in six industries over twenty years. Aside from franchising, Rick has also started, grown, and sold several independent small businesses, from government-contract janitorial services to venture-capital consulting.

The relationship with Downtown Resource Group grew out of Rick’s passion and avocation: Being of service, and working with new and small businesses and the entrepreneurs that run them. Rick helped with the initial Strategic Plan for DRG, and has since worn several hats including strategic planning, financial management, rental-management development, and most recently new market development.

Looking to rent your property? Contact me and lets get started.

Rental Inventory

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Track 29 Apartment Project Ok’d by Planning Commission

Track 29 in Uptown Minneapolis, once intended to be soley 1 level condos and contemporary split level town homes, will now likely become apartments. 

According to the SW Journal, “Track 29 will be a 198-unit, two-building project at the corner of the Midtown Greenway and Bryant Avenue South. Both buildings will five stories. One building will front along the Greenway, the other along Bryant Ave.”

Track 29 currently consists of 27 two level lofted townhomes, primarily owner occupied. Construction of the uptown apartment complex phase of Track 29 is set to start late summer or early this fall.


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