Time to Buy a Home in St Cloud MN?
It seemed like there was no way we could see mortgage rates stay this low for this long. Early this year I was expecting to see mortgage rates hover around 7.0% this winter and raise even higher next spring. Instead, it seems that the various economic factors that come into play as banks figure out their lending rates are as uneasy as the real estate market in general. All of the doubt and negativity that has flooded the real estate market by the recent sub-prime lending practices and the extreme deflation of markets like California, Nevada, and Florida (to name a few) has found its way across the country. Everyone feels like the real estate market is in the tank because this is what we keep hearing.
I propose that we look at the St Cloud, MN real estate market and the surrounding areas of Sartell, Sauk Rapids, Waite Park, and St Joseph to get a feel of what we should be doing in Central MN. Interest rates are currently just over 6.0% (I've seen 5.95% on a couple of national stat sheets) and Bernanke, the Chairman of the Federal Reserve, is expected to lower the Fed's rate again on Halloween. The average and median home prices in the St Cloud area are only down approximately 1-2% as compared to 2006. There are a literally 140+ foreclosed properties on the St Cloud MLS as well as hundreds of other distressed sales allowing for some phenomenal deals. So why should a buyer want to purchase a home in the St Cloud, MN area now?
Simple breakdown:
Great interest rates allow buyers to qualify for more home with less money.
More deals and some true steals available to potential buyers.
Overall, home prices are fairly stable in the St Cloud area.
Have you heard this phrase? "When everyone else is walking, you should run." I'm giving a big hint that todays real estate market is the perfect time to fight the system and buy up the houses that are being sold at great discounts. I just sold a home to one of my buyers for $125K, minus closing costs to be paid by the bank, that appraised for $153K without the improvements that can be done to the inside of the home! My buyer is looking at $30K in instant equity for just buying this home. I personally purchased a third property earlier this year for just over $180K that is valued at almost $220K. These deals are everywhere with the amount of foreclosures that are currently available. If you haven't made your home purchase yet and would like to get set up to view the foreclosures currently for sale on the St Cloud (or Minneapolis) MLS systems, visit www.StCloudEdina.com/Foreclosures.html. If you are still a little nervous about making your home purchase, please post your questions, comments and concerns below for answers and review.
Jason Tangen, GRI
