Just Listed brings you the latest news and information from the Twin Cities-area commercial and residential real estate market and beyond from veteran reporters Jim Buchta and Janet Moore.

Posts about Buying

Cash home sales fall to the lowest level since 2010

Posted by: Jim Buchta Updated: August 14, 2014 - 10:20 AM

Cash sales in made up 34.4 percent of all home sales in the U.S. during May, the lowest share since May 2010 and down from 37.4 percent from the same month a year ago, according to CoreLogic.  In Minnesota, cash sales represented 25 percent of all closings.

Those cash deals been falling since January 2013. But prior to the housing crisis, the cash sales share of total home sales averaged about 25 percen after peaking in January 2011 when cash transactions made up 46.2 percent of total home sales.

Who's paying cash? Buyers of real estate owned (REO) listings were most likely to pay cash, the represented about 55 percent of all deals. Buyers of existing houses paid cash 34 percent of the time and short sales represented 32.8 percent of all deals. New home buyers paid cash only 16.8 percent of the time.

Here's where cash sales were most common:

  1. Florida: 53.4 percent
  2. New York: 50.3 percent
  3. Alabama: 48.9 percent
  4. West Virginia: 48.3 percent
  5. South Dakota: 46.3 percent

Home sellers outpaced buyers in the Twin Cities last month

Posted by: Jim Buchta Updated: August 12, 2014 - 10:32 AM

With house prices on the rise there were more home sellers than buyers in the Twin Cities metro during July, according to a monthly report from the Minneapolis Area Association of Realtors. Here are the highlights of that report (we're working on a full story for the Wednesday paper):

  • There were 5,198 closings, a 9.9 percent decrease.
  • The median price of sales last month was $215,000, a 3.4 percent increase.
  • There were 8,015 new listings, a 9.8 percent increase.
  • Pending sales - an indication of future closings - was down 3.4 percent.
  • The supply of houses for sale was up 9.9 percent.

New FICO formula could revamp credit scores

Posted by: Jim Buchta Updated: August 11, 2014 - 10:39 AM

If you were interested in my Sunday story about easing mortgage credit standards, take note of this:  FICO is luanching a new a credit model called FICO Score 9, which will enable lenders to do a better job measuring a borrower's credit stability on everything from auto loans to home mortgages. Score 9 will be available to lenders this fall.

Here's what Jim Wehmann, executive vice president for Scores at FICO, had to say about these upcoming changes: “FICO Score 9 uses a more refined treatment of consumers with a limited credit history and those with accounts at collection agencies, so that lenders can grow their credit and loan portfolios more confidently...by applying innovative predictive modeling techniques on recent data to capture consumer credit behavior, FICO Score 9 will extend FICO’s leadership in providing the credit score that most accurately and fairly defines U.S. consumer credit risk.”

Here's a link to the full details.

World's most expensive house hits the market in Hong Kong

Posted by: Jim Buchta Updated: August 8, 2014 - 11:43 AM

At almost $23,000 per square feet, this house in Hong Kong is reputed to be the world's most expensive house on a per square foot basis. The property is in the Twelve Peaks subdivision in the exclusive Victoria's Peak neighborhood. At nearly $106 million, it's not the most expensive house on the market in the world - that distinction belongs to a house in London.

The house has 4,661 square feet, including four bedrooms, a private pool, garden, rooftop terrace and a two-car carport. To see the house, click here.

Home price gains now being driven by the jobs market

Posted by: Jim Buchta Updated: August 7, 2014 - 8:33 AM

Trulia's latest Trends report takes an interesting look at rents and house prices for the 100 largest metro areas in the nation. It shows some interesting shifts in the market. Namely, prices gains have moderated dramatically now that prices are being driven by wages rather than the rebound factor (investors and bargain shoppers). 

On the price side, for the first time in 26 months, no housing market saw an annual increase over 15 percent duing JulyOn the rental side of the equation, rents rose the most in markets that saw the strongest job growth. San Francisco was tops with a 14.3 percent gain, while the Twin Cities had a 3.4 percent gain - the 24th largest in the nation. 

Edina Realty breaks ground on its first new office building since '07

Posted by: Jim Buchta Updated: August 5, 2014 - 10:28 AM

Edina Realty broke ground this week on a new office building in Plymouth - the company's first new facility since 2007.

The 10,000 square-foot, one-level building will house about 100 agents and staff and is being built on a vacant lot at 9605 Schmidt Lake Rd. and will replace a facility that's at 4425 Highway 169 North. It'll serve agents that focus on markets ranging from Minneapolis to St. Michael.

Edina Realty, an affiliate of Berkshire Hathaway, has been remodeling, upgrading and moving its offices to better accommodate the changing ways agents do businesses - namely an increasing reliance on technology for an increasingly mobile sales force. The existing Plymouth building didn't lend itself to such a transformation and another suitable building wasn't available. used in the neighboring Maple Grove location, which relocated in Nov. 2013

Edina Realty CEO Greg Mason, president Barb Jandric, regional manager Terry McDonough and Plymouth office manager Jeff Shuman were on hand for the occassion.

“Our current facility is not ideal for the way agents do business today,” said Shuman. The offices will have several Apple TVs and fully outfitted private workspaces with computers, printers and phones. The building is being designed by Mohagen Hansen architects and is being constructed by Shingobee Builders; it'll be owned by United Properties. The Plymouth office is Edina Realty’s third largest and construction is expected to be completed by January 2015.

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