Outlook for 2012

We are all children at heart.  Especially when it comes to asking questions!  Consumers today remind me of my 2 year old daughter, asking the same questions over and over and hoping/praying for different results.
 "Can I have candy?"   "Are we there yet?"  "How about now?"

Thankfully adults have more mature questions like, "How's the market, now?"  So without further adieu I will try and predict the market in the Bemidji area for 2012!  Using local MLS statistics I have compiled some facts and some speculation based on what I have heard and what I know to be true.

•  The total number of listings in Bemidji is down 21%. I believe that more sellers are waiting until prime spring/summer season to list, because the need to sell isn't as great as it has been in the past few years.
•  There are 26% more homes pending this year than last year at this same time.  With the mild winter it has been easier for buyers to get out to look at homes.  Also, I see an influx of first time home buyers fueling the market and getting things moving.  
• 41% more homes sold.  This speaks for itself.  The market is rebounding and homes are selling.
• The total volume of homes sold is up 90%! In my opinion this shows that with the first time buyers finally fueling the market, sellers are able to be move-up buyers and move more expensive homes that in the past few years have been taking longer to sell.  Also, because interest rates are so low buyers are able to afford a larger home.
• The average sale price is up from $122,016 last year at this time to $164,313 year to date.  I believe this is due to the fact that the average buyer is able to buy a larger home because of low interest rates. 

One of the other questions that gets asked frequently is, "What effect do foreclosures have on Bemidji's market?"  I believe that we will start to see less foreclosures in our area compared to the past 5 years and that the average price of those foreclosed homes will go up.  During those past 5 years we have had an influx of lower valued foreclosures that have brought the average sale price down for our area considerably.  Homeowners with homes of greater value seem to have been able to hold on to their homes longer, but we are now starting to see some of them come on to the market as foreclosures.

I hate to sound like a broken record or like my 2 year old, but remember, NOW IS THE TIME!  Don't miss out.  I believe that the market is now on the rise and people will be kicking themselves in the future for missing out on this wonderful opportunity to buy in Bemidji!  So get out there and find your dream home, vacation cabin, or rental property today!

Getting your home to shine

When selling your home in the current market it has to be the best in it's price range in order to get it sold in a reasonable amount of time.  In a world where everyone wants more for less, in order to get the best price possible for your home, it has to shine!  As I was cleaning my own home I began to think of what my home would look like if it were on the market and what things I would need to do to prepare to sell.  Looking around my kitchen I looked over at my fridge (top), covered in precious artwork done by my 2 little girls.  While I love every single one of those masterpieces, if I were selling, I would take them down (bottom) for showings or during the duration of my listing as I'm sure it would be distracting for potential buyers to see the beautiful paintings, to-do lists, and calendars.  The same goes for too many family photos.  While you want to make your home look like a happy place to live you also want the buyers to look at your house, not your life.  The only time I would recommend photos would be if you lived on a lake or in the country where you were able to capture pictures of the wildlife or big fish you caught on your lake!

If the thought of even getting to the place where you are ready to worry about these "little things" scares you, it may be time to hire a professional.  Like I said in a previous post, cleaning, de-cluttering, doing small repairs and painting are the the most important and most cost effective ways to increase your home's value and decrease it's time on the market.  In the busy world we live in where not everyone has time to get these projects done, a great place to turn would be a home stager.  In the Bemidji area I would recommend checking out Kendra Fuller at Urban Essence Interiors on facebook or on the web at http://www.urbanessenceinteriors.com/  By hiring a stager/painter you can check off half of your to-do list while getting top notch advice.  Not everyone has the same tastes in decorating so having gender and taste neutral style can help potential home buyers have a vision of what the home would look like if they were to live there. If you are a seller this is exactly what you want; people to "mentally move-in" to your home!

Statistics show that staged homes spend 50% less time on the market.  Average days on market in the Bemidji area so far this year is 180 days.  Cutting that in half could save you a lot of headaches. Also, a staged home can sell for up to 7% more than a non-staged home.  The cost of staging your home now will be much less than a price reduction later.  So whether you are a DIYer or you need a helping hand, taking the time to prepare your home for sale is a must!  Don't forget you can always call or email me with questions or for a free consultation.  Happy Selling!

Rock Bottom?

Being a Realtor people are constantly asking me how the Bemidji market is.  Lately, their favorite question is: "Have we hit rock bottom yet?"  My answer: "We won't know until we start going back up."

If you take a look at the chart below you will see a slight decline in the depreciation between 2009 and 2011.  In 2009, depreciation for the Greater Bemidji Area (56601 zip code) was at is all time 10 year high at around -6% per year. Since then depreciation has slowed to around -3.7% for the Bemidji zip code.  So, even though we haven't hit "rock bottom" on home sale prices, it appears that we have as far as the rate prices are falling at.

The chart and statistic information can also be viewed on my website at www.realliving.com/mandy.gazelka Click on local information and you will be able to search any zip code or address to obtain information on housing, people, economy, schools, environment, and quality of life for any given neighborhood or area.

Another great tool that was just released by Beltrami County is http://www.crimereports.com/ .  This website allows you to view all the calls for assistance in any given area in Beltrami County starting this year.  It will hopefully alleviate some of the calls to the local police station inquiring about the crime rates in certain areas or neighborhoods.  It can also assist potential home buyers in choosing an area to live in based on the perceived safety of the neighborhood.  Check it out and let me know what you think!

2011 Year End Review

We've all heard the news about the real estate market around the country and in the metro areas, but I'm sure you've wondered how we are doing up here in Northern Minnesota.  Here are the numbers:

654 Listings Sold (up 5.5% from 2010)

2238 Properties for Sale in 2011

$166,463 Average List Price (down only 3.57% from 2010)

$115,183 Average Sale Price (down 10.6% from 2010)

161 Average Days on Market

Statistics in this post were obtained from the Northwest Minnesota MLS.

What do all these numbers mean?  It's taking longer to sell houses for less these days.  I feel that a big part of the 10.6% depreciation that we experienced in 2011 was due to foreclosed home sales.  Many of the foreclosed homes in 2011 were in poor condition, and therefore brought a low sales price which brings down the average.

The good news for buyers is that there are many homes to choose from, sellers are coming down from their original list price an average of 13%, and interest rates are still at all time lows! Have more questions on Northern Minnesota real estate market conditions?  Don't be shy, just ask!