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Home Buyers wait to snap up new homes listed for the first time and get a jump on competitive real estate buyers, according to an updated Yale University Study of homebuyer activity.
Home Destination reports that Twin City homebuyers wait for real estate listings to come along, eager to make new home purchases:
Twin Cities home buyers have been keen to purchase rental properties. According to the report 10.6 percent of survey participants said they bought a home as an investment for the purpose of gaining rental income. This homebuyer trait has been on a zig-zag climb since 2004, recording a mere 2.7 percent back then.
Published on September 28, 2013 in the New York Times, Robert Shiller's "Housing Market Is Heating Up, if Not Yet Bubbling" article is drawing strong remarks from additional housing advocates. Considered an authority on real estate along with Karl Case of Wellesley College, the two developed the S.& P./Case-Shiller Composite-10 Home Price Index He boldly states that "home prices in the United States were up 18.4 percent in real, inflation-corrected terms in the 16 months that ended in July".
Twin Cities Buyer Sentiment Remains Strong On Housing
So far nothing seems to be daunting the Twin Cities housing recovery; buyers wait for new home listings as if the higher interest rates, rising home prices and tangled budget standoff in Washington are of no consequence. So far the impasse between housing views seems not to have shaken Twin Cities consumer sentiment regarding housing. The Skinny, produced by the Minneapolis Area Associaiton of Realtors states, "Buyers continue to riffle through existing inventory for options, keeping an eye out for new home listings. A sense of normalcy is returning to the real estate ethos after more than a decade of extreme ups and downs".
Yale University Study Considers Homebuyers Long-Term Holder Investments
Shiller and Case asked survey participants if they believe real estate is the best investment for long-term holders. Homebuyers who can buy and keep the property regardless of the housing market swings. In 2004, 84.2 percent of homebuyer respondents agreed. The numbers bottomed last year at 66.5 percent. It is important to bare in mind thay the people surveyed had just bought a home. 2013 saw buyer confidence in long-term home investments increase to 70.4 percent.
Homebuyers Talk About Mortgage Rate Hikes
Respondents to the survey offered considerable comments about low interest rates, recent mortgage rate rises, and how that plays into there home purchasin prospects. Shillers summarized this year’s survey by concluding that homebuyeranswers shoulnd't be interpreted as a bubble mentality, though the theme of temporarily low interest rates was still central. "In summary, Americans are still relatively sober about housing. They aren’t showing irrational exuberance about home investing to the degree they did in the past, at least not yet," commented Shiller. He expressed his viewpoint that homebuyers fail to see the big picutre he believes, that existing Minneapolis home prices have shown virtually no tendency to trend upward in real, inflation-corrected terms over the last century.
Yale Focus On Homebuyer Expectations
The Yale University Study brings us a clearer focus on the role of homebuyers’ expectations. When hunting for Twin Cities real estate listings, the study has looked in depth at what homebuyers had in mind when they bought a home? At the time of purchase, a buyer of a capital asset is buying a flow of services and benefits that will all come in the future, and the future subject to market fluctuations and world wide economic influences. Buying a home involves several careful steps make buying decisions that will in all likelihood affect the buyers’ lives dramaticly. It is easy enough for anyone who recalls signing a purchase offer agreement on a home, and handed over that carefully saved home downpayment check, to relate to the magnitude of real estate purchasing decisions.
Twin City Buyers Purchased Homes In Fewer Days & At Higher Original List Price
According to the MAAR, in the Twin Cities region, for the week ending September 21:
• New Listings increased 13.3% to 1,469
• Pending Sales decreased 5.5% to 970
• Inventory decreased 6.8% to 16,249
Housing data summary for the month of August:
• Median Sales Price increased 16.9% to $207,900
• Days on Market decreased 34.0% to 70
• Percent of Original List Price Received increased 2.0% to97.0%
• Months Supply of Inventory decreased 18.2% to 3.6
Making sure each Twin Cities homebuyer we help is thrilled with the their home purchase is our passion. If you would like a Twin Cities real estate buyer consultation or a home buyer's quote, call me at 612-396-7832 and I will prioritize getting back to you. We'll work hard to watch and wait for those Twin City real estate listings that match your homebuyer's wish list that you won't want to miss.
Download the MAAR's Twin City Homebuyer Activity August Report
Download The McGraw Hill Construction Report on Homebuyer Behavior in Hot and Cold Markets Report
Jenna Thuening, a residential Realtor helps Twin City homebuyers hunt for real estate listings and find exactly what they want.
11200 W. 78th St
Eden Prairie, MN 55334
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