April 2016 H OUSING N EWS R EPORT
Seller Paradox: Low Equity, Low Inventory
have increased a lot the last couple years.”
“Local sellers want to sell and take advantage of what is promoted as a strong market — but many are tight with their equity or worried with low inventories they won’t have somewhere to move to,” said Welu.
Welu said buyers are also flocking to the suburbs west of Minneapolis. “Activity in the Lake Minnetonka area has been increasing and selling faster, especially the south side of it, where the number one school district in Minnesota is located,” she said, referring to the lakeshore community. “Properties on the lake are very sought after. Homes under $250,000 in this school district are hard to find and sell very quickly when they come on the market.” Meanwhile, she said first-time homebuyers prefer the tier-one suburbs. “The favorite areas for first-time homebuyers are the tier-one suburbs of Minneapolis. St Louis Park is one area where inventories under $300,000 are low and sell quickly, and certain pockets in Minneapolis — the Calhoun, in southwest Minneapolis and Lakes area — all have high demand as well.”
HAMP Resets Looming
“A lot of people that did work-outs are going to be facing resets soon,” said McAlpin, the Edina Realty broker, referring to higher interest rates resetting on loans modified under the Home Affordable Modification Program (HAMP). “They have been making the lowest payments possible. That’s coming back into play. We also have a lot of HELOC loans. We’ll soon see an uptick in REO activity.” McAlpin said monthly mortgage payments will go up soon for homeowners who received government-sponsored loan modifications after the financial crisis. Eventually, the majority of homeowners who have received a HAMP refinance will pay more for their Continued Next Page
Cindy Welu Broker Keller Williams Realty Elite Eden Prairie, Minnesota “ The strongest sales are under $250,000. There is too little inventory in the lower price point, and too much inventory in the higher-priced properties. ”
Minneapolis, Minnesota THREE FOR SALE
WHAT: 5-bedroom home HOW MUCH: $679,900
WHAT: 4-bedroom home HOW MUCH: $499,900
WHAT: 4-bedroom home HOW MUCH: $315,000
Beautiful executive two-story in the sought after Creek Knolls of Eden Prairie. Located near Franlo Park, this home is perfect for entertaining and everyday living. Agent: Cindy Welu, Keller Williams Realty Elite, (952) 484-2953, http://www.joeandcindy. com/
Incredible opportunity in the sought after Lake Susan Hills neighborhood. Enjoy walking trails and two parks within minutes. Large fenced corner lot. Newer roof and windows. Agent: Cindy Welu, Keller Williams Realty Elite, (952) 484-2953, http://www.joeandcindy.com/
Welcome to this stunning home in the wonderful Stone Creek neighborhood of Chanhassen. This home has a large and spacious backyard and overlooks the cul- de-sac. Agent: Cindy Welu, Keller Williams Realty Elite, (952) 484-2953, http://www. joeandcindy.com/
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