Twin Cities Housing Markets Are Experiencing Positive Transitions
The Twin Cities real estate market is experiencing a very similar transition phase in the housing market as recently reported by Ben Bernanke, Chairman of the Board of Governors for the Federal Reserve System. Ben spoke at the 2012 National Association of Home Builders International Builders' show in Orlando Florida.
He says that the economic recovery began more than two years ago, however most Americans would say that they didn't feel or experience the recovery. Particularly those Americans who's livelihood depends on the housing sector of living.
Twin Cities housing market has revealed parallel trends and conditions associated with the balance of supply and demand. For the past few years, the actual supply of single family homes greatly exceeded the effective demand of home buyers. The supply and demand ratios are reversing at a relatively blinding pace here in the Twin Cities. Numerous factors have impacted these transitions and they include: Record Housing Affordability Indexes, Record Low Interest Rates, increased amount of investors and investor activity (over 40% Cash Buyers), reduced number of pending foreclosures associated with the most recent re-finance programs for homes in a short equity position. The Federal Reserve and other bank regulators have utilized tools and programs to ensure that the banks have enough capital to cover mortgage losses while continuing to lend at such great rates.
The national recovery picture appears slower than the Twin Cities. The primary factor involves mortgage credit recovery. In the past, recovery periods tool more than four years. Today, that has changed/improved significantly. Also, the Twin Cities market is experiencing climbing rental rates and falling home sales prices. It has very quickly making much more sense to investors to turn single family homes into rental properties. Ben Bernanke goes on to say that many Bank Owned Properties may not hit the market, because the rising rental rates might make more sense to hold and rent during these times.
It couldn't be a better time to meet a seasoned professional to discuss all options associated with your housing needs. I look forward to hearing from you soon.
Frank D'Angelo - Real Estate Broker
EXIT Realty Nexus of Highland Park & Minneapolis MN