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The Twin Cities Housing Bubble: Reality or Myth?

With a record number of Twin Cities homes hitting the market and talk of a housing bubble bust on the horizon, are Minnesota home sellers doomed to a season of sluggish sales and months and months of empty open houses?

Not so, say area real estate experts. A recent home price analysis for the Twin Cities by the National Association of Realtors indicates that the talk about a potential housing market bust is just that - talk. According to the report, "the local housing market is in excellent shape with a potential for significant housing equity gains."

While the record rise in home prices is starting to recede back to normal growth levels, real estate experts say that fears of declines are unfounded. According to the National Association of Realtors, home price declines are extremely rare, and - except during the Great Depression of the 1930s - the national median home price hasn't declined, despite countless economic challenges, from recessions to stock market collapses to wars.

"Certainly, we're looking at a move back to more normal market activity," says Realtor Ryan O'Neill, whose Minnesota Real Estate Team sold 145 houses in Minneapolis, St. Paul and suburbs from Anoka to Wayzata last year. "House prices in the Twin Cities are likely going to continue to climb, but they'll rise at a slower pace than in previous years."

Now that the pricing pendulum is swinging back to a more typical growth rate, the move to a more balanced marketplace is encouraging home sellers to give extra time and attention to choosing a real estate agent who can help them navigate the market's increasingly choppy waters. The Twin Cities real estate listings are filled with more single-family homes, townhomes and condos than ever. With about six homes available for every buyer - as opposed to a four-to-one ratio from just last year - sellers are finding that they need to compete harder to interest buyers. And choosing the right real estate agent is a critical step in positioning a home in the Twin Cities' tightening marketplace.

Most important, says O'Neill, is to choose an agent with the experience to help market a home. The number of people licensed to sell real estate in Minnesota is at an all-time high, and it's important to weed out the inexperienced agents who may only have the expertise to facilitate a simple sale, he says. Many people got into the business at a time when sellers could more or less name their price, O'Neill says, and just about all an agent had to do was put the listing on the Minnesota MLS. "But now that we're moving back toward a buyer's market, it's increasingly important to work with a Realtor who can counsel you on the finer points of marketing your home," he says. "Like it or not, those days of the quick and easy sale are behind us."

The best way to ensure that you're going to sell your home as quickly and as profitably as possible is to partner with a Realtor with the experience and expertise to make it happen, O'Neill says. And to find the right fit, ask your prospective agent as many questions as it takes for you to feel comfortable with their track record and ability. How many homes did they sell last year? What makes their marketing plan unique? Do they have former clients you can contact?

According to O'Neill, once you choose and agent, you should be able to rely on them to ask and help answer critical - and sometimes difficult - questions as you prepare to put your house on the market and stand out among competing real estate property listings, including:

• Do I need to do a better job of preparing my house to go on the market? Should I touch up the paint, replace the carpet, or clean up the landscaping to help catch a buyer's eye?
• What's the right price to ask?
• What kind of expectations do I have for how long my home will likely be on the market? Are they realistic?
• What else can I do to make the process go smoothly?

A homeowner is often too close to their house to notice what needs to be improved before putting it on the market, and relying on a knowledgeable real estate agent is an effective way to provide an additional perspective. "In this competitive marketplace, doing your homework before you choose a partner is one of the most important steps you can take," O'Neill says.

Article Source: http://www.dummiesguideto.com

Brian Bellmont is a free lance writer with an interest in Real Estate. Brians source for this topic is Ryan O'Neill, a Minnesota real estate professional based in the Twin Cities. Ryan can be contacted through Minnesota Real Estate Team.

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