Will housing prices go down?

There are only two things that could happen that will bring housing prices down:

Lower demand

Higher supply

Tax credits or rebates will not bring housing prices down and neither will lower Realtor commissions. Housing prices keep rising because the demand is high and the supply is low.

We are seeing some relief in multifamily housing due to all the recent new construction of apartment buildings. The supply is higher which means rents are not going up as much.

During the great recession and the housing market crash builders stopped building new houses.  The population continued to grow and that drove up demand. There is a lot more new construction now than there was a few years ago. In general there isn’t enough of that middle and lower income housing.

Housing costs contribute to inflation. When inflation rises the federal reserve raises rates which in turn causes mortgage interest rates to rise which makes housing more expensive and that rising cost contributes to inflation. It is a cycle that we don’t seem to be able to get out of.

There is a lot of finger pointing but so far that hasn’t made housing more affordable. The laws of supply and demand can not be ignored.

Housing prices generally do not go down but if they stopped going up that would help the economy and home buyers too.

Today is Super Tuesday

Today is the day to vote in the presidential primary. What is a primary? A primary is when we vote for presidential candidates. We vote Republican or Democrat, and the candidate with the most votes from his or her party will be the parties nominee.  If you don’t know where to vote, follow this link.  If you are not registered to vote you can register at the polls as always. Here is what you need to register at the polls. 

Early voting has been going on for weeks and online registration is always open. If you moved, even if it was from across the hall in the same building you will need to update your registration.

If you register now you will be ready for the November 5, 2024 national election. You can even take advantage of early voting which starts September 20, 2024. You will also be registered for the primary election on August 13, 2024. Early and absentee voting starts on June 28th.

If you are registered you do not need to show an I.D. at the polls. The election judges can and will verify that you are who you say you are.

If you are one of those people who are kind of above it all and don’t like any of the candidates vote anyway. The way things are lining up it is possible that there won’t be an election for president in 2028, your vote in 2024 matters.

I voted sticker
I voted sticker

 

Property Tax Refunds in Minnesota

Some folks are eligible for a property tax refund and they don’t know it. The system is a bit confusing because property taxes are paid to the county but the refund comes from the State of Minnesota. There are income limits on eligibility.

The deadline for filing for a refund for property owners and renters is August 15th and if you miss the deadline your refund will vanish on August 16th of the following year. Thats right. If you snooze you lose. I wonder how many people who qualify for a property tax refund miss out?

Renters will need a CRP –  Certificate of Rent Paid.

There is also a special refund of up to $1000 for qualified homeowners who received tax increases of 12% or more in 2023 and 2024.

Instructions and forms and even free filing can be found on the Minnesota Department of Revenue website.

These refunds can be significant. Property taxes are based on the value of the property but the refund is based on income.  It is possible to get a refund for more than half of the taxes paid. Yes, this is true, the lower the income and the higher the property taxes the larger the rebate.

I wish I could say that Form M1PR, “Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund” is easy to fill out. It is two pages long and has 39 lines and it requires adding the numbers from certain lines and subtracting others. There is a 32-page document with instructions. , and instructions on how to get help with filing your M1PR.

 

 

 

Nation wide home sales December 2023 at a glance

Apparently home sales were up in December from November. There is already talk about having hit some kind of a “bottom” when it comes to the number of home sales. I’ll go out on a limb and say that the sale of existing homes may be slightly higher in 2024 than in 2023 but I expect home sales to go up as interest rates go down. Keep your eye on those rates. According to Freddie Mac rates were on average above 6.5% last week on a thirty-year conventional mortgage. When they get to 5.5% and below we will start to see more activity in the housing market.

Here is the reason why: “The Mortgage Bankers Association reported the national median payment applied for by purchase applicants decreased last month to $2,055 from $2,137 in November.”

Mortgage interest rates matter.

Home sales info graphic
Home sales December 2023

Cats belong in the house

The only reason some cats are “outdoor” cats is because their owners let them roam freely. Cats are one of the reasons we can’t have nice things like birds. Please keep your cat in the house.

A good day to be a white cat

I have a few neighbors who have “outdoor” cats. The cats have been fixed so they don’t reproduce. Some cat owners believe that having a cat neutered or spayed is all that it takes to make them responsible cat owners.

The house cat has long been listed among the 100 most dangerous invasive species. They kill millions of birds and other small animals each year to the point of extinction. A cat is a pet when kept inside but once we let them out they become heartless killers.

Cats are likely killing more than 4 billion animals per year, including at least 500 million birds.

“Cat predation is one of the reasons why one in three American bird species are in decline,” said Dr. George Fenwick, President of American Bird Conservancy [wildlife management institute]

There was a study that shows cats only bring home about 25% of what they kill. They eat some of what they kill and leave the rest.

Being a free-range cat in St. Paul is not good for the cat either. Here are some statistics for St. Paul:

  • 200 cats are killed annually in traffic
  • The life expectancy of a cat allowed to roam is only three to four years
  • Confined cats can live beyond 14 years
  • Over 1,200 cats are picked up each year by animal control
  • Roaming cats may be a nuisance by urinating and defecating in sandboxes and gardens
  • Outdoor cats are susceptible to injury or death from other predatory animals
  • Outdoor cats are predators to wildlife such as birds

It should be noted that it isn’t against the law in St. Paul to let your cat run free.

You are responsible for keeping your cat away from your neighbor’s property and for keeping rabies vaccinations current.

Is it real or artificial?

drawing of house In the real estate industry everyone is talking about AI and a lot of people are using it too. Two common uses of AI among real estate agents are for writing property descriptions and social media content like this blog post.

I recently read an article that suggested that agents who are not using AI will soon be out of business.

To that I say bull. If “everyone” is using AI to write unique content and property descriptions, writing unique content the old-fashioned way is going to stand out. Home sales hit a decade low last year, while the number of real estate agents rose to new heights.

Competition for clients is fierce.

Most homeowners should be able to use AI to write property descriptions, why do they need a real estate agent to do it?

I think there is plenty of room for original writing and photography too. Using my brain, skills, and experience I can create things that AI never imagined.

Technology doesn’t sell real estate, people sell real estate and they buy them too.