We get text messages, phone calls, and lots of postcards from investors who want to buy our house. Real estate is a hot commodity these days and people really do want to buy your house.
Over the past decade or so the trend is for single-family homes to become financialized and the number of owner-occupied homes has been on the decline. Slightly more than half of all St. Paul residents are renting.
Large companies and small investors alike want to buy your house and rent it out. They really will pay cash and you don’t have to make any repairs and they don’t mind if you don’t clean the house and you can leave stuff behind.
Homebuyers are competing with investors who are paying cash.
Yes, you can make an offer on a house on August 1st, but be aware that real estate contracts in Minnesota change each year. The new contracts take effect on August 1st and we don’t get to see the contracts ahead of time.
There weren’t too many changes this year. We do get information ahead of time about what will change on August 1st which is helpful but not the same as seeing the contracts ahead of time.
I usually check out the new contracts as soon as they are available so that I am familiar with them before I have to use them.
Back in the old days, we used paper forms, and sometimes agents would hang onto obsolete forms and use them. These days we use electronic forms so the change is easy.
August 1st is also the day that some new laws take effect in Minnesota. I know that this year there will be changes to how assisted living facilities are licensed. They will be subject to higher safety standards and closer monitoring by the state health department.
Back during the great recession and housing market crash one of the large franchise type real estate companies came up
Downtown Farms Market
with the phrase “market shift”.
It was a kind of positive spin on what for many of us was a difficult time. Home prices were falling and as homeowners lost their jobs during the great recession the number of foreclosures went sky high. The phrase “market shift” sounds more positive than “market crash”.
I have been seeing the “market shift” phrase again. I have observed a subtle slight change in the local real estate market but I believe it is seasonal. I did a quick check and homes are definitely selling very quickly, often with multiple offers and for over the asking price.
It is possible that some would-be home buyers are delaying their purchases. I certainly have some clients and friends who are holding off because of high prices and fierce competition in the housing market.
Even so, there are still more home buyers than there are sellers and just over a month’s supply of houses for sale in the metro region. There aren’t any signs of a big shift in the local real estate market. Look for an increase in the number of homes for sale in September but not enough of an increase to create a shift of any kind.
There has been an influx of new real estate agents. It really is true that there are more real estate agents than there are homes for sale. It will be interesting to see how it shakes out. The average number of sales per agent has been declining and as more people become real estate agents that trend will continue. Expect to see a downward shift in real estate agent incomes.
The drought continues. We gave up on the lawn weeks ago. It is brown and crispy and hasn’t been mowed since June because it doesn’t grow.
Last week we got a lot of smokey air from the fires burning in Canada and on the West Coast. Let’s get ready for another hot dry week.
Smokey skies over Minnesota
In there is a lot of green in the picture because of the trees.
Upper Landing Park
On hot days I like to take my walk early in the morning before the pavement gets too hot. This one was taken at about 8 in the morning last Thursday. It was still hazy and smokey but the air smelled better.
Temperatures are going to be in the 90’s today and for most of the week. We get a break on Friday, with temperatures in the upper 80’s.
It is Friday and Fridays are for fun. I have always loved to garden. I always grow a few Zinnias because they are bright and cheerful, easy to grow and butterflies love them. This swallowtail butterfly posed for me a couple of days ago.
By 2030, there will be 20,000 fewer K-12 students and 455,000 more seniors.
At least 70% of the Minnesotans who turned 65 in 2017 are expected to use long-term care services at some point. Maybe robots will provide hands-on care?
By 2030 Minnesota’s overall population is projected to grow 8.6% over the next decade, its senior population will surge by 56%.
By 2030 70% of those over 65 will need some form of long-term care. [FaceagingMN.org]
Aging in place is going to be a popular option for seniors who own homes and who can afford to keep owning them and are not facing serious health problems.
The homeownership rate among those 65 and older is in the neighborhood of 76%. Vacancy rates in assisted living and independent living housing combined are at around 15%.
We need more housing for all ages and single-family homes are still the most popular option.
commodity these days and people really do want to buy your house.
