Minnesota Homes Today Local & National News

Homebuilder Confidence Rises on Surging Sales Volume, Foot Traffic

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Homebuilder Confidence 2009-2011Homebuilder confidence is rebounding sharply.

Just one month after falling to a multi-month low, the Housing Market Index rebounded four points to 18 for October. It’s the highest reading for the HMI since May 2010 — the month after last year’s homebuyer tax credit expiration.

The Housing Market Index is published monthly by the National Association of Homebuilders and is scored on a scale of 1-100. Readings above 50 indicate favorable conditions for homebuilders. Readings below 50 indicate unfavorable conditions.

The index has been below 50 since May 2006 — a 66-month streak.

The Housing Market Index is a composite reading; the result of three separate surveys sent to home builders each month. Builders are asked about current single-family home sales volume; projected single-family home sales volume over the next 6 months; and current “foot traffic”.

In October, builder responses were stronger in all 3 categories :

  • Current single-family sales : 18 (+4 from September)
  • Projected single-family sales : 24 (+7 from September)
  • Buyer foot traffic : 14 (+3 from September)

Meanwhile, of particular interest to today’s Minneapolis home buyers is that builders expect volume to surge over the next two seasons. And, with current sales volume rising and foot traffic strengthening, the fall and winter months could be strong ones in the new homes market.

In addition, the builder trade group press release states that rising costs for materials are squeezing building profit margins.

For buyers, it all adds up higher home prices ahead. As builders grow more confident about the housing market, they’re less likely to make concessions on pricing or upgrades. Rising building costs fortify that argument. The “great deal” will be tougher to negotiate. 

At least mortgage rates are low.

Low mortgage rates are keeping homes affordable in Minnesota and nationwide. If you’re looking for the right time to buy new construction, therefore, this month may be it.

Foreclosure Rate Drops For The 12th Straight Month

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Foreclosures by state September 2011Foreclosure activity continues to slow throughout the United States.

According to data from RealtyTrac, a national foreclosure-tracking firm, the number of foreclosure filings dipped below 215,000 in September 2011, a 6 percent decrease from August.

A “foreclosure filing” is defined as any foreclosure-related action including Notice of Default, Scheduled Auction, or Bank Repossession.

September marks the 12th straight month in which foreclosure filings fell year-over-year.

There are several reasons why foreclosure filings are down, including an increase in the amount of time it takes banks to move a foreclosure through its pipeline. It now takes a nationwide average of 336 days from the date of initial default notice to bank repossession.

Some states work quicker than others, however, because of a combination of state law and personnel.

Homes in New York take an average of 986 days to foreclose, for example, the longest in the country. Homes in Texas foreclose the quickest, registering just 86 days.

As in prior months, bank repossessions remain concentrated by state. Just 6 states accounted for half of the country’s REO last month:

  • California : 16.6 percent
  • Georgia : 8.5 percent
  • Florida : 8.3 percent
  • Texas : 6.2 percent
  • Michigan : 6.1 percent
  • Illinois : 5.2 percent

Collectively, these 6 states represent just 36 percent of the nation’s population.

By contrast, the bottom 6 states were home to just 192 repossessions last month — 0.3% of the national total. Those 6 states were Alaska, Wyoming, District of Columbia, North Dakota, South Dakota, and Vermont.

For home buyers in St Paul , shopping for foreclosed properties can be an excellent way to get “a deal”. Foreclosed homes typically sell at discounts as compared to “non-foreclosed” homes, but are often sold “as-is”. This means that homes listed for sale may be defective or out-of-code.

Before placing a bid on a foreclosed home, make sure that you’re represented by an experienced real estate professional.

Save Money By Preventing Water Heat Loss In Your Home

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Water heater energy savingsHow much energy is your home wasting on water?

According to the U.S. Department of Energy, water heating can account for 25% of a home’s energy use. This is a substantial percentage, representing thousands of dollars per year in energy costs.

The good news is there are multiple ways to increase your home’s energy-efficiency with respect to heated water.

The Department of Energy provides a list. 

  1. Reduce hot water usage : Fix leaks, install low-flow fixtures, and use high-efficiency clothes washers and dishwashers.
  2. Lower the hot water temperature : 120ºF is ideal. Each 10ºF drop in temperature saves up to 5% and slows corrosion.
  3. Insulate your water heater : A simple blanket wrap costs $25 and will save you up to 9% in costs
  4. Insulate your water pipes : Water will be delivered 4ºF hotter which means lower energy use.
  5. Install a timer : If your heater is electric, turn it off during non-peak hours such as overnight
  6. Use greywater heat recovery systems : 90% of water’s energy is typically lost down the drain.

Some of the above items are costly to implement, and others are inexpensive. Most can be handled without hiring a plumber, especially those items at the top of the list.

As a Minneapolis homeowner, take control. Apply these energy-saving, water-heating strategies and you’ll not only save money each month, but you’ll lengthen the useful life of your home’s appliances and plumbing.

If you’re in need a plumber referral, please ask.

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