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Supply and Demand for October 2016

by Solus Real Estate Group

SUPPLY OF HOMES ON THE MARKET

September and October 2016

 

    This shows how many months supply of houses are on the market.  These numbers reflect an average length of time a home was on the market before selling.     

                                                                                      

Price Range

September 2016

October 2016

Supply Oct 2015

$1,000-$100,000

3.8 Months

3.0 Months

5.0 Months

$100,000-$150,000

2.6 Months

2.6 Months

2.8 Months

$150,000-$200,000

2.9 Months

2.4 Months

3.2 Months

$200,000-$250,000

3.8 Months

3.3 Months

4.2 Months

$250,000-$300,000

4.4 Months

4.2 Months

5.0 Months

$300,000-$350,000

5.6 Months

4.4 Months

4.4 Months

$350,000-$400,000

6.4 Months

5.6 Months

6.4 Months

$400,000-$450,000

8.7 Months

6.9 Months

8.8 Months

$450,000-$500,000

7.7 Months

7.7 Months

7.4 Months

 

 

What does this mean for you?  If you are selling, you can estimate how long your home might be on the market.  As a buyer, this gives a sense of how quick you need to be with writing an offer. 

 

Conventional:     30 year 3.875%         20 year 3.75%        15 year 3.25%   

FHA, VA, Rural Development   30 year 3.25%     15 year 2.875% SD Housing First Time Buyer     Conventional: 30 year 3.625%     30 year PLUS 4.125% (3% gift for down payment from SD Housing)   

FHA, VA, Rural Development   30 year 3.125%  30 year PLUS 3.625% (3% gift for down payment from SD Housing)          Rates by Brian Spaans of First Bank & Trust.

 

Yes, it is a great time to buy and sell!

The Solus Real Estate Group is here to serve in all of your Real Estate needs.

 Give us a call to see how these low mortgage rates could benefit you!!

 
   

 

 

Harlan TenNapel-harlan@solusrealestategroup.com

mark youngberg- mark@solusrealestategroup.com

Erika Boen – erika@solusrealestategroup.com

September and August Home Supply

by Solus Real Estate Group

SUPPLY OF HOMES ON THE MARKET

September and August 2016

 

    This shows how many months supply of houses are on the market.  These numbers reflect an average length of time a home was on the market before selling.     

                                                                                      

Price Range

September 2016

August 2016

Supply Sept 2015

$1,000-$100,000

3.8 Months

3.3 Months

4.8 Months

$100,000-$150,000

2.6 Months

2.9 Months

3.2 Months

$150,000-$200,000

2.9 Months

2.6 Months

3.8 Months

$200,000-$250,000

3.8 Months

3.3 Months

5.0 Months

$250,000-$300,000

4.4 Months

4.5 Months

5.4 Months

$300,000-$350,000

5.6 Months

4.6 Months

5.8 Months

$350,000-$400,000

6.4 Months

5.1 Months

8.4 Months

$400,000-$450,000

8.7 Months

8.1 Months

10.6 Months

$450,000-$500,000

7.7 Months

6.7 Months

7.9 Months

 

 

What does this mean for you?  If you are selling, you can estimate how long your home might be on the market.  As a buyer, this gives a sense of how quick you need to be with writing an offer. 

 

A balanced supply of homes on the market is 4 to 6 months.  We are only balanced in the $250,000 to $350,000 ranges, slightly underbalanced below and an excess of supply over $350,000.  Also compare September 2016 with one year ago to get an indication of changes over time.  Supply is certainly moving faster this year.

Conventional:     30 year 3.25%         20 year 3.25%        15 year 2.75%   

FHA, VA, Rural Development   30 year 3.0%     15 year 2.75%

 SD Housing First Time Buyer     Conventional: 30 year 2.875%     30 year PLUS 3.75% (3% gift for down payment from SD Housing)    FHA, VA, Rural Development   30 year 2.625%  30 year PLUS 3.125% (3% gift for down payment from SD Housing)          Rates by Brian Spaans of First Bank & Trust.

September Sales Numbers

by Solus Real Estate Group

Here are the numbers for September sales. It continues to look like a sellers market but not a 100% Sellers market at present.  New Listings are close to keeping pace with last year at this point. Pending Sales in September were up dramatically while the YTD is only up 7.6%. The amount of the list price that the sellers got versus what they were asking is up  but again only by 0.3%. The inventory of homes for sale is getting lower by 25%. Now we will wait to see what happens to the market with impending weather and political changes.

 

Sept  2015

Sept 2016

% Change

YTD 2015

YTD 2016

% Change

New Listings

533

506

-5.1%

5077

5197

+2.4%

Pending Sales

374

590

+57.8%

3496

3762

+7.6%

Closed Sales

371

439

+18.3%

3492

3506

+0.4%

Median Sales Price

$170,000

$185,000

+8.8%

$171,000

$182,950

+7.0%

% of Original List Price Received

98.4%

98.7%

+0.3%

98.3%

98.6%

+0.3%

Inventory of Homes for Sale

1784

1456

-18.4%

 

 

 

Month’s Supply of Homes for Sale

4.8

3.6

-25.0%

 

 

 

 

Supply of Homes On the Market February 15 to May 15, 2016

by Solus Real Estate Group

SUPPLY OF HOMES ON THE MARKET

February 15 to May 15, 2016

    This shows how many months supply of houses are on the market.  We have taken how many sold

during the past three months and then divided it by the number of homes currently on the market.                               

Price Range

Months Supply

Last Months Supply

Supply 3 Months Ago

$1,000-$100,000

3.1 Months

3.0 Months

2.4 Months

$100,000-$150,000

2.3 Months

2.6 Months

2.4 Months

$150,000-$200,000

2.1 Months

2.9 Months

2.7 Months

$200,000-$250,000

4.0 Months

4.6 Months

3.7 Months

$250,000-$300,000

5.2 Months

5.9 Months

4.0 Months

$300,000-$350,000

5.2 Months

7.7 Months

7.0 Months

$350,000-$400,000

5.4 Months

7.8 Months

9.9 Months

$400,000-$450,000

7.0 Months

8.3 Months

16.6 Months

$450,000-UP

15.4 Months

16.0 Months

13.4 Months

 

 
   

The market is improving as we expected at this time of the year; all price ranges except one has the supply decreased.  Balanced market is a 4 to 6 month supply of homes. Below $300,000, we continue to have a shortage of supply of Listings but above $400,000, we have an oversupply. The interest for mortgages has stayed much the same as last month with a slight increase in some of the products.

Conventional Fixed rates (45 day lock-5% down) the 30 years rate is 3.5%, the 20 years rate is 3.25% and the 15 years is 2.75%.  The SD Housing SDHDA FHA/RD/VA (fixed rate-1% fee) is 2.625%, SDHDA FHA/RD/VA (fixed rate plus) is 3.25%, SDHDA Conventional (1% fee) is 3.0% and the SDHDA Conventional (fixed rate plus) is 3.75%.  VA/FHA/RD- Minnehaha & Lincoln counties 30 years is 3.25% (RD 3.25%) and 15 years (RD not available) is 2.75%. 

Rates by First Bank & Trust - Brian Spaans                                                                

Yes, it is a great time to buy and sell!

Check out our Links!

by Solus Real Estate Group

Good Morning to you all! And a wet one it is going to be. Be happy that we did not get the 2-4 feet that Denver got yesterday! We need this moisture!

We want to make you life easier today, let’s give you an idea of some things that you will find on our web site when you check it out. Check out our Links Tab on our web site.  The one thing that our friends and clients tell us that they use the most is our Preferred Providers pages, there you will find someone to fix your lawn sprinklers system, someone to do some landscaping for you and a couple ideas for Handyman or painters or cleaning people.

When you go to the actual page for all the links Real Estate in Sioux Falls and in general, you will see this first section, included in there is a buying vs. renting calculator,

The 2nd section is on Sioux Falls Interest, The first link is Sioux Falls Road Construction that will give you the most up to date construction projects, Did you know that 22nd street at Minnesota is going to be closed? There was also an interesting interactive map that you can check out construction that is scheduled for your areas!  

Do you wonder what the Outdoor Campus has available for programs, Check out the Sports & Recreation section.

What does EROS have to offer for Satellite Imagery? Try it out! Lot of ideas in the South Dakota Points of Interest.

Do you ever wonder How your FICO Scores work or Check out The Instructables Page for video ideas of how to make costumes, snacks, planters, how to lay Pavers and easy lint fire starters? Do you want the white house to send personal greeting for a special day? You will find these ideas and many more in the last section “General Information”

We hope you will find some great and useful links on our Links Pages,

March Statistics

by Solus Real Estate Group

 Sioux Falls City Council put the finishing touches on a New Boulevard Landscaping Ordinance; check out the Argus Leader article.  There are some links in that article also with even more details.  There are some guidelines of what you will and will not be able to do in your boulevard.

The March Statistics have arrived so here are some ideas on what is happening in our market currently:

 

 

March  2015

March 2016

% Change

YTD 2015

YTD 2016

% Change

New Listings

581

667

+14.8%

1442

1459

+1.2%

Pending Sales

307

490

+59.6%

746

955

+28.0%

Closed Sales

307

294

-4.2%

745

697

-6.4%

Median Sales Price

159,500

168,000

+5.3%

158,000

171,250

+8.4%

% of Original List Price Received

97.6%

98.6%

+1.0%

97.4%

98.2%

+0.8%

Days on Market

103

100

-2.9%

108

101

-6.5%

Inventory of Homes for Sale

 

 

 

1668

1362

-18.3%

Month’s Supply of Homes for Sale

 

 

 

5.1 Months

3.4 Months

-33.3%

 

 

For the last 12 month period pending sales were up 21.8% overall, the price range with the largest gain was the $200,000 to $300,000 price range where they increased 47.6%.  When you look at the numbers above the pending sales are up 28% but the home for sale are down 18.3%.  Supply and demand tells us that the market is strong right now with fastest sales in the $100,000-$150,000 range at 74 days and the price range of above $300,000 is the slowest at 121 days.  If you have any thought about making a change, this is really a fantastic time to do it!  When interest rates increase, this market will probably change substantially.  Current 30 year mortgages are still in the 3.5% and the 15 year is around 2.75%!

 

Multiple Offers, What to offer, What to look for in the Winner Offer

by Solus Real Estate Group

The market is strong in many places in the country. A fellow realtor in California has a really hot market with 10 offers on a property, his offer was 37% above list price and there were higher offers that were for all cash and no contingencies. We have a good market but not anywhere that hot. We are experiencing many multiple offers of properties; there are many ways to make your offer stand out in the crowd besides just offering the best price. We have the experience to help you win, let us show you how. It really pays to work with the agents that have experience right now if you are buying or selling. 

If you are the seller, you need to know what to look at besides just the price such as does the buyer have an Experienced Local Lender that all the agents can talk to when there are questions or problems? Other things for the seller to consider include the type of loan the buyer is getting. Where does the lender do their underwriting, is it local, out of state, or is it outsourced out of the country? What inspections are being required? How long are they going to take to do those inspections, so how long are they going to hold your house off the market? Is there going to be a minimum $ amount before they ask for any repairs? Is your house ready to sell? Need some work done? Go to our Solus Group Preferred Providers to find someone we trust to do the work. 

One of the other problems with the market being strong is the property has to appraise for the sales price. It seems that if you have a buyer willing to pay the price that you are asking that all should be well. Not true, the bank doing the buyers loan needs to be assured that the value is there so they will order an appraisal. If the house does not appraise, not only does the buyer not have to buy but the seller does not have to sell and the lender may not make the loan. Sometimes the agents are allowed to submit other comparable properties for the appraiser to consider. If that does not work, can the buyer come up with some more cash, will the seller consider something less, are there other terms that could be acceptable to all the parties including the lender?

As you can see with the market being strong, it is more important than ever to work with someone has had success and experience to trust with your real estate needs.

Homeowners!

by Solus Real Estate Group

Leverage gives the user a maximum advantage whether it is physically lifting a large object or rapidly building equity in a home. In the case of the home, the high loan-to-value mortgage allows the profits made to be greater than simply the cash invested.

A $250,000 home can be purchased on a FHA loan with a 3.5% down payment of $8,750. If the home appreciates at 2% a year, in seven years the equity will grow to $75,920 due to the appreciation and the amortization of the mortgage. That would be a remarkable 36.2% rate of return.

It is estimated that homeowners have a 45 times higher net worth than renters. Since the obvious difference is that renters don’t own a home, owning a home is a distinct advantage. The leverage that allows a borrower to control a much larger asset with a small down payment gives them a return on the much bigger asset than on just the down payment.

Another interesting contribution is the forced savings that occurs with each payment made on the mortgage. A portion of the payment is applied to principal so that the loan will be paid in full by the end of the term, usually 30 years. The amortization on the 4% mortgage example from above has approximately $4,300.00 paid in the first year to reduce the principal which increases the owner’s equity in the home.

For people who have the necessary funds for the down payment and good credit, buying a home can be a financially stabilizing event. While research on the Internet can provide valuable information, there is no substitute for having a face-to-face meeting with a trusted professional to determine your specific facts.

You might pass this information on to someone that should consider buying their first home, Let them see some of the benefits of owning a home.

Suppy and Demand from December 15 to March 15, 2016

by Solus Real Estate Group

SUPPLY OF HOMES ON THE MARKET

December 15, 2015 to March 15, 2016

This shows how many months supply of houses are on the market.  We have taken how many sold
during the past three months and then divided it by the number of homes currently on the market.                                                                                        

Price Range

Months Supply

Last Months Supply

Supply 3 Months Ago

$1,000-$100,000

3.8 Months

2.4 Months

2.0 Months

$100,000-$150,000

2.4 Months

2.4 Months

2.2 Months

$150,000-$200,000

3.0 Months

2.7 Months

1.9 Months

$200,000-$250,000

4.7 Months

3.7 Months

2.1 Months

$250,000-$300,000

4.8 Months

4.0 Months

3.7 Months

$300,000-$350,000

6.5 Months

7.0 Months

3.0 Months

$350,000-$400,000

8.4 Months

9.9 Months

4.5 Months

$400,000-$450,000

20.4 Months

16.6 Months

18.0 Months

$450,000-UP

18.8 Months

13.4 Months

12.0 Months

The market is changing again; six price ranges the supply increased and 2 price ranges the supply decreased. Balanced market is a 4 to 6 month supply of homes. Below $200,000, we continue to have a shortage of supply of Listings but above $300,000, we have an oversupply. The interest for mortgages has stayed close the same as last month with a slight increase in some of the products.

Conventional Fixed rates (45 day lock-5% down) the 30 years rate is 3.625%, the 20 years rate is 3.4% and the 15 years is 2.875%.  The SD Housing SDHDA FHA/RD/VA (fixed rate-1% fee) is 2.75%, SDHDA FHA/RD/VA (fixed rate plus) is 3.375%, SDHDA Conventional (1% fee) is 3.125% and the SDHDA Conventional (fixed rate plus) is 3.875%.  VA/FHA/RD- Minnehaha & Lincoln counties 30 years is 3.25% (RD 3.25%) and 15 years (RD not available) is 2.625%.  Rates by First Bank & Trust - Brian Spaans                                                                  

Yes, it is a great time to buy and sell!

The Solus Real Estate Group is here to serve you in all of your Real Estate needs.  Give us a call to see how these low mortgage rates could benefit you!!

 
   

Harlan TenNapel-harlan@SolusRealEstate.com

mark youngberg- mark@SolusRealEstate.com

Erika Boen – erika@SolusRealEstate.com

Ameri/Star Real Estate

605-274-7273

Itemized Tax Deductions Available to a Homeowner

by Solus Real Estate Group

Home ownership has always been the "great American dream". Here is an article from "Realty Times” that talks about some real monetary advantages from home ownership. I learned something new in the section labeled Points. There is some good information here.

To foster and encourage this dream, Congress has consistently enacted tax legislation which favors homeowners. Indeed, much has been written that our tax laws discriminate against renters, by giving unfair and unequal tax benefits to those who own homes.

Every four years, some candidate for high political office tries to focus our attention on equalizing the tax laws, and repealing the homeowner benefits, but these arguments have consistently fallen on deaf ears. And this coming election year is no different.

For those of us who own homes, here is a list of the itemized tax deductions available to the average homeowner. Every year, you are permitted to deduct the following expenses:

 Taxes. Real property taxes, both state and local, can be deducted. However, it should be noted that real estate taxes are only deductible in the year they are actually paid to the government. Thus, if in year 2015, your lender held in escrow moneys for taxes due in 2016, you cannot take a deduction for these taxes when you file your 2015 tax return.

Mortgage lenders are required to send an annual statement to borrowers by the end of January of each year, reflecting the amount of mortgage interest and real estate taxes the homeowner paid during the previous year.

 Mortgage Interest. Interest on mortgage loans on a first or second home is fully deductible, subject to the following limitations: acquisition loans up to $1 million, and home equity loans up to $100,000. If you are married, but file separately, these limits are split in half.

You must understand the concept of an acquisition loan. To qualify for such a loan, you must buy, construct or substantially improve your home. If you refinance for more than the outstanding indebtedness, the excess amount does not qualify as an acquisition loan unless you use all of the excess to improve your home. However, any other excess may qualify as a home equity loan.

Let us look at this example: Several years ago, you purchased your house for $150,000 and obtained a mortgage in the amount of $100,000. Last year, your mortgage indebtedness had been reduced to $95,000, but your house was worth $300,000.

Because rates were low last year, you refinanced and were able to get a new mortgage of $175,000. Your acquisition indebtedness is $95,000. The additional $80,000 that you took out of your equity does not qualify as acquisition indebtedness, but since it is under $100,000, it qualifies as if it was a home equity loan.

Several years ago, the Internal Revenue Service ruled that one does not have to take out a separate home equity loan to qualify for this aspect of the tax deduction. However, if you had borrowed $200,000, you would only be able to deduct interest on $195,000 of your loan -- the $95,000 acquisition indebtedness, plus the $100,000 home equity.

The remaining interest is treated as personal interest, and is not deductible.

Points. When you obtain a mortgage loan, some lenders will allow you to pay one or more points to get that loan. The more points you pay, the lower your mortgage interest rate should be. Whether referred to as "loan origination fees," "premium charges," or "discounts," these are still points. Each point is one percent of the amount borrowed; if you obtain a loan of $170,000, each point will cost you $1,700.

The IRS has also ruled that even if points are paid by sellers, they are still deductible by the home buyer. Points paid to a lender when you refinance your current mortgage are not fully deductible in the year they are paid; you have to allocate the amount over the life of the loan. For example, you paid $1700 in points for a 30 year loan. Each year you are permitted to deduct only $56.66 ($1700 divided by 30); however, when you pay off this new loan, any remaining portions of the points you have not deducted are then deductible in full.

Needless to say, if you have any questions about these tax benefits, discuss them with your financial and legal adviser.

Displaying blog entries 1-10 of 143

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Photo of Solus Real Estate Group Real Estate
Solus Real Estate Group
Ameri/Star Real Estate
5900 S Western Ave
Sioux Falls SD 57108
(605) 274-7273
605-336-9600
Fax: (605) 336-7749

Solus Real Estate Group Specializes in Selling or

Buying Homes and other Real Estate or Property in the Sioux Falls, South Dakota Region.