Iron Range Real Estate: The Market is Good and Property is Selling!
A few days ago on this site I predicted a strong year for Iron Range real estate, and I stand by that prediction. But neither Nostradomus nor I, nor even Punxsutawney Phil would have predicted what has taken place over the past 2 weeks….In just the last 14 days, agents from Johnson Hometown Realty have listed more than a million dollars worth of property – $1,233,780, to be exact….Additionally, during the same short time period, this office has been involved in accepted purchase agreements that total more than a million dollars – specifically $1,163,500. All this during a traditionally “slow time” of the real estate year.
Judging by the number of buyers and sellers we are still continuing to work with, things will remain busy through the next few months, at the very least. Thank you again to those of you who are calling us, and referring us, and trusting us to help with your real estate decisions and transactions!!
So, Is timing really everything??
In real estate the clear answer is a definite “sometimes.” But when it comes to listing property for sale, the answer is a resounding “no.” The best time to put property on the market is simple – list it as soon as you are ready to sell it. It is true that certain periods have more activity than others – Home buyers are generally busiest from April until mid-October, but we are working with a bunch of buyers right now; Lake shore sales are most common from around the first of May through the 4th of July, but I have closed on lake homes in December and January; And recreational property is most popular from mid-August through the end of deer season, but we are in the process of putting together a purchase agreement on 40 acres of prime hunting property right now.
The point to remember is this: Yes, more home buyers will be in the market in May than there are now in February, however, there will be lots more homes listed then, too. More buyers, but much more competition. And remember, YOU DO NOT NEED A WHOLE BUNCH OF BUYERS TO GET YOUR PROPERTY SOLD, YOU ONLY NEED ONE. And if you wait for May to list, and if the right buyer is looking now, you will miss that buyer.
So if you have real estate you want to sell, now is the right time to contact Johnson Hometown Realty (218-263-4411) and get that home/land/lake shore on the market and in front of buyers!! Remember any time that you would like to ask questions, explore options, or simply start a conversation about any real estate transaction, give us a call. We are always open!
Nostradamus I am not…A Good Year in Real Estate for Iron Range in 2018?
I am certainly not a prophet – not even a Punxsutawney Phil (whose big day is coming again soon) – but since anyone who reads this will undoubtably soon forget what is written here, I will go out on a limb and predict a very good year for Iron Range Real Estate in 2018. Before explaining why this good year is going to happen, let’s agree on what that means – A good year in real estate terms is a period where prices are strong enough that sellers can afford to sell, yet not so high that homes are out of reach for the average buyer. And a good year is one that has plenty of buyers actively in the market, but not so many that competition drives prices to unsustainable levels.
So why are we going to have this “good year” in northeastern Minnesota in 2018? There are four major reasons for optimism….
1) Activity is off to a very strong start. The Range MLS has already seen 25 residential properties sold and closed since January 1. And there are an additional 61 residential properties currently pending as of today across the Range.Our office is seeing solid offers coming in almost daily and our agents here at Johnson Hometown Realty are very busy with buyers in a variety of price ranges. While our local market can change rather abruptly, over the years we have seen that when activity starts early, it is often maintained.
2) Our inventory is about right. There are currently 428 residential listings in the Range MLS, 77 of them in Hibbing, 28 more in Chisholm, and 50 in Virginia. Those numbers vary from day to day, and they may not mean much to the average consumer, but they are about right as far as supply and demand are concerned for our area.
3) Interest rates on home loans remain historically incredibly low. We have been saying that for a number of years now, and rates have been slowly creeping up a little bit over the last few months, but right now you can borrow money in the low 4% range and that is a fantastic rate to lock in at.
4) Most importantly, our local economy is very strong. Everyone knows we are tied at the hip to the mining industry, and right now the mines are all up and running. There are no rumors (today, at least) of strikes or lay offs or shut downs. There is even new mining activity around the edges – The former Essar project has a pulse, the former Magnetation enterprise is apparently back in the game. Even Polymet appears to be gaining traction and Mesabi Nugget, while on life support, seems to have some hope of going forward. All of this mining news leads to things like the big expansion recently announced at L and M Radiator and drives hiring in other mining-related companies. This environment provides jobs and good wages as well as hope and faith in the future which impacts home sales, lakeshore purchases and the buying of recreational property.
So there you have it, my prediction for a very good 2018 for the Iron Range as far as real estate is concerned. I may not be Nostradamus, but I am also not Al Gore. I never predicted Florida would be under water by 2015…..
A Buyer asked with a sigh, “Why should I pre-qualify?”
To pre-qualify simply means to contact a lender (preferably a local lender) either in person, by phone or on-line to establish your ability to get a loan.
There are six very good reasons to pre-qualify – all 100% beneficial to you, the buyer.
1. This is how you find out how much of a loan you could be given so you know what home price range you should be looking at.
2. This is how you learn how much your loan payment will be at a variety of different loan amounts.
3. This is how you know which type of financing is most beneficial to you.
4. This is the way you ascertain how much cash you are going to need to proceed, i.e., down payment, closing costs, etc.
5. This tells you whether or not you need to ask for seller concessions (money from the seller to help with your closing costs) when you make your offer.
6. Once you are pre-qualified for a loan, your lender can provide you and your agent a letter of pre-qualification. Having that letter accompany any offer you write makes your offer stronger and more attractive to the seller.
Pre-qualifying is a win –win –win –win –win –win for you!
Pre-qualification checklist – Have this information before shopping for a home:
1. Can I now qualify for a home loan? If so:
a. How much can I borrow?
b. What is the payment at that amount?
c. What is the payment if I borrow less?
d. What type of financing is best for me?
e. How much cash will I need at closing?
f. Should I ask for seller concessions in my offer, (i.e., help with my closing costs) and if so, how much?
2. If I can not qualify for a loan right now:
a. What steps can I take to make it possible to qualify?
b. Approximately how long will it take for this to happen?
Another BIG “Thank You”!!!
We have received an unusual amount of business recently from friends and former customers who have been referring new customers to us here at Johnson Hometown Realty. We realize no amount of advertising would ever be as effective as these “word of mouth” referrals are and we appreciate your confidence and thoughtfulness very, very much!!!
Neither Rain, Nor Snow…….will keep a DEPENDABLE Realtor from Showing You Houses!
A Few Fun Facts For Folks Fixated on Figures – Residential Lake Shore Properties SOLD!
A few fun facts for folks fixated on figures…
Residential Lake Shore properties sold/closed through the Range MLS last year….
Under $100,000 17
$100,000 – $200,000 63
$200,000 – $300,000 56
Over $300,000 71
(Most expensive Lake Shore listing sold/closed through Range MLS in 2017 – $1,050,000. Located on Lake Vermilion.)
Thank You! Thank You! Thank You! And, Thank You, Too!!!
We have been truly blessed over the past month as so many of you – friends, family, customers, fellow realtors, related-industry professionals, and others – have stopped in the new offices or otherwise reached out to offer us encouragement and support during the opening few weeks of our new business. Your thoughtfulness and kind words mean more than you can imagine.
Again, Thank You!! If you haven’t had time to stop by yet, drop in anytime. And if you’ve already been by, stop in again!! There is a good chance there will be treats around somewhere…
