A Discussion On The Burnsville Real Estate Market

A Discussion on the Burnsville Real Estate Market To The Burnsville Rotary Richard Tucker Coldwell Banker Burnet October 5,2009

Burnsville Rotary
Or. . .
What happened to your Real Estate values

Burnsville Rotary
Where are we
How did we get here
Where are we going. . .

Burnsville Rotary
Multiple factors lead to shift
Historically low interest rates
Strong economy
“ New” mortgage products
Little or no money down
Looser standards
No Doc loans
Pic and Pay loans

Burnsville Rotary Limited supply & strong demand

Burnsville Rotary Home prices went up

Burnsville Rotary As prices went up so did inventory

Burnsville Rotary Too much supply & reduced demand

Burnsville Rotary Historical average sales price appreciation

Burnsville Rotary
So where are we today. . .
As prices dropped
Buyers decide to wait and watch
Values dropped below mortgages amounts
Adjustable mortgages reset
Foreclosures increased
Creating a downward spiral

Burnsville Rotary
Market forces begin to work
Lower prices induce first time homebuyers to act.
Tax credit is a great incentive
Sellers re-think time to sell
Inventory begins to drop
Sales begin to pick up

Burnsville Rotary

Burnsville Rotary
Where are we going now?
Prices are beginning to stabilize in
the lower price ranges
New listings Last week Pending Last week 0- 100 6 9 18 11 100-200 65 61 74 56 200-300 52 39 39 33 300-400 19 21 11 10 400-500 9 16 8 4 500-600 2 8 3 2 600+ 3 2 0 0

Burnsville Rotary
Many factors will impact the recovery
Sales are up
but not in all price ranges
Continued reduction in inventory
We may see more foreclosures
Impact of the tax credit
Over reaction to credit markets
Unintended consequences to some needed changes

Burnsville Rotary
Conclusions
Prices went up and were unsustainable
Traditional market forces reacted
Credit markets collapsed
Market forces are correcting S & D
Getting back on the traditional appreciation track we were on

Burnsville Rotary
If you bought before 2000. . .
you had a paper appreciation. .
and a paper loss. . .
but in the end you’re
back on track

A Discussion On The Burnsville Real Estate Market

by Richard Tucker on Oct 06, 2009

Accessibility

Categories

Upload Details

Usage Rights

2 Embeds 47

Statistics

A Discussion On The Burnsville Real Estate Market — Presentation Transcript

http://cbb-burnsville.com	40
http://cbbburnsville.mightyagent.com	7