Minnesota real estate sales are on par with the national increase in real estate sales in the United States, at 11%. Otter Tail County leads the state with a 24% increase plus an increase of 21% in median sale prices which is twice as high as the national numbers. The reasons are low unemployment, a robust farm economy, the lowest interest rates this month in 30 years and a good supply of homes for sale. The down side is the inventory of homes for sale has fallen and median prices are rising. Interestingly, nationally 1st time home buyers make up 32% of the entire housing market. The sale of lake homes has shown the largest increase in sales for the last 2 years - 55% in 2011 and 78% so far this year. The real estate economy is back in Otter Tail…
Sales of lakeshore property in Otter Tail County remains strong - a full 75% over 2011 at this time and 34% above the state average. Inventory of homes for sale has dropped as well. What is interesting is so far in 2012 is average lake home sales prices are down 10% while sale prices of other housing have increased 10%. County residential housing sales have increased a full 10% as well and interestingly, the sales of homes in the Fergus Falls market have increased in the higher price ranges, signifying a decrease in foreclosures and a return to a healthy market! It is a good time for both buyers and sellers because of increased sales, less inventory, stable prices and record low interest rates.
My advice for buyers and seller entering the…
Sales of lakeshore property and housing outside of Fergus Falls have increased dramatically - a full 75% over 2011 at this time and 34% above the state average. Inventory of homes for sale has dropped as well. What is interesting is so far in 2012, average lake home sale prices are down 10% while sale prices of other housing have held steady.
It is a good time for both buyers and sellers because of increased sales, less inventory, prices and record low interest rates.
My advice for buyers and sellers entering the market.....use a professional full time real estate agent that knows not only the past comparables but one who knows the present ones and the trends.
The 3.8% sales tax hidden in the national health care plan kicks in on January 1, 2013. This seller paid sales tax can affect those who have high adjusted gross income levels. It also takes into consideration the sale of real estate and investment income such as interest, dividends and annuities. In addition, the United States is still under the threat of capital gain tax rates rising from 15% to as high as 25%. If you are considering whether or not to sell your second home or investment, 2012 may be the year to sell considering the tax ramifications. For more information, I suggest you contact your CPA.
Meanwhile, the sales of lake homes in the multiple listing services are up 89% in 2012, compared to 2011 and inventories are coming into…
Otter Tail County lake home sales are up 39% so far this year which is great news for those wishing to sell! Inventory is down to an 18 month supply so selection has tightened up. The reasons are: low unemployment rates, interest rates are at a 60 year low, pent up demand and more affordable prices. Surprisingly, lake home sale prices last year averaged what the county has them taxed at.
If you are an owner and plan on selling within a few years you may want to move that up to this year as the 3.8% sales tax you will pay on the sale of your real estate kicks in January 1, 2013. In addition, congress is talking about raising your capital gain tax. Stay informed!
My advice for buyers and sellers entering the market…..use a professional full time…
Century 21 Real Estate LLC is pleased to announce that Alan and Judi Olson of Century 21 Vista were presented with the President’s Producer Award at their annual awards banquet in Minneapolis on March 16, 2012. This award is bestowed upon an extraordinary group of individuals that have achieved both the Centurion level of production and the Quality Service Pinnacle Award in the same year, which is an affirmation of outstanding sales production and commitment to quality service to their customers. “We are thrilled to recognized Alan and Judi Olson’s work for this significant achievement”, said Rick Davidson, President and CEO, Century 21 Real Estate LLC. “This is an outstanding honor since only a small percentage of agents in the United Stated receive…
- Recently the NATIONAL ASSOCIATION OF REALTORS announced that interest rates for a 30 year fixed mortgage were the lowest in 60 years.
- In addition, the report cited that inventories of homes for sale were down to a 6.2 month supply. 6 months is considered a balance for supply vs. demand.
- Minnesota unemployment is down to 5.6% which is below the national average.
- Pending real estate sales in Minnesota are up 14.5%.
- The housing affordability index is the highest ever which deals with household income vs. home prices.
- Prices in Minnesota have been stable for the last 12 months.
These are all factors that have positively affected real estate sales. Now that inventories are low, it is a better time for sellers to sell and of course low…
Surprisingly, sales of lake homes and cabins are always about 75% fewer than the sales of residential homes in Otter Tail County, even with our county having 1,000 lakes, more than any other county in the United States. The dollar volume of lake home sales is only 40% less. Obviously, the average sale prices of lake homes are $150,000 higher at $257,000 where residential homes are at an average sale price of $107,000.
Reasons for the large number of residential sales are: we have a good population base and low unemployment which makes Otter Tail a good county in which to live and work. There is a good supply of residential homes right now which has had a softening effect on prices. Lake home average sale prices have risen, however, due to the more…
LAKE HOME SALES
By Alan Olson, Broker
This month’s column gives the reader an accurate snapshot of the lake home sales thus far this year in our multiple listing services. It also shows the months of inventory available for purchase. September and October closings are not reflected here but the sales have been off the charts. Interestingly, sales have been closing within 1% of the assessor’s market value, which is highly different from the low prices of other regions in Minnesota.
My advice for buyers and sellers entering the market….use a professional full time real estate agent that knows not only the past comparables but one who knows the present ones and the trends.
Absorption Rate Report
September 1, 2011
Century 21 Vista held their 3rd Annual Client Appreciation Picnic, Sunday, August 21, 2011 at the Lions Park on the shore of West Battle Lake. Over 500 people attended the event, participating in a pork chop picnic, children's games, and entertainment. Best of all, there were drawings valued at $8,000! The grand prize winners of $2100 in cash were Chad and Sarah Overland of Alexandria, MN. The winners of the "Vacation for 2" anywhere in the world were Jack and Jane Bertram, Tom and Barb Spaeth and Pam Phillips. The event was sponsored by Century 21 Vista real estate agents and local partners. Buyers and Sellers of sold real estate from August 2010 to August 2011 were present. Will we see you there on August 19, 2012?
Alan Olson, Broker/Owner