The economists at CoreLogic recently released a special report entitled, Evaluating the Housing Market Since the Great Recession. The goal of the report was to look at economic recovery since the Great Recession of December 2007 through June 2009. One of the key indicators used in the report to determine the health of the housing market was home price appreciation. CoreLogic focused on appreciation from December 2012 to December 2017 to show how prices over the last five years have fared. Frank Nothaft, Chief Economist at CoreLogic, commented on the importance of breaking out the data by state, “Homeowners in the United States experienced a run-up in prices from the early 2000s to 2006, and then saw the trend reverse with steady declines through 2011. After finally reaching bottom in 2011, home prices began a slow rise back to where we are now. Greater demand and lower supply – as well as booming job markets – have given some of the hardest-hit housing markets a boost in home prices. Yet, many are still not back to pre-crash levels.” The map below was created to show the 5-year appreciation from December 2012 – December 2017 by state. 5 Year Home Price Appreciation Nationally, the cumulative appreciation over the five-year period was 37.4%, with a high of 66% in Nevada, and a modest increase of 5% in Connecticut. Where were prices expected to go? Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment and market strategists and asks them to project how residential home prices will appreciate over the next five years for their Home Price Expectation Survey(HPES). According to the December 2012 survey results, national homes prices were projected to increase cumulatively by 23.1% by December 2017. The bulls of the group predicted home prices to rise by 33.6%, while the more cautious bears predicted an appreciation of 11.2%. Where are prices headed in the next 5 years? Data from the most recent HPES shows that home prices are expected to increase by 18.2% over the next 5 years. The bulls of the group predict home prices to rise by 27.4%, while the more cautious bears predict an appreciation of 8.3%. Bottom Line Every day, thousands of homeowners regain positive equity in their homes. Some homeowners are now experiencing values even higher than before the Great Recession. If you’re wondering if you have enough equity to sell your house and move on to your dream home, let’s get together to discuss conditions in our neighborhood!

The number of building permits issued for single-family homes is the best indicator of how many newly built homes will rise over the next few months. According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Sales Report, the number of these permits were up 7.4% over last year. How will this impact buyers? More inventory means more options. Lawrence Yun, NAR’s Chief Economist, explained this is good news for the housing market – especially for those looking to buy: “This rise in single-family housing construction will help tame home price growth, and the increase in multifamily units should continue to help slow rent growth.” How will this impact sellers? More inventory means more competition. Today, because of the tremendous lack of inventory, a seller can expect: A great price on their home as buyers outbid each other for it A quick sale as buyers have so little to choose from Fewer hassles as buyers don’t want to “rock the boat” on the deal With an increase in competition, the seller may not enjoy these same benefits. As ChiefEconomist Nela Richardson, added: “Because existing home inventory has been so low for so long, new construction is taking a larger share of the market…Builders meet the buyers and see the demand firsthand.” Bottom Line If you are considering selling your house, you’ll want to beat this new competition to market to ensure you get the most attention for your listing and the best price.

We are having the ribbon cutting ceremony with the Woodbury Area Chamber of Commerce on Thursday, October 5, 2017 at 3:00 pm. All are welcome to come see our beautiful new space and find out why we are committed to a BETTER WAY to real estate.

If you haven’t heard, we have moved the Pederson Realty offices to a gorgeous new location in Woodbury. We had our friends at 8710 Photography shoot pictures and a 3D virtual tour, just like we provide for our clients. Please have a look at the photos and virtual tour below. Pederson Realty 3D Virtual Tour and Photos [tribulant_slideshow gallery_id=”1″]    

Our gorgeous new office in Woodbury is open and you are invited to celebrate with us! Come and take a look at our beautiful new space, hear about the vision for our future in Woodbury and enjoy food and drinks with friends and colleagues. It’s easy to find—right in the Tamarack Hills complex at the intersection of Bielenberg Drive, Tamarack Road and I-494. 707 Bielenberg Drive, Suite 107, Woodbury, MN 55125 We hope to see you here!