Minnesota housing: What do you see?

We wondered aloud a couple weeks ago what would happen to the state’s housing and real estate markets once the federal home buying tax credits went away.

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With the credits set to expire on Friday, my colleague Molly Bloom today reached out to mortgage and real estate sources in MPR’s Public Insight Network to find out what they’re seeing right now.

We need MinnEcon readers to share their perspectives, too.

What will happen when the credits go away? What story(ies) should we be reporting on when it comes to housing? Tell us. Post something below or use this form to share a story.

Molly notes that last time we asked about real estate, homes and mortgage issues we got some great story ideas, including this one about concerns about a possible next wave of foreclosures. It’s a concern we also highlighted on MinnEcon.

Last week, MPR chief economics correspondent Chris Farrell looked at national home sales data and concluded that housing remains a story of the market reaching bottom, not the market heading up.

On Tuesday, one of our citizen Economic Lookouts shared a story of housing frustration in Rochester.

You don’t have to be a real estate pro to answer. Anything you see and hear about the housing market around you — or your own experience — will make us smarter and help shape MPR’s reporting.

So drop us a line and tell us what you’re seeing.

  • Jon

    I just closed on a house a couple of weeks ago. My person contribution to the local economy has greatly gone up since then as we buy stuff to make the place ours. When the first-time buyers rebate comes in three or four months, it will go straight into more improvements on the place. Low rates and low (relatively) prices made it a great time to buy – the rebate was just a bonus. I don’t know if there are many others in my same situation, but as employment improves, there are still reasons for people to buy.

    That said, I trust the housing market will not be that great anytime soon and we’ll need to stay in our place for many years to make it worthwhile (which we were planning anyway).

  • http://www.AaronSOLD.com Aaron Dickinson – Edina Realty

    The last 45 days or so has seen a huge crush of buyers decending on the lower priced segments of the housing market. Several of my buyers have been in 5+ multiple offer situations and even more have found that 1/2 the houses they wanted to see were sold before we even saw them. This surge of demand is most certainly a result of the tax credit.

    Several of my clients are now taking a little break from the market – they’re exhausted at losing out on so many houses and don’t want to settle for something.

    Many of the Realtors, loan officers and title closers that I’ve talked to are all expecting (and hoping!) for a little calm in our market in May & June so that we can get caught up and take a second to relax. Just like car dealers saw a little lull to their business after the cash for clunkers, I expect the same in housing. As the economy starts to add jobs and consumer confidence rises, I think we’ll see demand for housing take up the slack left by the tax credit, which is what was hoped for all along.

    The market for houses in the higher price points, especially in the $500,000+ segment, are going to continue to be weak for some time to come. Too much inventory, tougher rules on jumbo mortgages, and fewer move-up buyers will all temper demand for the near future.