I have been meaning to write a market update for some time now, but have been so busy with selling real estate that I am just now finding the time!  That is DEFINITELY a good problem to have and as I will point out in this Blog, the market conditions here in Rapid City reflect my busy Fall months.

According to the Black Hills Association of Realtors (BHAR) stats, taken from the Multiple Listing Service (MLS) through Sept. 2009, we are down slightly on the number of listings on the market from last year, but our “under contract” numbers are up 26% over last year.  That’s HUGE in my book!  I would say that is a definite sign that our real estate market is remaining strong.  The fact that we are down on overall listings may well be attributed to the fact that fewer people are deciding to move unless it’s a high priority, but those that are making the decision are finding their houses selling more successfully than last year.

The average Days on Market (DOM) for single family listings is down 1 day overall compared to 2008, with 72 DOM as the average.  New construction homes are taking longer to sell than in previous years and townhomes and condos are sitting on the market 37 days less than in 2008. 

Now, what everyone really wants to know, and that is regarding house values.  In my opinion, pretty good news here as well.  We are down just 3% over last year in all types of housing.  However, a further breakdown reveals that we are down just 1% in single family homes.  The areas that have taken a harder hit are townhomes and condos, which are down 7% and new construction homes, which are down 9%.  Really though, those numbers are not bad at all compared to national averages and some markets that are down over 50%!

One important thing to remember though is that in the past year or two, housing values HAVE NOT INCREASED.  So, if you are looking to move and are counting on selling your house for the usual 4% increase per year that was accrued in our previous market (pre 2007) then you may be disappointed.  I can’t tell you the number of times that I have had to tell people that they may not even break even if they have lived in their house for 2 years or less. 

The good news is that if you have done improvements to your house, finished a basement, added a garage, replaced siding and roof, etc., those things are still adding value to homes and may help you see the increase in value that you are hoping to find. 

So, as we all prepare to “settle in” for the winter, remember that there are still good deals to find out there in real estate, and with talks of the government extending the $8,000 first time homebuyer tax credit and adding a possible $6500 tax credit for all other types (non-first time buyers) of homebuyers, don’t think that it’s necessary to sit tight and wait for market conditions to improve.  I always tell my clients that the winter is not a bad time to buy and sell.  In fact, the colder months often bring out more serious buyers.

If now isn’t the right time for you to sell and buy, then remember to continue to work on your house and add upgrades that will increase your value so that your home price will increase in the upcoming years. 

And, of course remember to call me if you have any questions about real estate, market conditions and when you’re ready to make a move!  My cell phone is always on: 605-431-5810. 

OK, so again, I know I’m not a lender, but I seem to have plenty to say on the topic lately and well, it just makes me feel better to share and get it all out there!  This past year has provided many challenges in real estate and I would say that a large portion of those challenges have come from lending and all the changes that industry has gone through.  For instance, I was recently 7 days from closing a deal when yet another major national lender suffered financial woes and closed its doors.  That left me, and my clients, scrambling to try to find a new lender who could take over and do the loan. In the long run, it took an additional 4 weeks to close the loan and get the buyer into the house.

Nobody gets paid more for delayed closings, sellers don’t make more money on the house and of course, buyers don’t always get to simply “postpone” moving out of their previous home just because a closing doesn’t occur when it is scheduled!  So, needless to say closings that don’t happen on time are not fun for anyone, but unfortunately they are definitely more of a reality now than ever before and here’s a few things you need to know in today’s market of buying and selling real estate:

1. Choosing an experienced real estate agent who can walk you through all of the ups and downs involved in the buying and selling process is truly a MUST!  If you don’t have a guide to help you wade through all the mud, you may just get stuck in the jungle.

2. Don’t simply stop into a lender and sign up with them for your loan.  Ask questions.  Find out what their communication style is like and how often they will call or e-mail you with updates on your loan.  Ask whether or not they underwrite their loans locally or send them out to a national lender, and if they do send them out, find out if they have relationships with more than one national lender so there is a backup plan available if the company you are using for your loan starts to experience financial problems!

3. Stay on top of your paperwork.  If your lender or Realtor needs something, get it to them ASAP.  If you delay, it can cost you days or even weeks in the closing process.  I’ve seen loans held up due to a simple missing signature on a document that a buyer or seller never got in to sign.

4. Expect that there may be delays.  The days of signing a purchase agreement, and simply closing on the date agreed upon by the buyer and seller, are no longer here.  If there is even one bump in the road (and lately there seem to be many!) the closing date will likely be moved.  If that’s the case, having a back up plan in place will save you many sleepless nights.

5. Take lots of deep breaths throughout the process and trust that in choosing the right professionals to guide you along the way, you will come out winning in the end!

I thought it would be fun to talk about Real Estate in a completely different part of the world just to provide some context for what others pay for the places they call home, and also to highlight some investment possibilities for those of you out there who like to invest or simply just dream.

Dubai is a city located within the United Arab Emirates (UAE) and is well known for its luxury hotels, man-made islands and the world’s largest indoor ski center. Basically, if you want something modern and cool, you can find it in Dubai. If you’d like to know more about Dubai, a good site to visit is www.dubaicity.com.

So, why am I focusing on this place thousands of miles away? Well, I often get e-mails that talk about “great real estate deals” in various parts of the world and earlier this week I received one on Dubai that caught my eye. It was not only because the city has been in the news for the past few years, but also because I was curious to see what my dollars and the dollars of my clients could buy in a vacation destination such as this. Here’s what I found…

According to www.worldproperty.com, the rental of commercial property in Dubai is among the highest in Europe, the Middle East and Africa. That’s a HUGE territory! Also, the economic roller coaster that we have been in for the last few years has actually made it somewhat affordable to buy property in Dubai and hopefully, like other parts of the world, prices will start to go up, making the investment worth more and more. So, what does property cost? There are actually a lot of properties available for under $100,000 and although they may be pretty small (some are only 350 sq. ft. – yikes!) there are amenities in the apartment complexes that make the prices seem worthwhile. If you would like to live one of the man-made palm tree islands (there are actually 3 of them known as Palm Jebel Ali, Palm Jumeirah, and Palm Deira), it will cost you closer to $1.3 million and that is the “ bargain price” developers are selling for to simply unload their inventory!

All this doesn’t mean a whole heck of a lot for real estate here in Rapid City, but it’s always fun to see what is happening from time to time with real estate in other parts of the world and I hope you find it as interesting as I do! Also, if you’d ever like to find out more about real estate prices around the world, take some time to tour www.worldproperty.com. It’s a great site and who knows, you may find something that catches your eye and together we can embark on an international real estate adventure!

I’ve learned a lot about lending over my years in Real Estate and although I am far from being an expert (it’s always wise to consult with a mortgage lender, who is an expert), I have quite a few little tips and tricks that I think are helpful when thinking about buying or selling real estate

Tip 1: First and foremost, before you start looking into making a real estate purchase, consult a mortgage professional first. If you don’t know how much you can spend, you are starting the process completely blind. It’s not as simple as starting with what you think you can afford and then working backwards, especially in this time of tougher mortgage lending, strict-debt-to-income ratio guidelines and down payment requirements.

Tip 2: Make sure you get information on ALL the mortgage possibilities out there. Be sure and ask your mortgage professional what all the options are, even if he/she cannot provide them. A lot of mortgage professionals will tell buyers that they are not qualified for a loan, when in actuality they are simply not qualified for a loan with them. There are specific programs out there for first time homebuyers, low-income buyers, buyers with low credit scores, even buyers with certain professions. If you hear “no” once, don’t give up. Try another lender and keep asking questions until you are confident in the answer you receive.

Tip 3: Ask about charges so you don’t have surprises at closing. Just like real estate professionals, lenders and mortgage brokers get paid at closing and they definitely earn their dollars throughout the process. However; nobody wants to be surprised at the closing table, so make sure you know if your lender charges 1% of the purchase amount, has additional recording fees, etc. In fact, all lenders are required by law to provide a truth in lending statement that discloses all this information, so be sure you receive one and that you go through it carefully.

Tip 4: If you’re not sure where to start in finding a mortgage professional, get a referral from someone you trust. I always have a handful of names available and can tell help you find someone based on the type of home you are buying, whether or not you’re a first-time buyer, etc.

I hope these tips and tricks help with some of your basic mortgage questions. Again, I’m hardly a professional in this area, but these ideas should be enough to get you started. As always, call me anytime with questions or for additional information.

There seems to be one thing on the mind of most buyers and sellers today and that is, “how is our local real estate market faring?” In fact, most conversations that I’ve had lately have focused around this very issue. So, I thought I’d take some time in my first blog to talk about our local real estate market and shed some light on what exactly is going on here in Rapid City and the Black Hills area.

According to the latest MLS data (as of 6/1/09), our average price on preowned houses that have sold to date is down 2% over last year, which equates to only about $1,500. The new construction market is taking a bit more of a hit with average sold prices down 7% or roughly $16,000 over last year. While a $16,000 hit is not great news for builders, it is encouraging for buyers and sellers to know that their house prices are holding pretty steady and that they can pick up a new construction house for less than this same time last year. The other statistic that is worth mentioning is the average days on market. For preowned houses, that time frame is up just 7 days over 2008, again very positive news as 1 week is hardly worth worrying about in the grand scheme of things!

So, as you can see from our market data, we are still holding our own here in Rapid City and the Black Hills. Of course this data is an average of all areas and things can always be broken down further, so to get a very clear picture of the value on your specific house, please give me a call.

Although the weather doesn’t seem to be showing it in Rapid City, we ARE entering our busy time of year for real estate and if you have considered making a change, now is the time to do it! I’m here to help in any way I can and look forward to hearing from you!

That is a complex question, but the short answer is that our housing prices have been affected in the past 1-2 years, but not as drastically as other parts of the nation. We have always maintained a slow, steady growth pattern in Rapid City and the Black Hills and although it has tapered some, we are still growing and overall our real estate market is still very strong.

Although foreclosures have picked up in the Rapid City market this past year, we are still well below the national average in this area. If you would like to find forclosures, I can help you! However, please keep in mind that you are not always getting a “bargain” due to the potential condition of the property, cost of renovations, time, etc.

A short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. A short sale typically is executed to prevent a home foreclosure, but the decision to proceed with a short sale is predicated on the most economic way for the bank to recover the amount owed on the property.