Here is the October Real Estate Market Review. Please let me know if you have any questions. If you know if anyone else who may benefit from receiving this real estate review on a monthly basis please feel free to send them my email address and have them contact me.

What to Watch For:
There were strong home sales in the Greater Lakes region once  again in October.  For the month there were 242 closed sales, up 14.7 percent from a year ago as low mortgage rates and the federal tax credit for home buyers spurred activity. With the home buyer tax credit extended and expanded, we can expect that first-time home buyer activity will remain strong, but don't bank on the same blockbuster numbers we say this year. If you were a potential first-time home buyer who was qualified to  purchase in 2009, odds are pretty dang good that you already bought.
The fact that the income limits have been raised for eligibility does help since it widens the credit's availability. The $6,500 credit for second-time buyers will spur some sellers in the low-to-mid price ranges to put their homes on the market who had previously been on the fence.  New listings will likely increase this winter and into early 2010 as a result.

This information was provided from the Greater Lakes Association of REALTORS

Click here to view the entire Real Estate Review

Also, it appears that the twin cities real estate market is continuing to improve. The Gallery of Homes is a member of both the Greater Lakes Association of REALTORS and the Minneapolis Association of REALTORS which provides the Northstar MLS system serving the twin cities area which is the 5^th largest MLS system in the country. As a member of this association, we receive a real estate review for this market as well. Because the twin cities real estate market does have a direct impact on our local real estate market, I thought I would share the latest report we received from them.

The Twin Cities housing market continues to post strong pending sales figures as fall progresses. For the week ending October 31, there were 826 pending sales. That's down from the week before but 42.9 percent greater than the same week last year.

The extension and expansion of the tax credit means that first-time home buyer activity will remain strong, but don't bank on the same blockbuster numbers we have seen this year. If you were a potential first-time buyer who was qualified to purchase in 2009, odds are good that you already bought. The fact that the income limits have been raised for eligibility does help since it widens the credit's availability.

The $6,500 credit for second-time buyers will spur some sellers to put their homes on the market who had previously been on the fence. New listings will likely strengthen this winter and into early 2010 as a result.

Some updated numbers for this month:

• Days on Market is still shrinking, down to 128. That's 9.4 percent below last October.
• The Percent of Original List Price Received at Sale bumped up to 94.6.
• The Housing Affordability Index increased to 202, up 25.5 percent over 2008.

Take care and God bless,

Dan Pflugshaupt

The Gallery of Homes

Longville, MN

Direct cell: 218-839-7700

Office: 218-363-3332

Fax: 866-882-1099

Toll free: 877-863-7700

email: mailto:Dan@GalleryofHomesMN.com

Web: http://GalleryofHomesMN.com

Specializing in North Central Minnesota Lakeshore & Recreational Property