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    We were all hurrying to find Rosemount and School District 196 homes to buy this fall when low and behold,  the Congress agreed to give us more time to take advantage of the first time buyers tax credit.  Now we have until the end of April. Here in Rosemount we saw an uptick in home buying activity. We also started seeing multiple offers on homes that were priced right. Let's look at some numbers so you'll get a good idea about what's happening with home buying and selling in Rosemount. These figures come from the Southern Twin Cities Association of Realtors (STCAR).

    There's some good news and not so good news in the housing market in Rosemount. First, the number of homes sold is increasing. It's my opinion that the tax credit  plays a large part in that increased activity. During the month of November there were 28 homes sold. That's an i increase of almost 50% compared to November of the year before. Another bright spot for home sellers is the decreasing number of homes on the market meaning less competition. In November there were just over 30 homes brought to market. That's a decrease of about 25% from the year before.  Now the not so good news; prices paid for Rosemount homes continue to fall. In November the median price paid for a Rosemount home was $196,000. That's down almost $30,000 from November of 2008. Average prices were down about the same.

    How long does it take to sell a home in Rosemount? The numbers from STCAR shows some positive developments. Average time on the market to sell a Rosemount home in November was 79 days. That's a substantial decrease from one year ago when it took just over 130 days from the time the Rosemount home was listed until it sold.

    While there's been some positive movement in Rosemount area home sales the outlook is mixed. Economists tell us the likelihood of mortgage rate increases is good. The $8,000 tax credit for first time buyers (and the $6,500 credit for move up buyers) is soon to expire. Now I know as a Realtor I should tell you that anytime is a good time to buy. Let me say this: we have mortgage rates still very low and the tax credit is here now. This may be a window of opportunity that will close in late spring. If you're interested in talking about buying a  Rosemount or School District 196 home now be the best time to give me a call.

    I'm working primarily with first-time buyers right now. These buyers are very much aware of the looming November 30th deadline to take advantage of the federal governments $8,000 tax credit. Eight grand buys a lot of improvements even if the home is a bit of a "fixer". But why rush?

    My buyers and I tend to look at 30 to 50 houses before they find their perfect place. in addition they will spend hours at my web site (www.GreatMNHomes.com) dong their own looking. In some cases the perfect place will be listed as active on the mls only to find that there's an offer accepted. In other cases we're looking at multiple offers on these starter homes. This brings me to the point of this post; is my buyer going to be paying thousands to save thousands?

    The housing market at the lower end is hot here in Minnesota's Metro Area. I believe the heat is, in part, generated by the tax credit. In resulting multiple offer situations we see starter homes sold for above listing prices. I caution my buyers to beware of pushing prices up just to conclude the deal prior to the tax credit deadline. This is an old sales trick, make a buyer think there's a deadline or limited quantity and she'd better act fast or lose out. Perhaps that's what's happening in today's real estate market. Is the government now the slick, white-shoe'd salesman saying "better act fast or you'll lose $8,000!"? Perhaps the feds will be coming to us soon saying they've extended the tax credit deadline. Perhaps they're going to increase the tax credit to $15,000 (haven't we all heard this rumor?). In any case, carrying out my fiduciary responsibility to my client I caution her/him to slow down. Why jack the price of a home up in a bidding war by thousands? Maybe when this government give away goes away these same homes will be lacking buyers and prices may settle or even slide a bit.

The National Association of Realtors is urging the federal government to extend the tax credit. Good for them. I support that effort. Meanwhile I hope buyers will think long term. Don't rush to buy something now that may cost you more than the eight large your trying to get from the feds.

    I make money by doing deals but I also make money when my clients refer other buyers or sellers. I direct my clients to my web site to research the process before making such a huge commitment. I'd rather invest in a solid reputation of protecting clients than invest in a short term gain for a home buyer by hurrying to take advantage of a tax credit.