Call me today if you are looking to buy, sell, or rent!  (612) 703-3944

As a dedicated and experienced real estate professional serving Western Wisconsin and the Twin Cities Metro area, I am committed to providing exceptional service to all my clients looking to buy or sell their properties. With my extensive knowledge of the current market trends, I excel in helping my clients achieve their real estate goals with ease and confidence.

I understand that every client's needs and preferences are unique, which is why I work closely with each one of them to ensure a personalized and stress-free experience. Whether you're a first-time homebuyer or a seasoned investor, I am here to guide you through every step of the real estate process and provide expert advice to help you make informed decisions.

As a valued client of mine, you will have access to the most up-to-date and comprehensive MLS property database, the same system used by Realtors. You can easily search for properties, request information, and even schedule a personal showing appointment for properties that interest you. With my expertise and your vision, we can make your real estate dreams a reality.

Thank you for choosing Sarah Jenkins Real Estate. Let's get started today!

Serving River Falls Hudson Prescott Ellsworth Spring Valley New Richmond Roberts Hammond Woodville Baldwin Beldenville Somerset Red Wing Hastings Cottage Grove Woodbury Lake Elmo Afton Stillwater Bayport Lakeland Maplewood Oakdale

What You Need To Know About Home Price News

The National Association of Realtors (NAR) will release its latest Existing Home Sales Report tomorrow. The information it contains on home prices may cause some confusion and could even generate some troubling headlines. This all stems from the fact that NAR will report the median sales price, while other home price indices report repeat sales prices. The vast majority of the repeat sales indices show prices are starting to appreciate again. But the median price reported on Thursday may tell a different story. 

Here’s why using the median home price as a gauge of what’s happening with home values isn’t ideal right now. According to the Center for Real Studies at Wichita State University:

“The median sale price measures the ‘middle’ price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less. While this is a good measure of the typical sale price, it is not very useful for measuring home price appreciation because it is affected by the ‘composition’ of homes that have sold.

For example, if more lower-priced homes have sold recently, the median sale price would decline (because the “middle” home is now a lower-priced home), even if the value of each individual home is rising.”

People buy homes based on their monthly mortgage payment, not the price of the house. When mortgage rates go up, they have to buy a less expensive home to keep the monthly expense affordable. More ‘less-expensive’ houses are selling right now, and that’s causing the median price to decline. But that doesn’t mean any single house lost value. 

Even NAR, an organization that reports on median prices, acknowledges there are limitations to what this type of data can show you. NAR explains:

“Changes in the composition of sales can distort median price data.”

For clarification, here’s a simple explanation of median value:

• You have three coins in your pocket. Line them up in ascending value (lowest to highest).
• If you have one nickel and two dimes, the median value of the coins (the middle one) in your pocket is ten cents.
• If you have two nickels and one dime, the median value of the coins in your pocket is now five cents.
• In both cases, a nickel is still worth five cents and a dime is still worth ten cents. The value of each coin didn’t change.

The same thing applies to today’s real estate market.

Bottom Line

Actual home values are going up in most markets. The median value reported tomorrow might tell a different story. For a more in-depth understanding of home price movements, let’s connect.

Call me today if you are looking to buy, sell, or rent!  (612) 703-3944

As a dedicated and experienced real estate professional serving Western Wisconsin and the Twin Cities Metro area, I am committed to providing exceptional service to all my clients looking to buy or sell their properties. With my extensive knowledge of the current market trends, I excel in helping my clients achieve their real estate goals with ease and confidence.

I understand that every client's needs and preferences are unique, which is why I work closely with each one of them to ensure a personalized and stress-free experience. Whether you're a first-time homebuyer or a seasoned investor, I am here to guide you through every step of the real estate process and provide expert advice to help you make informed decisions.

As a valued client of mine, you will have access to the most up-to-date and comprehensive MLS property database, the same system used by Realtors. You can easily search for properties, request information, and even schedule a personal showing appointment for properties that interest you. With my expertise and your vision, we can make your real estate dreams a reality.

Thank you for choosing Sarah Jenkins Real Estate. Let's get started today!

Serving River Falls Hudson Prescott Ellsworth Spring Valley New Richmond Roberts Hammond Woodville Baldwin Beldenville Somerset Red Wing Hastings Cottage Grove Woodbury Lake Elmo Afton Stillwater Bayport Lakeland Maplewood Oakdale

The Worst Home Price Declines Are Behind Us 

Some Highlights

• While home prices vary by local area, they’ve already hit their low point nationally, and now they’re starting to rise again.
• Last July, prices started to decline, but around February, they began climbing back up.
• If you put your plans to move on hold waiting to see what would happen with home prices, let’s connect to discuss if now’s the right time to jump back in.

The Best Time To Sell Your House Is When Others Aren’t Selling

If you’re thinking about selling your house, you should know the number of homes for sale right now is low. That’s because, this season, there are fewer sellers listing their houses for sale than the norm.

Looking back at every April since 2017, the only year when fewer sellers listed their homes was in April 2020, when the pandemic hit and stalled the housing market (shown in red in the graph below). In more typical years, roughly 500,000 sellers add their homes to the market in April. This year, we saw fewer than 400,000 sellers entering the market in April (see graph below):

While there are a number of factors contributing to this trend, one thing keeping inventory low right now is that some homeowners are reluctant to move when the mortgage rate they have on their current house is lower than the one they could get today on their next house. It’s called rate lock.

As a recent survey from Realtor.com explains, 56% of people who are planning to sell in the next 12 months say they’re waiting for rates to come down.

While this wait-and-see approach is right for some sellers, it also creates an opening for more eager sellers to jump in now.

If your current house truly doesn’t fit your needs anymore and you’re ready to move, don’t miss this chance to stand out. When fewer sellers are putting their homes up for sale, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house. That’s why your house could see multiple offers as buyers compete over the limited supply of homes for sale – especially if you price it right.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Inventory levels are still at historic lows . . . Consequently, multiple offers are returning on a good number of properties."

Bottom Line

If you’re ready to sell now, beat the competition before it comes onto the market. If you do, your house should stand out and could get multiple offers. Let's connect to get you market ready.

Call me today if you are looking to buy, sell, or rent!  (612) 703-3944

Email:  Sarah@SarahJenkins.com

As a dedicated and experienced real estate professional serving Western Wisconsin and the Twin Cities Metro area, I am committed to providing exceptional service to all my clients looking to buy or sell their properties. With my extensive knowledge of the current market trends, I excel in helping my clients achieve their real estate goals with ease and confidence.

I understand that every client's needs and preferences are unique, which is why I work closely with each one of them to ensure a personalized and stress-free experience. Whether you're a first-time homebuyer or a seasoned investor, I am here to guide you through every step of the real estate process and provide expert advice to help you make informed decisions.

As a valued client of mine, you will have access to the most up-to-date and comprehensive MLS property database, the same system used by Realtors. You can easily search for properties, request information, and even schedule a personal showing appointment for properties that interest you. With my expertise and your vision, we can make your real estate dreams a reality.

Thank you for choosing Sarah Jenkins Real Estate. Let's get started today!

Serving River Falls Hudson Prescott Ellsworth Spring Valley New Richmond Roberts Hammond Woodville Baldwin Beldenville Somerset Red Wing Hastings Cottage Grove Woodbury Lake Elmo Afton Stillwater Bayport Lakeland Maplewood Oakdale

Why Today’s Housing Market Is Not About To Crash

There’s been some concern lately that the housing market is headed for a crash. And given some of the affordability challenges in the housing market, along with a lot of recession talk in the media, it’s easy enough to understand why that worry has come up.

But the data clearly shows today’s market is very different than it was before the housing crash in 2008. Rest assured, this isn’t a repeat of what happened back then. Here’s why.

It’s Harder To Get a Loan Now

It was much easier to get a home loan during the lead-up to the 2008 housing crisis than it is today. Back then, banks had different lending standards, making it easy for just about anyone to qualify for a home loan or refinance an existing one. As a result, lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices.

Things are different today as purchasers face increasingly higher standards from mortgage companies. The graph below uses data from the Mortgage Bankers Association (MBA) to show this difference. The lower the number, the harder it is to get a mortgage. The higher the number, the easier it is.

Unemployment Recovered Faster This Time

While the pandemic caused unemployment to spike over the last couple of years, the jobless rate has already recovered back to pre-pandemic levels (see the blue line in the graph below). Things were different during the Great Recession as a large number of people stayed unemployed for a much longer period of time (see the red in the graph below):

Here’s how the quick job recovery this time helps the housing market. Because so many people are employed today, there’s less risk of homeowners facing hardship and defaulting on their loans. This helps put today’s housing market on stronger footing and reduces the risk of more foreclosures coming onto the market.

There Are Far Fewer Homes for Sale Today

There were also too many homes for sale during the housing crisis (many of which were short sales and foreclosures), and that caused prices to fall dramatically. Today, there’s a shortage of inventory available overall, primarily due to years of underbuilding homes.

The graph below uses data from the National Association of Realtors (NAR) and the Federal Reserve to show how the months’ supply of homes available now compares to the crash. Today, unsold inventory sits at just a 2.6-months’ supply. There just isn’t enough inventory on the market for home prices to come crashing down like they did in 2008.

Equity Levels Are Near Record Highs

That low inventory of homes for sale helped keep upward pressure on home prices over the course of the pandemic. As a result, homeowners today have near-record amounts of equity (see graph below):

And, that equity puts them in a much stronger position compared to the Great Recession. Molly Boesel, Principal Economist at CoreLogic, explains: 

“Most homeowners are well positioned to weather a shallow recession. More than a decade of home price increases has given homeowners record amounts of equity, which protects them from foreclosure should they fall behind on their mortgage payments.”

Bottom Line

The graphs above should ease any fears you may have that today’s housing market is headed for a crash. The most current data clearly shows that today’s market is nothing like it was last time.

As a dedicated and experienced real estate professional serving Western Wisconsin and the Twin Cities Metro area, I am committed to providing exceptional service to all my clients looking to buy or sell their properties. With my extensive knowledge of the current market trends, I excel in helping my clients achieve their real estate goals with ease and confidence.

I understand that every client's needs and preferences are unique, which is why I work closely with each one of them to ensure a personalized and stress-free experience. Whether you're a first-time homebuyer or a seasoned investor, I am here to guide you through every step of the real estate process and provide expert advice to help you make informed decisions.

As a valued client of mine, you will have access to the most up-to-date and comprehensive MLS property database, the same system used by Realtors. You can easily search for properties, request information, and even schedule a personal showing appointment for properties that interest you. With my expertise and your vision, we can make your real estate dreams a reality.

Thank you for choosing Sarah Jenkins Real Estate. Let's get started today!

Serving River Falls Hudson Prescott Ellsworth Spring Valley New Richmond Roberts Hammond Woodville Baldwin Beldenville Somerset Red Wing Hastings Cottage Grove Woodbury Lake Elmo Afton Stillwater Bayport Lakeland Maplewood Oakdale

Here is your weekly market report, brought to you by Realtor SarahJenkins.com

This report features insight into the Minneapolis / St Paul and Western WI real estate, housing, and rental market.

Call me today if you are looking to buy, sell, or rent!  (612) 703-3944

As a dedicated and experienced real estate professional serving Western Wisconsin and the Twin Cities Metro area, I am committed to providing exceptional service to all my clients looking to buy or sell their properties. With my extensive knowledge of the current market trends, I excel in helping my clients achieve their real estate goals with ease and confidence.

I understand that every client's needs and preferences are unique, which is why I work closely with each one of them to ensure a personalized and stress-free experience. Whether you're a first-time homebuyer or a seasoned investor, I am here to guide you through every step of the real estate process and provide expert advice to help you make informed decisions.

As a valued client of mine, you will have access to the most up-to-date and comprehensive MLS property database, the same system used by Realtors. You can easily search for properties, request information, and even schedule a personal showing appointment for properties that interest you. With my expertise and your vision, we can make your real estate dreams a reality.

Thank you for choosing Sarah Jenkins Real Estate. Let's get started today!

Serving River Falls Hudson Prescott Ellsworth Spring Valley New Richmond Roberts Hammond Woodville Baldwin Beldenville Somerset Red Wing Hastings Cottage Grove Woodbury Lake Elmo Afton Stillwater Bayport Lakeland Maplewood Oakdale

Unique opportunity in the heart of River Falls! This Queen Anne Victorian style home has amazing curb appeal and two units! The main floor (Unit 1) features hardwood floors, two bedrooms, 2 bathrooms, laundry, beautifully maintained wood work, stained glass, detached 2 car garage and so much more! The second unit (floors 2 and 3) features 5 bedrooms, 3 baths, laundry, and off street parking. All located close to downtown River Falls, the UWRF Campus, parks and trails. #realtor #realestate #realestateagent #riverfalls

Discover the Benefits of Real Estate in River Falls, WI

Located just 30 minutes from the Twin Cities, River Falls, WI is a charming and vibrant community that offers the best of both worlds - small town living with easy access to big city amenities. If you're considering real estate in River Falls, here are a few things to know about this unique and exciting area: Diverse Housing Options: River Falls offers a wide variety of housing options, from historic homes and cozy cottages to modern developments and sprawling estates. Whether you're looking for a starter home or a luxurious retreat, there's something for everyone in River Falls. Strong Community: With a population of around 15,000, River Falls has a strong sense of community and pride. From the local farmer's market to the annual River Falls Days festival, there are plenty of opportunities to get involved and meet your neighbors. Top-Rated Schools: The River Falls School District is consistently ranked among the top districts in the state, with excellent academic programs and extracurricular activities for students of all ages. Natural Beauty: Located on the banks of the scenic Kinnickinnic River, River Falls offers plenty of opportunities for outdoor recreation. Whether you enjoy hiking, fishing, or kayaking, there are plenty of parks and trails to explore in this beautiful area. Convenient Location: With easy access to major highways and just a short drive from the Twin Cities, River Falls is a great option for commuters or anyone looking for a convenient location that still offers the peace and quiet of a small town. At Sarah Jenkins Real Estate, we specialize in helping our clients find the perfect property in River Falls and the surrounding areas. Whether you're a first-time homebuyer or an experienced investor, we're here to provide expert guidance and exceptional service. Contact us today to learn more about real estate in River Falls and to start your home search and work with a local Realtor.

A Recession Doesn’t Equal a Housing Crisis

Everywhere you look, people are talking about a potential recession. And if you’re planning to buy or sell a house, this may leave you wondering if your plans are still a wise move. To help ease your mind, experts are saying that if we do officially enter a recession, it’ll be mild and short. As the Federal Reserve explained in their March meeting:

“. . . the staff’s projection at the time of the March meeting included a mild recession starting later this year, with a recovery over the subsequent two years.” 

While a recession may be on the horizon, it won’t be one for the housing market record books like the crash in 2008. What we have to remember is that a recession doesn’t always lead to a housing crisis.

To prove it, let’s look at the historical data of what happened in real estate during previous recessions. That way you know why you shouldn’t be afraid of what a recession could mean for the housing market today.  

A Recession Doesn’t Mean Falling Home Prices 

To show that home prices don’t fall every time there’s a recession, it helps to turn to historical data. As the graph below illustrates, looking at recessions going all the way back to 1980, home prices appreciated in four of the last six of them. So historically, when the economy slows down, it doesn’t mean home values will always fall.

Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession will be a repeat of what happened to housing then. But today’s housing market isn’t about to crash because the fundamentals of the market are different than they were in 2008. Back then, one of the big reasons why prices fell was because there was a surplus of homes for sale at the same time distressed properties flooded the market. Today, the number of homes for sale is low, so while home prices may see slight declines in some areas and slight gains in others, a crash simply isn’t in the cards. 

A Recession Means Falling Mortgage Rates

What a recession really means for the housing market is falling mortgage rates. As the graph below shows, historically, each time the economy slowed down, mortgage rates decreased.

Bankrate explains mortgage rates typically fall during an economic slowdown:

“During a traditional recession, the Fed will usually lower interest rates. This creates an incentive for people to spend money and stimulate the economy. It also typically leads to more affordable mortgage rates, which leads to more opportunity for homebuyers.” 

This year, mortgage rates have been quite volatile as they’ve responded to high inflation. The 30-year fixed mortgage rate has hovered between roughly 6-7%, and that’s impacted affordability for many potential homebuyers. 

But, if there is a recession, history tells us mortgage rates may fall below that threshold, even though the days of 3% are behind us.

Bottom Line

You don’t need to fear what a recession means for the housing market. If we do have a recession, experts say it will be mild and short, and history shows it also means mortgage rates go down.