Twin City Home Prices Stabalizing

Below is the Realtor’s Assocation monthly video update. This video overs the following topics:

1. After 41 consecutive months, the Twin Cities housing market finally posted a median sales price that was higher than the same month a year ago.

2. The January median sales price of $157,000 was a 1.3 percent increase from last January’s mark of $155,000. That’s the first year-over-year increase since July 2006.

3. The median sales price of traditional homes (excluding foreclosures and short sales) in January was $198,000, down 7.9 percent from a year ago.

4. Lender-mediated properties posted a January figure of $125,000, an increase of 3.3 percent from a year ago.

5. There were 2,736 signed purchase agreements in January, a dip of 3.2 percent from a year ago. That’s the second consecutive month of year-over-year decline in pending sales, though the declines have been small to this point.

6. The Federal Home Buyer Tax Credit and extremely low mortgage rates have been the two main drivers of the market’s recent momentum and, unfortunately, both of those market boosters may be near their eventual end.

7. The tax credit expires on April 30 and likely will not be extended.

8. The Federal Reserve intends to stop buying mortgage-backed securities in the near future, a move that will likely lead to an increase in mortgage rates.

9. Unless the end of the tax credit and actions by The Fed are effectively offset by other economic improvements, we can expect downward pressure on home sales in the months ahead.

10. A lot of progress has been made in the last year, but the recovery process isn’t over.

January 2010 Real Estate Market Video

This two minute video is a great recap of real estate transactions in the Greater Twin Cities in 2009. The video offers foreclosure and bank owned statistics, total closed transactions and the effect of the First Time Home Buyer Credit.

Enjoy and Happy New Year!

Lowest Inventory Levels in Years in the Twin Cities Marketplace

Real Estate Tip: If your thinking of selling your home, this might be the right time to get it on the market. Inventory is at an all time low. For the first time in four years, the active listing inventory dropped below 20,000 units in the Twin Cities. Inventory is at its’ lowest point since April 2005 and is 22% below last year at this time. These statistics means there are 5 months of supply, and less then 2 months of supply for properties valued under 200K. 

If inventory levels remain low through 2010, our road to recovery is just around the corner. Real estate values are based on supply and demand and if the supply is low and rates remain low, we should expect to see recovery and stabilization in home values this year.

If selling your home is a probability for you in the next year or two, this might be a good time to connect with Realtor and ask for an updated value on your home, do the numbers and see if it’s time to make the move. Take advantage of the low inventory, low-interest rates and home buyer tax credit and make it your year to move.

Please register on my website for a market analysis: http://mnrealestatedirect.com/home_worth.php

Kenny Neighorhood of Southwest Minneapolis

New Listing for the New Year in Southwest Minneapolis! Property address: 5433 Emerson Ave S in Minneapolis offers 2 bedrooms and 2 baths loaded with updates.

The property is in excellent condition, but one of the biggest selling points is the location. The Kenny Neighborhood is a very desirable area to live. My sellers most enjoy the fact they can walk 2-3 blocks to the local hardware store, Kowalski’s, vets, banks, restuarants and coffee shops. Walkability has become a huge trend as consumers are looking for the luxury of convenience these days. Being able to get your shopping done and enjoy a nice dinner without starting the car is one of the reasons why so many folks enjoy living in Minneapolis.

Kenny Neighborhood is know for its’ low amount of crime. Feeling safe and having an active neighborhood assocation provides comfort to home owners in the area. There are just under 2,000 home sites in the Kenny Neighborhood, consisting mostly of single family homes built in the 1930′s, 40′s and 50′s. Most homes offer a bungalow style architecture, but there are also many two story homes offering stucco, brick or metal exteriors.

Video about neighborhood:

Open House St. Louis Park

I hosted an open house less then a week after Christmas and didn’t know what to expect. After close to a 14″ snow fall in the Twin Cities and low temps, I thought I was going to be playing games on my cell phone until the clock hit 2pm, but I was pleasantly surprised.

My new listing on Maryland Ave S in St. Louis Park was one of just nine new listings in St. Louis Park for the month of December. I knew the competition was low, but I got much more then I expected during my two hours at the property. Within an hour of my open house I had about eight different real estate buyers through the house. Not just tire kickers either, most folks had a mission and timelines for moving.

Most Realtors don’t like hosting open houses and find it to be a waste of time. An open house may not bring a seller a purchase agreement, but it will provide you with a good idea on your pricing strategy. Recession or not, if something is priced right buyers will come. 

Of all the homes for sale in St. Louis Park that compare to my listing’s price, sq footage and amenities I didn’t see any advertised open houses in December. Maybe a missed opportunity for the seller, buyers that are just getting started or the Realtor.

The weather doesn’t change the traffic on an open house, only an overpriced home will leave you all by yourself.

Maryland Ave S St. Louis Park

I just listed a property today in S. Louis Park! This is a turn-key property with 3br/2ba/2car garage and over 2,000 finished sq feet. The home was be updated by the current owners with a Restoration Hardware theme throughout.

Buyers will be wowed by the unique eat in kitchen with custom cabinets, lots of natural sun light and recently installed patio door and brand new 18 X 18 deck. The kitchen gleams with white cabinets, granite countertops and a subway tile backsplash.

There’s plenty of living space in this home! The master bedroom measures 17 X 14 and the lower level is finished with a family room, 3/4 bath and office area.

New to the Park is the The Shops at West End: http://www.theshopsatwestend.com/ This 350,000 sq foot attraction includes a variety of retail options, a 14 screen theater and some of the best dining opportunities in the Twin Cities. The complex began to fill its space in the fall of 2009 and you can shop at great stores like Love Culture, Anthropologie and Creative Kids Stuff. Throughout 2010 more space will be open and you’ll see more merchants store fronts fill. Make sure to stop in this new attraction!

Tax Credit Extended & Expanded

Christmas came a little early this year for us Realtors and those buying and selling homes. In early November the US government passed a bill to extend and expand the Home Buyer Tax Credit. There was so much activity this fall due to the credit that most in the business started to grow concerned about what would come of our marketplace if the credit was illuminated. Most investors held back on purchases and sellers waited to list while the government came to a conclusion.

The extension will be a powerful force again in 2010, but my prediction is that it will not create the amount of transactions we experienced the second half of 2009. If a first time home buyer didn’t get motivated enough by the credit in 2009, then 2010 may not be there year either. In 2009, there are close to 1.5 million first time home purchases and of those 350,000 were due to the credit.

The best thing about the expansion is that it includes the “move up” buyer. Not that you have to buy a home more expensive than the one you currently live in, but there’s a $6500 credit for those who’ve lived in their home for the last five years as their primary residence and have decided to sell. This will benefit those folks who bought a home in the early 2000’s and haven’t seen an increase in value or even worse a decrease of anywhere from 10-20% in their property value. The incentive for move up buyers will hopefully post more sales for properties above the 250K mark. 2009 was the year of sales below the 200K and the supply was being snapped up quickly that it drove up values slightly (in some cities months of supply was less than one month). If this same thing can happen for higher priced homes, then we’re definitely heading in the right direction.
For example pending sales in the later months of 2009 were up anywhere from 25-35% compared to the fall of 2008. This is a HUGE jump! But note the large majority of these sales prices were less than 200K. Again, if this Home Buyer Tax Credit Expansion can affect homes valued above 200K in 2010, we’re looking fab- like a cup of Folgers on Christmas morning.

Here’s a link to the details of Tax Credit:

http://www.mnrealestatedirect.com/news_details.php?news_ID=115

December Minneapolis Real Estate Video

Watch December 2009 Real Estate Market Activity Video. 17 months of increases in transactions- awesome!

House Hunters Episode- a Relocation Story

An episode of House Hunters on HGTV (www.hgtv.com) that I taped a couple of years ago, re-aired this past weekend. It’s a fabulous relocation story detailing my experience working with a couple to find an ideal lake home for them and their three children.

The most challenging aspect of working with a buyer that is relocating from a different part of the country is overcoming the sticker shock of homes in the Twin Cities. I’ve been working with folks moving here from out of state for close to five years and about 90% of my clients are challenged by our prices in Minnesota. Our real estate values are high for a number of reasons.

First, the Twin Cities has a lot to offer in regards to employment opportunities as we’re home to over 20 Fortune 500 Companies and hundreds of Fortune 100 Companies. Second, our education system is one of the best. Every school district offers choices for its students from private to public schools to charter and international programs. Third, we’re blessed with the best medical facilities in the country. For example, the Mayo Clinic is located just one hour south of the Twin Cities. Together all these elements lend itself to strong real estate values.

Minnesota has been ranked as “Best Place to Raise a Family”, “Best Park & Trails Systems” and “Best Places to Work” to name a few. Though we have four very different seasons with extreme climates, it keeps things fresh and in a constant state of change. Once you’ve gotten used to the snow, spring is on the way and before you know it, you’re relaxing by the lake on a summer afternoon.

To watch my episode of House Hunters, please go to: http://www.mnrealestatedirect.com/video_details.php?video_ID=23
Maybe you’ll see something that will motivate you to become a Minnesotan.

Lake Nokomis – HGTV Episode

 An episode of My House is Worth….What? was on HGTV over the weekend(www.hgtv.com). I taped this show shortly after my daughter was born last year. Watching the show again reminded me how valuable thoughtful improvements are when selling your home. Finding a property in Southwest Minneapolis that offers a 40’s and 50’s vintage look along with today’s updates and finishes are gold.

This property was located in Nokomis, which is one of the three sailing lakes in Minneapolis. Lake Harriet and Lake Calhoun, other highly desirable lakes, are just within miles of Nokomis. Living close to the lakes, even on the parkway, increases your property value. These three lakes of Minneapolis are desirable areas due to the “walk-ability” factor. The neighborhoods consist of mostly residential properties, some commercial space and plenty of park and trails for recreational purposes.

Folks living close to the Minneapolis Lakes enjoy the ease of life, for example some simply bike or walk to the grocery store and don’t have to rely on their cars or garages. The Minneapolis Transit system offers bus pick-ups every 6 blocks, so getting to work is easy and greatly reduces the stress of winter driving in Minnesota. Even though everyone in Minnesota owns an SUV….driving is still slow during the snowy days and commute at times your commute to and from work can take twice as long.

Minneapolis: Best Biking Cities: http://www.mnrealestatedirect.com/news_details.php?news_ID=107

I’ve noticed a huge trend these past few years. Home owners are willing to live in less sq footage in exchange for a shorter commute to work, an urban lifestyle and recreational opportunities just a short bike ride away. The home owners that I taped in an episode of My House is Worth…What? enjoyed the fact that they could walk down the street from their house for a nice dinner, pick up some materials at the local hardware store and bike around the Minneapolis Lakes and get a 10 mile workout in without even starting the car.

So, what are the real estate numbers in regards to Lake Nokomis? The Median Price range stands at 189K, down about 10% from this time last year. For those selling, they should expect to receive an offer within 95% of their list price, up from 94% this time in 2008. Year to date inventory of homes on the market in Nokomis is up by 10% and closed transactions are have increased 20%. It’s a two part story, median prices are down, but inventory and closed deals are up. What does this mean? We’re on our way out of the housing downturn and Nokomis is one of the leading areas.

(statistics from Minneapolis Area of Realtors: www.mplsrealtor.com)