The January 2010 stats are in. Read this link to see how January 2010 compared to January 2009, and how 2010 compares to 2009, so far, for home sales in Edina. At this point, the average days on market until a sale has increased, from 126 to 148. The percent of list price received until a sale has also decreased, from 92% to 90.7%. Also, new listings are up from last year, from 89 to 107. Lastly, the data is limited: the stats for 2010 are (obviously) only for 1 month so far.
See the Minneapolis Association of Area Realtors Stats here.
Archive for the ‘Edina Homes’ Category
Edina Housing Market February Update
Sunday, February 21st, 2010
Twin Cities Market is Heating up: Pre-Lists for Southwest Minneapolis & Edina
Wednesday, February 10th, 2010
Buyer activity is increasing, showings are up, and my own buyers and sellers are all now gearing up as well.
Pre-lists (homes coming on the market): 2 in Edina, priced between $400K, and $600K, and 3 in Southwest Minneapolis – Linden Hills and Fulton neighborhoods, priced between $300K and $800K. Most of these sellers are open to pre-list showings, so if you’d like to see any of these homes before they go on the market, please call or email.
Now that the super bowl is cleared, February is here, and all we need are a couple of 40-degree days. Those are the factors that traditionally bring about the ’spring housing market’ in the Minneapolis/St. Paul area.
Minneapolis Housing Market Update, Tax Credit Extension & $6,500 2nd-time Homebuyer Info
Wednesday, November 18th, 2009
Minneapolis and Edina Housing Market Update for Week Ending 10/25/2009
Wednesday, October 28th, 2009
This video update from the Minneapolis Area Association of Realtors (MAAR) is a good snapshot of what is happening in our market right now. What it leaves out is what is happening at the upper price-brackets, which I’ll get to in a moment. Also, here is a basic market update on stats such as average days on market until a sale etc.
First: In the Minneapolis and St. Paul area real estate market, we are burning through our supply of foreclosures much faster than we are short sales and with good reason: Foreclosures are much easier to deal with than are short sales. Even though the foreclosure process is after the short sale process, the bank deals and replies to foreclosure offers (usually) in a much timelier manner than they do short sales. Right now our market inventory is @ 2,000 foreclosure units – or about a 2.3 month supply. However, our short sale inventory is @ 4,200 units, which is about a 12.6 month supply (keeping in mind short sales sell less and take longer to sell).
Our housing market will never be in true recovery mode (as a whole) until we A) greatly reduce the existing short-sale and foreclosure (distressed property) inventory B) greatly reduce the potential distressed properties, C) Stabilize the employment sectors and D) See true, tenable signs of recovery in our economy in general. We will really have to let the distressed properties run their course and ‘burn-off’ the current supply and also the future supply (of which it appears there is still a fair amount coming down the pike).
Now does this mean it is doom and gloom in all areas of the our local or national real estate market? The answer is a definite no. As I’ve been saying all along, some micro-markets – at certain price points – within our local and national markets are still holding strong and steady. Examples: Certain parts of Southwest Minneapolis ($175K-$350K) , Edina ($225K-$415K), St. Louis Park ($175K-$250K) and West Bloomington ($175K-$300K) have all had busy activity and strong sales. Of course, the $8,000 home-buyer tax credit and low interest rates have been a great motivator, but these areas usually hold well anyhow.
Upper-bracket sales update: As is much the case nationwide, in general, in the twin-cities, there is a large inventory of upper-bracket homes on the market. In the twin cities metro, we currently have about a 35-month inventory @ $1-million and up. Now this does not mean that a home in the Edina Country Club, South Harriet Park, Parkwood Knolls, or in Kenwood, Lake of the Isles, Lowry Hill, Lynnhurst or Linden Hills will take 35 months to sell, by any means. As I’ve said, the inventory is a 35-month supply, and many areas do much better than others, such as Medina, or Plymouth for example.
One of the difficulties is getting past one great myth right now: the myth that jumbo (loans over $417K) are an expensive, poor product. The truth is, in the past couple of months, jumbo products have come around and been lowered to historically great rates again, and there are now products in which you do not have to do 20% down, and also not have to pay mortgage insurance!
Example 1: A 30-year fixed jumbo can be had for 5.75%.
Example 2: A jumbo, 15%-down option with no mortgage insurance (MI) can be had for 6.1% (as of last Friday).
This is fantastic news for upper-bracket, but the word has to get out there. Right now, in upper-bracket sales, many excellent deals can be had and money (lending) is cheap!
Minneapolis Star Tribune: Minneapolis Metro Housing Market Has Best National Gain in Home Prices
Wednesday, September 30th, 2009
As the Minneapolis Association of Area Realtors (MAAR) data has come in, and the Minneapolis Star Tribune is reporting in this article, the Twin Cities’ 4.6 percent rise in home prices in July was the best among the top 20 markets monitored by the Case-Shiller Index.
July 2009 was the largest month-to-month rise in home prices (over June) that we have seen in over a decade. July was the third consecutive monthly gain in the Minneapolis/St. Paul housing market.
The article goes on to point out how consumer confidence is closely tied to losses and gains in the housing market (I’m quite certain we’re all aware of this by now), and how the good news is somewhat relative, as even though we are currently up, August is a tougher month than July was, and that overall we are down a long ways from the very untenable highs we had 4 years ago.
More to be revealed…
New Listing: Home for Sale St. Louis Park – 2732 Utica Avenue South, Perfect for First-Time Homebuyer
Thursday, September 24th, 2009
This great home in St. Louis Park is being offered for $199,900. It is a 2 bedroom, 1 bathroom, 2+ garage, with about 1,263 finished square feet. The lower-level is finished out, and it is one very nice, turn-key home. Imagine buying this home, getting an interest rate @ 4.875% APR (where rates are right now), qualifying for the $8,000 tax-credit, and not having to put any work or money into this home!
Right now, almost everything that is listed in St. Louis Park is either a short-sale, or a foreclosure, and almost all need at least $25,000 in work just to be livable. 2732 Utica is the exception to the current state of real estate in St. Louis Park, under $200K.
This is a reality with this home. It’s ready to go.
Please click here for more information, to see all photos and take the video tour.
Home Warranty: HSA Home Warranty and Edina Realty Home Warranty One – Do You Need One?
Thursday, September 10th, 2009
A product I am seeing – and am sometimes utilizing myself – in real estate transactions with increasing frequency, is the usage of a Home Warranty.
The 4 types of Home Warranties we offer at Edina Realty are: 1) HSA Home Warranty – Price is $415 2) Edina Realty Home Services Plus – price is $675+ 3) Edina Realty Home Services One price between $415-$565 and 4) Exceptional Home Warranty Plan (for Home Warranty Coverage of Distinctive – or upper bracket – homes).
First, what is a home warranty, and might you need one? – To answer this, we need to understand what a home warranty is, and what the advantages are. Depending on the type of warranty purchased, a Home Warranty can provide coverage against errors and omissions, appliance and mechanical breakdowns, sometimes even foundation issues, roofing problems, electrical issues etc.
2 scenarios in which it can be advantageous for a seller or buyer to utilize a Home Warranty:
1) A buyer has agreed with the seller on the price of a home, but the forced-air furnace is old, and the buyer is concerned it will break down right after closing, and thus the buyer will incur an additional $2,200-$3,000 out-of-pocket cost to replace the forced-air furnace. The buyer asks for the furnace to be replaced, but the seller is not willing to pay for a furnace replacement either. The solution might be a Home Warranty, which is designed to cover breakdown of the furnace system. The HSA Home Warranty can be purchased for a 1-year period, at a cost of $415. Sometimes, not a bad solution.
2) A Home is on the market, and is accruing a lengthy period of time on the market. The seller has come down to their bottom-line number, and is not comfortable with, or not able to do another price reduction. Perhaps this is the time for the seller to purchase a Home Warranty, and have the listing agent advertise this fact. Sometimes, this can be enough of an incentive (additional piece of mind) to get a buyer to put an offer together.
Perhaps a Home Warranty can be the right solution for you.
Mortgage Matters: Current State Of The Housing Market, Our Economy And The Case-Schiller Index
Thursday, September 3rd, 2009
With the passing of each week it becomes increasingly difficult to argue that housing isn’t in full-recovery mode. This week’s data makes it nearly impossible, considering that sales of new homes spiked 9.6%, in July, to an annual pace of 433,000 units. The “experts” had expected sales to post at only 390,000 units. The increase was the largest since February 2005, helping to force the inventory of new homes down to a 7.5-month supply, the lowest in 16 years.
Even more encouraging, the most recalcitrant housing bear is starting to turn bullish. Robert Shiller, co-creator of the S&P/Case-Shiller home-price index, told Bloomberg that “we might be seeing a turnaround.” Understated, to be sure, but that’s Shiller’s style. As for his index, 18 of the 20 cities tracked showed improvement in June, up from eight in May, four in April, and only one in March.
Detractors will counter that the recovery is concentrated in lower-priced homes. True, but that’s changing as well. Toll Brothers, a luxury homebuilder, stated that declining cancellations and firming prices has allowed the company to reduce incentives and raise prices in selected communities. To quote Toll Brothers Chairman and CEO Robert Toll, “We believe that customers are recognizing that now is the time to get into the market to take advantage of near-record affordability in what is still, for now, a buyer’s market.”
More optimism can be gleaned from the fact that housing isn’t the only big-ticket sector showing signs of recovery. Orders for durable goods – those meant to last several years – jumped 4.9% in July, posting the biggest increase in two years. Yes, the “cash-for-clunkers” program was a contributing factor, but even without this incentive, other durable goods orders moved ahead 0.8%.
The gross domestic product numbers also suggest that all, if not well, is getting better. On that front, the government says the economy shrank at an annual rate of 1% in the second quarter, a better-than-expected showing. The drop, while representing a record fourth consecutive decline, was far smaller than the previous two quarters. It also was stronger than the 1.4% decline that many economists had expected.
Finally, mortgage rates continue to hold steady, a sign that inflation remains a non-issue. The 30-year fixed-rate loan continues to hold at 5.5% while the 15-year fixed-rate and five-year adjustable-rate loans continue to hold at around 4.9%. Today’s housing market remains a buyer’s market, with low prices and low borrowing rates, but keep in mind Mr. Toll’s quote, “for now.”
With the passing of each week it becomes increasingly difficult to argue that housing isn’t in full-recovery mode. This week’s data makes it nearly impossible, considering that sales of new homes spiked 9.6%, in July, to an annual pace of 433,000 units. The “experts” had expected sales to post at only 390,000 units. The increase was the largest since February 2005, helping to force the inventory of new homes down to a 7.5-month supply, the lowest in 16 years.
Even more encouraging, the most recalcitrant housing bear is starting to turn bullish. Robert Shiller, co-creator of the S&P/Case-Shiller home-price index, told Bloomberg that “we might be seeing a turnaround.” Understated, to be sure, but that’s Shiller’s style. As for his index, 18 of the 20 cities tracked showed improvement in June, up from eight in May, four in April, and only one in March.
Detractors will counter that the recovery is concentrated in lower-priced homes. True, but that’s changing as well. Toll Brothers, a luxury homebuilder, stated that declining cancellations and firming prices has allowed the company to reduce incentives and raise prices in selected communities. To quote Toll Brothers Chairman and CEO Robert Toll, “We believe that customers are recognizing that now is the time to get into the market to take advantage of near-record affordability in what is still, for now, a buyer’s market.”
More optimism can be gleaned from the fact that housing isn’t the only big-ticket sector showing signs of recovery. Orders for durable goods – those meant to last several years – jumped 4.9% in July, posting the biggest increase in two years. Yes, the “cash-for-clunkers” program was a contributing factor, but even without this incentive, other durable goods orders moved ahead 0.8%.
The gross domestic product numbers also suggest that all, if not well, is getting better. On that front, the government says the economy shrank at an annual rate of 1% in the second quarter, a better-than-expected showing. The drop, while representing a record fourth consecutive decline, was far smaller than the previous two quarters. It also was stronger than the 1.4% decline that many economists had expected.
Finally, mortgage rates continue to hold steady, a sign that inflation remains a non-issue. The 30-year fixed-rate loan continues to hold at 5.5% while the 15-year fixed-rate and five-year adjustable-rate loans continue to hold at around 4.9%. Today’s housing market remains a buyer’s market, with low prices and low borrowing rates, but keep in mind Mr. Toll’s quote, “for now.”
How Technology Helped Avert Disaster:
The economy was never going to get as bad as many had thought, and by many we mean the doomsayers predicting a replay of the 1930’s. Reason being, markets are too efficient and too knowledgeable today; many people are following all segments of the economy, thanks in large part to today’s information and communications technology.
A stock-market analogy is in order: Back in the 1930’s, Ben Graham, Warren Buffett’s mentor, discovered that buying stocks trading at dirt-cheap prices proved highly remunerative. Graham would parse financial statements for companies with a lot of cash and little debt – a tedious and time-consuming endeavor at the time. Graham’s modus was to buy companies for their current assets and get everything else – land, plant, and equipment – free. Graham’s strategy can’t be replicated today because information is so widely and cheaply disseminated that investors pounce before companies reach such levels.
Homes aren’t homogeneous like stocks, but there are many more information-savvy buyers vetting housing opportunities today than there were in the 1930’s, so prices – on the national level – are highly unlikely to collapse. (They can collapse in niche, depressed markets – inner-city Detroit, for example – but that’s always been the case.) Of course, there is always a risk of buying too soon, but buying too soon is still usually remunerative over the long run. The same can’t be said for buying too late.
*Disclaimer: This Newsletter is for informational purposes only. The information contained herein may not be applicable to every situation or jurisdiction and we urge you to consult your professional advisor prior to acting on information contained herein. The content, accuracy and opinions expressed herein are not verified or endorsed by the sponsor hereof.
Mortgage Matters is Courtesy of Lori Donnelly, Vice-President of Lending, M&I Bank, Minneapolis.
Direct: 612-904-8129
http://www.mibank.com/ldonnelly
National Association of Realtors: U.S. Home Sales for July the Highest Increase in 10 Years
Friday, August 21st, 2009
U.S. home sales posted the highest increase in 10 years, according to the National Association of Realtors (NAR) statistics. Worth noting, is that this is the 4th straight month of increased sales. Also worth noting from the other end of the spectrum, is that the median sales price is down 15% from the same month last year, from an average of $210,000, to $178,000. This is both good and bad: good in that housing affordability has improved greatly, bad in that so many individuals have lost equity (albeit, much of it ghost, or shadow equity).
The primary surge in home sales is being driven by first-time homebuyers.
Please click here to read this article.
Deutsche Bank Predicting Half of All Mortgages to be Underwater by 2011
Thursday, August 6th, 2009
Predictions on the condition of the mortgage market vary, sometimes greatly. In this article Deutsche Bank – one of the world’s leading powerhouse banking and investment institutions – is predicting that about half of all U.S. mortgages will be underwater (owing more than their home is worth) by the first quarter of 2011. This is to include ‘Prime’ loans as well, not just ’subprime.’
Whereas I can see the possibility of this in certainly markets, this would not be a universal, across the board mortgage crisis. Some metro areas are in much better shape than others. For example: the Detroit and Las Vegas areas will be offsetting the curve a great deal (in the negative), while other areas such as the Minneapolis area housing market, or the Dallas and Salt Lake City Housing markets are in much better shape.
It will be quite interetsting to see how this plays out, and I certainly hope Deutsche Bank is wrong in their prognostication for early 2011.
My advice if you are buying a home in the Minneapolis area housing market: if you can (depending on your price-point), buy your next home in Southwest Minneapolis, Edina and sometimes West Bloomington areas.