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.

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!

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…

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.

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.