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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.

Posted in Edina Homes, Edina Housing Market Update, Edina Realtor, Edina Realty, Great Minneapolis Neighborhoods, Lakes Area Minneapolis, Minneapolis Market Update Links, Minneapolis Realtor, Real Estate, Realtor Edina, Southwest Minneapolis Homes | No Comments »

Morgan Stanley’s Current State of the National Housing Market, December 2009

Thursday, December 3rd, 2009

This article – posted on Morgan Stanley’s investor website – is perhaps the most succinct analysis of the current state of the national housing market that I have read, in a while.

It breaks down and explains – with references and analysis – the primary areas of concern. While some of these areas are not anything new, Richard Berner (author) does a great job of pointing out the housing risks as well as the strong points through the end of 2009 and what to expect coming into 2010.

He warns of payback from the home-buyer tax credit (with scant reference to a smaller, similar situation back in 1975), rising unemployment, possible looming foreclosures being dumped on the market (shadow inventory), and builders competing with the current, sizable inventory of distressed properties.

However, on the positive side, rates are still low, affordability is much better and still improving, and inventory (although still higher than we’d like to see) is still trending lower, which is great.

Posted in Edina Housing Market Update, Homes for sale Minneapolis, Lakes Area Minneapolis, Minneapolis Market Update Links, Mortgage, Lending, Refinance, Real Estate, Realtor Edina | No Comments »

Forbes Magazine Calls Minneapolis the Safest City in America for 2009

Wednesday, October 28th, 2009

In this WCCO article, Forbes Magazine states that Minneapolis is the safest city in America. This is pretty amazing, and much of what is stated here can be and has been felt over the past few years, but it is still a surprise.
4 of the other top, safe-cities are: 2) Milwaukee 3) Portland 4) Boston 5) Seattle.

Utilizing a number of different criteria, such as National Highway Traffic Safety Administration data, the Bureau of Labor Statistics data, low crime rate, workplace fatalities, traffic-related deaths, natural disaster risk, as well as factoring in the near double-digit reductions in crime, and is lowered now 3 years in a row.

Not a bad recovery for a city that in the mid 1990’s was nicknamed ‘Murderapolis.’

Posted in Great Minneapolis Neighborhoods, Homes for sale Minneapolis, Minneapolis Market Update Links, Minneapolis Realtor, Southwest Minneapolis Homes, Uncategorized | No Comments »

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!

Posted in Edina Homes, Edina Housing Market Update, Great Edina Neighborhoods, Great Minneapolis Neighborhoods, Homes for sale Minneapolis, Lakes Area Minneapolis, Minneapolis Homes, Minneapolis Market Update Links, Mortgage, Lending, Refinance, Real Estate, Southwest Minneapolis Homes | No Comments »

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…

Posted in Edina Homes, Edina Housing Market Update, Great Minneapolis Neighborhoods, Homes for sale Minneapolis, Minneapolis Market Update Links, Minneapolis Realtor, Mortgage, Lending, Refinance, Real Estate, Southwest Minneapolis Homes | No Comments »

Miami Housing Market Condominium Boom Rebound?

Thursday, August 20th, 2009

This article, from Channel 4 News out of Miami, shows us something that is inevitable, and bound to happen: that which goes up, must come down, and that which goes up really high and fast, must come down really low and fast, and again, that which comes down really low and fast…is seen as a great opportunity for investors!

It appears that with the continual decline in the Miami condo market (perhaps one of the if not the worst hit real estate markets in the country), investors have been watching and waiting for the opportunity to get back into this market. Like when gold drops to below $300, or oil below $55 per barrel, when condos in good locations drop to very low numbers, the investors re-enter the market. I suspect this time though, their reasoning is much more sound. Eventually commodities get so low in acquisition price, that savvy investors seem to simultaneously think, ‘opportunity’!

One complex alone has sold more than 120 units in 6 weeks time.

I have been seeing something on a much smaller scale, but yet somewhat similar in the Southwest Minneapolis, downtown Minneapolis and Uptown Minneapolis condo markets: Very low pricing (primarily due to short sales and foreclosures…due to a condo glut thanks to overbuilding and apartment conversions), and now somewhat of a buying frenzy for condos in good locations, under $150K. Howver, most of these buyers are not investors, but smart first-time homebuyers.

Either way, it is good to see them being bought, which to me is one more indicator of an at or near bottom for the lower-end, or ‘chaff’ markets.

Posted in Edina Housing Market Update, Edina Realty, Homes for sale Minneapolis, Minneapolis Market Update Links, Minneapolis Realtor | No Comments »

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.

Posted in Edina Homes, Edina Housing Market Update, Edina Realtor, Edina Realty, Homes for sale Minneapolis, Minneapolis Homes, Minneapolis Market Update Links, Minneapolis Realtor, Mortgage, Lending, Refinance, Real Estate, Realtor Edina, Southwest Minneapolis Homes, Uncategorized | No Comments »

Money Magazine Best Places to Live: Minnesota Has 4 of the Top 100

Monday, July 20th, 2009

The August 2009 issue of Money Magazine is out with their annual ranking of ‘Best Places to Live’ in the United States. 4 Minnesota cities have been included in this list. The midwest has a high share, with Minnesota and Wisconsin cites alone taking up almost 10% of the entire list.

These cities are; #2) Chanhassan, MN, #20) Chasaka, MN #36) Lino Lakes, MN., #97) Owatonna, MN.

With the exception of Owatonna, the remaining 3 representing Minnesota, are all suburbs of the Minneapolis/St. Paul metropolitan area (2nd and 3rd tier).

Other nearby cities on the list are; #4) Middleton, WI., #34) New Berlin, WI., #42) Urbandale, IA., #61) Pewaukee, WI., #62) Ankeny, IA., #76) Germantown, WI., #78) Waunakee, WI., #80) Bettendorf, IA., #81) West Fargo, N.D., (yes, Fargo does have a suburb, and as I am quite familiar with West Fargo, I can say that West Fargo has come a long, long way in the past 25 years).  Yes, Wisconsin has 5 on the list.

I also saw that Nebraska scored 3 on the list as well – Papillion, Columbus (I lived here when I was 4 and 5 years old) and Norfolk.

Although I don’t agree with 2 aspects of the criteria selected (one is ridiculously politically correct and quite unnecessary), the rest of the criteria is based upon size,  median income, quality of life, property taxes and unemployment rates etc.,  the rest of the criteria is general, and makes sense.

Of course Minnesota has a disproportionate share of homes in the top 100.

Very cool!

Posted in Edina Homes, Edina Realty, Great Edina Neighborhoods, Great Minneapolis Neighborhoods, Homes for sale Minneapolis, Minneapolis Homes, Minneapolis Market Update Links, Real Estate, Southwest Minneapolis Homes | No Comments »

Homes For Sale Minneapolis, Market Update

Friday, June 26th, 2009

According to the Minneapolis Area Association of Realtors (MAAR) for week ending 06/26/2009, we have further positive data that our market – in many areas – has positive news. Inventory continues to decline (a total of 33,435 in our metro area, down 19.7% from this same point, last year), pending sales continues to rise (up 33% over this same point, last year), the decline of the percent of the original list price received at sale seems to be stabilizing (-1.2% from last year, for a total of 91.5% of original list price)  the housing affordability index continues to trend toward better affordability, total days on market until a sale is down 7.3% (to 147, from 159 at this point last year), supply-to-demand ratio is down from last year, from 7.57, to 5.04 houses per buyer and the months of inventory is down to 7.6 from 10.4.

Of course, this is all in the general sense. Some area are actually stabilizing and some areas will continue to see further depreciation (some 2nd and 3rd tier suburbs), however, these are all continued, encouraging signs of general stabilization in the Minneapolis housing market.

Posted in Edina Homes, Great Minneapolis Neighborhoods, Homes for sale Minneapolis, Minneapolis Market Update Links, Real Estate | No Comments »

Homes in Minneapolis: Update on Home Sales Activity

Friday, June 12th, 2009

More good news on the housing market front for the Minneapolis housing market: New listings are continually declining in our market, which is one of the keys to recovery. While there are many other factors, a glut of homes on the market is always detrimental. We are finally down in new listings for the entire year, after a continual increase during the previous 7 years. 1,566 homes went on the market last week, vs. 1,752 during this same week, last year. Our peak week this year was week ending 05/09, with 2,058 (the comparable peak week the year prior was 2,380 new listings). So we are down -10.6% in new listings this week over last year. As our Minneapolis/St. Paul housing market has seen this trend for the entire year, I believe this is encouraging news. 

Our supply vs. demand ratio for 06/09  has also come down to 5.04 homes for every active home-buyer, compared with 1 year ago in June 2008, when we had 7.57 homes for every active home-buyer.

Let’s hope this trend continues.

Posted in Edina Homes, Edina Housing Market Update, Minneapolis Market Update Links, Mortgage, Lending, Refinance, Real Estate | No Comments »

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