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 ‘Realtor Edina’ 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.
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.
More Details on Homebuyer $8,000 and $6,500 Tax Credit
Sunday, November 22nd, 2009
Minneapolis Housing Market Update, Tax Credit Extension & $6,500 2nd-time Homebuyer Info
Wednesday, November 18th, 2009
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.
New Edina Realty Listing: Home for sale in Southwest Minneapolis – Lynnhurst Neighborhood
Thursday, August 6th, 2009
4849 Girard Avenue South, Minneapolis, MN is offered for $850,000. This new listing, in the heart of Southwest Minneapolis’ Lynnhurst neighborhood, is on a rare, double-lot, only 1.5 blocks from Lake Harriet. There are multiple, high-end updates and amenities throughout this home, including a new kitchen, 3 new bathrooms, a finished lower-level, roof, windows, updated mechanicals, driveway, landscaping, paver-patio and much more. Please click here to view this listing.
Also: Video Tour of 4849 Girard Avenue South, Minneapolis, MN
This home has a great floor plan, and has really been designed and updated for entertaining. The 48th and Girard is a block within Lynnhurst that has many children, making 4849 Girard a perfect home for a family. The location offers great schools, coffee shops, restaurants, wine-bars, boutique shopping, Lake Harriet, the parkway, parks, and easy access to 35W, Hwy 100, and 62, as well as an easy shot into downtown Minneapolis. This home is one of the true gems on the housing market currently.
This home of 4849 Girard Avenue South, Minneapolis, MN is being marketed by Minneapolis Realtor Zeb Haney and the brokerage of Edina Realty 50th & France Office.
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.
Minneapolis and Edina Housing Market Continues to See Improvement
Wednesday, August 5th, 2009
While the Southwest Minneapolis and Edina housing market have been fairly stable markets throughout the past 3 years, many other surrounding Minneapolis-area housing markets have been in a continual, declining-mode for the past 3 years. However, as I’ve been noting on this blog, statistics over the past few months have shown continued stabilization thoughout the Southwest Minneapolis metro area.
Key areas of stabilzation are: fewer listings, higher closed-sales activity, less days on the market for active listings, better affordabiltiy (indexes), and still low lending rates. Of course the upper-bracket listings in the entire Minneap0lis-area is a different story, especially at $1 million dollars-plus, but stabilization does not start at the top. At this point, stabilization will have to start at the lower-levels through the middle, and eventually work its way upward, as more sellers are freed up from their homes, and can then make their next move to upsize.
We still need the banks to work on a better jumbo-mortgage product, in order to help stabilize the upper-bracket.
Overall though, we are seeing legitimate, good news. Let’s hope we do not see any further shoes drop in the economic sector. For this to happen, we need less government spending, lower taxes, and stabilization in employment sectors. Of course this is not happening, and this is the current forseeable trouble on the horizon.