Shari and Neil

Protect Your House from Water!

2008-06-30T10:42:00.001-05:00

Yes, those are trees growing in my gutter! It’s fun to see those innocent looking seeds flutter to the ground and easy to forget about your gutters in the summer—but trust me, now is a great time to clean out your gutters. While you’re at it, check the grading around your foundation and make sure you have a good slope away from your house. Add running a de-humidifier in your basement and you will be taking three great steps to keeping your basement dry.

Weekly Market Activity Report

2008-06-25T12:41:00.001-05:00

From the Minneapolis Area Association of Realtors

Home sales are continuing along a relatively smooth course so far this summer, with newly signed purchase agreements (pending sales) increasing by 3.8 percent over last year for the week ending June 14. Over the last six weeks, pending sales are behind the same time period in 2007 by only 30 sales, or 0.6 percent. When you compare that to the consistent 15–20 percent declines of the last few years, this is welcome news.Simply matching last year's numbers does not allow home sellers to celebrate recovering buyer interest in their properties. Plus, we need to keep some perspective on what types of sales are comprising this new stabilization of activity. A hearty 27.9 percent of purchase agreements from the last six weeks were made on lender-mediated foreclosures or short sales. Buyer activity is being propped up by the increased market share of these types of properties.Traditional sales over the same six-week period are down 21.0 percent from last year, while lender-mediated sales are up 284.5 percent from 406 sales last year to 1,561 this year. So the traditional seller still faces some challenges—and some new and very different competition.All told, heavy buyer interest in lender-mediated properties is viewed as a positive sign. We need the prevalent lender-mediated inventory to be absorbed before our market can return to some semblance of order. The sooner these properties are worked through the market cycle, the sooner that the mist of uncertainty they bring to negotiation, appraisal and home value will lift.

NEW FOR JUNE! Click here to take our brand-new June edition of “The Monthly Skinny,” a quick-fire video update on the Twin Cities housing market, updated each month. The power of video on the web is in more than just providing a new format to view content -- it's about sharing!

Interest Rates Are Up

2008-06-20T15:11:00.002-05:00

As interest rates up creep up just a bit, buyers seem to be jumping off of the fence and taking action. Here are today's rates from Burnet Home Loans:

Conventional Fixed

30 Year - 6.375%
20 Year - 6.25%
15 Year - 6.0%

FHA/VA Fixed

FHA 30 Year - 6.25%
VA 30 Year - 6.25%

Weekly Market Activity Report

2008-06-10T15:10:00.003-05:00

Things are looking up for the Twin Cities real estate market! The following is from the Minneapolis Area Association of Realtors:

Sellers in the Twin Cities housing market continue to cut back on their output, while simultaneously we appear to have finally found the bottom for buyer activity. New listings for the week ending May 31 were a healthy 23.0 percent behind the same week in 2007, a drop of 522 units. For the same time period, pending sales increased by 4.9 percent over last year—the largest year-over-year increase in 117 weeks, and only the third recorded increase in that time. So even though home sales are still low by historical standards, they’re not falling any further for the time being.
This week’s edition of the MAAR Weekly Market Activity Report features update figures for two metrics. Days on Market Until Sale increased slight to 159, up 27.9 percent from a year ago, and Percent of Original List Price Received at Sale increased slightly to 92.6 percent. Expect the Percent of Original List Price Received at Sale to show further increases during the summer months, when sellers are more likely to receive offers that are closer to their asking prices than in winter.

See the report in full.

The Monthly Skinny Video

2008-06-02T14:04:00.001-05:00

More information from the Minneapolis Area Association of Realtors. This time it is a video format of market information.

NEW! Click here to take a look at our new video series on the housing market, “The Monthly Skinny,” a quick-fire update on the Twin Cities housing market, updated each month. The power of video on the web is in more than just providing a new format to view content -- it's about sharing! Share this video with others via email, the web, office visits, meetings...whatever you'd like.

Weekly Market Activity Report

2008-06-02T14:02:00.002-05:00

From the Minneapolis Area Association of Realtors:

Our housing market is forming up; we can now see both the floor and ceiling. For the second consecutive week, pending sales activity in the Twin Cities market is flat compared to last year, dropping just 1.4 percent from a year ago for the week ending May 24. For the same time period comparison, new listings declined 6.4 percent and total listing supply actually declined, an anomaly for the spring market.

With sales halting their downward decline, new listings still sluggish and overall inventory leveled, the trends are coalescing around a clear picture: we have found the floor for buyer demand while hitting the ceiling of seller supply. Being at or near the bottom of the downward shift is certainly positive news, but keep in mind that the long upward climb out of our nadir will be gradual and measured.This week's edition of the MAAR Weekly Market Activity Report features an updated Supply-Demand Ratio (SDR) figure for June 2008 of 8.23. This means that there are roughly 8.23 homes on the market for each buyer during the month of June, up 9.3 percent from June 2007.

Interest Rate Watch

2008-05-30T14:20:00.002-05:00

As rules continually change in the financing world, FHA continues to show it's merit as our new best friend. The word on the street is that you now need 10% down for a conventional loan - no small feat for a first time buyer!! There are still effective 0 down programs with FHA and their rates are better too. Buh-bye conventional, hello FHA.

Fixed Conventional

30 year - 6.125%
20 Year - 6.00%
15 Year - 5.75%

30 Year Fixed FHA/VA

FHA - 6.00%
VA - 6.00%

Weekly Market Activity Report

2008-05-27T16:07:00.001-05:00

From the Minneapolis Area Association of Realtors

For the first time in ten months—and only the second time in the last two years—the number of purchase agreements (pending sales) signed for our most recent weekly activity set was slightly ahead of one year ago. There were 714 purchase agreements signed for the week ending May 17, which is 1.7 percent higher than one year ago. A hearty 27.5 percent of these sales were mediated by a financial institution as a foreclosure or short sale.Over the last three months, the number of pending sales is still down 10.3 percent compared to 2007, and the number of new listings is down 13.9 percent for the same time period. The total number of homes for sale is 700 units behind this time last year—a year-over-year fall of 2.0 percent, a gap which should only widen as sellers continue to cut back on new listings.

Access the full report

Weekly Market Activity Report

2008-05-12T13:42:00.002-05:00

From the Minneapolis Area Assocation of Realtors:

In Minnesota, warmer weather typically equates to listing increases. But compared to previous years, the run-up to the 2008 summer selling season in the Twin Cities housing market has been meek. The number of new listings for the week ending May 3 was 16.6 percent behind the same time last year—the ninth consecutive week of decline relative to a year ago. Buyer activity is also slower. Over the last three months, pending sales are hovering around a 16 percent year-over-year decline.This week's edition of the MAAR Weekly Market Activity Report features updated figures for several important metrics. As the spring season begins, the Average Days on Market Until Sale decreased to 154 while the Percent of Original List Price Received at Sale increased slightly to 91.7. The Housing Affordability Index decreased to 151, due to slight seasonal increases in sales price and interest rates. Finally, the Months Supply of Inventory increased to 10.2 months; a 5- to 6-month supply rate is considered indicative of a balanced market.

Click here to see the complete report.

Wahoo - Interest Rates Come Down!

2008-05-09T16:59:00.004-05:00

Here are today's rates from Burnet Home Loans:

Conventional Fixed

30 Year - 5.875%
20 Year - 5.625%
15 Year - 5.375%

FHA/VA Fixed

FHA 30 Year - 5.625%
VA 30 Year - 5.625%

Foreclosures and "Traditional Sales" - A Tale of Two Markets

2008-05-06T15:10:00.003-05:00

Yesterday the Minneapolis Area Association of Realtors released a new report: Foreclosures and Short Sales in the Twin Cities Housing Market to members and today that report was released to the press. The report is an attempt to tease apart what is happening in this huge sea of the Twin Cities housing market. There are definitely different streams that make up the sea - sorting them out can be tricky.

Here is my take on the key points in the report:

Lender-mediated sales (foreclosures or short-sales) are definitely making up a larger portion of the market. In the 13 county metro area lender meditated homes made up 3.5% of closed sales in first quarter (Q1) of 2006, they made up 9.3%of closed sales in Q1, 2007, and jumped to 27.6% of closed sales in Q1 2008.

The actual number of "traditional" seller new listings has fallen dramatically. New "traditional" listings are down 27.4% over the last two years. Home owners are holding onto their homes longer and new construction starts are definitely down. This decrease in ready to go "traditional" listings provides an opportunity for rehabbers as there is a decrease in supply in homes that are "move-in ready". Lender mediated homes tend to have more deferred maintenance and work than your average home buyer is ready to take on. The process of buying a lender-mediated home is also much more difficult for most first time home buyers who are likely moving out of a rental situation.

Declines in value are weighted towards lender-mediated sales. It has been widely reported that median sales prices of homes in the Twin Cities was down 10.3% from Q1 of 2007 to Q1 of 2008. When you tease the markets apart, you find that the median sales price of "traditional" homes showed a 3.9% one year decline, and a 3.5% two year drop. However, lender-mediated median sales price had a 10.4% one year decline and a 15.9% two year drop.

The number of lender-mediated listings are heavily weighted toward lower listing prices. Lender-mediated inventory makes up 51.8% of listings under $120,000 and 38.2% of listings $120,001 - $150,000. The percentage of lender-mediated inventory steadily declines as the listing price increases. Lender-mediated listings make up 10.5% of the $250,001 - $350,000 price range.

To see the report for yourself click here. I would be interested in hearing your comments!

Weekly Market Activity Report

2008-05-05T13:54:00.002-05:00

From the Minneapolis Area Association of Realtors:

Ring the bell, sound the alarms, shout from the mountaintops: the number of homes for sale in the Twin Cities region as of today is less than the number for sale at this point last year, a new benchmark which marks an encouraging sign that the market is in an early stage of recovery.
This is the first time since MAAR began tracking inventory figures that we have been able to show a year-over-year decline in listing supply. There are currently 32,448 residential properties for sale, a decline of 134 units from this time in 2007. With sellers still holding back on putting their homes on the market (new listings are down 11.4 percent from last year over the last three months), this downward year-over-year trend in inventory should continue into the summer.This week's edition of the MAAR Weekly Market Activity Report features a new figure for our Supply-Demand Ratio of 7.53, which means there are approximately 7.53 homes on the market for each buyer in May— up 12.9 percent from May 2007 when the figure was 6.67

Click here to see this weeks activity report from the Minneapolis Area Association of Realtors

Interest Rate Watch

2008-05-02T14:20:00.003-05:00

After the fed 1/4 point drop mortgage rates did inch down a bit. Here are the rates from Burnet Home Loans:

Fixed Conventional

30 Year - 5.875%
20 Year - 5.75%
15 Year - 5.375%

FHA/VA Fixed

FHA 30 Year - 5.75%
VA 30 Year - 5.75%

Safely Weed & Feed Your Lawn!

2008-04-30T13:52:00.002-05:00

Corn Gluten is the only non-synthetic weed & feed available. It should be applied to your lawn in the next week to kill germinating seeds. The weed effect will last for 5-6 weeks, it will then sink into the ground, provide nitrogen and act as a fertilizer. Some folks re-apply corn gluten when more dandelions emerge. Children and pets can safely be around this product at any time. Thanks to Mother Earth Gardens for this tip!! This is a patented product and is not currently widely available. It is available at Mother Earth Gardens

Market Activity Report

2008-04-28T18:47:00.003-05:00

From the Minneapolis Area Association of Realtors:

For two years, home buyers in the Twin Cities housing market have behaved like medieval kings—looking down upon their vast and glistening kingdom of available homes for sale with a calm and dismissive eye, slowly selecting their properties without hurry or haste. While their reign is not yet over, there are some noticeable cracks in the walls of their castle.

Sellers are not putting homes on the market with anywhere close to the frequency with which they did the last four years. For the week ending April 19, there were only 2,152 new listings, down 19.6 percent from the same week last year. This marks the sixth week in the last seven with a double-digit percentage drop from 2007. The slowdown in buyer activity has also shown signs of abating, as the number of new purchase agreements signed for the week ending April 19 was 893, only 3 units behind the total of 896 seen this week last year. This is the second straight week of relatively flat year-over-year pending sales activity.

However, it's important to bear in mind that:

1) foreclosure and short-sale activity is taking up a larger portion of our overall market activity than it did previously, which has the effect of propping these numbers up a bit, and

2) we're still 39.8 percent behind our 2005 sales pace from the end of the boom cycle.

But flattening overall supply (only up 0.4 percent from this time last year) and encouraging trends in sales figures should serve as welcome signs that the market corrections we've experienced in the last two years are taking a turn. Some semblance of order may very well be restored to the "kingdom" in the next year.

Click here for the details

Rates are Exactly the Same as Last Time!!

2008-04-25T15:02:00.002-05:00

Really - just check out the rates that I posted on April 19th those are the same rates for today. Have a great week-end.

Impoved Rates!

2008-04-19T07:57:00.003-05:00

There was favorable re-pricing of rates for the week-end.

Fixed Conventional

30 Year - 6%
20 Year - 6%
15 Year 5.5%

FHA/VA Fixed

30 Year FHA - 5.875%
30 Year VA - 5.875%

Interest Rates Creep up....

2008-04-18T13:56:00.002-05:00

Here are today's rates from Burnet Home Loans

Fixed Conventional

30 Year - 6.125%
20 Year - 6.00%
15 Year - 5.625%

Fixed FHA/VA

FHA 3o Year - 5.875%
VA 30 Year - 5.875%

April Contest

2008-04-16T12:39:00.004-05:00

Market Activity Report

2008-04-15T16:28:00.002-05:00

From the Minneapolis Area Association of Realtors:

Spring inventory growth remains staid in the Twin Cities housing market as the annual influx of new properties for sale has not been as rambunctious as the levels seen over the last few springs. The total number of homes for sale in the metro area currently sits at 31,615 up only 3.0 percent from the same time last year—the lowest such year-over-year increase for some years. Home sales remain relatively slow as well, with newly signed purchase agreements (pending sales) from the last three months trailing the same period last year by 16.6 percent.

This week's edition of the MAAR Weekly Market Activity Report features an updated Housing Affordability Index (HAI) for April. The HAI fell slightly to 155 due to a seasonal increase in home prices in March but remains a healthy 16.6 percent above where it was two years ago. Softening prices, motivated sellers and a continuation of historically low interest rates have dramatically improved the affordability picture in recent months.

Interest Rate Watch

2008-04-11T15:29:00.003-05:00

Rates are generally hanging around 5.5% to 6%. Here are the rates for today.

Conventional Fixed

5.75% 30 Year
5.5% 20 Year
5.15% 15 Year

FHA/VA Fixed

5.5% 30 Year FHA
5.5% 30 Year VA

City begins land sale cancellation for Phillips biomass facility

2008-04-10T14:06:00.004-05:00

This story is from council member Gary Schiff's 9th Ward E-News.

The proposed biomass facility at 22nd Ave South near 28th Street East. The East Phillips neighborhood is home to an arsenic contamination EPA Superfund site.
The Minneapolis Public Works director has determined that a March 30th deadline needed to maintain a land sale option for a proposed biomass facility in Phillips has not been met.

Specifically, Public Works Director Steve Kotke says the development lacks a power purchase agreement with Xcel Energy.

In a statement, Kotke wrote "Even though (the developer) has supplied Xcel with considerable materials in their application for a power purchase agreement, they are still in the process of negotiating the terms of a power purchase agreement and no tentative agreement has been reached."

Kotke states that his department will begin the process required to cancel the land sale. Under Minnesota law, the city must notify the purchaser of the intent to cancel the agreement, and also provide an additional 60 days for the buyer to fulfill the contract. According to city Attorney Susan Segal, "Minnesota statute 559.21 requires the seller to provide notice of the cancellation to the potential purchaser and allows the purchaser a period of, in this case, up to 60 days to cure the default. The statutory cancellation process provides a method to insure clear title and to terminate any rights of the potential purchaser under the contract."

Jullonne Glad, an organizer with Minneapolis Residents for Clean Air cautioned that the issue is not over yet. “This is really good news. But we’re still concerned that there is an additional 60 days for the developer to comply with the terms. It is still important for us to communicate with Xcel and the City Council the dangers that this facility poses in our community. We also need to educate the community as to the economic and health affects that this may cause.”

In other developments, south Minneapolis State Senators Linda Berglin and Patricia Torres Ray added language to a bill that directs the Minnesota Pollution Control Agency to “analyze and consider the cumulative levels of past and current pollution from all sources” before issuing a permit to the plant. A final vote on the bill has not been scheduled.

The proposal to convert a former municipal incinerator into a 21-megawatt biomass energy and district heating facility garnered opposition after public hearings held by the MPCA last fall. Opponents site a technical specification document released by the MPCA that states the burner could emit up to 1 million pounds of pollutants annually, including nitrogen oxide, sulfur dioxide, carbon monoxide, arsenic and lead.

Spring Cleaning Tip

2008-03-30T09:55:00.000-05:00

Flexible vacuum: To get something out of a heat register or under the fridge add an empty paper towel roll or empty gift wrap roll to your vacuum. It can be bent or flattened to get in narrow openings.

March Contest

2008-03-17T13:38:00.011-05:00

Click below to see a list of Dining Out for Life participating restaurants:
http://www.aliveness.org/dol.shtml

Dining Out for Life is a major fundraiser for The Aliveness Project which provides services for people with HIV and AIDS. This fabulous event happens to be coordinated by Shari’s cousin Tim! This year the event will be on April 24th.

Interest Rate Watch

2008-03-17T13:03:00.003-05:00

I did not get the rates out on Friday due to being too stinking busy. (There's really no such thing for a real estate agent!) These are rates that I am happy about. I'm not sure if it was the great rates or the great weather - but there was a lot of buyer activity this week-end! As I was doing showings on Saturday it seemed that we saw other buyers and agents everywhere.

Here are those great rates:

Fixed Conventional

30 Year - 5.875%
20 Year - 5.5%
15 Year - 5.125%

FHA/VA Fixed

30 Year FHA - 5.5%
30 Year VA - 5.5%