Mt Ranier, WA on July 4th, 2012 This year, there's a lot to be thankful for beyond the traditional holiday bird. Home buyers can be thankful for record-low mortgage rates. Sellers can be thankful for the possibility of getting more money in less listing time. Some homeowners are thankful for the housing recovery because it may alleviate underwater situations. Tryptophan doesn't seem to be slowing buyer and seller optimism. In the Twin Cities region, for the week ending November 17: • New Listings increased 11.4% to 1,046 • Pending Sales increased 9.8% to 843 • Inventory decreased 29.4% to 14,770  For the month of October: • Median Sales Price increased 14.8% to $175,000 • Days on Market decreased 25.2% to 103 • Percent of Original List Price Received increased 3.5% to 94.5% • Months Supply of Inventory decreased 40.1% to 3.7

Mpls Area Association of Realtors Weekly Market Activity Report  The housing market is improving. But don't take our word for it. CoreLogic, Standard Poor's, FHFA and the NAHB all closely monitor a diverse array of housing data and indicators. At some point over the past six months, every single one of these indices has either reached a multi-year high or has shown several consecutive months of im- provements. Does that mean every home in every neighborhood in every city across America is worth more today than it was a year ago? Of course not. But you'd be sur- prised just how robust this recovery is. Go ahead, dig into the numbers & see for yourself. In the Twin Cities region, for the week ending October 20:  • New Listings increased 0.6% to 1,110  • Pending Sales increased 33.3% to 1,012  • Inventory decreased 28.5% to 15,903 For the month of September: • Median Sales Price increased 12.8% to $174,813 • Days on Market decreased 28.5% to 101 • Percent of Original List Price Received increased 4.0% to 94.8% • Months Supply of Inventory decreased 39.2% to 4.1

Here's a quick interesting article about "Black Monday" which occurred 25 years ago last week.  The Dow closed at 1738.74 that day. 
NPR; 25 years since Black Monday

Well, more good news for sellers.  According to the CRS Connect blog, housing prices are continuing to rise.

By Regina Ludes, Tuesday, 4 September 2012 - 3:19pm


U.S. home prices, including distressed sales, increased 3.8 percent in July compared to a year ago, the biggest year-over-year increase since August 2006, according to the latest CoreLogic Home Price Index report. Home prices also increased 1.3 percent in July compared to June. The July figures mark the fifth consecutive month that home prices rose on both an annual and monthly basis.

Excluding distressed sales, home prices rose 4.3 percent in July from the previous year and increased 1.7 percent from June.

“It’s been six years since the housing market last experienced the gains that we saw in July, with indications the summer will finish up on a strong note,” says CoreLogic’s president and CEO Anand Nallathambi, “Although we expect some slowing in price gains over the balance of 2012, we are clearly seeing the light at the end of a very long tunnel.”

Including distressed sales, Arizona, Idaho, Utah, South Dakota and Colorado had the highest home price appreciation rates, while Delaware, Alabama, Rhode Island, Connecticut and Illinois had the highest deprecation rates.

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Mpls Area Association of Realtors Weekly Market Activity Report

The inventory levels continue to drop.  Less than 17,000 houses on the market in the Twin Cities.  Those levels are low.  If you are thinking of selling, now may be the time.  Give me a call & I'll give you a localized update on the market.   Weekly Market Activity Report Do you hear that? It's the sound of carts shifting through the back-to-school aisles, filling quickly with notebooks and pencils and glue. It's the sound of teenagers shuffling through dorms and down storied lanes on their first college orientation.  It's the sound of young professionals readying themselves for their first big job, freshly shorn and tailored. It's the sound of a family preparing for the leap from the overcrowded apart- ment to the "starter" home that will see their first into high school. The end of summer sure can seem an awful lot like spring. Let's see if the housing market says the same.   In the Twin Cities region, for the week ending August 11:   • New Listings increased 2.0% to 1,387   • Pending Sales increased 31.2% to 1,149   • Inventory decreased 29.6% to 16,982   For the month of July: • Median Sales Price increased 13.7% to $179,000 • Days on Market decreased 27.8% to 106 • Percent of Original List Price Received increased 3.6% to 95.0% • Months Supply of Inventory decreased 42.8% to 4.3

Monthly Skinny: July 2012

Another "Monthly Skinny" with Great News for Sellers.  Low Inventory Levels & High Buyer Demand make it a great time to SELL!  There were 17,103 Active Listing, as of the end of June.  Thats' the lowest amount of Active Listings since January, 2004.  WOW!!!  Take a look at this 3 minute video from Mpls Area Association of Realtors to get "The Skinny".   

Summer Heat

Back from Vacation.  Went to Oregon for a lovely family wedding & then spent a few days in the National Parks.  We missed the heat wave. Here's the latest from the Mpls Area Association of Realtors. Weekly Market Activity Report Summer heat waves roll across the northland as election season also heats up. Meanwhile, as the mercury and partisan rhetoric both escalate, residential real estate continues to show signs consistent with market recovery. For the current round of numbers, both buyer and seller activity levels were higher than last year at this time. Buyers have been taking advantage of historic affordability levels for some time, but renewed seller confidence is a more recent development and some would even call it an encouraging omen, as long as supply levels don't exceed a prior apex. In the Twin Cities region, for the week ending June 30: • New Listings increased 0.1% to 1,414 • Pending Sales increased 20.4% to 1,194 • Inventory decreased 31.0% to 17,417 For the month of June: • Median Sales Price increased 10.4% to $179,000 • Days on Market decreased 22.0% to 113 • Percent of Original List Price Received increased 4.0% to 95.0%  Months Supply of Inventory decreased 44.7% to 4.4.

Need a weekend project.  Here's some great ideas from House Logic for your Honey Do List.     5 Weekend Projects under $300

Here's a hot new cloud site to track your home inventory, projects, paint colors, maintenance, etc.  And the best part about it is it's FREE.  Check it out.
Brightnest.com

Kitchen Styles Through The Decades, Part 1

Here's a fun short article about Kitchen Trends from Remodeling Magazine.  The pics alone are worth the look.  My fav, the Brady Bunch Kitchen.  But then again, I was a child of the 70's & had a little crush on Peter Brady.

Kitchen Styles Through The Decades, Part 1

Monthly Skinny: May 2012

Take a quick look at the Monthly Skinny, put out by the Minneapolis Areas Association of Realtors.   Inventory Levels are down 50% from the peak levels.  I wrote 3 offers this weekend for "Ready, Willing, &  Able" buyers, so there definately is high demand out there.

Yes, the market is shifting.  That good old Supply & Demand from Economics 101 is coming into play.  Inventory levels continue to drop & sales are trending upward.  Barring some major economic issue or a new wave of Bank Owned Foreclosures coming on the market, Real Estate is starting to look a little more rosy.  Check out the Weekly Market Activity Report from MAAR (Mpls Area Association of Realtors).

Weekly Market Activity Report

Buyers don't live in a spreadsheet. When they find a home to love and cherish, they don't intellectualize it too much.  There are generally fewer homes on the market, they're selling more quickly and prices in most areas are no longer in a downtrend. Dwindling inventories means there's less competition and more pricing power for sellers, who are finally starting to be rewarded by strong buyer activity. Interest rates at 50-year lows doesn't hurt either. Love is in the air and all around the housing market.

Quick Facts

Change in New Listings    - 14.9%   

Change in Pending Sales  + 21.4%   

Change in Inventory          - 28.0%

Check out this cool slide show.  8 Ugly, but cool homes.  Which is your favorite?  I gotta say, I like the House that Rocks, but not House on the Rock.

8 Ugly Houses We Love

US Home Buying Season Finally Signaling a Recovery.

Here's a great article from the New York Times about the Housing Recovery, which actually does seem to be happening.  I have had several new buyers pop up in the past two weeks, so that shows a strong signal.

US Home Buying Season Finally Signaling a Recovery

Spring Cleaning the Anti-Martha Way

Kind of a funny article, but there are great tips in the link at the end.  Check it out.

Spring Cleaning the Anti-Martha Way

For the record, we love Martha Stewart. She has elevated housekeeping to high art, which protects home values. Martha’s taught us the devil is in the details, and that even mundane chores can be tackled with grace, diligence, and elbow-high rubber gloves.  That said, spring is here, and cleaning is required. But who’s got the time or energy to rip apart every square inch of the house? When we saw a Martha blog that suggested cleaning our kitchen range in only 22 steps, we threw in the towel and shouted, “Get real!”

Then, we created our Anti-Martha Stewart Spring Cleaning Guide, acknowledging that top-to-bottom cleaning is a good idea, but nobody’s idea of a good time.  Except for Martha. Almost 30 years ago, when I was a cub reporter in Westport, Conn., I interviewed Martha at her Turkey Hill estate there. Then, she was a fabulous local caterer about to hit the big time with her book, “Entertaining.” She gave me a tour of her place — the Federal-style house, glorious gardens, chicken coop — and was appalled to hear I had never eaten an egg fresh from a chicken’s butt.  She straightaway gathered powder blue eggs with brown spots, walked them back to the best-appointed kitchen I’d ever seen, and whipped up the best omelet I’d ever eaten. Lesson learned: Effort bears fruit (or eggs). 

But days have only 24 hours, and work, family, and the tyranny of getting in 10,000 steps makes spring cleaning Martha-style merely a fantasy for most of us. So, we created our own get-real guide. Our guide is all about time-savers and corner-cutters. Our advice:
Don’t scrub when a good soak will do.

Take small bites out of large tasks: If you live long enough, you’ll get it clean.

Invest in white vinegar companies, because vinegar is the one cleaner you can’t do without.

If a machine can clean it better and faster, buy it or rent it.

But seriously, folks. Here’s a little preview of our guide.

Shower heads: A warm white vinegar bath will get rid of mineral deposits.

Windows: Use coffee filters or microfiber cloths instead of paper towels to wash windows and avoid streaks.

Patio furniture: Vacuum wicker furniture with an upholstery attachment.

Primo declutter tip: Get rid of “fat clothes” first, which make you feel bad about your body.

Hey, we’ve got a million of these. Martha, we’re sure, is shaking her head in dismay. But we’re sure our guide will help you get clean in spring and still have time to enjoy the season.  And that’s a good thing.

Check out the this link for more details Spring Cleaning 101 from HouseLogic.com

Another bright spot in the real estate news.  This is particularly good news for vacation destinations, such as Florida or Arizona. 

Investment and Vacation Home Sales Jump

Sales of investment and vacation homes accounted for 38 percent of all home sales last year, the highest level since 2005, according to the NATIONAL ASSOCIATION OF REALTORS® (NAR) 2012 Investment and Vacation Home Buyers Survey. Investment sales spiked 64.5 percent to 1.23 million in 2011 from 749,000 in 2010. Vacation home sales rose 7.0 percent to 502,000 from 469,000 the year earlier. Investment homes accounted for 27 percent of all transactions last year, up from 17 percent in 2010, while vacation homes made up 11 percent of all transactions in 2011, up slightly from the 10 percent recorded in 2010.

The boom in investment purchases can be attributed largely to cash buyers, according to NAR chief economist Lawrence Yun. Last year 49 percent of investment buyers and 42 percent of vacation-home buyers paid in cash. “During the past year investors have been swooping into the market to take advantage of bargain home prices,” he says. “Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property.”

Half of all investment home purchases last year were distressed properties, as were 39 percent of vacation home sales. The median price of an investment home sold last year was $100,000, up 6.4 percent from 2010. But vacation home prices plunged 19.1 percent to $121,300 in 2011 from $150,000 the year earlier. NAR finds that half of all investment buyers purchased their properties to generate rental income, while 34 percent wanted to diversify their investments.

It's been a long time since our inventory level was this low.  Only a little over 17,000 listings on the market in the Twin Cities.  I can't believe I am saying this, but we need more listings.  Thinking of selling???

Weekly Market Activity Report
The last time you were at the doctor, your vital signs were checked – heart rate, pulse, temperature and blood pressure. Progress was documented and valuable insights were gained, whether it was a routine visit or one of many checks during an extended hospital stay. The housing market has been in and out of intensive care for the past several years. Monitoring vitals matters. The pulse of today's market indicates that we may be getting ready to leave the ICU. So if you could just please pull up your sleeve, let's check your blood pressure.

In the Twin Cities region, for the week ending March 24:
• New Listings increased 2.2% to 1,414
• Pending Sales increased 30.2% to 1,052
• Inventory decreased 27.3% to 17,193

Weekly Market Activity Report

In another sign that the six-year long housing slump could be coming to an end, the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) reached 28.  To put that in perspective, it went from above 70 in 2005 to below 10 in 2009. The HMI has not seen 28 since June 2007. This and other landmark data points are coalescing to signal calmer waters ahead. That's not to say you should expect double-digit annualized appreciation, but both buyers and sellers are displaying the sort of confidence that is fluttering through the rest of the economy.

In the Twin Cities region, for the week ending March 17:
• New Listings decreased 1.3% to 1,406

• Pending Sales increased 23.1% to 1,029

• Inventory decreased 27.5% to 17,088

Buyer activity: up. Seller activity: down. That could soon change if sellers begin to increase their activity levels entering the spring market. They've understandably been Inventory a tad shy lately, but the changing landscape is starting to register with well-informed homeowners looking to move. Buyers have shown that they refuse to let one of the most attractive purchase environments pass them by. As activity revs up this spring, not all segments will benefit equally. Which is exactly why the numbers are so central to assessing both the breadth and depth of market recovery.

In the Twin Cities region, for the week ending March 10:

• New Listings decreased 0.3% to 1,450

• Pending Sales increased 20.9% to 995

• Inventory decreased 24.3% to 17,899

For the month of February:

• Median Sales Price decreased 1.4% to $138,000

• Days on Market decreased 9.1% to 145
• Percent of Original List Price Received increased 2.6% to 90.6%

• Months Supply of Inventory decreased 35.8% to 4.7

A longer article, but an excellent summary of the market conditions for the Metro Area.
Home Prices Stabilize Amidst Other Improvements
Minneapolis, Minnesota (March 12, 2012) – Home buyers in the 13-county Twin Cities metropolitan area entered into 3,756 purchase agreements during February, a 34.2 percent increase over last year. A warm winter certainly helped activity, but low interest rates and affordable prices were likely the main draws. More people signed purchase agreements last month than during February 2006 and every February thereafter.

Motivated by less competition and an improving economic landscape, sellers were more active. There were 5,366 newly listed properties, up 1.1 percent from February 2011. The number of homes for sale continued to drop, down 27.2 percent from last year to 16,689 active listings – the lowest inventory reading for any month since 2003. Months supply of inventory was at a six-year low of 4.6 months.

"The mix of homes selling is slowly starting to change which has translated into the smallest price decline since October 2010," said Cari Linn, President of the Minneapolis Area Association of REALTORS®. "Subsiding price declines are a sign of market rebalance."

Traditional sales surged 36.2 percent, while foreclosure sales increased 8.5 percent. Both segments had nearly identical market shares, comprising 42.7 and 42.3 percent of overall sales, respectively. Short sales were up 36.3 percent to make up the remaining 15.0 percent of sales.

The seller side of the equation continues to improve. For the seventh consecutive month, sellers received more of their asking price than in the year prior. Sellers should take some comfort in the fact that homes are selling in 144 days compared to 159 last February. That marks the fifth consecutive month of year-over-year decrease in market times.

Those looking to sell their properties should be aware of distressed market activity. Homes in financial distress are exiting the marketplace faster than they are entering it, but they're still a significant factor. The overall median sales price was down 1.4 percent from February 2011 to $138,000, marking the smallest decline in 16 months. Digging deeper, traditional prices fell 11.6 percent to $183,000; foreclosure prices fell 1.4 percent to $104,000; and short sale prices fell 17.1 percent to $116,000.

"Median sales price is an important market indicator, no doubt, but watching only price activity is short-sighted," said Andy Fazendin, MAAR President-Elect. "Other indicators are offering consistent evidence of a market on the mend."

All information is according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc. MAAR is the leading regional advocate and provider of information services and research on the real estate industry for brokers, real estate professionals and the public. MAAR serves the Twin Cities 13-county metro area and western Wisconsin.

2011 saw the fewest amount of foreclosures since 2007 in Minnesota.  Now that's some good news.

Foreclosures in Minnesota, 2011 Report
There were 21,298 homes sold at Sheriff's Sale in 2011 in Minnesota, the fewest since 2007. However, it also reflects the fact that the foreclosure crisis is not over yet, as it means that over 1% of EVERY HOME in Minnesota was lost to foreclosure last year.  It also brings the cumulative total of foreclosures in Minnesota since we began tracking these numebrs in 2005 to over 135,000.

The comprehensive report, titled “Foreclosures in Minnesota”, analyzes sheriff’s sale data, the primary means of identifying foreclosures, from each of Minnesota's 87 Counties. Minnesota is unique among other states in the availability of current, comprehensive foreclosure sale data.
To view a copy of the full report, go to: http://hocmn.org/en/2011ForeclosuresInMinnesota.cfm

MN REALTORS eRESOURCE - March 12, 2012

Coldwell Banker: The Value of a Home

What's your home worth. Take 1 minute to check it out.

Foreclosures Decline 24% in 2011

Here's some good news from Council of Residential Specialists (a top realtor association I belong to) regarding last year's foreclosures.

Foreclosures Decline in 2011

Foreclosures declined 24 percent in 2011 to 830,000 from 1.1 million in 2010, according to a new report by CoreLogic. Nationally, 1.4 million homes, or 3.4 percent of all homes with a mortgage, were in the foreclosure inventory at the end of 2011. For the month of December, 55,000 homes had completed the foreclosure process, down from 57,000 in November and down from 67,000 in December 2010.

The share of borrowers who were delinquent on their mortgage payments by 90 days or more was 7.3 percent in December 2011 compared to 7.8 percent a year earlier. 

Florida led the nation with the largest percentage of foreclosures inventory with 11.9 percent, followed by New Jersey (6.4 percent), Illinois (5.4 percent), Nevada (5.3 percent) and New York (4.6 percent). States with the lowest foreclosure inventory were Wyoming (0.7 percent), Alaska (0.8 percent), North Dakota (0.8 percent), Nebraska (1.0 percent) and Washington (1.3 percent).
CRS Member Connect Fri, Feb 10, 2012

Monthly Skinny: January 2012

Interest rates are 4.0% for 30 yr Conventional & 3.75% for FHA. That's Crazy. Check out this 3 min video for the latest from Mpls Area Association of Realtors.

The 2011 Annual Report by the Mpls Area Association of Realtors just came out.  The Average Selling Price for the Twin Cities was $193,450.  That's about where it was in 2000-2001, before the bubble.  The Median Selling Price was $150,000. 

Much of the pricing was determined by the Distressed Homes Market which comprised 50% of the sales in 2011.  Traditional Median Sales Price was $200,000, while Foreclosure Median Sales Price was $108,000.  On the positive side, Pending Sales increased by 10.8% over 2010 & Inventory is at it's lowest in the past 5 years.  The Supply & Demand are postured for a good 2012.

Foreclosures fall to lowest level since 2007

Here's a somewhat encouraging article that just came out yesterday from CNN Money regardign Foreclosure rates. Check it out.
Foreclosures fall to lowest level since 2007

Happy New Year!  Here's some good news/bad news fron the National Housing Market Scene.  As far as for the Twin Cities, the numbers aren't in yet for December, but I do expect the median price to be lower than a year ago.  Pending sales thru 12/24/11 though were 30.1% ahead of Last Year for the previous 3 months.  So that is GOOD NEWS here! 

Home Values Decline at Slower Pace in 2011
The year-end news on U.S. home values is a mix of good and bad, according to Zillow. U.S. homes are expected to have lost more than $681 billion in value during 2011, but that is 35 percent less than the $1.1 trillion lost in 2010, and the total losses in 2011 are smaller than the prior four years. The bulk of the lost value took place during the first six months of the year when U.S. homes lost $454 billion. From July to December, Zillow projects residential home value losses may total $227 billion.

The majority of markets surveyed (92 percent) showed home value losses in 2011, and only nine of the 128 markets showed gains. New Orleans posted the largest gain with $3.5 billion followed by Pittsburgh with a gain of $2.7 billion. Meanwhile, larger metro areas like Los Angeles, New York and Chicago experienced the biggest home value losses of $75 billion, $44.8 billion and $41.7 billion, respectively. 

"While homeowners suffered through another year of steep losses, the good news is that homes are losing value at a substantially slower pace as the market works its way toward the bottom,” says Zillow chief economist Stan Humphries. “Unfortunately, when we look ahead to next year, the unabsorbed pool of housing supply, dragging levels of consumer confidence, high unemployment and negative equity will continue to put downward pressure on the housing market, pushing our expectation for a potential recovery into late 2012 or early 2013.”

CRS Member Connect  Fri, Dec 30, 2011