Real Estate Talk

Twin Cities Weekly Real Estate Market Report

2010-08-04T09:54:00.000-05:00

Whether May or June or July, we're finding it difficult to report anything new to you for the warm weather months of 2010. Week-in and week-out, we're showing a recurring pattern of behavior in the Twin Cities housing market, and the week ending July 24 isn't much different. Pending Sales are at 628 for the week, down 37.8 percent compared to last year, and Active Listings for Sale are at 27,661, up 5.4 percent.

These percentage changes represent a bit of a holding pattern. In fact, we've been here since the expiration of the tax credit. There was a minor bump in Active Listings but it wasn't sufficient to convince us that we're heading toward another oversupply situation.

Days on Market and Months Supply of Inventory continue to indicate a favorable market for home buyers. But with interest rates remaining at historic lows, there appears to be no sense of urgency. We may see a minor kerfuffle in the market before the school year begins, but 1,000-plus pendings per week in August doesn't seem likely, let alone 800.

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The attached MAAR Weekly Market Activity Report is information the Minneapolis Area Association of REALTORS® (MAAR) sends to REALTOR® broker members and interested parties on a weekly basis. This is provided by MAAR to help you understand the Twin Cities 13-county residential real estate marketplace. Please contact me regarding any questions or comments you may have.

-MAAR

Weekly Twin Cities Market Report

2010-07-26T19:00:00.001-05:00

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Weekly Market Activity Report

It’s been almost 3 months since the expiration of the federal home buyer tax credit and the market appears to have settled into something of a rhythm. With the dust settling, pending sales have become mostly fixed in the 500-to-600 per week range for the past 9 weeks.

While the dramatic drop from a year ago is certainly not positive, demand is at least holding relatively steady for the time being. The 626 purchase agreements signed for the week ending July 17 were 39.7 percent behind a year ago.

For the same reporting week there were 1,618 new listings in the Twin Cities, down 10.0 percent from a year ago. Inventory is rising due to slower demand. The 27,350 homes currently available for sale represent an increase of 4.8 percent from last year.

-MAAR

Monthly Twin Cities Real Estate Update Video

2010-07-20T19:05:00.001-05:00

Weekly Twin Cities Real Estate Market Report

2010-07-20T19:00:00.001-05:00

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Weekly Market Activity Report

For the week ending July 10, the number of pending sales held steady with the week before but remained well behind last year's pace. The 545 signed agreements during the week represent a drop of 45.9 percent from last year at this time. That's the tenth consecutive week of year-over-year declines in buyer demand, a period that coincides with the loss of the federal tax credit for first-time home buyers.

The 1,542 new listings for the most recent reporting week are also down compared to last year but not to the extent of pendings, posting a decline of 17.4 percent from a year ago.

Inventory is up 4.4 percent from a year ago. Because the growing inventory is being greeted with slim buyer demand, the balance of buyers and sellers is shifting the market back in the buyer's favor. The July Supply-Demand Ratio of 7.44 means that there are 7.44 houses for each buyer this month, up 46.9 percent from the mark of 5.06 seen a year ago.

Fannie Mae Increases Penalties for Borrowers Who Walk Away

2010-06-29T11:19:00.001-05:00

News Release

June 23, 2010

Fannie Mae Increases Penalties for Borrowers Who Walk Away

Seven-Year Lockout Policy for Strategic Defaulters

WASHINGTON, DC — Fannie Mae (FNM/NYSE) announced today policy changes designed to encourage borrowers to work with their servicers and pursue alternatives to foreclosure. Defaulting borrowers who walk-away and had the capacity to pay or did not complete a workout alternative in good faith will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the date of foreclosure. Borrowers who have extenuating circumstances may be eligible for new loan in a shorter timeframe.

"We're taking these steps to highlight the importance of working with your servicer," said Terence Edwards, executive vice president for credit portfolio management. "Walking away from a mortgage is bad for borrowers and bad for communities and our approach is meant to deter the disturbing trend toward strategic defaulting. On the flip side, borrowers facing hardship who make a good faith effort to resolve their situation with their servicer will preserve the option to be considered for a future Fannie Mae loan in a shorter period of time."

Fannie Mae will also take legal action to recoup the outstanding mortgage debt from borrowers who strategically default on their loans in jurisdictions that allow for deficiency judgments. In an announcement next month, the company will be instructing its servicers to monitor delinquent loans facing foreclosure and put forth recommendations for cases that warrant the pursuit of deficiency judgments.

Troubled borrowers who work with their servicers, and provide information to help the servicer assess their situation, can be considered for foreclosure alternatives, such as a loan modification, a short sale, or a deed-in-lieu of foreclosure. A borrower with extenuating circumstances who works out one of these options with their servicer could be eligible for a new mortgage loan in three years and in as little as two years depending on the circumstances. These policy changes were announced in April, in Fannie Mae's Selling Guide Announcement SEL-2010-05.

http://www.fanniemae.com/newsreleases/2010/5071.jhtml?p=Media&s=News+Releases

Weekly Twin Cities Real Estate Market Report

2010-06-29T11:05:00.001-05:00

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Weekly Market Activity Report

The Twin Cities housing market continues to adjust to a world without a fancy tax credit. Pending sales leveled off following the slight gains seen the prior week, squatting at 645 signed contracts for the week ending June 19.

While that's steady compared to last week, it's anemic compared to last year at this time when the market posted 1,156 signed contracts. If you're keeping track of percentages, that means we're down 44.2 percent from a year ago—the sixth consecutive week of year-over-year declines exceeding 30 percent.

New listings are also down from a year ago, posting a drop of 8.4 percent from a year ago to 1,712 for the most recent reporting week. Any sort of "return to normalcy" is going to take some time.

-MAAR

Monthly Skinny: June 2010

2010-06-22T11:14:00.000-05:00

Weekly Twin Cities Real Estate Report

2010-06-22T11:11:00.001-05:00

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Weekly Market Activity Report

Pending sales in the Twin Cities housing market trended up for the first time in four weeks, but remain substantially below 2009. For the week ending June 12, there were 674 signed purchase agreements, up from the mark of 527 the prior week, but down dramatically from the mark of 1,210 seen during the same week a year ago.

This may be a sign that the drastic drops in sales seen in May and early June were simply temporary aftershock reactions to the tax-credit build up and that demand will slowly return over the course of the summer, but it’s far too early to say that with any certainty. We’ll be keeping a close eye on the numbers each week.

New listings moved upward for the same reporting week to 1,729, but remain 12.2 percent behind last year at this time. However, inventory has slowly climbed due to the decline in pending sales, currently sitting at 26,990 active listings, an increase of 1.1 percent from a year ago.

-MAAR

Price Gains Overshadowed by Lagging Housing Demand

2010-06-15T18:08:00.000-05:00

Price Gains Overshadowed by Lagging Housing Demand

May of this year marks the first time since August of 2005 where we've had five consecutive months of year-over-year median price increases. However, pending sales figures declined sharply in May. It is clear that the tax credit party is over and the hangover has truly set in.

The May median sales price for the Twin Cities 13-county metropolitan area was $175,000, a 6.1 percent increase over last May, but the only segment of the market where prices actually increased was the lender-owned (foreclosure) submarket. Traditional and short sales both posted year-over-year price declines.

New listings were down across the board; pending sales were down for every category except short sales—which were up 28.4 percent over May of last year.

The median sales price of traditional homes (excluding foreclosures and short sales) in May was $198,000, down $12,000 or 5.7 percent from the $210,000 figure posted last May. The foreclosure sales price showed a welcome 7.6 percent increase to $125,000, while short sale properties posted a 7.0 percent decline to $143,250.

There were 3,910 signed purchase agreements in May, a decrease of 24.6 percent from last year. That is the greatest year-over-year decrease since April 2006. Seller activity also slowed considerably, with 6,335 new listings posted. This represents a 22.4 percent decrease from last May. In fact, by year-to-date figures, there have been only 23 more pending sales so far this year compared to last.

Like many regions across the country, we saw an uptick in activity as the April 30 federal tax credit deadline approached. When the tax credit ended, buyers seem to have lost interest without the substantial incentive enticing them into the market.

In terms of year-over-year comparisons, housing inventory remained fairly constant in the Twin Cities. The 26,412 active listings for May weighed in at just 1.0 percent under May of last year. The supply-demand ratio increased by 11.0 percent to 5.05. This means that there are about 5 homes available per buyer for June.

-MAAR

Weekly Twin Cities Real Estate Market Report

2010-06-15T18:04:00.003-05:00

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Weekly Market Activity Report

Remember how we've been saying that the Twin Cities housing market has been getting successively slower in home sales every week since the tax credit ended? Umm, yeah, well that's still happening.

Pending sales for the week ending June 5 were another 57.0 percent behind the pace seen a year ago, dropping from 1,226 in 2009 to 527 today. This is the fifth consecutive week-to-week drop in signed contracts. While activity is down across the board, lender-mediated foreclosures and short sales are slowly increasing their market share of sales because traditional home sales have declined sharply. During this week last year, 37.8 percent of pending sales were lender-mediated; this year the share is 43.3 percent.

Thankfully, new supply is not growing in lock-step. The 1,521 new homes placed on the market for the most recent reporting week were 29.6 percent less than last year at this time. This has helped keep the Months Supply of Inventory metric at 6.9 months, down 9.3 percent from May 2009.

-MAAR

Twin Cities Weekly Real Estate Report

2010-06-08T18:03:00.002-05:00

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Weekly Market Activity Report

As the weeks following the tax credit expiration unfold, buyer demand continues to slow. The 600 purchase agreements signed for the week ending May 29 were 34.6 percent below the previous year—the fourth consecutive week of year-over-year decline in Pending Sales.

Refreshed supply is also in decline, as New Listings posted a fifth consecutive week of year-over-year decline, landing at 1,474 for the most recent reporting week—a 5.9 percent decrease from a year ago.

Two other metrics for this week:

Days on Market – This stat continues its year-over-year downward trend, resting at 118 days for May 2010.

Percentage of Original List Price Received – This continues to grow, up 2.8 percent above last year at this time to 94.1 percent of the list price.

-MAAR

Monthly Twin Cities Real Estate Update

2010-05-25T11:38:00.001-05:00

-MAAR

Weekly Twin Cities Real Estate Update

2010-05-25T11:28:00.006-05:00

Weekly Market Activity Report
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As expected, pending sales continued their post-tax credit deadline swoon in the Twin Cities housing market for the week ending May 15. There were 830 purchase agreements signed for the week, a large drop from the mark of 1,469 seen two weeks ago during the final week of the credit. The most recent week represents a 32.8 percent decrease from the same mark last year.

New Listings are also in decline, with the 1,582 posted for the week coming in at 19.3 percent behind a year ago. The decline in new supply is helping to offset some of the decline in sales, which is serving to hold inventory relatively steady for the time being.

It remains to be seen whether the large drop in activity is a temporary post-credit blip or a harbinger of a longer-term demand "cool down." We'll continue to keep a hawk's eye on the numbers in the weeks ahead.

-MAAR

Twin Cities Weekly Real Estate Market Update

2010-03-23T11:36:00.002-05:00

Weekly Market Activity Report
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The spring market is heating up as the federal tax credit deadline draws near. The Twin Cities housing market saw some resurgence in several metrics for the week ending March 13.

Pending sales were where the real action was. The magical "1,000" barrier was finally broken for the first time this spring with 1,027 purchase agreements signed for the week. This was an improvement in the year-over-year figures by 18.0 percent. The 2,110 new listings were slightly down from the previous week's high, but they still outpaced 2009 numbers at this time by 17.9 percent.

The number of active listings slowly continues its upward mobility. There were 24,524 homes available on the market for the week ending March 22. This is still below last year, but as the graph on page 4 shows, active listings are getting closer and closer to where they were during the spring of 2009.

-MAAR

Weekly Twin Cities Real Estate Market Update

2010-03-08T17:15:00.001-06:00

Weekly Market Activity Report

Warming weather, affordability and approaching deadlines are activating the housing market. With less than 60 days left until the home buyer tax credit expires, buyers and sellers appear to be kicking it into a new gear. There were 1,715 new listings for the week ending February 27, an increase of 5.3 percent from a year ago and the fourth consecutive week of year-over-year increase. The $6,500 tax credit for move-up buyers appears to be stimulating some sellers to place their homes on the market in an attempt to sell them before the credit expires.

For the same reporting week, there were 868 accepted offers, which is a bump of 13.9 percent from a year ago. After several months of relatively flat home buying, the last two weeks have seen a jump as the credit deadline nears.

Days on Market continues to decrease, landing at 142 days in February. That was a 9.7 percent decrease from a year ago.

The Percent of Original Price Received at Sale stood at 92.3 percent in February, a 3.4 percent increase over the year prior.

2010-02-10T13:33:00.000-06:00

As winter continues its streak of cold and snow, sales activity in the Twin Cities housing market is moving along at a pace you'd expect for the season and at about the same pace as a year ago. Pending sales for the week ending January 30 came in at 650, down very slightly from the mark of 673 seen during the same week last year. Over the last three months, there have been 7,038 signed purchase agreements, up a sliver-sized 0.7 percent from a year ago.

Despite the tax credit being made available to current homeowners, new listing activity has yet to show any noticeable jump. The 1,584 new listings for the most recent reporting week represent a dip of 3.1 percent from a year ago. Total inventory of available homes is still down from last year by 16.5 percent.

In related news, Days on Market Until Sale is still dropping while the Percent of Original List Price Received at Sale is still growing. While that's good news on both fronts for home sellers in general, different price points and neighborhoods are experiencing dramatically different market conditions.

-MAAR

Twin Cities Weekly Real Estate Market Report

2010-02-03T10:10:00.003-06:00

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The January 2010 Twin Cities housing market has shaped up to be nearly identical to January 2009.

Pending sales are down slightly from a year ago, but not by much.
New listings are down slightly from a year ago, but not much.
Inventory is rising slowly, but not much.
After the roller coaster ride the local market has experienced over the last four years, perhaps "not by much" is a welcome respite.

There were 558 signed purchase agreements for the week ending January 23, down 2.3 percent from a year ago.
New listings posted 1,522 units, down 0.6 percent from a year ago.
The current inventory of active listings is 20,629, down 17.5 percent from a year ago.
The February 2010 Supply-Demand Ratio sits at 6.99, which means there are 6.99 homes available for each buyer. That's a drop of 8.5 percent from a year ago and the lowest February mark since 2006.

-MAAR

Weekly Twin Cities Real Estate Report

2010-01-27T10:30:00.003-06:00

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Activity continues to pick up in the Twin Cities housing market as sellers and buyers bid a sad farewell to the Vikings' football season and the dormant holiday market begins to thaw. New listings, sales and inventory are steadily increasing as we prepare for the spring selling season.

For the week ending January 16 there were 571 signed purchase agreements, up 4.0 percent from a year ago. That's only the second week of year-over-year increase in the last nine. New listings were 8.3 percent higher than a year ago at 1,668, and the total inventory of homes available for sale currently sits at 20,459, down 18.9 percent from last year at this time.

With an extreme shortage of inventory in some of the lower price ranges, new listings may be welcome in that segment for the first time in several years. In the upper price ranges, sales activity is still declining and new sellers face a tougher market.
-MAAR

Weekly Twin Cities Real Estate Market Report

2010-01-21T12:07:00.001-06:00

Weekly Market Activity Report
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The first full week of reporting for the 2010 Twin Cities housing market is in and while there are a few "green shoots," it's becoming apparent so far that the market won't see the same spectacular growth in sales it saw at the beginning of 2009.

There were 520 pending sales for the week ending January 9, down 1.7 percent from the same week in 2009. That's the seventh week of the last nine to see slightly fewer sales than the prior year, a time period that coincides closely with the initial expiration date of the first-time home buyer tax credit. However, we’re still 21.2 percent higher than the pace in 2008 for that period.

As you likely know, the credit's been expanded to include a $6,500 incentive for buyers who have owned a home for five years of the last eight. Since we can safely assume that many of these buyers will need to sell their home first before buying a new one and receiving the credit, new listings numbers might shed light on how much effect the new credit is having. So far, it doesn't appear to be much.

Over the last three months, the number of new listings has been 11.7 percent behind the same period one year prior. With many looking for continued "seedlings" of hope in the local housing market, this isn't welcome news. As always, we'll be keeping a close eye on the evolving market and reporting back what we see.

Twin Cities Monthly Real Estate Video Update

2010-01-21T12:03:00.000-06:00

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS

2010-01-19T10:51:00.000-06:00

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS
Measure to help bring stability to home values and accelerate sale of vacant properties
WASHINGTON - In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.

"As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers," said Donovan. "FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization."

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.

"This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed," Donovan said.

In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

"FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity."

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

•All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
•In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
•The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD's website.

HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development ad enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

Weekly Twin Cities Real Estate Market Report

2010-01-12T14:27:00.002-06:00

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Housing activity for the week ending January 2, 2010 took a predictable surge upward following the holiday break. New listings rose to 688 for the week—down 37.3 percent from a year ago—while pending sales posted a number of 378—down 11.7 percent from a year ago. We will likely have to wait another week for all the holidays and frosty weather to get flushed from our year-over-year comparisons to get a full understanding of where our market is headed.

A few additional stats for the New Year:

Housing Affordability continues at historic levels: rising to 208 for January, an 8.3 percent increase from the previous year and a good sign for buyers in the year to come.

The Months’ Supply of Inventory is back in balanced market territory at 5.0 months. This is a dramatic 34.2 percent under the supply at the beginning of last year.

With a balancing supply and demand and the possibility of rising interest rates on the horizon, this is a unique opportunity time for Twin Cities' home buyers.

2010-01-08T11:59:00.003-06:00

If you are facing foreclosure please call. Let our SFR certified team guide you through. There is a way out. You can sell your home for less than you owe and minimize the damage to your credit. Please call today:

Benjamin A Kruse, Realtor, GRI, SFR
Team Lead / The Sanctuary Group of Coldwell Banker Burnet
612-237-6853
bakruse@cbburnet.com

2010-01-07T13:24:00.002-06:00

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The last week of 2009 found the Twin Cities housing market singing "Auld Lang Syne" and taking a breather. For the first time in four years, the active listing inventory dropped below 20,000. Chiming in the New Year at 18,980, inventory is at its lowest point since April 2005 and is 22 percent below last year at this time. Also of note, January's Supply-Demand Ratio of 6.69 houses per buyer is 20.6 percent behind a year ago.

New listings for the week ending December 26 dropped 18.9 percent from last year to 446. The 392 purchase agreements for the week were up a merry 53.1 percent above the previous year; while a significant jump, this reflects a small sample size.

We expect 2010 to begin slowly as car starting becomes more important than house hunting during the frigid conditions we're presently experiencing in the metro area.

December Real Estate Video Update

2009-12-22T11:20:00.000-06:00

Weekly Twin Cities Real Estate Market Report

2009-12-16T13:46:00.001-06:00

Weekly Market Activity Report
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The post-Thanksgiving bump is in effect for the Twin Cities housing market. The week ending December 5 saw pending sales swing upward from the previous week by 152 to settle at 551. This is 7.7 percent less than last year at this time, marking the third week of the last four to post pending sales numbers lower than a year ago. The aftermath of the tax credit's initial expiration date is combining with the typical holiday slowdown to bring sales down.

Two other important metrics:

Months Supply of Inventory – At 5.7, this is the lowest MSI in more than two years and a full 32.9 percent below last year. This bodes well for sellers in general, but the higher price ranges are still buyer's markets.

Housing Affordability Index – At 207 and improving, this is welcome news. This means that the average family income in the Twin Cities region is 207 percent of what it takes to qualify to purchase the median priced home.

-MAAR

Funny!!!! For all my real estate friends.

2009-12-14T14:01:00.000-06:00

Weekly Market Report

2009-12-07T20:21:00.000-06:00

The local housing market experienced the traditional Turkey Day drop off for the week ending November 28 as Twin Citizens focused more on turkey and stuffing than purchase agreements and closing dates.

Even taking into account the expected holiday drop, market activity in the last few weeks has slowed considerably from the breakneck pace we saw during the first 10 months of the year, likely due to the passing of the home buyer tax credit's initial deadline. There were 5.9 percent fewer pending sales compared to the same week in 2008. That's only the second week of year-over-year decrease in all of 2009 (the first was two weeks earlier).

Now for the good news: Days on Market before Sale dropped 14.5 percent to 127, and the Percentage of Original List Price trended positive over last year to 94.3. These two metrics should shore up sellers who are weathering the current economic storm.

-MAAR

Weekly Twin Cities Real Estate Market Report

2009-11-30T16:33:00.001-06:00

When compared to the previous week's dive, pending sales held strong during a time of typical seasonal swoon.

For the week ending November 21, there were 604 purchase agreements, a 5.2 percent increase over the same week in 2008 and the first time in a month not to show a week-over-week plunge in sales activity.

Although sales are up over last year, they have slowed considerably from October's tax credit gold rush.

With the winter season before us, sales will likely continue their respite into 2010.

-MAAR

The Skinny

2009-11-23T22:03:00.000-06:00

Twin Cities Weekly Real Estate Market Report

2009-11-23T21:55:00.001-06:00

Home sales in the Twin Cities region have dropped significantly in recent weeks as the tax credit's extension temporarily reduces urgency and autumn's typical slowdown sets in. For the week ending October 14 there were 603 signed purchase agreements, down 7.1 percent from the same week last year. That's the first year-over-year decline since last October. Previous weeks leading up to the tax credit extension were showing 40 percent increases or higher.

The slowdown in sales has been expected. Said Lawrence Yun, Chief Economist for the National Association of REALTORS®, "Many buyers have been rushing to beat the deadline for the first-time buyer tax credit that was scheduled to expire at the end of this month. A measurable decline should be anticipated." Our local market isn't always in line with the national message, but we have to agree on this one.

New listings continue to underperform 2008 figures, which is keeping inventory low. There were 1,208 housing units added for the week ending November 14. Total active inventory for the current week is down more than 20 percent from last year.

MAAR News Release: Heavy Buyer Activity Continues in October

2009-11-19T11:47:00.000-06:00

MAAR News Release: Heavy Buyer Activity Continues in October

Low mortgage rates, affordable supply and the home buyer tax credit kept home sales moving in October.

There were 4,676 signed purchase agreements during the month, up 34.4 percent from a year ago—the 16th consecutive month of year-over-year increases in pending sales. The recent extension and expansion of the home-buyer tax credit should mean continued buyer movement into early 2010.

Traditional pending sales (excluding foreclosures and short sales) were up 55.0 percent from last October, a sure sign that demand is beginning to spill over into that segment.

The October median sales price of $169,000 is a slight dip from the prior month, but the dip is much less extreme than typical entering the fourth quarter. Compared to last October, it's a 6.1 percent decline—the lowest year-over-year decline in 24 months.

The median sales price of traditional homes in October was $193,500, down 13.2 percent from a year ago. Lender-mediated homes posted a October figure of $129,000, down 4.4 percent from a year ago.

Foreclosures are still selling much more frequently than short sales, bringing the months supply of foreclosures to 1.4, while short sales still have 13.2 months of supply. More information on these market segments is available with the October 2009 Update to Foreclosures and Short Sales in the Twin Cities.

Good news for sellers: Homes are selling quicker and sellers are receiving closer to their original asking price than they were a year ago. But the experience varies by price point. For example, activity in the upper-bracket price ranges is still pretty slow.

The lower and middle price brackets will probably see a lot of movement over the next nine months," said MAAR President-Elect, Brad Fisher. "If you're a buyer in those ranges, action is your best weapon."

-MAAR

Weekly Twin Cities Real Estate Update

2009-11-19T11:41:00.002-06:00

Clock here for full report

With the home-buyer tax credit now expanded and extended, sales activity in the Twin Cities region slowed down as expected for the week ending November 7. And by "slowed down," we mean it "only" posted a 17.2 percent year-over-year increase as opposed to last week's 42.9 percent year-over-year increase. So we're being openly facetious; market activity is still robust despite the respite from urgency.

New listings were down 14.3 percent for the same time period comparison, but the expansion of the tax credit to provide $6,500 to move-up or move-down buyers may create more new seller activity in the coming months.

And for the first time in several years, new listings may actually be welcome. The region has shed more than 12,000 units of inventory since the supply peak in September of 2007. In the lower price ranges, buyers are facing a shortage of good inventory. See page 6 of our Housing Supply Outlook for a more detailed look.

Twin Cities Weekly Real Estate Market Report

2009-11-10T14:43:00.003-06:00

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The Twin Cities housing market continues to post strong pending sales figures as fall progresses. For the week ending October 31, there were 826 pending sales. That's down from the week before but 42.9 percent greater than the same week last year.

The extension and expansion of the tax credit means that first-time home buyer activity will remain strong, but don't bank on the same blockbuster numbers we have seen this year. If you were a potential first-time buyer who was qualified to purchase in 2009, odds are good that you already bought. The fact that the income limits have been raised for eligibility does help since it widens the credit's availability.

The $6,500 credit for second-time buyers will spur some sellers to put their homes on the market who had previously been on the fence. New listings will likely strengthen this winter and into early 2010 as a result.

Some updated numbers for this month:

Days on Market is still shrinking, down to 128. That's 9.4 percent below last October.
The Percent of Original List Price Received at Sale bumped up to 94.6.
The Housing Affordability Index increased to 202, up 25.5 percent over 2008.

NAR Frequently Asked Questions (New Tax Credit Extension)

2009-11-07T10:47:00.002-06:00

Homebuyer Tax Credit Changes

2009-11-07T10:45:00.003-06:00

Status of the First Time Homebuyer Credit / Chris Galler, Chief Operating Officer MAR

2009-11-03T14:11:00.000-06:00

Weekly Twin Cities Real Estate Market Update

2009-11-03T14:04:00.005-06:00

Did you get all your screams out over the Halloween weekend? Well here’s a scary thought to keep you in the Halloween spirit: we’re running out of homes to sell in the lower price ranges.
For the week ending October 24 there were 926 signed purchase agreements, up a monstrous (get it?) 53.8 percent from a year ago. Over the last three months, sales of homes under $250,000 are up 40.0 percent from the same period during 2008, while sales above that watermark have dipped by 0.3 percent. As a result, compared to a year ago the inventory of available homes below $250,000 has dropped by over 5,300 units.

With the possibility of the federal tax credit for first-time buyers being extended and expanded, there may be significant shortages of inventory for buyers looking in those price ranges as 2010 begins.

For November, the overall Supply-Demand Ratio is a paltry 7.69 per buyer, down 29.3 percent from the year prior.

Home Buyer Tax Credit: Final Deal?

2009-10-29T10:27:00.001-05:00

Home Buyer Tax Credit: Final Deal?
Published: Thursday, 29 Oct 2009 | 11:18 AM ET Text Size By: Diana Olick
CNBC Real Estate Reporter

For those of you keeping score on the first time home buyer tax credit extension, here is the latest:

— The tax credit would be $8,000 for first-time home buyers and $6,500 for move-up buyers (from December 1, 2009 to April 30, 2010).

— Move-up buyers will be eligible, so long as the home they are leaving has been used as their principal residence for 5 years or more.

— The tax credit would sunset on April 30, 2010. However, there would a binding contract rule that will permit those with contracts as of April 30th to qualify for the credit so long as they complete the transaction within 60 days.

— The income limits for both first-time home buyers and move-up buyers would be $125,000 for single return and $225,000 joint return.

— Cost of the home may not exceed $800,000 to be eligible.

— For purchases made in 2010, taxpayers would be able to claim the credit on their 2009 income tax return.

— Home buyers would not have to repay the credit, provided the home remains their principal residence for 36 months after the purchase date.

— The amendment includes a military waiver provision, meaning the recapture provision would not apply in the case of a member of the Armed Forces, military intelligence or Foreign Service who is on qualified official extended duty. In addition, members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011, to claim the home buyer tax credit.

— The amendment also includes anti-fraud language that provides math authority to the IRS to do greater oversight during the processing of the return rather than waiting for an audit situation. The amendment requires the taxpayer claiming the credit to be 18 or older as well as requiring a HUD-1 settlement statement to be attached when claiming the credit.

AND supposedly, sometime after 11a, the Treasury and HUD Secretaries will officially call on Congress to extend the credit and the higher conforming loan limits.

© 2009 CNBC, Inc. All Rights Reserved

Weekly Market Report for The Twin Cities Real Estate Market

2009-10-27T00:50:00.004-05:00

Click Here For Full Report

The end of the first-time home buyers tax credit looms just 30 days beyond a Halloween horizon, and home sales remain strong in the lead-up to tricks and treats and the impending tax credit DEADline. For the week ending October 17, there were 954 signed purchase agreements, howling up 54.4 percent from a year ago. Almost two-thirds of these pending sales were priced below $190,000—evidence that first-time buyers are carrying a heavy share of the activity.

The strong sales we've seen over the last 15 months mean that our inventory of available homes has shrunk like the heads in a witches' brew. The 23,896 homes on the market right now represents a 21.2 percent decrease from the decidedly more scary market of 2008, and it is the lowest mark at this point in the year since 2004.

Expect home sales to begin dropping as tax credit qualifiers finish their mad rush to the closing table, but unlike those camp counselors at Crystal Lake, we'll all make it out of this market alive.

-MAAR

Great Foreclosure Assistance Information

2009-10-22T17:13:00.008-05:00

Please Click Here To Learn More About Foreclosure Assistance.

Explore Loan Workout Solutions to Avoid Foreclosure

First and foremost, if you can keep your mortgage current, do so. However, if you find that you are unable to make your mortgage payments, you may qualify for a loan workout option. Check with your lender to find out which of these options (or others) may be available.
Reinstatement: Your lender may be willing to discuss accepting the total amount owed to them in a lump sum by a specific date. They will often combine this option with a forbearance.

Forbearance: Your lender may allow you to reduce or suspend payments for a short period of time after which another option must be agreed upon to bring your loan current. A forbearance option is often combined with a reinstatement when you know you will have enough money to bring the account current at a specific time in the future. The money might come from a hiring bonus, investment, insurance settlement, or a tax refund.

Repayment Plan: You may be able to get an agreement to resume making your regular monthly payments, in addition to a portion of the past due payments each month until you are caught up.
If it appears that your situation is long-term or will permanently affect your ability to bring your account current:

Mortgage Modification: If you can make the payments on your loan, but you do not have enough money to bring your account current or you cannot afford the total amount of your current payment, your lender may be able to change one or more terms of your original loan to make the payments more affordable. Your loan could be permanently changed in one or more of the following ways:

Adding the missed payments to the existing loan balance.
Changing the interest rate, including making an adjustable rate into a fixed rate.
Extending the number of years you have to repay.

Claim Advance: If your mortgage is insured, you may qualify for an interest-free loan from your mortgage guarantor to bring your account current. The repayment of this loan may be delayed for several years.

Some workout options include expenses that you will be expected to pay, such as recording fees for a loan modification. Because every situation is different, you should be sure that you understand all the fees before signing any papers. To minimize the costs and particularly legal fees which can be very expensive, call your lender as soon as you realize you may be in trouble.

Information from www.hud.gov

FHA Taking Steps to Ensure Taxpayer Money

2009-10-21T16:25:00.000-05:00

FHA Taking Steps to Ensure Taxpayer Money during Housing Crisis
Washington, September 18, 2009

The following is a statement by National Association of Realtors® President Charles McMillan:

“The Federal Housing Administration is playing a crucial role in providing mortgage financing to the housing market, as mortgage and banking systems have faced collapse. While FHA’s capital reserve ratio has declined, that is not surprising for an agency dealing in housing finance in today’s market, and there is no sign that a taxpayer bail-out will be required. FHA stands in contrast to entities in the private sector, including Fannie Mae, Freddie Mac and many large banks that have needed tens of billions of dollars in federal funds.

“Under the leadership of Commissioner Dave Stevens, FHA has announced timely steps to protect taxpayers: implementing credit policy changes to enhance risk management; hiring a chief risk officer for the first time in the agency’s history; shifting responsibility for mortgage brokers away from taxpayers to the lenders who use mortgage brokers; and modifying appraisal requirements including emphasizing appraiser independence and geographic competence.

“Declining home prices have forced many homeowners into underwater positions, regardless of lender or loan product. FHA is still solvent, has significant reserves and remains an essential tool for consumers.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

The October Skinny Video Update (Twin Cities Real Estate Market)

2009-10-19T17:02:00.002-05:00

-MAAR's The Skinny

Weekly Twin Cities Real Estate Market Report

2009-10-19T16:47:00.006-05:00

Click Here For Full Report
The fall Twin Cities housing market has been full of wild things, mostly first-time home buyers stampeding to take advantage of the federal tax credit before it expires on November 30. The week ending October 10 was no different than others we've seen this fall. There were 947 signed purchase agreements for the week, a 37.6 percent increase over the same week last year.

At 1,543 new listings we're down 4.4 percent from the same week a year ago. The trend continues: New listings haven't been keeping up with the amount of sales, bringing total housing supply down dramatically in the Twin Cities. There are currently 24,901 homes on the market, 21.0 percent less than a year ago.

The rumpus is likely to subside as we near the November 30 tax credit deadline, silencing the sales activity of the market's most active buyers.

-MAAR's The Skinny

Tick Tock On The Tax Credit Means More "Last Call" Buyers

2009-10-13T17:08:00.003-05:00

Tick Tock On The Tax Credit Means More "Last Call" Buyers

Buyer activity took a step up in September as the final days of the federal tax credit for first-time home buyers ticked toward a November 30 deadline, contrary to the typical September slowdown in the Twin Cities housing market.

There were 4,986 signed purchase agreements during the month, up 23.5 percent from a year ago—the 15th consecutive month of year-over-year increases in pending sales. Since first-time home buyers don't typically go high end, a healthy portion of these sales are taking place in price ranges below $200,000.

The influx of new buyers has helped home prices increase over the course of the year. The September median sales price of $170,000 represents a slight dip from the prior month, but the dip is less extreme than what has been typical. Compared to last September, it's a 10.5 percent decline—the lowest year-over-year decline in 17 months.

The median sales price of traditional homes in September was $200,712, down 5.3 percent from a year ago. Lender-mediated homes posted a September figure of $127,000, down 12.4 percent from a year ago. Lender-mediated foreclosures and short sales made up 39.2 percent of the month's pending sales.

Foreclosures are being sold roughly three times more frequently than short sales, thus the inventory of available foreclosures is dropping more quickly than short sales.

-MAAR

Weekly Market Report for The Twin Cities Real Estate Market

2009-10-13T17:05:00.001-05:00

Weekly Market Activity Report

Autumn may be bringing colder temperatures (and snow, too: what's up with that?!?) but the Twin Cities housing market is still hot. Contrary to the typical fall slowdown, pending sales are gaining weekly momentum as home buyers take advantage of the final days of the Federal tax credit.

For the week ending October 3, signed purchase agreements were a stunning 61.2% higher than last year, jumping from 647 to 1,043. New listings are a different story, however, down 8.0% below the previous year. Total active listings remain sluggish compared to a year ago, with the 24,354 on the market representing a 20.9% drop from a year ago.

There are some new stats this week that help bring some perspective on just how much better things have gotten for sellers in the last year:

Days on Market Until Sale: at 129 days is 11 percent below last year.
Percent of Original List Price Received at Sale: at 93.9% is 1.8 percent higher than last year.
Months Supply of Inventory: at 6.6 is 30.5% lower than last year and is closer to a balanced market.
All three indicators are important reflections of market shift. Yet we can't minimize that sellers still face tough conditions, especially in the higher price ranges where sales are still on a downward trend.

Weekly Twin Cities Weekly Market Report

2009-10-05T21:08:00.001-05:00

Fall is officially on in the Twin Cities, but it hasn't slowed the housing market as much as usual. After the school year begins, we typically see a drop in buyer activity, but the 2009 fall market is remaining robust due in large part to the final weeks of the tax credit for first-time home buyers. There were 1,056 pending sales for the week ending September 26, up 41 percent from the same week last year.

As a direct result, inventory is dropping like a stone. There are approximately 24,500 homes for sale in the 13-county metro area, down more than 20 percent from a year ago.

The October 2009 Supply-Demand Ratio (SDR) comes in at 6.88 houses per buyer, down 22.5 percent from last year. The SDR has shown year-over-year drops of 30 percent or more for the past few months, but we're projecting that the year-over-year decline for October will be smaller because pending sales are likely to be significantly lower if the federal tax credit for first-time buyers is not extended. If the credit goes *poof*, it will remove buyers from the market.

Twin Cities Weekly Real Estate Market Report

2009-10-02T09:30:00.001-05:00

Click Here For Full Report
The Labor Day fluctuations came and went, and the Twin Cities housing market is better for it. Pending sales for the week ending September 13 rose dramatically to 1,043, which is 33.5 percent above last year's total for the same week. We must assume that a healthy chunk of this buyer activity can be attributed to first-time home buyers taking advantage of the tax credit before it expires on November 30.

New listings came in at 1,846, up 3.2 percent in a year-over-year comparison. Home sellers have recognized a window of opportunity in recent months and are listing with a little more frequency, but the overall inventory of houses for sale is still below that of the last three years and our Supply-Demand Ratio (which measures the number of houses available per buyer) remains 30.3 percent better than where we were a year ago.

Twin Cities Monthly Real Estate Update Video

2009-09-23T14:44:00.000-05:00

Twin Cities Weekly Real Estate Market Report

2009-09-22T10:38:00.001-05:00

Click Here To See Full Report
Once again, the six-day gap between where Labor Day fell in 2008 and where it fell this year is causing our year-over-year weekly numbers to look weird. For the week ending September 12, you'll see a steep drop-off in new listings and pending sales, but there's no such dip last year.

New listings for the week ending September 12 were 1,624, a 12.9 percent drop from this period last year. Pending sales agreements also dropped precipitously to 840 from 1,070 a week ago, 7.3 percent higher than this week last year.

Next week's figures should begin to provide more relevant year-over-year comparisons. As the final days of the tax credit tick down (72 days and shrinking), we'll be watching market activity with heavy interest. Stay tuned.

MAAR’s August 2009 Twin Cities Housing Stats

2009-09-22T10:30:00.000-05:00

MAAR’s August 2009 Twin Cities Housing Stats - Prices increase as sales remain strong
Home prices continue to show signs of strengthening in the Twin Cities housing market. The median sales price for the 13-county metro region in August was $175,000, down 12.5 percent from a year ago but up once again from July. From March 2009 through August 2009, the median sales price has grown from $154,125 to $175,000. Prices were flat during the same period last year.

Prices are stabilizing due to strong buyer demand—especially in the lower price ranges—buoyed by low mortgage rates and the federal tax credit for first-time home buyers. For the 14th consecutive month, there were more pending sales than there were the prior year. August saw 4,897 signed purchase agreements, up 11.0 percent from August 2008.

"The tax credit, low rates and affordability really pushed buyers out there this summer," said Steve Havig, MAAR President.

The growth in sales is no longer confined to lender-mediated homes as it had been earlier this year. Traditional home sales in August were up 4.2 percent from a year ago, and traditional home sales below $150,000 were up 40.8 percent. Homes in the upper price ranges are still experiencing slow conditions.

Good news for sellers: the percent of original list price received at sale continues to improve—the August mark of 94.1 is 1.5 percent higher than last August—and total days on market until sale continues to drop.

The median sales price of traditional homes in June was $209,000, down 8.2 percent from a year ago. Lender-mediated homes posted a May figure of $125,000, down 10.7 percent from a year ago.

"With the tax credit expiring in November, closed sales should stay robust for at least the next two months," said MAAR President-Elect, Brad Fisher. "Time will tell what the market looks like after that, but there will be less inventory."

AUGUST 2009 TOPLINE

1) For the 14th consecutive month, there were more pending sales than there were the prior year.

2) Prices are stabilizing due to strong buyer demand brought on by low mortgage rates and the federal tax credit for first-time home buyers.

3) With the tax credit expiring in November, closed sales are expected to be robust for at least the next two months.

4) Time will tell what the market looks like after that, but there will be less inventory left.

AUGUST 2009 STATISTICS OVERVIEW

1) There were 4,897 signed purchase agreements in August, up 11.0 percent from this time last year.

2) 40.1 percent of pending sales in August were lender-mediated.

3) The overall median sales price for all properties in August was $175,000, down 12.5 percent from a year ago but up from July.

4) From March 2009 through August 2009 the median sales price has grown from $154,125 to $175,000. Prices were flat during the same period last year.

5) The median sales price of traditional homes in August was $209,000, down 8.2 percent from a year ago.

6) Lender-mediated homes posted an August figure of $125,000, down 10.7 percent from a year ago.

7) The percent of original list price received at sale continues to improve—the August mark of 94.1 is 1.5 percent higher than last August.

According to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.

Twin Cities Real Estate Video Update

2009-09-14T09:55:00.001-05:00

Weekly Real Estate Market Report / Twin Cities

2009-09-13T21:49:00.001-05:00

Click Here For Full Report
For the first time in 9 months, the number of weekly new listings coming on the market was actually higher than it was a year ago. The 1,641 new homes on the market during the week ending August 29 represent a 3.3 percent increase from a year ago. The slight year-over-year uptick is due in part to growth in the number of new, traditional, non-lender-mediated listings.

For the most recent reporting week, the number of brand new traditional listings (excluding re-lists that have already been on the market sometime in the last 12 months) has grown 20.3 percent compared to a year ago. Home sellers are becoming more active, likely in response to the increase in home sales seen throughout the year.

And if you look at three of our newly updated metrics, it becomes obvious why more sellers are jumping in:

Days on Market Until Sale – 133 days, a drop of 7.1 percent from a year ago.
Percent of Original List Price Received at Sale – 94.1, up 1.5 percent from a year ago.
Supply-Demand Ratio – 5.46 homes per buyer in September, down 30.3 percent from a year ago.

Weekly Twin Cities Market Report / Twin Cities

2009-09-01T21:02:00.002-05:00

Click Here To View Full Report
Weekly Market Activity Report

In 2006, the inventory of homes for sale was plentiful and buyers were in short supply. Regular followers of our weekly report will have noticed that a shift has been in the works for several months. The week-to-week patterns of pending sales and inventory resemble market patterns from last year, but pending sales have consistently outperformed last year's numbers. In fact, the most recent week's 1,012 signed purchase agreements represents a 23.7 percent increase over last year and is the 59th week of the last 60 with a year-over-year increase.

Active listings are dwindling, down 21.2 percent from last year. Inventory supply has dropped from 10.5 months to 7.2 months in the last year, and it has dropped quickly in the lower price ranges where sales activity is the strongest. Shift, change, adjust, correct, stabilize—take your pick of these words when describing today's housing market, and you'll be right.

Weekly Market Report / Twin Cities Real Estate

2009-08-25T15:34:00.004-05:00

Click Here For Full Report

Let's take a trip in the WABAC Machine (proncounced "wayback") to see what our current market landscape looks like compared to years past.
The 1,026 signed purchase agreements for the week ending August 15? That's the most since 2005.
The 25,765 active listings for sale? The fewest since 2005.
The 1,630 new listings? Fewest since 2002.
In other words, buyer activity is growing and supply is shrinking. There are fewer homes available per buyer than at any point since 2005, and inventory should only continue to tighten through the remainder of the year.

Coldwell Banker CEO on Housing Upturn

2009-08-22T16:31:00.001-05:00

Amazing Plymouth Condo / $49,900

2009-08-17T10:55:00.004-05:00

Virtual Tour
Listing Information
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Weekly Twin Cities Market Report

2009-08-04T11:57:00.001-05:00

Weekly Market Activity Report

August. Welcome to another summer month in the Twin Cities housing market. Pending sales in July ended on a fairly positive note. The 1,009 purchase agreements signed for the week ending July 25 were 21.4 percent above last year at this time. The 1,652 new listings this week are 9.0 percent less than this week in 2008. Active listings as a whole are 21.7 percent behind last year.

The metric to watch this month is the Supply-Demand Ratio. At 4.88, this is a startling 34.8 percent less than where we were at this time last year. With less than five houses on the market per buyer and an affordability index sky-high at 192, the window is quickly closing for those wanting to get into a home under ideal conditions.

Q2 2009 Update to "Foreclosures and Short Sales" report released by MAAR

2009-07-28T14:14:00.000-05:00

Lender-mediated supply of homes continues to drop
Q2 2009 Update to "Foreclosures and Short Sales" report released by MAAR

Minneapolis, Minnesota (July 21, 2009) – The inventory of available foreclosures and short sales continued to shrink in the second quarter of 2009, according to a new research report released by the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc (RMLS).

After reaching a historic peak in February, the number of foreclosures and short sales available for sale has fallen by more than 2,100 units to 6,685 at the start of July—the fewest available since March 2008.

"We're not through the woods yet, but it's a positive sign that so much of this inventory is being absorbed by buyers," said Steve Havig, 2009 President of the Minneapolis Area Association of REALTORS®.

With the $8,000 federal tax credit for first-time home buyers and low mortgage rates sparking buyer interest, expect the supply of available homes to continue to fall through the remainder of the year.

New analysis of RMLS data indicates that the supply of bank-owned foreclosures (excluding short sales) is much smaller. There were 1.84 bank-owned foreclosure homes available for each buyer in June—compared to 5.10 homes owned by a traditional seller and 10.22 homes in a short sale situation.

In sum, the supply of bank-owned foreclosures is dwindling quickly, while short sales aren't being absorbed as quickly.

To see how foreclosures and short sales are affecting various neighborhoods and cities, visit our interactive data board with in-depth neighborhood reports and commentary at www.mplsrealtor.com/downloads/market/Lender-Mediated/Main.htm.

The full report can be found on the Minneapolis Area Association of REALTORS® website at www.mplsrealtor.com, and includes more analysis and an explanation of the research methodology.

Weekly Twin Cities Market Report

2009-07-28T13:58:00.004-05:00

Click Here For Full Report

"You don't know what you've got 'til it's gone." – Cinderella, 1980s power-balladeers

This week's quote-of-note applies to the current situation of available inventory in the Twin Cities housing market. Our disappearing supply—down 21.4 percent from this time last year—is being caused by absorption from strong pending sales activity (up 18.2 percent year-over-year for the week ending July 18) and weak new listings (down 12.1 percent for the same time period comparison).

With a consistently shrinking inventory and more buyers this summer than we've seen since 2005, buyers who lack urgency could find themselves singing along to that sad classic Cinderella song.

5 Tips For Happier Home Buying - from Citi

2009-07-25T09:29:00.002-05:00

Even in a buyer’s market, buying a home can be as challenging as it is exciting. Here are 5 ways to make the process easier and faster, from getting the best deal on a mortgage, to finding the right home for you.

Get your “financial house” in order:
Like any big financial commitment, buying a home takes some planning and preparation. You’ll want to get all of your finances together and evaluate where you are, and where you’d like to be. Your financial plan may require you to:

• Make adjustments to your saving and/or spending habits. Ask yourself do
you really need that item especially if you are going to charge to your credit card.
Frugal spending will give you a little nest egg for home repairs and “must haves”
when you move into your new home.

• Reduce your current debt. Create a plan for paying off those credit cards.

• Start saving for a down payment. It will reduce the total cost of your mortgage.
Adjust your spending habits by making smart spending choices which benefit you
in the long run.

• Review your household budget. Determine how much you can comfortably
afford before you take the plunge.

Review your credit:
Your credit score is all-important when you’re in the market for a new home. The higher your score is, the more money you can borrow, and the less you’ll pay over the life of the mortgage. To take advantage of the lowest rates possible, aim to have your score close to 700 or higher (on a scale of 350 to 800). The good news is, if your score isn’t where you want it to be, there are some steps you can take right now to improve it:

• Pay your bills on time. Your track record accounts for 35% of your total score.

• Lower you debt-to-credit limit ratio. Put together a plan to start paying off
your debt.

• Check your credit report for FREE each year! You may have forgotten to close
an account that you cut up the card to in 1982. So take advantage of the free annual
credit report and make sure to check for any errors throughout the report. You have
the right to dispute inaccurate or incomplete information and the consumer reporting
agency is responsible for investigating and correcting such information.

Get pre-approved over the phone with CitiMortgage:
Pre-approved buyers are serious buyers – at least that’s what your realtor is probably thinking. Getting pre-approved really serves two purposes. First of all, it puts you ahead of other buyers who aren’t pre-approved when it’s time to negotiate and put down a bid. Secondly, it helps you understand your limits, before you shop for a home.

Choose the right real estate agent:
Find an agent that spend time in the neighborhoods that you are interested in, they tend to be the better agents who can help you find the best home for you.

Really think about large and small changes:
For example a large change may be changing jobs. You want to make sure that any job
change doesn’t affect your mortgage approval. A small change would be changing your
current bank as you don’t want to slow down the process of verifying your checking and other monetary assets.

The July 2009 Skinny Video/ Twin Cities Real Estate

2009-07-22T15:37:00.001-05:00

Weekly Twin Cities Market Report

2009-07-21T12:30:00.001-05:00

Click Here For Full Report

As summer progresses, the Twin Cities housing market continues on a well-established pattern of shrinking supply and growing sales. New listings for the week ending July 11 were 1,867—a 13.7 percent decrease over last year but a nice pickup after the annual July 4 slowdown. Pending sales rose to 1,007, a year-over-year increase of 16.6 percent. That's not as much of a year-over-year expansion as the 30-plus percent growth this number has seen recently, but it still represents a trend of growing demand.

Active listings are at 26,279, a decrease of 21.3 percent from this time last year. Coupling this with a shrinking number for Months Supply of Inventory and a flattening of our Average Days on Market, it's apparent that the buyer advantage over sellers is waning, at least in the lower price ranges.

MAAR's Latest News Release – Prices Creep Up as Traditional Sales Grow

2009-07-16T09:14:00.002-05:00

MAAR's Latest News Release – Prices Creep Up as Traditional Sales Grow
Increasingly busy people seem to prefer lists to prose. So let's wrap last month's numbers like this:

June saw 5,183 signed purchase agreements, up 33.7 percent from this time last year.

40.7 percent of closed sales in June were lender-mediated, compared to 59.7 percent in January.

A decrease in lender-mediated market share brought the overall median price up from last month to $173,500 in June. Despite the month-over-month increase, that's still a 15.4 percent drop from June 2008.

The median June sales price of traditional homes was $210,000, down 7.7 percent from a year ago.

The median June sales price of lender-mediated homes was $124,025, down 16.8 percent from a year ago.

The number of properties for sale at the end of June was 26,204, down 21.9 percent from this time last year.

There are 7.3 months of supply available, down significantly from the 10.6 seen at this time last year and trending back down towards a balanced market of 5 to 6 months of supply.

There are 10.9 months of traditional supply and only 4.4 months of lender-mediated supply.

June's pending sales were the highest June showing since 2005 and the 12th consecutive month of year-over-year increases.

With low mortgage rates and the $8,000 federal tax credit for first-time home buyers, we're seeing the recent jump in sales spill over into the traditional market.

We still have an abnormally high number of foreclosures and short sales, but it's an improvement from six months ago.

Sellers still face a challenging market, but things look better for them than they have in awhile.

Weekly Market Report

2009-07-16T09:09:00.003-05:00

Weekly Market Activity Report

The Twin Cities housing market experienced its annual pre-Independence Day drop in activity as fireworks, barbeques and lake cabin excursions preoccupied the minds and schedules of many Twin Citizens. New listings took a steep dive prior to the holiday, dropping to 1,482 for the week ending July 4. This is an 8.3 percent decrease from the same week in 2008.

Pending sales also dropped to 989 for the week ending July 4. Fortunately, this stat is still a healthy 34.6 percent above where it was last year, when there were just 735 pending sales reported.

Further metric watching:

Housing Affordability Index – 192. While astoundingly high, the index has dropped since January due to price rebounding and higher mortgage rates.
Months Supply of Inventory – 7.3. This is a 31.1 percent decrease from the 10.6 figure posted last year at this time.
The market is showing signs of slowly moving back towards balance.

VIEW FULL REPORT

Weekly Real Estate Market Report For The Twin Cities

2009-07-07T15:53:00.004-05:00

Weekly Market Activity Report

Welcome back from the 4th of July weekend. Our post-4th news is remarkably the same as our pre-4th news. New listings continue at an atypically slow pace but pending sales are robust.

The 1,719 new listings for the week ending June 27 is 18.9 percent less than a year ago. The 26,043 total listings available is 21.3 percent less than last year. However, the 1,121 pending sales for this week excels last year by a giant 31 percent.

Additional metrics worth paying attention to this month:

Supply-Demand Ratio: 4.9 homes per buyer; 32.6 percent below last year; lowest since 2005.
Days on Market Until Sale: 140; seemingly high but crawling down to a pre-bubble level.
Housing market improvement has been significant in the lower price ranges, while homes priced above conforming loan limits still face significant challenges. With fewer homes available than last year, the number of days on market dwindling, and the clock ticking on government incentives, the buyer advantage is not as great as it once was.

VIEW FULL REPORT

Weekly Market Activity Report

2009-06-30T11:19:00.001-05:00

The number of homes for sale in the Twin Cities metro area continues to decline relative to a year ago. As of Monday morning this week, there were 26,674 homes for sale in the region, down 20.9 percent from a year ago. In other words, we've lost 1 in 5 homes in our inventory in the last year.

Sales are a different story. For the week ending June 20, there were 1,156 signed purchase agreements, up 32.1 percent from the same week in 2008. That's the 12th week of the last 13 to feature a year-over-year increase in sales activity exceeding 20 percent.

We must bear in mind, however, that sales are only up in certain categories and price ranges. Year to date, traditional home sales (excluding foreclosures and short sales) are still down 17.8 percent from last year. New construction sales are down 21.7 percent from last year. And sales of homes priced above $350,000 are down 26.8 percent from a year ago. The lion's share of market activity is taking place in the lower price ranges this year.

VIEW FULL REPORT

Weekly Market Report

2009-06-27T12:39:00.002-05:00

As we near the halfway mark of 2009, the Twin Cities housing market continues to show a pattern of robust home sales and declining new listing activity. Setting aside fluctuations over the Memorial Day holiday, long-term market improvement can be seen when comparing 2009 to 2008.

There were 1,210 pending sales for the week ending June 13—a strong 33.8 percent increase from last year. There were 1,970 new homes added to the market during the same week, a decrease of 2.6 percent from the same week in 2008. That 2.6 percent decline in new listings is a much smaller drop than we have seen in recent months when there were typically year-over-year drops of 10 percent or stronger.

VIEW FULL REPORT

June Twin Cities Real Estate Video Update

2009-06-22T16:03:00.000-05:00

July $8,000 Tax Credit and First Time Home Buyer Class

2009-06-22T11:07:00.007-05:00

Upon completion of this course graduates will be entitled to their choice of a FREE 1 YEAR HOME WARRANTY or FREE HOME INSPECTION.

$5.00 gift card to all who register in advance!!! (Pre-registration is greatly appreciated as it helps us in our planning.)

REGISTER ONLINE

REGISTER BY PHONE
612-237-6853

REGISTER BY EMAIL
bakruse@cbburnet.com

Reserve your spot now for our July 21st home buyer class. These classes are a loosely structured open forum so please bring any and all questions. We will break down the entire home buying process as well as the $8,000 tax credit.

Don't let a lack of information stop you from taking advantage of this amazing buyers market and your $8,000 tax credit.

Completion of this class also entitles you to your choice of a free home inspection or a 1 year home warranty. RSVP to 612-237-6853 or Email bakruse@cbburnet.com.

Guidance for Use of Tax Credit on FHA Loans

2009-06-16T08:20:00.001-05:00

Guidance for Use of Tax Credit on FHA Loans

Currently, just 10 state housing finance agencies (HFAs) offer a product that buyers can use to monetize the tax credit for downpayment purposes. Generally, these programs offer tax credit advances with second liens on the home being purchased. The second lien may be "soft" (silent) or require monthly payments but may not result in cash back to the borrower and may not exceed the total amount needed for the downpayment, closing costs and prepaid expenses. The 10 states offering these programs are Colorado, Delaware, Idaho, Kentucky, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania and Tennessee. Other states, including Minnesota, are developing programs so members are encouraged to regularly follow up with their respective HFA.

For all other states where such programs do not exist, the tax credit may not be used to fund the 3.5 percent downpayment required for FHA loans. As always, the 3.5 percent downpayment may be a gift from a family member, employer or nonprofit, charitable organization. FHA-approved nonprofit organizations and FHA-approved lenders may monetize the tax credit for downpayments in excess of 3.5 percent, closing costs and interest rate buy-downs. Mortgage industry leaders have indicated that this type of product may not be immediately available to consumers.

NAR Info on 2009 First-Time Home Buyer Tax Credit

Sources: The Washington Report, National Association of REALTORS®

Weekly Twin Cities Market Report

2009-06-16T08:17:00.001-05:00

Weekly Market Activity Report

New listings and pending sales both took a jump upward in the week ending June 6 as the annual post-Memorial Day surge in activity took place. There were 1,226 signed purchase agreements in the Twin Cities for the week, which represents a 33.4 percent increase over the same week last year. The 2,160 new listings were a 4.3 percent decline from a year ago but were a significant bump over the activity seen during the Memorial weekend respite.

The June Housing Affordability Index of 199 is down 20 points over the last two months due to recent rises in mortgage rates and seasonal increases in the region's median sales price. Combine that with a steadily declining Months Supply of Inventory (7.6 months) and falling Supply/Demand Ratio (5 homes per buyer), and it's clear that buying conditions are not quite as friendly as they were a couple of months ago, especially in the lower price ranges.

Regardless, there remains a hefty cadre of properties available for purchase. And with the $8,000 federal tax credit spurring first-time home buyer activity, this summer should be busy.

-MAAR

Traditional sales increase market share in Twin Cities Real Estate Market

2009-06-11T12:51:00.000-05:00

Traditional sales increase market share...

Minneapolis, Minnesota (June 10, 2009) – Traditional, non-lender-mediated homes increased their market share in May, according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.

The number of traditional home sales is growing. Only 43.0 percent of the pending sales in May were lender-mediated, compared to 59.4 percent in January.

This decrease in lender-mediated market share brought the overall median price up $12,000 from last month to $165,000 in May. Despite the month-over-month increase, that's still a 19.5 percent drop from May 2008. The median May sales price of traditional homes was $214,000, down 4.3 percent from a year ago. Lender-mediated homes posted a May figure of $122,000, down 20.8 percent from a year ago.

There were 5,183 signed purchase agreements in May, up 17.3 percent from this time last year, marking the 11th consecutive month of year-over-year increases.

"With low mortgage rates and the $8,000 federal tax credit for first-time home buyers we're seeing the recent jump in sales spill over into the traditional market a bit," said Steve Havig, MAAR President.

The number of properties for sale at the end of May was 26,674, down 19.0 percent from this time last year. That amounts to 7.6 months of supply available, down 26.9 percent from this time last year and trending back towards a balanced market of 5 to 6 months of supply. However, there are 9.9 months of traditional supply and only 5.0 months of lender-mediated supply.

"Sales are only up in certain price ranges and on certain property types, so smart pricing and marketing remains extremely important for sellers," said MAAR President-Elect, Brad Fisher.

My Maple Grove Open House - Saturday (11:00-1:00)

2009-06-05T09:54:00.004-05:00

For more information on Maple Grove Real Estate: SanctuaryRealtyGroup.Com

Please come see this beautiful Maple Grove home this Saturday. If you are interested in viewing this property but can not make it this weekend please give me a call 612-237-6853. It would be my pleasure to set you up with a private showing.

My Beautiful Maple Grove Open - This Sunday (1:00-3:00)

2009-06-04T15:34:00.003-05:00

For more information on Maple Grove Real Estate - SanctuaryRealtyGroup.com

If you are unable to make it this Sunday but would still like to see this home please give me a call 612-237-6853. It would be my pleasure to schedule a private showing.

Amazing Downtown High Rise Condo for Rent

2009-06-03T15:37:00.002-05:00

HUD Announces Guidance for Use of Tax Credit on FHA Loans

2009-06-02T10:38:00.002-05:00

HUD Announces Guidance for Use of Tax Credit on FHA Loans

Last month at NAR's Housing Summit in Washington, DC, U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan announced a program that would allow borrowers to use the first-time homebuyer tax credit for a downpayment or closing costs on an FHA-insured mortgage.

The details of the program were announced on June 1 in Mortgagee Letter 2009-15. Government entities and instrumentalities of government may provide a second mortgage. Currently, just ten state housing finance agencies offer a product buyers can use that will effectively monetize the tax credit for downpayment purposes. Minnesota is NOT YET on this list, but we are working toward this as quickly as possible. The required 3.5 percent downpayment may also be a gift from a family member, employer, or a nonprofit, charitable organization.

The original guidance permitted lenders and HUD-approved nonprofits and lenders to offer bridge loans via second lien financing or short-term loans. Guidance released today allows lenders to offer the monetized tax credit for downpayments in excess of 3.5 percent, closing costs and interest rate buy downs. Mortgage industry leaders have indicated that this type of product may not be immediately available to consumers. Lenders need time to develop documentation for what will effectively be personal loans to buyers. We will keep you informed.

Full HUD News Release

Sources: U.S. Department of Housing and Urban Development; The Washington Report, National Association of REALTORS®

Weekly Market Activity Report

2009-06-02T10:32:00.001-05:00

Weekly Market Activity Report

For the week ending May 23, there were 1,103 pending sales, which was down slightly from the week prior due to the Memorial Day weekend holiday. Despite the low-cal dip, the mark is still 27.2 percent higher than last year at this time. Of the week's sales, 43.2 percent were lender-mediated foreclosures and short sales. In week-by-week, year-over-year comparisons, sales are expected to be higher than last year for the remainder of the year.

Heavy sales and soft growth in new listings equate to no growth in the supply of homes for sale this spring—the time of year that typically shows the largest increases. There are currently 26,453 active listings, lagging 19.6 percent behind this time in 2008.

This week's edition of the MAAR Weekly Market Activity Report features a new Supply-Demand Ratio for June 2009 of 5.04, which means that there will be 5.04 houses per buyer during the month. This is an astounding 33.4 percent drop compared to June 2008. -MAAR

Home Sales Hot Streak Continues Into Spring Heat

2009-06-01T09:47:00.001-05:00

Home Sales Hot Streak Continues Into Spring Heat

April home sales in the Twin Cities were even stronger than March's upswing. There were 5,211 pending sales in April, up 23.8 percent from last April. This is the highest showing of signed purchase agreements in April since 2005 and the tenth consecutive month of year-over-year increases.

Of the month's pending sales, 46.0 percent were lender-mediated foreclosures and short sales—down from the last few months as more traditional properties are sold during the spring selling season but up from last year at this time.

The supply of homes for sale continues to experience sluggish growth this spring. There are currently 26,410 homes for sale in the Twin Cities, up 416 units from last month and down 18.4 percent from this time last year. The number of houses for sale for each buyer, as measured by our Supply-Demand Ratio, sits at 5.23 for May—down 28.6 percent from this time last year.

The median sales price for all properties in April of $153,000 is down 25.2 percent from a year ago. While this figure is mathematically correct, it is conceptually flawed. Since a higher share of sales this April were lender-mediated than last April, the number is skewed downward. The median April sales price of traditional homes was $205,000, down 8.5 percent from a year ago. Lender-mediated homes posted an April figure of $120,000, down 21.5 percent from a year ago. - MAAR

Weekly Market Report

2009-06-01T09:43:00.001-05:00

Weekly Market Activity Report

1,004. 1,046. 1,083. 1,078. 1,120. 1,185.

Notice a pattern? That's the number of signed purchase agreements each of the last six weeks in the Twin Cities housing market, growing most weeks as the spring buyer market heats up. The 1,185 pending sales during the week of May 9 were a robust 26.6 percent higher than the same week in 2008. Over the last three months, there have been 2,228 more pending sales than the same period last year.

There are some caveats to this good news:

Traditional home sales (excluding foreclosures and short sales) over those last three months are down 17.6 percent from a year ago.
Sales above $190,000 are down 19.2 percent from a year ago.
Sales of new construction homes are down 16.8 percent from a year ago.

June $8,000 Tax Credit & First Time Home Buyer Class

2009-05-27T16:58:00.010-05:00

Upon completion of this course graduates will be entitled to their choice of a FREE 1 YEAR HOME WARRANTY or FREE HOME INSPECTION

$5.00 gift card to all who register in advance!!! (Pre-registration is greatly appreciated as it helps us in our planning

REGISTER ONLINE

REGISTER BY PHONE
612-237-6853

REGISTER BY EMAIL
bakruse@cbburnet.com

Reserve your spot now for our June 16th home buyer class. These classes are a loosely structured open forum so please bring any and all questions. We will break down the entire home buying process as well as the $8,000 tax credit.

Don't let a lack of information stop you from taking advantage of this amazing buyers market and your $8,000 tax credit.

Completion of this class also entitles you to your choice of a free home inspection or a 1 year home warranty. RSVP to 612-237-6853 or Email bakruse@cbburnet.com.

When: Tuesday, June 16th, 2009
6:30pm
Where: 4100 Berkshire Lane North
Plymouth, MN 55446

Statistics Show Market Recovery Is Underway by Robin Peterson / President of Coldwell Banker Burnet

2009-05-27T09:38:00.003-05:00

Statistics Show Market Recovery Is Underway
by Robin Peterson, President Coldwell Banker Burnet

Many of you have heard me address what I call the “anatomy of a recovering market.” There are several ingredients that must be present for a recovering market such as stabilizing home sales, sustainable sales prices, declining inventories, a more balanced buyer-seller market, and increased affordability. As we look at the current statistics, the positive trends and conditions in our local housing market are more encouraging than they’ve been for some time.

Home Sales Stabilize

One important aspect of a recovering market is the stabilization of sales. In the Twin Cities metro area, we’ve experienced 14 consecutive weeks of double-digit increases in pending sales compared to the same weeks last year, according the Minneapolis Area Association of REALTORS® (MAAR). The most recent report from MAAR notes that April sales were even stronger than our improving March sales. There were 5,211 pending sales in April across the market, up 23.8 percent from April 2008. This is the highest number of signed purchase agreements in April since 2005. Closed sales in April also were good: Up 7.3 percent over last April.

Home Inventories Fall

Home inventory is another key component of a recovering market. As of May 11, the total active listings were 26,450, 19.5 percent lower than during the same period last year. But despite the lower number of houses for sale, there is still a great inventory of homes available. Whether you’re a first-time buyer, move-up buyer, or looking for a luxury home, there is plenty of selection.

Movement Back to Sustainable Prices; Declines Attract Buyers

During the boom years, home prices kept increasing to unsustainable levels. But during the last few years, we’ve seen price declines which are now leveling off. There have been larger price declines among lender-mediated properties, but if you look just at traditional properties, the median sales price is $205,000, just 8.5 percent lower than last April. This is great news for people who are looking to buy a home. They have great buying power in a market that is characterized by increasing price stability.

Consumers are noticing these opportunities and now have a very positive attitude about the housing market. A recent Gallup Poll of consumers across the country found that 71 percent of them believe that now is a good time to buy a home.

Housing Affordability Improves

In addition to attractive home prices, we also continue to enjoy great interest rates. Locally, interest rates for 30-year fixed rate mortgages are available in the high 4 percent range, and in the mid four percent range for 15-year fixed rate mortgages. This combination of low interest rates and good home prices is resulting in excellent affordability. MAAR reported that the May housing affordability index was 219, 45.5 percent higher than last year. This is the highest it’s ever been in our market since MAAR first began tracking affordability in 1990.

Month’s Supply of Inventory Tops Out

Our market has been a buyers’ market for quite some time, but during the last several months we’re seeing a return to a more balanced market. In May the month’s supply of inventory was 7.7, 24.5 percent lower than the May 2008 number of 10.2. This is definitely going in the right direction, as a five-month supply of homes for sale is considered balanced between buyers and sellers.

Builders/Developers Cut Production

Across the country, builders have been adjusting their production to meet demand. The Chairman of NAHB Joe Robson noted that builders are doing a “great job of thinning the supply of unsold homes and positioning themselves for a steady housing recovery.”

But it’s important to note that locally, builders are optimistic about the improving sales and filed an increased number of building permits in April. The Builders Association of the Twin Cities reported that there were 419 building permits filed in April, which was 43 percent higher than April 2008.

These favorable conditions, including government programs to encourage home purchases, are attracting more buyers. Many of our sales associates are working with first-time buyers who are excited about home values and the tax credit of up to $8,000 they will receive under the American Recovery and Reinvestment Act of 2009. Now is a great time to buy a home, especially for first time buyers.

During this spring home buying and selling season, buyers are out in force. They realize that our housing conditions are improving and there are opportunities they just can’t pass up.

Best wishes for a productive and successful spring and summer.

Robin

HUD: Homebuyer Tax Credit Loans Still on Track

2009-05-27T09:20:00.005-05:00

HUD: Homebuyer Tax Credit Loans Still on Track

News reports that the federal government is backing away from its plan to permit eligible borrowers to monetize the first-time homebuyer tax credit are off the mark, a spokesperson for the U.S. Department of Housing and Urban Development says.

Under the guidance that's under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their downpayment. The loans would be repaid with the proceeds from the households' federal tax credit.

The loans were announced on the opening day of NAR's 2009 Midyear Legislative Meetings in Washington, DC. In his announcement, HUD Secretary Shaun Donovan said guidance would be issued shortly. When the guidance is released, it is expected to cover eligible lenders and set parameters for loan terms and repayment.

Source: REALTOR® Magazine Online

This is all great news as it means that first time home buyers will potentially be able to use part of their tax credit as a downpayment.

Weekly Market Report for the Twin Cities Real Estate Market

2009-05-27T09:04:00.003-05:00

We here at MAAR trust you enjoyed a relaxing and respectful Memorial Day weekend. For the week ending May 16, there were 1,960 new listings, 10.2 percent less than the same week in 2008. The decline in new listings has helped improve the larger picture of total active listings.

Inventory is being sold through at a rate that is still flying high above last year's numbers. Breaking the 1,200 pending sales threshold for the first time in three years, the 1,235 pending sales occurring during the most recent reporting week is up 36.9 percent over the same week last year. While many of these sales are lender-mediated properties, the increase in sales is welcome news regardless.

The decline in new listings, coupled with increased pending sales, has resulted in active listings supply dropping significantly. A year-over-year comparison of active listings from last May reveals a drop of 20.5 percent, bringing our Supply-Demand Ratio down to a healthy 5.23 houses for sale per buyer.

The rebalancing is beginning but the journey back will be slow. It appears that enough houses will soon be off the market, thus creating a rebalancing of the buyer-seller mix and a reversal in price trends. -MAAR

Monthly Video Update

2009-05-26T11:22:00.001-05:00

House Flipping? No Flipping Way.

2009-05-19T22:25:00.001-05:00

How to know your ready to do a fixer upper.

2009-05-19T22:19:00.001-05:00

Twin Cities Foreclosures and Short Sales Report from Q1

2009-05-18T12:26:00.004-05:00

Click For Full Report

Foreclosures and short sales
in the Twin Cities Housing Market
Q1 2009 Update

Foreclosures & Lender-Mediated Sales Drop In The Twin Cities Real Estate Market

2009-05-18T12:23:00.001-05:00

Number of lender-mediated homes for sale drops
Q1 2009 Update to "Foreclosures and Short Sales" report released by MAAR

Minneapolis, Minnesota (April 16, 2009) – The number of foreclosures and short sales that are for sale in the Twin Cities housing market is falling quickly, according to an updated research report released by the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc (RMLS).

After four years of exponential growth, the number of lender-mediated properties for sale dropped by more than 1,200 units from February 1 to April 1 of 2009. The decline is even more impressive considering that the spring market typically sees an increase in the number of homes for sale.

The drop can be attributed in part to flattening new foreclosure and short sale listing activity, but mostly it is related to heavy home sales spurred by the likes of plunging mortgage rates, a federal $8,000 tax credit for first-time home buyers and record affordability.

"There's still a lot of lender-mediated inventory to work through," said Steve Havig, 2009 President of the Minneapolis Area Association of REALTORS®. "But buyers are absorbing it more quickly this year."

Lender-mediated home values are dropping quickly, while traditional homes are fairing better. The median sales price of lender-mediated homes in Q1 2009 was $122,900, a decrease of 21.7 percent from the same time last year. The median sales price for traditional homes was $212,000, a drop of a quieter 3.6 percent.

For Q1 2009, 36.1 percent of new listings and 58.8 percent of closed sales were lender-mediated. Declining activity in both supply and demand in the traditional, non-lender-mediated market, means that foreclosures and short sales will continue to hold a heavy market share throughout 2009.

Want to see how foreclosures and short sales are affecting various neighborhoods and cities within the Twin Cities metro area? Access an interactive data board with in-depth neighborhood reports and commentary at Lender-Mediated Report – Interactive Tool.

The five-page "Foreclosures and Short Sales" report for Q1 2009 can be found on the Minneapolis Area Association of REALTORS® website at www.mplsrealtor.com and includes more analysis and an explanation of the research methodology.

May Twin Cities Housing Supply Outlook

2009-05-16T09:35:00.003-05:00

Housing Supply Outlook – May 2009

The May Housing Supply Outlook is available. Lately, there appears to be a jumbo-sized problem with home sales (if you know what we mean). Here's what to watch for:

While it's certainly welcome news that home sales are up in the Twin Cities metro, there's a big caveat to keep in mind pertaining to price points. All of the growth in sales can be found in the lower price ranges where foreclosure and short sales are more common.

The largest drops in home sales can be found in the price ranges above $350,000 where higher jumbo mortgage rates are charged to borrowers.

The inventory of homes for sale is now lower than it was a year ago for every price range except homes under $120,000, where it is still up 38.1 percent from this time last year.

-MAAR

Executive Style Maple Grove Open / Sun 1:30-3:30

2009-05-14T14:32:00.002-05:00

Please join me this Sun from 1:30 - 3:30 for a tour of this meticulously maintained executive style home.

If you are unable to make it this weekend but would still like to tour the property, please call 612-237-6853.

4 Bed
4 Bath
4,004 TFSF (with additional room to finish in the basement)

Amazing Maple Grove Open House / Sun. 11-1

2009-05-14T13:43:00.002-05:00

Please join me at my Maple Grove open house this weekend from 11AM-1PM.

Also - If you would like to see this home but can't make it this weekend please let me know. I would be more than happy to get you in for a private showing. Just give me a call at 612-237-6853.

Maple Grove
3 Bed
3 Bath
2,512 TFSF

Weekly Market Report

2009-05-12T20:20:00.005-05:00

Not everyone is thrilled by increasing numbers, but what they represent in the Twin Cities housing market is nothing to worry for 108 minutes over. Two increases—pending sales and housing affordability—are indicating improvement in the local housing market.

There were 1,120 pending sales for the week ending May 2, a healthy 26.3 percent above last year at this time. The Housing Affordability Index, now at 219, is 45.5 percent above where it was a year ago.

Active listings continue to underwhelm at 26,450, a decrease of 19.5 percent from last year. The lower figure, coupled with increased sales, has in turn helped to create a Supply Demand Ratio of 5.02 for April—31 percent lower than last year. Combining this with the 24.5 percent drop in Months Supply of Inventory over the past year could speak to the amount of houses (and foreclosures) remaining on the market that are selling through.

We don't want to get too far ahead of ourselves, but this could also usher in some new construction for the summer period. According to the Builders Association of the Twin Cities, there were 419 residential units permitted in April 2009, an increase of 43 percent over March 2009.

You don't have to be able to read hieroglyphics to see that within these numbers there could be some optimism found in what was once Lost.

Coldwell Banker Burnet / Ninth Annual Breakfast for the Cure

2009-05-11T12:40:00.002-05:00

Thank You for Making the Ninth Annual Breakfast for the Cure A Success! $12,224 Raised to Fight Breast Cancer!

Coldwell Banker Burnet Home Services, including PHH Home Loans, Burnet Title, and Coldwell Banker Burnet, recently held a successful Breakfast for the Cure, raising $12,224. All proceeds will benefit the Susan G. Komen Breast Cancer Foundation, which fights breast cancer through research and community outreach programs. In nine years, this annual event has raised a total of more than $59,000.

The event, which was held in 14 company offices, included a free breakfast and a drawing for $3,500 worth of prizes, which were won by 59 people. The grand prize was a 32-inch LCD HDTV donated by Burnet Home Loans, Burnet Title and Coldwell Banker Burnet. Muggs Lerberg, sales associate with the Plymouth Office, was the lucky winner of the TV.

Robin Peterson, president of Coldwell Banker Burnet, said, “The Susan G. Komen Breast Cancer Foundation helps so many people in our community. We are pleased to support this worthwhile organization and its vital mission.”

“Every year, we have an excellent turnout for our annual Breakfast for the Cure and receive many generous donations,” said Mary Baymler, president of PHH Home Loans. “This was another great year.”

Ronnie Semlak, president of Burnet Title, said, “We really appreciate all of the great support we receive from Coldwell Banker Burnet Home Services employees and sales associates. When this many people work together, we can accomplish a great deal.”

Thanks to everyone who generously donated their time and money to support this important cause!

-Colwell Banker Burnet (Hot Wire)

Great Open in Maple Grove this Saturday 1-3

2009-05-06T13:17:00.003-05:00

Click picture to see larger image...

16843 89th Place N, Maple Grove

3 Bed
3 Bath
2,512 TFSF

Please come see me this Saturday. This place is beautiful!!!!

Weekly Market Report

2009-05-05T15:13:00.001-05:00

We trust that you had a good May Day, International Worker's Day or early Cinco de Mayo celebration. Whatever your cause for celebration, the Twin Cities housing market did not take a holiday. During the week ending April 25, pending sales posted their fourth consecutive week of more than 1,000 sales, a feat not accomplished since 2006. The 1,078 sales represent a 34.1 percent increase over the same week last year.

Supply remains a different story. New listings were hitting the market at a robust pace last spring, but activity has been comparatively tepid this year. New listings are 16.4 percent behind one year ago and the overall supply of homes for sale trails last year by 19.0 percent. We have remained near 26,000 homes for sale for most of this year, betraying the healthy seasonal growth we typically see this time of year.

Yes, supply is down, but there's still plenty of inventory out there. April's showers are behind us, the Housing Affordability Index is stratospherically healthy, low mortgage rates persist, and a first-time buyer tax credit remains in effect. At this clip, your buyers could certainly find May flowers blooming in front of their newly purchased homes.

Coldwell Banker On Location, the New YouTube™ Channel

2009-05-04T13:16:00.001-05:00

Coldwell Banker On Location, the New YouTube™ Channel for Real Estate Launches May 4
Coldwell Banker is excited to be working with YouTube™ to develop a totally customized framework and experience to create Coldwell Banker On Location. With this new online program Coldwell Banker will be the first real estate brand on YouTube to launch an easy to use destination for video content that offers consumers local, regional and national insights and information on everything real estate.

YouTube is one of the first places most consumers go today when looking for video content. In fact, YouTube is now the world’s second largest search engine, trailing only Google™. Consumers are increasingly turning to YouTube for much more than entertainment. Many consumers are looking for practical information they need—including when they want to know more about a specific area or town.

Interweaving content across a custom-designed YouTube™ portal as well as the Coldwell Banker national Web site, Coldwell Banker On Location will offer both consumers and its agents a new way to engage in the home buying and selling process— using video to an extent never before seen in our industry.

This online initiative will allow you to develop your own video content to be posted to Coldwell Banker On Location where an in-depth library of video listings and valuable local market insights will be available to buyers and sellers. You will have the capability to upload videos on local communities, video listings and more.

So, why is Coldwell Banker embarking on this online project?

Clearly, online is where the action is when it comes to real estate. It’s where consumers first turn when thinking about where they may want to live, checking out prices in a certain area or browsing homes available for sale.

We all know a few lines of newspaper text no longer cuts it when it comes to selling a home. But for today’s tech-savvy consumers, even photos of a listed property may not be enough to get them excited. Video is the future of real estate. Consumers are accessing more video through more channels than ever before via computers, their mobile phones and through a range of other handheld devices.

Video listings represent one key to the future of real estate and will bring your listings to life. Stay tuned for more information coming soon. Visit CBWorks.ColdwellBanker.com to view two videos introducing this new program:

http://cbworks.coldwellbanker.com/app/Content?action=viewContent&content=14507505

My Open in Maple Grove, Sun 1-3

2009-05-02T13:04:00.001-05:00

Twin Cities Foreclosures and Short Sale Report

2009-04-29T09:15:00.000-05:00

Click Here:

Foreclosures and short sales
in the Twin Cities Housing Market
Q1 2009 Update

Weekly Market Report

2009-04-29T09:10:00.002-05:00

Low mortgage rates, high affordability and government programs designed to encourage home purchases are continuing to spur home sales this spring despite an iffy economy. The week ending April 18 was the fourth consecutive week of pending sales activity that was more than 20 percent higher than during the same week in 2008. There were 1,083 pending sales for the week, up 21.3 percent from this time last year. It was also the third consecutive week of 1,000-plus unit sales, a first-time occurrence since 2006.

All these sales are quickly whisking inventory off the market at a time when new listing inventory is not growing at its typically robust spring rate. The number of total homes for sale is down 18.4 percent from a year ago at 26,318. As a result, the gap between this year's supply of homes and that of previous years continues to grow.

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