The real estate market for the week of October 1st, 2008

While sellers continue to list fewer homes, buyers remain firmly in control in
the Twin Cities housing market. New listings on the market for the week
ending September 16 were behind the same time last year by 11.4 percent,
while newly signed purchase agreements (pending sales) fell by 26.3 percent
for the same time period. With slow sales comes decreased inventory
absorption; the number of homes for sale is 9.9 percent higher than at this
time in 2006.

The SDR increased slightly to 10.47, which means there
are currently 10.47 homes on the market for every buyer—a new October
record. Following the key interest rate cut from the U.S. Federal Reserve,
rates dropped slightly from last month to 6.7 percent. With home prices
declining moderately, further rate declines would improve affordability.
[where: 55405]

Bryn Mawr and Harrison New Development

Bryn Mawr and Harrison neighborhoods are aggressively pursuing guaranties that jobs and affordable housing will flow from the redevelopment of Bassett Creek Valely, a 230 acre parcel of land it shares with Bryn Mawr. Ryan Companies is proposing to redevelop two parcels of city owned land, including 26 acre city impound lot off of Colfax Ave North and Linden Yards, a 30acre strip of property along highway 394 used for storage and concrete crushing. The proposal includes 107 - 205 million square feet of office space and up to 1,000 housing units in the Linden Yards are. Up to 450 housing units and 25 acres of parkland would replace the impound lot. [where: 55405]

Bryn Mawr and Harrison New Development

Special Fed Alert - Interest Rate Drop

The long awaited Fed decision arrived with a bang! The Fed surprised many economists and traders with a half percent cut in both the Fed Funds and Discount Rates. Stocks soared higher and enjoyed their largest gain since 2003.
What does the Fed cut mean? Rates on consumer debt, car loans, and Home Equity lines will all benefit. But because Home Loan rates are tied more closely to inflation, it is not uncommon to see less of a reaction...or even an opposite reaction in mortgage rates.

The Fed cut also hurts rates of return on investments, which gives foreign investors less incentive to invest in US securities. This has sent the Dollar much lower against the currency of most major foreign countries. This makes foreign goods more expensive for us to buy, which adds to inflation pressures.
Overall, the Fed cut is good news for the economy, but may nudge inflation a bit higher.

I love Bryn Mawr

I have to say its a heck of a neighborhood. Take an aerial look at it. Your two minutes from downtown Minneapolis, from three wonderful lakes, an executive 18 hole golf course, mountain bike trails, wild flower garden, hiking trails, multiple parks, swimming lake, show tubing, cross country skiing, snow boarding, coffee shops, salons, markets, massage and the list goes one. Imagine having all of this right in your backyard. If your into really living life to its fullest, you will find everything is only 2 minutes away if you live in Bryn Mawr. Call me if you would like to learn more about this fabulous neighborhood because I don't only work here but I also live here. [where: 55405]

Market Update – Sept. 2007

We know all markets are not the same. Some pockets of our metro market continue to experience multiple offer situations, while others require multiple price reductions and more time on the market. To further illustrate this point, what’s true for the national market may not be true locally. Recently, the National Association of REALTORS® (NAR) forecasted a rebounding real estate market in 2008. While we believe that an upturn will occur, we expect the Twin Cities market will continue its post-boom correction a little longer than national predictions. One factor contributing to this might include Minnesota’s unemployment rate. While still among the lowest in the country, the rate has risen from 3.9 percent to 4.6 percent compared to the national unemployment rate, which has been level over the same period of time. However, according to the U.S. Census Bureau, Minnesota remains among the most affluent states in America, boasting the 10th highest median household income in the country.

Sent to me by Bob Peltier of Edina Realty

The sky is not falling, the real estate bubble IS NOT bursting.

Every where I turn there is a story talking about how bad the real estate market is. Yes, its has taken a 180 degree turn but its still a great market where peoples homes have appreciated nicely over the past 6 years. So we made an adjustment, big deal, we couldn't keep appreciating at the rate we were going. No one would of been able to buy a home.

Homes are still selling, some quicker than others and some in multiple offer situations. Believe it, I hear stories every week. There are still buyers buying. So, if your worried about selling, don't be, just make sure you have a good realtor working for you. If your thinking of buying and waiting for the market to bottom out, you better put away the crystal ball because it doesn't work and the market is starting to slowly recover. [where: 55405]

Weekly Market Activity Report

Sellers and builders continue to curb activity in the Twin Cities housing market, with the week ending August 25 posting only 1,874 new listings—down 9.5 percent from the same week in 2006 and even further from their early summer peak. Despite the decline in new seller activity, the number of homes on the market remains at a record high for this time of year with 34,225 residential units for sale. This persistently high inventory is due to slowed absorption caused by sluggish home sales; newly signed purchase agreements were 18.7 percent behind this time last year.

September 2007 figure for our Supply-Demand Ratio (SDR). The SDR grew to 10.39, which means there are 10.39 homes for sale per buyer. This is an increase of 24.8 percent from last September, and this figure should continue to grow through December before declining in 2008 with the end of the winter season slowdown.

Brought to you by Minneapolis Area Association of Realtors.

Ways to make your home more attractive to buyers.

If you're re-doing your kitchen or bathroom, think about using glass tiles instead of ceramic ones. They're the new craze because of reflective qualities.

Avoid installing bowl-shape sinks that sit above-the-counter. They look pretty but have proved to be harder to maintain and keep clean.

Use engineered stone compound for kitchen counter tops. The material is less expensive than granite and is expected to be the trend this year.

Don't install too many glass cabinet doors in your kitchen. They look better in pictures than they do in real life and homeowners must keep their cabinets in perfect order or suffer your guests seeing whats in the cabinet.

Replace a wooden or chain-link fence with a wrought-iron one. Wrought-iron fences portray a look of luxury.

When repainting trim around your doors and window frames, go with bold and deep colors. Also, don't get rid of the trim around interior window openings -- it only looks cheap.

Avoid bamboo flooring. This flooring was popular when it first came out, but now users are saying it is easily dented and scratched. It is also more likely to warp due to weather and humidity.

If you're adding new construction, don't employ concrete blocks in exterior walls. They are not attractive and are more likely to leak moisture if not properly installed. [where: 55405]

The Good Realtor

Its frustrating when I'm on the MLS looking at listing and I see poor quality photos, mislabeled information or no information at all. How do sellers hire Realtors that don't treat their homes like their own. I guess it comes down to the old saying, " You get what you paid for". Agents who are quick to reduce their commission to get the listing must also be quick to provide poor service to the seller and their home. Which in turn means longer market time and less money received for their home. It just pains me to see this happening everyday when someone could just interview another agent and check out their credentials, other listings, call the agents past clients. etc.... Would you just hire any surgeon or would you talk to friends and family. Maybe even do some research to make sure your getting the right person for the job. People really need to take their time and walk into the home selling process and not run. [where: 55405]