METROPOLITAN LIVING GUIDE 2007

Not to toot my own horn(TA-DA!) but I recently had the good fortune to be interviewed by Molly Priesmeyer of the City Pages -Metro Living Guide. I think it is one of the best articles written locally about the current real estate market in the Twin Cities. Here's an excerpt on Selling Your Home:

Life is a Stage

Speaking of showing buyers, sellers need to remember that homes are a reflection of our lifestyle. It's not about where we live, as much as it's about how we live. Like our fashion choices, or homes are a reflection of who we are. As a seller, it's your job to figure out who your buyer will be, and work hard to show that buyer how your home can reflect their lifestyle.

According to T.J. Larsen, an independent realtor and blogger who writes at tcrealtor.blogspot.com about real estate trends and tips, the largest population of local homebuyers is between ages 24 and 40. "Buyers are getting younger," Larsen says. "And so are Twin Cities neighborhoods."

Here's a segment on how Buyers can really capitalize on the Current Market:

SAY HELLO TO GOOD BUYS
It's a buyers' market. But how can you ensure you don't get trapped in a bad deal?

Twin Cities neighborhoods are changing as quickly as spring turns to summer. The Light Rail line is connecting neighborhoods and new and old neighbors. Downtown and the airport are more accessible than ever before. Transportation has become easier and less time-consuming. And improved parks and the Greenway are making biking from downtown to the suburbs a beautiful and breezy ride.

Outside of the immediate metro area, suburbs are becoming miniature cities. Urban planners and designers are paying more attention to streetscapes, turning main streets into thriving destination spots. And new locally owned restaurants and shops are popping up all over the Twin Cities and the suburbs like tulips poking their heads out in May. This diversity of living experiences is exactly what buyers need and want, says independent realtor T.J. Larson. So if you're looking to buy smart and gain equity, buy in a neighborhood that has something to offer not only you, but future buyers, he notes. Most buyers these days are between the ages of 24 and 40. You want to think about young, hip urbanites them even when you're thinking about yourself, Larson says.

Location, Location, Location

You've heard it a million times. Location matters! Before you make an offer, you need to ask yourself, is it a good location? Will it hold up over time? To get an idea of the price you'll offer, make sure you do a sales analysis of homes in the area. Don't be afraid to ask the agent to give you evidence of what similar properties have recently sold for, Larson says. If you're buying in Minneapolis or surrounding suburbs, be sure to investigate through the Hennepin County site (see sidebar, "Sell Smart, Buy Wise") what the seller paid for the home. This will give you more negotiating space. "You also need to trust your instincts," Larson says. "Go back and visit the neighborhood and the home without your agent. Check it out again on your own; trust yourself." What are the kinds of locations that will hold up in the future? Larson says the neighborhoods with the brightest futures are the ones that offer trendy establishments, but still have the traditional icons that make Minnesota unique. Neighborhoods that have, say, a VFW hall or an old-school Norwegian bakery near a hip, minimalist new wine bar are exactly the quirky Minnesotan qualities that make will make neighborhood desirable over time. "Things are really changing in the Twin Cities," Larson says. "And it's a really great thing. People are creating their own communities now. They're becoming urban planners, in a way." Not only will this trend change the face of Twin Cities neighborhoods, but the younger buyers and their needs will start affecting a change in public education and public policy as well. And small-service businesses that cater to urbanites will continue to excel and thrive in community-focused neighborhoods. Pet stores, convenience shops with organic goods, coffee shops, for example, will only benefit from the shift in demographics and lifestyles. Larson calls the shift a continual spread of the Uptown phenomenon of 15 years ago. Neighborhoods East of Hennepin are continuing to grow, adjust, and become revitalized with each new project and shop. St. Paul neighborhoods are benefiting from the shift, too.

And...

Don't Be Afraid to Make Demands

No matter how pushy they might be, never let the realtor take the reins. "Realtors used to be the gatekeepers of information," he says. "Now, with the internet, all the cards are turned over on the table. It's as transparent now. Everyone benefits if you have that." In other words, do your research. Before you chose to spend hours driving all over town with a real estate agent you're unsure of, ask the agent for references. Interview them like you would any prospective employee. And make sure you're clear about your needs and that the agent understands them. "You want to make sure your realtor is someone you like and trust," Larson says. "You're going to be spending a lot of time with them. Make sure they do the work for you," he says. As a buyer, you can also demand that the seller do the work, he says. Ask them to pay your closing costs. Ask them to make all the necessary repairs. And don't be afraid to negotiate on the price. Meaghan Miller recently purchased a home in South Minneapolis. The 28-year-old graphic artist stumbled upon the home while traipsing through open houses one Sunday before the holidays. The sellers had already moved out, leaving the home bare. It was an immediate sign, Miller says, that she would have the upper hand when it came to negotiating. "The family had already moved away and had to sell fast," Miller says. "I knew it immediately walking in. So I was able to buy it for $6,000 less than the asking price, and get them to pay my closing costs." And though Miller liked other homes better, the stage had been set: She knew she had a sweet deal.

Crash and Burn?

While 2006 saw the biggest drop in home sales in nearly 20 years, Larson says there's no evidence to suggest that the Twin Cities is suffering from a major crash. Instead, he says, the bubble is merely releasing some of that hot air. And home prices are becoming more realistic, and luckily more affordable. "Affordable housing is a key to sustaining a city," Larson says. "And already we are short on affordable housing. It's necessary to the survival of the Twin Cities." More choices for buyers is a good thing, he says. While the market bottomed out last year, evidence suggests it will remain steady - but realistically steady. That means if you're purchasing a new home, don't expect to see 11 percent increases in value in a single year. Instead, Larson says, a conservative estimate is that home prices will continue to increase over the next 10 years at about five percent per year. "Five percent isn't horrible," Larson says. "If you buy a $200,000 home, in five years you've made more than $60,000. And that's being conservative," he adds. In other words, Larson says, there's no better time to buy. And there's no better time to be living in the thriving Twin Cities.

Read the entire article here Thanks Molly for the excellent article!

Reasons to Buy in a "Flat" Market

I'm not a huge fan of Bob Bruss but his recent column does a fine job of explaining some of the tax benefits that come with investing in Real Estate:

Don't worry; invest in real estate

Although market-value appreciation rates have shifted to a ''plateau'' in most cities, long-term realty investing still provides tax benefits.

''Why buy real estate in a flat market?'' That is the essence of a question my airline seatmate asked me after he learned I invest in and write about real estate. But rather than answer his question directly, I asked him, ``Do you own your home?''

''Of course,'' he replied. Then I followed up by asking him the benefits of owning his home. As I recall, he listed security, pride of ownership, tax savings, market-value appreciation, building equity, investment safety, no rent increases, and perhaps a few I forgot.

My seatmate then asked me if I thought he and his wife should sell a rental house they own in Arizona. They seem to be having problems keeping it occupied by reliable renters since it is about 1,000 miles from their primary residence. But then he quickly added, ``Our problem, if we sell, is we would owe tax on at least $75,000 of profit.''

Although I pointed out the current low federal long-term capital gain tax is a maximum of only 15 percent, my new friend seemed highly averse to paying taxes. So I suggested he make a tax-deferred exchange for a rental house close to his residence so he can better manage it.

• Major tax savings from realty investment property. Although the high, runaway-market-value appreciation rates of the last few years for residential properties has shifted to a ''plateau'' in most cities, long-term realty investing still provides major tax benefits for owners who ''materially participate'' in operating their properties.

Although federal tax law requires ''material participation'' by investors who want maximum tax savings from their realty investments, they can still delegate day-to-day operating details to a property manager. Owners who make the major decisions, such as setting rents, establishing rental rules and authorizing major expenditures, easily qualify.

However, an investor who owns less than 10 percent of a property partnership does not qualify, nor do owners of REIT (real estate investment trust) stock and owners of vacation homes who have their properties in ''rental pools'' managed by others.

Investors who meet the ownership and material participation tests can deduct up to $25,000 of their ''passive activity'' investment property tax losses from their ordinary taxable income up to $100,000 annual adjusted gross income (AGI). For realty investors with AGI between 100,000 and $150,000 the tax loss deductions, the deduction gradually phases out to zero above $150,000 AGI.

Fortunately, most of these so-called tax losses are not actual cash losses. Instead, they are ''paper losses,'' usually from the depreciation tax deduction for estimated ''wear, tear and obsolescence'' of the building.

Residential real estate is currently depreciated over 27.5 years, and other realty is depreciated over 39 years. Personal property used by tenants, such as appliances and furniture, has a much shorter depreciable useful life. But land value is not depreciable.

Investors who find they can't offset their rental property tax losses against their AGI must ''suspend'' those unused losses. IRS Notice 88-94 says these unused suspended losses can be used in future tax years on an aggregate basis, rather than property-by-property, when selling.

• How to claim unlimited investment property losses.

There is a little-known, perfectly legal way to claim unlimited investment property losses against your AGI regardless how much you or your spouse earns. The solution is to become a ``real estate professional.''

Real estate brokers, realty sales agents, property managers, builders, contractors and leasing agents clearly qualify if they work at least 750 hours per year (about 14 hours a week) on their real estate activities.

However, realty investors also can qualify as ''professionals'' entitled to the unlimited investment property deductions against their ordinary income if they spend at least 750 hours per year on their investment activities. Either spouse can qualify. A real estate sales license is not required.

For example, suppose a married physician's AGI is $500,000. Normally, he would not be entitled to any property loss deductions because his AGI exceeds $150,000. However, if his wife manages their real estate properties from their home and she spends more than 750 hours annually supervising the properties, making management decisions, inspecting properties for possible purchase, and supervising property sales and exchanges, they qualify. The result is the physician and his wife can claim unlimited property loss deductions from their properties because the wife qualifies as a ``real estate professional.''

• How to avoid tax when selling investment property.

Although most investment real estate offers many benefits already listed, when the property is sold, Uncle Sam (and most states) are waiting to collect capital gains tax. In addition, Uncle Sam imposes a special 25 percent ''depreciation recapture'' tax for the portion of capital gain attributable to depreciation deductions enjoyed by the owner.

However, there are several ways to avoid these taxes. The ''ultimate tax shelter'' is to die while still owning a depreciable property. Uncle Sam will be so distraught upon learning of your death he will waive any capital gains and depreciation recapture tax that would have been due if you sold the property before you died.

But a more acceptable way to avoid capital gains and depreciation recapture tax is to make a tax-deferred Internal Revenue Code 1031 exchange for another investment or business property of equal or greater cost and equity. Personal residences are not eligible. But cash or ''boot'' such as net mortgage relief taken out of such an exchange is taxable.

However, savvy investors can make a tax-deferred IRC 1031 trade of their rental property for another qualifying rental property, perhaps an ultimate ''dream home,'' and later convert it into their personal residence. Most tax advisors recommend renting the acquired property at least 12 months to show rental intent.

After owning the acquired rental property at least 60 months, 24 months of which it is occupied as the owner's principal residence, then the owner can sell it and claim up to $250,000 tax-free profits (up to $500,000 for a qualified married couple filing a joint tax return in the year of home sale), thanks to Internal Revenue Code 121.

Owning real estate investment property provides many tax benefits, both during ownership and at the time of sale or tax-deferred exchange. Most rental properties appreciate in market value over the long term and offer many additional tax benefits. Ask your tax advisor for details.

Weekly Market Activity Report

As the Twin Cities housing market inches closer to the active spring season, seller activity is not matching the white-hot records of 2006 but still remains ahead of previous years in this decade. New listings for the week ending February 10 were 7 percent behind the same time in 2006. New construction comprises 14 percent of this new inventory and will account for a lower market share in the coming months as existing homes are placed on the market more heavily in the peak spring and summer buying seasons. Buyer activity remains relatively quiet but anecdotal comments from brokers and agents indicate that buyers are out looking earlier this year. That said, pending sales for the week ending February 10 were 11 percent behind the same time in 2006 and 22 percent behind the same time in 2005. Temperatures in the Twin Cities were unreasonably frigid for that week—an average of 10 degrees below historical norms—and may have helped to depress buyer activity further than market conditions alone would have. Historically low interest rates are still combining with flat home prices to improve affordability and draw buyers back into the fold.

Wall Street Journal on Zillow

Recently I blogged about Zillow. (I'm for it...something that is rare in my profession.)

Here's the Wall Street Journal's take:

In the year since its launch, Zillow Inc. has made millions of Americans familiar with computer-generated estimates of home values, created a new online addiction and become a staple of dinner-party chatter.

But just how accurate is it? A Wall Street Journal analysis of 1,000 recent home sales shows that Zillow's "Zestimates" often are very good, frequently within a few percentage points of the actual price paid. But when Zillow is bad, it can be terrible -- off the mark by more than 25% on one in 10 homes. In one case it was off by $2 million.

Zillow, based in Seattle, operates a Web site that offers free estimates and other online tools for real-estate buyers and sellers. It draws revenue from online advertising.

More HERE.

Real Estate Market Shows More Signs of Recovery

Home sales slump slows; buyers still in charge

Home sale prices dipped slightly last month, while the decline in pending sales was less severe than in previous months. Interest rates remain low.

Although the spring market housing market isn't going to break any records, it is showing some signs of recovering from the deep doldrums of late 2006, according to data released Monday by four Twin Cities-area Realtor associations.

The most telling indicator of what to expect in the coming months is pending sales for January, which were down 6 percent from January 2006, compared with double-digit declines during much of 2006. That's about 600 fewer transactions than were posted when the market peaked in 2003 and still within historical averages.

Pending sales are signed purchase agreements for transactions that have not yet closed.

Deb Greene, president of the Minneapolis Area Association of Realtors, said she expects that sales pace to continue into the year. She's seeing increasing open-house traffic and more buyers who dropped out of the market last fall getting back into the market this spring.

"I think we're in a rebound year now," said Greene, who confesses to being an optimist. "We're getting into a more accessible marketplace, which is much ... healthier."

What's bringing the buyers back?

In part, fear of missing near-record low mortgage interest rates, which rose slightly last week. At the beginning of January, the average rate on a 30-year fixed-rate mortgage was 6.18 percent, according to mortgage funder Freddie Mac. That number rose to 6.28 percent on Thursday.

The increase caused the housing affordability index to fall slightly to 137. That means that the median family income is 137 percent of the necessary income to qualify for the median-priced home with a 20 percent down payment and a 30-year fixed-rate mortgage.

"Buyers are finally realizing rates aren't going to stay where they are forever," Greene said.

Buyers have more choices than ever, too. Inventory remains at record highs, but the increases have been much more moderate than during most of 2006, when monthly listings jumped as much as 40 percent.

Last month, the number of new listings was up 5 percent. That, too, is relief from the double-digit increases during 2006, but it was still the highest number of new listings added during January since the boom began six years ago.

Prices, too, have been relatively favorable to buyers. During 2006 the median sale price of houses sold through the Regional Multiple Listing Service rose only 0.5 percent. January's median price, $225,000, was down 1 percent from January 2006.

Steve Hyland, president of the St. Paul Area Association of Realtors, said in a prepared statement that while the overall median price of active listings remains consistent with the past 12 months, the median price of pending sales is the lowest in two years.

"Sellers appear to be much more motivated than we've seen in previous months," said Hyland, broker-general manager of Split Rock Realty in Edina.

Bubble Bubble Toil and Trouble

I believe that the more information consumers have, the better informed they are about their choices, the happier they are and that ultimately makes my job more rewarding. In my experience Bubble Bloggers, as a rule, have an axe to grind. And they have at least three things in common:

1.) They Hate Realtors
2.) They Rent rather than Own.
3.) The ignore facts that disprove their theories.

But hey - people - could say they same types of things about people in the Real Estate Industry. It's all about your own point of view.

For example, a Bubble Blogger will say the current slowdown in the market is indicative of a new trend, one in which values will start to fall.

But when you look at the facts - that over the entire history of property ownership in the United States values have ONLY gone up, over time, they simply ignore it. They point to a downturn on the Japanese Real Estate Market that lasted 14 years and say : "it will happen here."

Well, saying it won't make it so.

I recently read an EXCELLENT REPORT put out by the Minneapolis Area Association of Realtors Research Manager Jeff Allen and it had MANY INCREDIBLE STATISTICS that I will be happy to share with you over the next few weeks.

Here's a taste, for now, of one that blew my mind.

The average sale price in the Twin Cities through the years.

1980 $74,069
1990 $98,016
2000 $181,605
2005 $272,522
2006 $278,462

Wait a minute?!? Didn't the market collapse last year?

You see my point, now have a look at theirs, and please note who states fact over opinions...

Housing Bubble Blogs

From InmanWiki

There are many real estate and economics blogs that focus on research and discussion relating to housing bubbles (see United States housing bubble), also known as real estate bubbles. Some of the blogs are focused on local or regional housing markets while others have a national view.

These blogs typically offer opinion and analysis, and some of the blogs in this broad genre generate income through advertising, draw thousands of unique visitors each day, and can collect hundreds of comments on a single blog post.

A blog at the patrick.net site, "Reality Parser," is one of the most popular bubble-related real estate blogs. The site is maintained by Patrick Killelea, an engineer who works on programming for a large bank.

"The Housing Bubble: Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole," is another popular housing bubble-related blogs. The site's author, Ben Jones, residents in Northern Arizona.

Also among the list of housing bubble blogs:

"Baltimore Metro Area Housing Blog: A forum for the under-reported housing market conditions in the Baltimore Metro area." This blog focuses on the city of Baltimore and surrounding counties.

"Bubble Meter: A blog dedicated to the premise that there is a Housing Bubble in many locales in the USA." This blog, based in Maryland, has "a particular focus on the: When will it pop? Why will it pop? How will it pop? Where will it pop? Who is responsible for the bubble? Also the DC Metro Area bubble," according to a Web site description.

"DC Housing Bubble Blues." This site was created by Delilah Boyd.

"Housing Doom Housing Bubble Blog: The housing bubble has burst -- what happens next?" This blog was created by Debi Averett, aka "Twist," who is a research scientist with a master's degree in botany. Averett lives in the Phoenix metro area.

"Housing Panic: The Housing Bubble Blog with Attitude."

"The Jersey Shore Real Estate Bubble: A chronicle of the collapse of the Jersey Shore real estate market, and elsewhere."

"Professor Piggington's Econo-Almanac for the Landed Poor: Southern California Housing Bubble News and Analysis." Rich Toscano, a financial advisor in San Diego, created this blog in 2004.

"Southern California Real Estate Bubble Crash," created by an Orange County, Calif., resident who uses a "John Doe" alias.

"Southern Maryland Housing Bubble News: Dedicated to Tracking the Housing Bubble as it Pops."

"Seattle Bubble: News and discussion about the real estate and housing bubble, specifically as it pertains to the Seattle area." Timothy Ellis, an electrical engineer in Kenmore, Wash., created this blog in August 2005.

Inman News reported on housing bubble blogs in this report: "The rise of real estate bubble blogs: Bloggers offer research, counterpoint to 'industry speak,'" on Feb. 12, 2007.

Weekly Market Activity Report

Small signs continue to point to change in buyer activity in the Twin Cities housing market. Sales remain down compared to one year ago but are once again declining at a smaller degree than seen in the past 12 months. For the week ending February 3, new listings were statistically even with this time in 2006 and pending sales were 8 percent behind. With improved absorption, housing inventory is increasing at a slower rate than last year. There are currently 26,000 homes for sale in the region, up 15 percent over this time last year. (MAAR)

Foreclosures on the Rise

I am troubled by the rising foreclosure rate we are seeing today. We can point fingers at Mortgage companies that peddle bad programs or Buyers that bite off more than they can chew but that does nothing to solve this problem.

Instead I like to concentrate on SOLUTIONS.

If this is an issue for you and you live in Minneapolis, you should know that help is available:

Don't Borrow Trouble

Minneapolis is very committed to helping homeowners who are in jeopardy of losing their home due to foreclosure. If you’re facing a possible foreclosure visit the Don’t Borrow Trouble Minnesota Web site or call 311 from anywhere within the City to be referred to a counseling agency. The earlier you make this call, the better your chances are to avoid losing your home. You can also call Habitat for Humanity at 612-331-4090 (if you home is in south Minneapolis) or Northside Residents Redevelopment Council at 612-335-5924 (if your home is in north Minneapolis) or call the Homeownership Preservation Foundation at 1-888-995-HOPE.

Click here for more info!

Buy Your First Home with NO MONEY DOWN!

I work with a lot of First Time Buyers and the one thing that consistently surprises then is the fact that they may very likely be able to purchase their first home with No Money Down! It may sound too good to be true, but with the right credit scores and working with the right lender, it really is possible.

And this is becoming a national trend. A recent Keith Harney article reports that:

From mid-2005 to mid-2006, according to a statistical sampling of a representative group of 7,548 purchasers, nearly half of all first-time buyers financed the entire transaction, obtaining mortgages in the full amount of the home price. About 30 percent put down 10 percent or less, and 20 percent put down 5 percent or less.

The research was conducted by the National Association of Realtors, using information on home transactions supplied by Experian, a major credit and realty data firm. The median down payment of first-time purchasers, according to the study, was just 2 percent. In other words, the median-sized mortgage for first-timers represented 98 percent of the home purchase price.

So before you assume that your first home is out of your reach, do yourself a favor and learn about the many loan programs that are out there for first time buyers. But be careful, the one thing you don't want to do is get yourself in a place you can't really afford. Take the time to sit down, look at the numbers and make sure it makes sense to you!

Buyer Beware!

Amusing bit of "Investigative Journalism" on FOX 9 the other night about a dude who got ripped off by a Loan Officer and Agent who were running some kind of scam. His mistake? He thought he could make a quick buck by posing as a buyer and participating in a Loan Fraud. You hate to see someone get burned but it is hard to feel sorry for him. Check it out here.

Existing U.S. home sales said to improve

UPI REPORTS:

Existing U.S. home sales will rise over the next two years, while new-home sales and construction will remain subdued, a realty association said Wednesday.

Existing-home sales will reach 6.44 million in 2007 and 6.64 million in 2008, the National Association of Realtors said.

In 2006, existing-home sales hit 6.48 million, the third-highest total, the association said.

New-home sales, after reaching 1.06 million in 2006, will weaken to 961,000 this year and rise to 971,000 in 2008.

Housing starts are likely to reach 1.52 million in 2007, down from 1.8 million in 2006, and then climb to 1.56 million next year, the association said.

The association forecast 2007's national median existing-home price would grow 1.9 percent to $226,200, after rising 1.1 percent in 2006. The median new-home price is expected to increase 1.8 percent to $249,800 following a similar 2006 gain, it said.

KARE 11 Sweeps Story Distorts Issue - Go Figure!

I caught a recent sweeps Extra on KARE 11 by Rick Kupchella that really proves theory most people in Real Estate have - 90% of the coverage we get is either negative or outdated.

This report was BOTH.

Rick not only wears a rather questionable tie in the opening of this journalistic "piece" he contradicts himself.

Early on he asserts that:

For most Minnesotans, housing is the place where we have most of our money invested.

But just how much money we have there is in question these days, with the market in decline.

While there certainly is some truth to this statement (the market has slowed but we have not lost any ground on values) he reports later in the same story that:

Heidi Olson and Andrew Stoltmann lost two homes to competitive bidders in recent weeks, despite their bidding over the asking price.

and

Prices are high and surprisingly unwavering despite the slowdown in the market.

So which is it Rick? A market in "decline" or one where prices are holding and competition among buyers is heating up?

Sounds to me like he's trying to put a negative spin on a story that is actually improving. Most analysts agree that the market bottomed out LAST year...but yesterday's news does not a good sweeps week make!

It doesn't help that Rick interrogates Glenn Dorfman the "El Presidente for Life" of the Minnesota Association of Realtors (MAR). Glenn manages to insult the public telling them they are stupid to consider their homes an "investment" (which is what they are for many people - as well as being their home) and then in the next he's talking about a 2-5% return on their, um, investment!?!

In the end Rick sums up his story - about the DECLINING Real Estate Market by saying Buyers waiting for prices to fall are wasting their time.

The sad thing about this is that the take-away for most viewers is that the Real Estate Market sucks (it doesn't) and you should be afraid to make a move.

Fear & Loathing, the essential ingredients to most Sweeps Week Stories.

Here's a link in case you want to check out this story.

I smell Pulitzer!

Is Technology Out to Get Realtors?

WILL ZILLOW KILL THE REAL ESTATE STAR?

I love technology. It makes my job easier every day. I am amazed at how effectively I can communicate with friends, clients, and others all from the cozy confines of my home office. So when Zillow hit the scene, why was I frightened? I think when you look at all the information that is available on the Internet for Buyers and Sellers a person could come to the conclusion that people don't NEED Realtors and the truth is...THEY DON'T!

At least not Agents who do little more than stick a sign in the yard and wait for someone else to sell your home. Certainly not Agents who pressure Buyers into homes they really don't want or need.

But in this info age where even RECENTLY SOLD LISTINGS are made openly available to the Public I have to say I am actually very happy. I think one of the negative opinions of Realtors evolved from the fact that at one time we were the Gatekeepers of Information. If the public wanted to see a listing, or even see what was on the market, they had to come to us. I think it must have helped create kind of dis-connect and bred a bit of smugness among agents. Easy for me to say, since I wasn't an Agent back then...and I certainly don't want to join in on the seemingly growing chorus of voices who have fun kicking dirt on my profession --believe me I know how hard the job is! But I think things like Zillow are great. Give the people all the information they need to make the right decision for themselves and they will be happy.

Our jobs, as Realtors, in my humble opinion is to provide the best possible service. We are the human element that can make a daunting task like buying or selling a lot easier- because- we are human. Technology will never replace what good Agents do. Whether it's showing people listings, providing our experience as negotiators, or just Listening to our clients, we will always be an essential ingredient that most people (but not all) will find worth it. So...will Zillow destroy us? They said the same thing about the Internet! Here's an excerpt from a recent article. Enjoy!

(Fortune Magazine) -- This is what usually happens the first time you visit Zillow.com: You type in your address to check out the Zestimate, an approximation of your home's market value. It appears in a little pop-up superimposed on a photographic map of your neighborhood. The number might make you smile; it could make you angry.

Next, you realize that the information on your property is incomplete. What about the kitchen upgrade? Your new deck? The landscaping? All that work's gotta count for something. You've spared no effort to convince the assessor that your house is worth less than the official report, but now it's time to primp. So you tap in some modifications and watch your home's value rise.

Next, you check your neighbors' Zestimates. Then your childhood home, a best friend's place, your boss's house. Just as you open your address book in search of more targets, your spouse calls out from the bedroom, wanting to know what the hell you've been doing for the past two hours. "Nothing, honey," you say, shutting the laptop and trudging off to bed, caught red-handed in a loop of real estate yuppie porn.

If you haven't heard of Zillow by now, it's probably because you don't own a home. Or maybe you're just not as prurient and narcissistic as the rest of us. The national real estate market is in flux: Prices fell last autumn; new-home sales have risen for the past two months.

But what does that have to do with you? Zillow knows. With 52 million house valuations across the U.S., the site attracts as many as four million visitors a month. In less than a year since launch, the Seattle company has become one of the Internet's biggest real estate destinations. There are many listing sites on the Web, but Zillow is more of a media play. It makes money by selling ads to brokers, banks, contractors, appliance retailers and anyone else interested in reaching data-obsessed homeowners and -buyers.

And now the company is trying to create something even more ambitious: a perfect market for real estate. Mix E*Trade, Craigslist and the Multiple Listing Service together, and you begin to get the idea.

More Signs the Market is Improving?

Some encouraging news from the Minnesota Area Association of Realtors (MAAR):

Weekly Market Activity Report

While pending sales remain down, there are signs pointing to the end of an expanding buyer's market. However, this does not foreshadow a quick turnaround in market conditions, as that will likely be slow in its creation and gradual in its effect. For the week ending January 27, new listings were 5 percent behind the same week in 2006 and pending sales were 12 percent behind. While sales remain slower than last year at this time, they are behind at a lower rate than the market has seen in recent months, indicating a settling in the decline of buyer activity.

Continued moderation in new sellers will aid in the needed absorption of excess inventory. There are presently about 25,000 housing units for sale in the Twin Cities region, up only 16 percent from this time last year. The year-to-year inventory comparison reached a peak of 40-plus percent growth in the summer of 2006 and has been steadily declining ever since.

Would-be buyers are now renting

Once again the Strib has an article about the changing real estate market. They make some interesting points here but I wonder -as a person who rented for over 10 years and now owns my own home - if there's ANYONE out there who really thinks that renting is preferable to buying, especially over the long term. Certainly if you plan to move frequently it might make sense to rent but if you plan on living in a place for even as little as 3 years, buying is really going to serve you better.

Here's an excerpt:

For the first time since the housing boom, rental property owners are seeing relief from rising vacancy rates and stagnant rent prices.

Instead, growing numbers of prospective home buyers are choosing to rent, in some cases because they have been priced out of the market or are worried about getting into a market that doesn't offer a guaranteed profit.

And that is causing vacancy rates to fall, rent prices to rise and apartment building construction on a scale that hasn't been seen in years.

For renters, that means no more flat-screen TVs and free-rent offers. Instead, they will probably be facing rent increases and stricter lease terms.

"For me, it's kind of scary because you don't know which way the [housing] market is going to turn," said Lisa Litzinger, a renter who scrapped plans to buy a house in December. "You just don't want to make the wrong decision right now."

My answer? Over time the housing market in this country ALWAYS goes up. You always need to factor in location and condition but if you buy smart, and are not forced to sell to soon after buying, you really can't lose!

REAL ESTATE LINK ROUND UP

Here's some a few excellent articles on the current Real Estate Market. Enjoy!

Navigating the Home Maze
Great tips for Buers and Sellers

Has the Housing Market Bottomed Out?
Common sense on all the Bubble Talk.

Inman News launches online real estate wiki

Inman News today launched InmanWiki, the world's largest searchable online real estate encyclopedia where consumers and real estate professionals can research articles, create entries and discuss today's hottest real estate topics.

The Spring Market Kicks Off this Sunday!

Superbowl Sunday is the "Unofficial" Kick-Off to the Spring Market in Minnesota.

This year with the record numbers of inventory we have on the market, getting an early start can make all the difference.

If you have been considering putting your home on the market is April & May, you may want to consider moving things up. You'll have less competition and Buyers can take advantage of the great rates-while they last!

But this weekend, kick back and enjoy the game.

Colts by 10.