Weekly Market Activity Report

Here's the latest from MAAR:

The song remains the same from week to week in the spring Twin Cities housing market; new listings are flat relative to the previous year while buyer activity declines further. New listings for the week ending May 19 were 0.7 percent behind this time in 2006, posting 2,656 new units. Of these new listings, only 301 were new construction, bringing the new construction share of our total current inventory to 16.1 percent compared to 19.7 percent one year ago. Newly signed purchase agreements (pending sales) were down 21.5 percent from the same week last year, continuing the trend of significant declines seen in recent weeks.

The residential market discord reflects a period of widespread recalibration of home values, lending standards, housing affordability, supply-demand dynamics, and construction activity; and the climax of this is depressed consumer confidence relative to real estate. The frenzied boom we saw from 1998 to 2005 was so extreme that it necessitates the market correction currently underway. The uncertainty surrounding our shifting market causes angst for both consumers and REALTORS® alike, but the adjustments now taking place will inevitably lead to long-term health and stability to our market.

"Everything that's small has to grow, and slow it grows!"

– Led Zeppelin, "The Song Remains the Same"

Happy Memorial Day Weekend!

It's here...the unofficial start of Summer!

I wish all of you a Safe & Happy Memorial Day Weekend!

Weekly Market Activity Report

Here's the Latest from MAAR:

Buyer activity in the Twin Cities housing market remains low compared to the past several years, with newly signed purchase agreements (pending sales) for the week ending May 12 falling 21.8 percent behind the same week in 2006. Seller activity posted an increase of 4.7 percent for the same year-over-year comparison—the first annualized increase in four weeks.

Inventory continues to grow as the summer selling season approaches. There are approximately 34,000 single-family housing units for sale in the metro area, 11.6 percent more than were available at this time last year. New construction homes comprise 16.5 percent—roughly 5,550 units—of total inventory.

Lyndale Park Peace Garden

On Mother's Day we visited the Lyndale Park Peace Garden near Lake Harriet. It always amazes me all the hidden gems that our beautiful city has to offer.

You can see more shots here. Here's info on the history of the park.

It is right across from the Rose Gardens and well worth checking out!

4124 Roseway Road
Minneapolis, MN 55409
Phone: 612 370-4838
Fax: 612 370-4831
Hours: 7:30 a.m.-10 p.m.

Housing: The "Steady Eddie" of Investments

From the National Association of Realtors:

Housing activity this year will be somewhat lower than in earlier forecasts as lending standards tighten and subprime mortgage originations tighten, according to NAR. Lawrence Yun, NAR senior economist, said speculative behavior, which contributed to abnormal price growth, is now on the decline. “Home buyers today are purchasing for the long-term, generally with a realistic expectation of modest gains over time,” Yun said. “Housing first and foremost is shelter. Second, it’s a long-term investment that slowly builds the greatest amount of wealth for most families.” NAR’s latest forecast projects existing-home sales at 6.29 million this year and 6.49 million in 2008, compared with 6.48 million last year.

Garden Center Guide

Gardening Season is Upon Us!

One of the more useful things I have discovered recently is the Interactive Garden Center Guide on the StarTribune website. You can find the Garden Center nearest you and there are mini-reviews about what you can find there.

The growing season is short, make sure you take part in it. Even if it's a small pot on your patio or front stoop, you'll be amazed how just a little effort will go along way to brightening up your yard.

Weekly Market Activity Report

Here's the latest from MAAR:

Buyers and sellers in the Twin Cities housing market continue to exercise restraint. There were just over 2,800 new listings for the week ending May 5—down 5.2 percent from the same week in 2006. Newly signed purchase agreements (pending sales) were 13 percent behind for the same time period. The total inventory of homes on the market continues its gradual spring growth, rising above 33,000 single-family units—up 11.8 percent from this time last year.

This week's edition of the MAAR Weekly Market Activity Report features updated figures for Mortgage Rates, the Housing Affordability Index (HAI) and the Housing Supply Outlook (HSO). Interest rates in May continue to hold steady at 6.1 percent. Despite no movement in these historically low borrowing costs from last month, the HAI dipped one point to 139 due to a slight increase in median home prices. The HSO increased to 8.5 months, which means it will take the current inventory of homes on the market 8.5 months to be absorbed by buyer activity

Friends School Plant Sale this Weekend!

Is your Green Thumb starting to itch?

Head on over to the Friends School Plant Sale this weekend (May 11-13th) at the Minnesota State Fair Grandstand.

Sunday they are open from 12-4 and everything is HALF PRICE! Take your Mom - the weather is supposed to be excellent.

Happy Planting!

Mortgage fraud bill gets final passage

From the ever-shrinking Strib:

A bill that would give consumers tough new weapons against mortgage fraud is on its way to Gov. Tim Pawlenty.

Spokesman Brian McClung said Wednesday that Pawlenty is expected to sign it.

The bill, which the state House of Representatives approved Wednesday on a 129-3 vote, gives individuals and companies the right to sue if they have been victimized by dishonest or predatory lending practices, including inflated appraisals.

Perpetrators of mortgage fraud also could get sentenced to up to two years of jail time. If the victim is considered "vulnerable" because of age, physical condition or mental capacity, the bill would give the courts the ability to assign harsher penalties.

The same bill was approved by the Senate on April 30.

This is the second of two bills aimed at mortgage lending practices, and it has the backing of Attorney General Lori Swanson and consumer protection groups.

The first bill, which Pawlenty signed into law April 20, bans certain kinds of mortgages to high-risk borrowers, and forces brokers and lenders to make sure that borrowers have a "reasonable ability to pay."

Who Cares About Real Estate!?!

Let's just hang out and enjoy the weather!

Weekly Market Activity Report

Here's the latest from MAAR:

As we approach the summer selling season, buyer activity remains relatively subdued when compared to previous years. Pending sales for the week ending April 28 were down 11.3 percent compared to the same time last year, while new listings were 1.8 percent behind using the same year-over-year comparison. The total inventory of homes on the market is growing as we near summer but not at the same pace as 2006 thanks to a needed curtailing of new listings by builders and sellers. Only 16.8 percent of the region's available housing stock is new construction, down from a 22 percent share in December of 2006.

This week's edition of the MAAR Weekly Market Activity Report features updated figures for both the Percent of Original List Price Received at Sale and the Supply-Demand Ratio (SDR). The April 2006 Percent of Original List Price Received at Sale was 95.9 percent, up slightly from the previous month. The SDR for May 2006 is 6.64, which means there are approximately 6.64 homes on the market for every buyer. The SDR should rise through the rest of 2007, as buyer activity will taper off in the second half while more homes continue to come on the market.

Minneapolis Wi-Fi Starts This Week!

From the Strib:

The new Minneapolis Wi-Fi Internet access service begins May 11 in 2 square miles including the Seward neighborhood. Service begins downtown the week of May 21.

Wi-Fi Internet access uses radio waves to link laptop or desktop computers to special radio units placed throughout the city. US Internet of Minnetonka last year won a contract with Minneapolis to build, own and operate a wireless network that by year's end will serve all of the city's 59 square miles.

Minneapolis is one of many cities, including Philadelphia and San Francisco, that are pursuing Wi-Fi networks as a way to provide more widely available, lower-cost broadband Internet access, partly to help bridge the digital divide between technology haves and have-nots. The city of Minneapolis also hopes to reduce its telecommunications costs with the network.

Initially customers will be able to buy wireless Internet download speeds of 1 million bits per second for $19.95 a month, said Joe Caldwell, the company's sales vice president. A US Internet mailing to prospective customers will include a website where they can sign up for a $10 discount on the first month's service.

Also- here's the remaining roll-out schedule:

May 11: Two square miles stretching from the Mississippi River on the east to Hiawatha Avenue on the west, and from E. Lake Street on the south to Interstate Hwy. 35W and the Mississippi River on the north

Week of May 21: Downtown area from I-35W on the east to Nicollet Mall on the west, and from I-94 on the south to the Mississippi River on the north

June 5: All of downtown

June 27: Longfellow/Powderhorn/Phillips

Aug. 15: Calhoun Isles/Southwest

Sept. 7: North

Oct. 10: Northeast

Nov. 2: Nokomis

Weekly Market Activity Report

Here's the latest from MAAR:

The key word in explaining the current state of the Twin Cities housing market is caution. There is a renewed sense of caution in the lending industry following the subprime mortgage market fallout, with lenders tightening restrictions on loan qualification. And buyers are showing continued restraint despite a market with improving affordability and a wealth of housing stock to choose from, possibly wary from the slew of anxiety-invoking media pieces on the housing market.

The effects of this caution can be seen in our spring activity, which is growing at a slower pace in 2007 than it did in 2006. Newly signed purchase agreements were 15.6 percent behind the same week last year and new listings were 7.1 percent behind for the same time comparison. Growth should remain gradual and measured in the coming months as we enter the summer selling season.

Vacation's All I Ever Wanted

Slump isn’t slowing vacation home sales

Some "good news" for followers of the real estate market:

Sales of second homes purchased as investment properties plunged in 2006, but demand for vacation homes remained strong, a real estate trade group reported Monday.

The National Association of Realtors said sales of second homes for investment fell by 28.9 percent in 2006 to 1.65 million. That was down from an all-time high of 2.32 million investment homes sold in 2005, at the peak of the five-year housing boom.

The Realtors, however, said vacation homes were not hurt by the general slump in sales last year. Instead, vacation homes rose by 4.7 percent to a record of 1.07 million units, up from 1.02 million sales in 2005.