Airport Noise Lawsuit Open House Recap

A Standing Room Only Crowd Listens to Mayor Ryback and Class Action Lawyers

Your intrepid reporter was there! The setting: a rather charming and rather steamy church, filled to the rafters with a collection of concerned/agitated neighbors, all curious to learn what new information was available about the current lawsuits filed against the Metropolitan Airports Commission (the Strib has an excellent article recapping the story thus far - click HERE)

I think you really have to live in Nokomis to understand why this situation is such a sore subject. Back when the original agreement was made in 1996 and the decision was made NOT to relocate the Airport, the MAC agreed to provide noise insulation/mitigation for homes that were in the 65+ decibel range (Phase 1) as well as those in the 60-64 decibel range (Phase 2). These are all based on confusing and ever changing Noise Contour Maps (click HERE).

But a funny thing happened on the way to fulfilling there promise. Rather than insulate the homes in Phase 2, and sighting concerns for Northwest Airlines and the rising costs of "homeland Security" the MAC decided to renege on their contract/promise.

What they offered instead was to provide Central Air to a portion of the home affected who did not already have it as long as the homeowners would agree to pay for anywhere from 50-90%!

According Minneapolis City Councilperson Scott Benson the current gap between what the City is essentially asking for is HUGE. The City Estimates that the cost to insulate the homes in the areas that the MAC originally promised to be around $350 Million...and as I mentioned they are willing to pay half-sies on the Central Air which would cost them about $25 Million.

Enter the Class Action Lawsuit.

A small group of citizens started who were a bit dubious at the City's prospects for a successful and timely resolution to their lawsuit started a Class Action Lawsuit with a private law firm.

The good news is that at a pre-trial hearing the presiding authority, Judge Stephen Aldridge, emphatically ruled that the MAC violated it's promise and urged all parties: MAC, Northwest (who jumped in to protect their interests and help MAC fight off the public/city suits), The Cities, and the Class Action to enter into Mediation and settle the suit before it would go to trial.

People were jumping for joy - the people had won!

Only we didn't.

Because it now appears the Lawyers for MAC & Northwest were able to devise a rather sly "Divide and Conquer" strategy. They have reached a Preliminary Settlement with the Class Action Lawsuit wherein approximately HALF of the eligible homes would be given Central Air and $1,750 for additional noise insulation IF they did not already have it. (If they already have it and have had it installed in the past 5 years AND they have receipts they might get reimbursed for a portion of the installation costs.)

Needless to say the Class Action Attorney who was allowed to speak at last night's meeting was not necessarily greeted as a Liberator. There were no flowers and candy. In fact, you got the sense that Mayor R. T. was not only having a hard time controlling his own frustration but he seemed keenly aware that the meeting could easily devolve into a shouting match if he weren't there to keep things moving in a civil direction. I have to say I was impressed with how he handled things.

To her credit the Class Action Attorney knew that she was not the most popular kid on the block and she made her case - that the proposed class action settlement would at least guarantee some relief fir some people without having to risk getting nothing if the case were to go to trial.

Rybak clearly bristled at this and seemed to really believe that the City had a great case. But because he and the City are apart of this ongoing lawsuit his hands were kind of tied. He could provide information but he could not offer advice on how the residents should proceed.

Should the City agree to a settlement, similar to what the Class Action people have in place, even if it means many people will be excluded?

Should the City continue with its suit, which will likely be appealed and held up in litigation for several more years, at risk of ultimately losing and getting nothing?

As residents, we are going to be offered a choice in the coming weeks. The way the Reps from City Hall put it last night, if we agree to accept the Class Action Settlement we are excluded from any remedy that the City's lawsuit might bring.

It's like Deal or No Deal, only with Mayor Rybak serving as a much less annoying version of Howie Mandel.

The sad thing about all of this to that everyone can plainly see that the MAC has not lived up to its promise and now neighbors are going to be pitted against each other so that they can escape their obligation.

The entire thing just seems so unfair. I realize that people in other parts of the city might think that we who chose to live near the Airport knew what we were getting into when we moved here. "Duh! You live near the Airport. There will be noise!" and I understand that sentiment...to a point. But I know when I moved into Nokomis that there had been this promised made, that in the future my home would be eligible for the noise insulation that my neighbors - ACROSS THE STREET - have. It was one of (but certainly not the only) reasons why I purchased the house.

I am sure I am not alone in that predicament. It will be interesting to see where all of this will ultimately end up. At this point the City is actively seeking comments from residents so that they can decide what course to take The Class Action is continuing to work out the details on their settlement. And the residents are all left scratching our heads (and plugging our ears) wondering what will happen next.

Stay tuned. I will keep you updated on this story.

Weekly Market Activity Report

Here's the latest from MAAR:

Home sellers in the Twin Cities housing market continue to face a harsh reality: There are too few buyers for the number of homes on the market. Buyer activity remains at levels consistent with the start of this decade, with 871 units sold pending for the week ending June 16—19.6 percent behind the same week in 2006. Builders and home sellers appear to be getting the message that now is a difficult time to sell as they have scaled back new listings relative to a year ago, but year-over-year declines in listings are not keeping pace with larger declines on the buying side. Weekly new listings are down 7.0 percent compared to this time last year.

The message not being heard by buyers is that now may be the time to buy. With plentiful inventory, reasonable interest rates and slightly depressed home prices, consumers may look back and see 2007 as the bottom of the market—the year they should have purchased a home.

PRIDE Weekend & Some Good Link Updates!

Had a great time at the PRIDE Block Party this Sunday. It was a bit HOT but we danced a bit (daughter Lily and I) nonetheless! What a HUGE event that has grown into...pretty amazing. Its this kind of thing that makes me really proud to be a resident of Minneapolis!

In other news...

Here's the Latest on the Airport Noise Lawsuit.

I will be at the Public Meeting this Wednesday and I will report back here what I learn.

An interesting article here in the Strib -Pushing Homes Out of Reach? - highlights the dilemma we are facing as it becomes more and more difficult to find financing if you are a sub-prime borrower.

And just to clarify sub-prime doesn't mean you necessarily have bad credit or are some sort of high risk - it simply means you don't fit into the cookie cutter molds that many lenders are looking for - and that quite frankly seems rather unfair to me!

IT JUST DOESN'T MATTER - Summer is Here!

I got a sixty-nine Chevy with a 396
Fuelie heads and a Hurst on the floor
She's waiting tonight down in the parking lot
Outside the Seven-Eleven store
Me and my partner Sonny built her straight out of scratch
And he rides with me from town to town
We only run for the money got no strings attached
We shut `em up and then we shut `em down

Tonight, tonight the strip's just right
I wanna blow `em off in my first heat
Summer's here and the time is right
For goin' racin' in the street

For some reason, the first day of summer always reminds me of this song, Bruce Springsteen's classic "Racing in the Streets".

Such a passionate, honest song.

Actually there are Three Things from My Youth that I equate with summer:

1. "Racing in the Streets" - Bruce Springsteen
2. "Schools Out for Summer" - Alice Cooper
3. "Meatballs" starring Bill Murray

Bruce for the passion, Alice for the ANGST and Bill for the love of the ABSURD.

That flick convinced me to get a job as a Camp Counselor at the YMCA Camp Pepin near my parents adopted hometown of Stockholm, Wisconsin.

It was a great decision and I really loved my time there. I remember my feet got so tan (well cherry red more likely!) that the flip flops I wore left left stripes on my feet. It was such a badge of honor.

And the biggest lesson I learned from "Meatballs"? "It Just Doesn't Matter!"

CLICK ON THAT LINK!

Hope you like the clips...and I hope you find your passion this summer!

Weekly Market Activity Report

Here's the latest from MAAR:

June is traditionally a busy time for the real estate community and the most recent reporting week is no exception, as Total Active Listings for the 13 County Metro area continues at a record level. While buyer and seller activity accelerated as compared to recent weeks, the Twin Cities market continues at a lackluster pace in comparison to previous years. Weekly Single Family New Listings are down 1.2% and Pending Sales are 17.8% below the same week in 2006.

The Impact of Rising Rates on Our Recovering Market

Recently rates have started to creep up again and the Strib interviewed Edina Realty Head Honcho Ron Peltier about the recovering local real estate market:

Edina Realty President Bob Peltier said that although the spring market was something of a disappointment, he's optimistic that the market is on the rebound.

"I was hoping it would have been better, but it was definitely a bump in the road," he said. "You could see it and you could feel it."

Open house traffic is up, buyers are making offers on houses that are priced right and there have even been reports of multiple offers on houses that "exude pride of ownership," he said.

He cited several recent examples of sellers who sold quickly or received multiple offers on their houses, including a $599,000 house in Eagan that got six offers within three days of being listed and a $1.1 million house in St. Paul that sold, within six days of being listed, for full price.

"Good homes, fairly priced and well taken care of, are selling," Peltier said. "But we have a lot of stale inventory that's had no price reductions."

Mr. Peltier was also asked his take on the impact the recent uptick in mortgage rates might have on the market:

Peltier said that rising rates could actually be a nudge for prospective buyers to act soon, particularly if the bond market continues to put upward pressure on mortgage rates, which haven't crossed the 7 percent threshold in several years. If that happens, though, the market will notice.

"A 7 [percent rate] will be a little scarier," he said, "But as long as there's a 6 in front of [the fraction] it's going to be okay."

I know one thing, Ron Peltier is one of the most respected minds in the Real Estate Biz and I certainly would not bet against anything he has to say. His vision and willingness to change with the times are one reason Edina Realty continues to lead the marketplace despite intense competition from other major brokerages, discount brokers, the Internet and a challenging market.

I rarely ever sing the praises of Edina Realty on this site but make no mistake, they are the best in the business and I am happy and privileged to plant my flag with them!

Forecast Calls for Rain...but Subprime is on the Mend

Here's what NAR has to say about this years market:

Soft, But Shaping Up

Although the market is relatively soft now, home sales activity is expected to show a gradual upturn by the end of the year, according to NAR. Existing-home sales are projected to total 6.18 million in 2007 and 6.41 million next year, in contrast with 6.48 million in 2006. The national median existing-home price should ease by 1.3 percent to $219,100 in 2007 before rising 1.7 percent next year. Lawrence Yun, NAR’s senior economist, reminded buyers that housing is a long-term investment. “Those who are looking for a get-rich-quick scheme are likely to be disappointed,” he said. “Over time, investing in a house will help to build a nice nest egg, especially for buyers using a traditional mortgage instrument that reduces debt,” Yun added.

Pending Sales Are Down, But Subprime Woes are Subsiding

NAR's Pending Home Sales Index dropped to 101.4 in April, down 10.2 percent from a year ago and 3.2 percent below the March index. The index was down in all regions but the South, where it crept up a slight 0.7 percent from March to April. Lawrence Yun, NAR’s senior economist, said the impact of subprime lenders shutting their doors appears to be diminishing and mortgage applications have risen in the last month. “This tells us that some borrowers who originally planned to finance with subprime mortgages are finding suitable loans in the conventional market, which will help to stabilize home sales,” he said.

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It will be interesting to see what shakes down in our market. The past couple of years the "Fall Market" hasn't really had a lot of punch. If it is busier than normal that could mean we are in for quite a rebound in the Spring of '08.

We're Gonna Make it After All!

I discovered this gem when I was busy working (okay...surfing) this evening.

The Original Theme Song to The Mary Tyler Moore Show

I have such fond memories of laying on the carpeted floor of my Grandmother's living room as we all gathered to watch this show (and Newhart which followed) with such reverence and with such an overwhelming expectation that you would laugh...and you did!

It's funny how we are here in Minnesota. We like to think that we're just fine being up here in our little chilly piece of land (excepting Summer!)...we don't need any attention. We're unassuming. Happy to live OUTSIDE of the lime-light. We don't need to be constantly in the lime light like NYC or LA or Paris (Hilton).

And yet...I have the feeling that we all swelled with pride, and not just a little bit, that this sitcom decided to put us on the map. Sure we looked silly, just like we did in "Purple Rain" and "Fargo" and...well frankly "Airport" as well. But you know what they say: the camera doesn't lie - it just adds 20 lbs..

How does this relate to the current real estate market? Rising foreclosures? Increasing interest rates? A market in slow gear?

I have no idea. But I do know that if you click that link it will make you smile, and that has to count for something in this world.

Como Zoo ROCKS!

Lily shocked by...FISH!!!!!!!!!!!!!!


My lovely wife and daughter and I went to Como Zoo last Sunday to meet some friends. It's been awhile since I have been over there. Wow! That place seems to keep getting better and better and all for the low, low, price of free! (Or a nominal donation.) I remember when the chimps used to bang their metal cups on the bars and scream "Attica! Attica!" My how times have changed!

Had a fantastic time and I urge you to check it out if you haven't been there in awhile. That place is an absolute zoo...

Weekly Market Activity Report

Here's the latest from MAAR:

The Twin Cities housing market remains in a period of post-boom stasis, with buyer activity slowed compared to previous years. Newly signed purchase agreements (pending sales) for the week ending June 2 were 17.0 percent behind this time in 2006. New listings were 7.2 percent behind for the same time period.

Economists generally describe market corrections like the one we're experiencing as following three basic recovery patterns: a "V-shaped recovery" where a market experiences a sharp, fast decline but comes out strong once it hits bottom; a "U-shaped recovery” where prices decline gradually and recover slowly; and an "L-shaped recovery," a hard, fast fall with paltry price bounce-back following the market trough.

The Twin Cities market correction sits firmly in the "U-shaped" recovery category. Buyer activity declines have been significant but should be near a leveling point, home prices remain relatively flat, and our eventual recovery will be slow to start and gradual in effect. As the pause in buyer activity persists, it is becoming clear that our time in the bottom bowl of the "U" will carry on into the near future.

This week's edition of the MAAR Weekly Market Activity report features several updated figures. The Percent of Original List Price Received at Sale held steady from last month, posting a figure of 95.9 percent for sales closed in May. The Housing Affordability Index declined significantly to 134 due to increases in median home prices and area mortgage rates. Finally, the Housing Supply Outlook posted a figure of 9.2 months for June, which means it will take the current supply of homes for sale roughly 9.2 months to sell through completely

NAR Predicts Lower Prices & Slower Sales

More good news for Buyers!

Today's the latest market predictions from NAR (National Association of Realtors) came out. NAR has a new senior economist, Lawrence Yun, who replaced the recently departed (and always controversial) David Lareah and it comes as no surprise that his take is not quite as "rosy" as his predecessors.

Here's the high points:

• Sales of existing homes to drop 4.6 percent this year to 6.2 million.
• Sales of new homes are forecast to drop 18.2 percent to 860,000 compared with an earlier estimate of a 14.2 percent decline.
• The median price of existing homes, which make up about 85 percent of the market, will fall in 2007 for the first time since the 1960s, when the group began keeping records.
• The median price for existing homes is expected to drop 1.3 percent to $219,000 this year, lower than the group's April forecast of a 0.7 decline.
• The predicted decline comes after a 1 percent gain in home prices last year and an increase of more than 12 percent in 2005.
• Next year, though, the NAR expected the market to rebound, and existing home prices are forecast to rise 1.7 percent.
  

Lawrence Yun added that sales have been stronger in lower-price markets, dragging down median prices, an effect he described as a "temporary distortion."

Keep in mind these National trends and predictions are only slightly indicative of the local real estate scene. As we have seen, things have been going at a slower pace here locally but we have yet to see any significant drops in value.

Stay tuned...

Weekly Market Activity Report

Here's the latest from MAAR:

Buyers and sellers took their annual Memorial Day pause for the week ending May 26. Seller activity dropped precipitously to 2,397 new listings, while pending sales declined less dramatically to 909 newly signed purchase agreements. Compared to one year ago, new listings were down 4.2 percent while pending sales were 22.8 percent behind.

This week's edition of the MAAR Weekly Market Activity Report includes updated June 2007 figures for Supply-Demand Ratio (SDR) and Mortgage Rates. The SDR increased to 7.79, which means that there will be roughly 7.79 homes on the market for every buyer in the month of June. This is an increase of 41 percent from the same time in 2006. Interest rates grew to 6.3 percent after several months of holding steady at 6.1 percent. Rates remain near historical lows but may show slight increases later in the year.

Hanging Tough in a Slow Market

The stats I publish here would seem to back up what most people already know: the market is in slow gear and it is a tough time for a lot of Sellers.

But not every Seller. In fact, one of my listings sold last month in less than two weeks and when it did - we had MULTIPLE OFFERS. Yep. Remember those? People in the market a few short years ago certainly do.

So what made that listing different? I think there are 4 essential reasons we sold it so quick:

1. Committed Seller

Actually, these clients had listed the previous year (with a different Agent) and their place failed to sell. Rather than get discouraged, this time around they looked at the feedback they had received (mainly that the kitchen needed updating) and did precisely what was needed - they updated the kitchen.

2. Marketing

We advertised our first weekend open houses in the City Pages and on Craig's List as well as on my Web Site and got a great turn out. Several people saw the City Pages Ad but most people had seen it on Craig's List- fast becoming an invaluable resource in the online community with respect to reaching prospective buyers. I also sent out post cards to the neighborhood, produced a snazzy marketing brochure that included pertinent info about the neighborhood (light rail and neighborhood association info) and installed a For Sale sign with a brochure box. What made the difference? All of it. In this market you have to try every legitimate avenue to find the right buyer for a property. You can't afford to do anything less.

3. The Home was A+ Show Ready

Lucky for me, my client's have great taste, so their decor was really spot on throughout. They took great pains to stage and de-clutter the home and made doubly sure that the house was CLEAN as a whistle. Clean Houses SELL. There is no doubt about it - it works. Every time.

4. The Price was RIGHT

We looked very carefully at the CURRENT market...not the market of last year...or 3 years ago...and priced the house accordingly. It's a pretty simple process really. You look at what the comparable homes in the same area are listed for and then you look at what they have recently sold for. This is most critical. This is a virtual road map for what you can expect the sale of your home to be like both in terms of how long it will take to sell (market time) and what price you can expect to get.

This is a Formula that can and will work for anyone looking to sell their home - despite the current market conditions - be they favorable or slow. But it is important to really maximize the full potential of each area. Skimping on one will likely lead to longer market time and perhaps even a significant price reduction before you get an offer.

For more tips on Selling be sure and check out my WEB SITE or feel free to CONTACT ME with any questions you might have.

No need to despair...the market still works!