Minnesota Homebuyer Blog: November 2010

Thursday, November 18, 2010

October 2010 Twin Cities Real Estate Market Video Update—First Time Buyers are Back in the Driver's Seat!

I skipped over posting the Monthly Skinny from the Minneapolis Area Association of REALTORS in September, frankly because the news was old news....not too much has changed. In my opinion, we are somewhat at a standstill in the market since the expiration of the tax credit in the spring. It appears that most of the potential first time buyers bought a home in the past year. Not everyone though...many just couldn't get their offers in fast enough as there were many muliple offer situations on the well priced starter homes.

As this month's video update implies, the first time buyer is back in the driver's seat with more housing inventory, less competition for the houses and slightly lower prices over all.

If you are thought you missed the proverbial boat with the tax credit, maybe your ship has just come in. With more inventory and less buyers, a first time buyer should be able to negotiate a better deal on first home....And that could be potentially worth much more than the $8000 tax credit!

For more specific numbers on the September 2010 Twin Cities housing market, take a look....

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet , Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. I specialize in

acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2010 Teri Eckholm http://www.terieckholm.com/

Thursday, November 11, 2010

“They Don’t Need an Agent!”—How First Time Homebuyers Find their Way Home!

My cell phone rang as I pulled into the parking lot of my RE/MAX real estate office in White Bear Lake one afternoon. The caller said he and his

fiancée had just driven by a listing of mine and could I show them the inside. My first question is always, “Are you working with a real estate agent?” “No”, he answered. The meeting was set for the next evening.

The young man and his fiancée arrived with an entourage of parents and assorted other friends and relatives. Being first time buyers, they wanted assistance and approval on their very first home purchase. Looking over the home from top to bottom, they liked what they saw but needed time to think. I asked the question I always ask, “When you are shopping for a home, are you shopping for a REALTOR®?” One of the dads quickly answered. They don’t need an agent and won’t be signing any contract with a buyer’s agent. They will get a better deal working directly with the listing agent.

I explained why this wasn’t true but could tell from the look on this dad’s face, he wasn’t about to believe me.

I avoided the debate but went on to explain agency to the young couple. I asked them to sign the disclosure on agency as required by the State of Minnesota. Buyers need to understand that with any of my broker's listings, I am under contract to work for the seller and protect their interests. However, if the couple decides to sign a buyers’ representation agreement with me, they would be in a DUAL agency when looking at any property currently listed with RE/MAX Specialists. They had seen many homes over the last several weeks with dozens of other REALTORS®, but I was the only listing agent who explained agency to them or asked them to sign the required disclosure.

Days later, a decision was made; the young couple wanted to make an offer on my listing. A contract was signed for buyers’ representation for the specific home only. Dual agency now applies. As an agent working for both parties, I could not do anything that would hurt either the buyer or seller. Because the agreement was only for the specific home, I could not discuss other property options. An offer was presented, but terms could not be agreed upon. The buyers went away.

A few weeks the price was reduced on my listing. I called this young couple to see if the lower price would be enough to renew their interest. It would. But there was also another new construction house in a different area that was being considered.

Another showing. They were sure that they had it down to between the two homes. I could see the indecision and confusion on their faces. I asked about the other home they were considering to help them contrast it to my listing to help my selling clients and put their home in a better light. As with most homes, neither home was a perfect fit. I am a firm believer that after weighing all of the pluses and minuses, homes will sell themselves if they are the right home. A week passed. No offer came forth.

Finally a phone call came from the young man. We have made a decision. We are not going to offer again on your listing. It is not the right home for us. In fact, neither home is right. We are starting over and think we need our own agent. "Would you help us find a home?"

Now as their buyers’ representative, I got to work. For the next few weeks, we visited half a dozen or so homes from the hundreds currently on the MLS that met their criteria. Traveling from Stillwater to White Bear Lake and Hugo to Forest Lake, we narrowed down the field of potential homes to a couple of favorite houses. Finally, one sparked enough interest for a second showing with the parents, but this home also had a few quirks that raised concerns. That same evening, since we were out, I set up another showing for a home in a development that hadn't considered but I knew would be a very good match for their needs. As it turned out, the second home was perfect for these buyers!

With the perfect home, there was no delay or hesitation in signing the offer. Things fell into place. With every visit to the home for the inspection and showings, the young couple became more excited about their first home.

At the final walk-through, with minutes to go before they were to receive the keys to their first home, I asked them, “So, are you glad that you decided to sign with a REALTOR®?”

They answered together, “Yes!! You made it so much easier to find the right home! Especially for first time buyers.” I don’t make this stuff up…Those were their exact words.

After the closing, I received a hug and sincere, “thank you for everything”, from my young clients. As they set off to begin life in their dream home a thought struck me, I absolutely LOVE my job!

Other Articles First Time Homebuyers Might Enjoy:

Looking for YOUR first home? If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet , Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. I specialize in

Blaine, MN Real Estate Market Statistics 3rd Quarter 2010

The community of Blaine has continued to grow and expand in the north metro of the Twin Cities despite the economic downturn. Just drive down Highway 65 and see the Main Street (125th) overpass to get an idea of how the significant changes have affected the community. Though housing construction had slowed during 2008, it has not stopped and continues to be a force in 2009. New developments expand the housing base, especially in the townhome and lower level price points. Conveniently located along 35W and Highway 65 and connected by Highway 10 just north of the Twin Cities, Blaine is an attractive location for both business and residential development. The community is served by three school districts; Anoka Hennepin District #11, Centennial District #12, and Spring Lake Park District #16. Blaine is best known for the National Sports Center a sport and meeting facility that hosts an annual worldwide soccer event and Tournament Players Club golf course where the PGA Senior tour is played every summer.

Interestingly, single family home sales were solid in the $200-300K price point during the third quarter with 40 homes sold (nearly 50% new construction) in the Blaine area. This is the only segment on sales not affected by the expiring tax credit. In most other price points, sales dropped noticeably with the ending of the home buying incentive.

The townhome and condominium market in Blaine has started remained somewhat strong this summer compare to other areas. No doubt, this trend stems from the abundance of active new construction in the area enticing people down off the fence. Existing townhome sellers must continue to be aggressive in their pricing to compete with builders if they want to sell their properties in this market.

The good news is inventory and days on the market also was down from earlier this year. Will this trend continue with the extremely low interest rates? Not likely, people who have been waiting in the wings, or on the fence, are starting to get restless. In talks with several different colleagues across the Twin Cities, we are all noticing more activity on our listings and websites. Buyers who want to get in on the proverbial “bottom of the market” might want to start their home searches now as the numbers are indicating a slow, steady recovery in Blaine.

2009 Average Sales Price of all homes sold in Blaine:

All Homes $196,174

Single Family Homes $216,254

Townhomes/Condos $150,523

2009 Average Cumulative Days on Market in Blaine:

All Homes 143

Single Family Homes 140

Townhomes/Condos 150

3rd Quarter Blaine residential real estate statistics for single family homes:

Under $200,000~ 139 Active Listings, 23 Pending Listings, 39 Sold Listings, 116 CDOM (New Construction Subgroup 8 Active, 0 Pending, 2 Sold, 21 CDOM)

$200,000-300,000~94 Active Listings, 23 Pending Listings, 40 Sold Listings, 98 CDOM (New Construction Subgroup 33 Active, 6 Pending, 18 Sold, 100 CDOM)

$300,000-$400,000 ~39 Active Listings, 3 Pending Listings, 11 Sold Listings, 120 CDOM (New Construction Subgroup 17 Active, 3 Pending, 8 Sold, 135 CDOM)

$400,000-$500,000 ~ 18 Active Listings, 2 Pending Listings, 1 Sold Listing, 1 CDOM (New Construction Subgroup 3 Active, 1 Pending, 1 Sold, 1 CDOM)

$500,000-$1,000,000~ 22 Active Listings, 2 Pending Listings, 6 Sold Listings, 153 CDOM (New Construction Subgroup 7 Active, 1 Pending, 2 Sold, 73 CDOM)

$1,000,000 and Up ~1 Active Listings, 0 Pending Listings, 0 Sold Listings (No New Construction single family homes over $1,000,000)

3rd Quarter Blaine residential real estate statistics for townhomes and condos:

Under $200,000~ 127 Active Listings, 29 Pending Listings, 42 Sold Listings, 117 CDOM (New Construction Subgroup 17 Active, 5 Pending, 11 Sold, 306 CDOM)

$200,000-300,000~ 13 Active Listings, 1 Pending Listings, 2 Sold Listings, 231 CDOM (New Construction Subgroup 11 Active, 0 Pending, 1 Sold, 344 CDOM)

$300,000-$400,000 ~ 5 Active Listings, 2 Pending Listings, 0 Sold Listings (New Construction Subgroup 3 Active, 2 Pending, 0 Sold)

$400,000-$500,000 ~ 36 Active Listings, 0 Pending Listings, 1 Sold Listings, 176 CDOM (New Construction Subgroup 1 Active, 0 Pending, 0 Sold)

$500,000-$1,000,000~ 3 Active Listings, 1 Pending Listings, 1 Sold Listings, 272 CDOM (No New Construction townhomes/condos over $500,000)

For additional information on any current Blaine real estate listing or for additional information on buying a home in Blaine contact Teri Eckholm directly at 651-336-7073.

**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 7/1/10 through 9/30/10.

Click HERE to Search for Homes in Blaine MN!

Articles on Lakeshore and Minnesota Real Estate that might be of interest:

Forest Lake MN Real Estate Market Statistics 3rd Quarter 2010

Forest Lake, Minnesota is well known throughout the Twin Cities area. It was a favorite summer vacation spot, an annual ice fishing tournament tradition or as a destination when going for a Sunday a drive in the country in days gone by. Today, the lakeside cabins have been replaced with year round residences, the fishing tourney is but a memory and the farms are few and far between in this third ring St. Paul suburb.

The fall off of home sales in the 3rd Quarter was evident in Forest Lake, MN in north Washington County which is consistent with most of the Twin Cities area due to the ending of the homebuyer tax credit. However the quarter was not a total washout. A total of 23 single family homes priced under $200K were sold in Forest Lake and Forest Lake Township during the summer months. This is comparable to the same period last year. The Cumulative Days on Market (CDOM) Statistic at 96 are down considerably from this time period last year when the CDOM was at 126. This is quite a bit better than what was seen in the first half of 2008 when the CDOM ranged from 211-286.

It appears the high end homes are continuing to struggle but there has been some movement with a handful of sales in the 3rd quarter. There continues to be very few buyers looking at homes in the high end price range. The handful of homes sold in the higher price points does indicate that most of the REO properties in the Forest Lake area have been absorbed and a few traditional sellers were able to “move-up” to larger, more expensive homes. This normal moving up activity has been very scarce these past few years while buyers snapped up foreclosures or vacant homes, leaving traditional sellers’ for sale signs to gather dust as their homes sat month after month on the market. Unfortunately, a handful of sales has not helped the high end inventory absorption rate. Forest Lake continues to have about 5-6 YEARS of lakeshore and executive home inventory…much of it on the very desirable Forest Lake's picturesque First Lake.

With this abundance of inventory, some sellers have aggressively priced their home to sell. Facing another winter with an empty home is not an option many home sellers want to consider so it is now a great time for buyers to get deals. There are a few beautiful homes are currently on the market in Forest Lake at amazing prices; many are lakeshore and acreage properties. With this much inventory, motivated sellers will need to be flexible on pricing. There are 60 active lakeshore homes for sale in the Forest Lake area and some are at attractive and affordable price points. Many have been on the market for several months; some over two years. With the amazing low interest rates and few high-end buyers, is is an AWESOME time to negotiate a deal on your piece of Forest Lake Minnesota shoreline!

3rd Quarter 2010 Forest Lake real estate statistics for single family homes:

Under $200,000~ 52 Active Listings, 11 Pending Listings, 23 Sold Listings, 96 CDOM (Lakeshore Subgroup ~ 0 Active, 1 Pending, 1 Sold)

$200,000-$300,000 ~ 51 Active Listings, 7 Pending Listings, 11 Sold Listings, 187 CDOM (Lakeshore Subgroup ~ 7 Active, 1 Pending, 2 Sold)

$300,000-$400,000 ~ 27 Active Listings, 0 Pending Listings, 2 Sold Listings, 563 CDOM (Lakeshore Subgroup ~ 15 Active, 0 Pending, 0 Sold)

$400,000-$500,000 ~ 17 Active Listings, 0 Pending Listings, 0 Sold Listings (Lakeshore Subgroup ~ 14 Active, 0 Pending, 0 Sold)

$500,000 and Up ~ 19 Active Listings, 1 Pending Listings, 3 Sold Listings, 733 CDOM (Lakeshore Subgroup ~ 14 Active, 1 Pending, 3 Sold)

Lakeshore available in the Forest Lake area:

60 Active Listings
Price range: $259,000-$2,600,000

42 Homes on Forest Lake
4 Homes on Clear Lake
2 Home on Comfort Lake
1 Home on Sylvan Lake
1 Home on NEDS Lakeshore (natural/environmental wetland)

**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 7/1/10 through 9/30/10.

Click HERE to Search for Minnesota Lakeshore Home!

Articles on Forest Lake, Lakeshore and Minnesota Real Estate that might be of interest:

Ham Lake, MN Real Estate Market Statistics 3rd Quarter 2010

The City of Ham Lake has a rich history. Incorporated in 1974, Ham Lake became a city after over a hundred years of humble but steady growth. The area was first settled in 1855 by a group of Scottish men on the southwest side of Ham Lake. Though, I can only assume that the lake itself got its name due to its unusual “ham hock” shape, the community started out with a different name. The original name of the community was Glen Carey, which is the Scottish translation of “beautiful valley”. Following a prairie fire in 1857, the first settlers moved but the community was resettled again. The new Scandinavian settlers had a hard time with the pronunciation of Glen Carey and soon the fledging community was known as Ham Lake. Anoka County officially was recognized it as a township in 1871. In the early 1900’s Central Avenue (Highway 65) was a slow commute as it was a wagon trail through the sand and swampland. And we think going through stop light after stop light slows traffic. Though it was graveled and paved at some point, it 1954 before was expanded to four lanes.

Those four lanes are in full use now as more and more people look to buying acreage, executive, luxury and lakeshore homes in the Ham Lake area. The real estate market is not quite as sluggish in Ham Lake, MN as it was in early 2009. But the sales slowed considerably after the expiration of the tax credit. Still homes did sell in all price categories and inventory seems to be down.

The lower inventory levels is not just due to sales in the Ham Lake area. There are currently 109 homes active on the market. A few homes listed at higher prices did move off the market but builder’s are being much more conservative as there are fewer new construction homes in the area with price points over half a million. Likewise, all the lakeshore homes with the high price points have been removed from the market as just weren’t selling. There are still 9 listed homes over $500,000 and only 2 sold in the 3rd quarter of 2010 and one in pending, the absorption rate is just over a year. Lower priced inventory did continue to sell pretty well into the third quarter. With 33 actives and 8 sales this quarter, it seems that homes under $200K have slowed from a 6 month to an 8 month absorption rate. Sales in the $200,000-$300,000 price points have slowed considerably and now the absorption rate has slowed to over a year. While in the $400,000-$500,000 range, the inventory is down either due to people removing their homes from the market or dropping their prices. Now the absorption rate in this price point is about 8 months. Homeowners considering selling a home in the Ham Lake area must consider the average time to sell a home in the Twin Cities north metro is still over 6 months but in some price points it could take a year or longer. Right now inventory levels indicate there is about roughly a year of inventory in the Ham Lake market. Homes that are properly priced and prepared for showings in this Anoka County community are selling.

3rd Quarter 2010 Ham Lake residential real estate statistics for single family homes:

Under $200,000~ 33 Active Listings, 9 Pending Listings, 12 Sold Listings, CDOM 97 (No New Construction)
$200,000-300,000 ~ 39 Active Listings, 6 Pending Listings, 8 Sold Listings, CDOM 159 (New Construction Subgroup ~ 4 Active, 1 Pending, 1 Sold)
$300,000-400,000 ~ 20 Active Listings, 1 Pending Listings, 6 Sold Listings, CDOM 124 (New Construction Subgroup ~ 6 Active, 0 Pending, 1 Sold)
$400,000-$500,000 ~ 8 Active Listings, 1 Pending Listings, 2 Sold Listings, CDOM 281 (New Construction Subgroup ~ 0 Active, 1 Pending, 1 Sold)
$500,000 and Up~ 9 Active Listings, 1 Pending Listings, 2 Sold Listings, CDOM 317 (New Construction Subgroup ~ 1 Active, 0 Pending, 2 Sold)

Lakeshore available in the City of Ham Lake
4 Active Listings

Ham Lake lakeshore price range: $195,000-$299,000

1 Homes on Coon Lake
1 Homes on Ham Lake
1 Home on Lake Netta
1 Home on Little Coon Lake

**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 7/1/10 through 9/30/10.

Click HERE to Search for Minnesota Lakeshore or Acreage Homes!

Articles on Ham Lake, Lakeshore and Minnesota that might be of interest: