ISSUE 2-3Highlights:How the Market will Set Records 1Legislative Q & A 2Insights 4 Monthly Journal on the Business of Real Estate Editor-in Chief: Karen Tobler How the Market will Set Records - a message from Frank D’Angelo ban growth rates. The rental vacancies have plunged by 6 to 7.5% inA recent review of the 2010 Twin Cities Housing Market provides just the two urban centers supporting the fact that there are likely largeenough evidence to support both optimism and doubt moving forward numbers of credit worthy consumers wondering what to do in thein 2011 if you only deal with raw housing data and media speculation. area of home ownership.However, there are indicators showing the potential for a record set-ting second half of 2011. REALTORS® need to focus on the consumers perspective of making safe and sound investment decisions versus the most over-used state-With the 55 year low mortgage rates and the highest home afforda- ments such as, ‘Its a great time to Buy! REALTORS® have been sayingbility index on record, it can be clearly stated that the timing is right ‘Its a great time to buy for too many years and that statement mayfor purchasing real estate. The facts are clear with respect to afforda- have created a sense of urgency at the top of the market; however, itbility, yet the media and consumer doubt lies among factors associ- is literally meaningless at the bottom of the market. Selling from theated with the potential release of vast numbers of Real Estate Owned bottom of the market is completely different than selling from the(REOs) properties from banks holding past redeemed assets. There top. Consumers haveare no clear facts associated with how banks will release their assets been pistol-whipped byand how that inventory may impact the perceived soft bottom of the the media over this his-local real estate marketplace. toric real estate marketMinnesota is not at all near the top of the list of States with highest decline and are a bit ‘gun-Foreclosure Rates. Nevada tops the nations foreclosure rates for the shy to review whether its th4 consecutive year at 9% or simply put 1 in 11 homes were foreclo- a good time to buy, sell orsures in 2010. Arizona second highest foreclosure rate for a second both. Neighboring com-year in a row at 5.73% or 1 in 17 homes, followed by: Florida at 5.51%, munities in the Twin CitiesCalifornia at 4.08%, Utah at 3.44%, Georgia at 3.25%, Michigan at have very large differences in median sales prices in 2010 versus any3.0%, Indiana at 2.87% and Colorado at 2.51%. 2010 was both a other year in the past. That information supports the pro-market evi-‘boom and ‘bust year in sales overall with the first quarter Tax Credit dence that some municipalities are becoming pro-active with localblitz that created a second half ‘hangover in sales coupled with the REALTOR® associations, lenders and even a few builders and develop-typical second half drought in sales that encompass less than 35% of ers are getting back into the market pro-actively. REALTORS® shouldannual sales. All local homeowners and those contemplating home- be focusing on ensuring consumer confidence regarding their real es-ownership should look at the additional factors beyond housing statis- tate investments versus creating a sense of urgency. As more andtics, mortgage interest rates, foreclosure rates and speculation regard- more consumers feel confident interest rates have stabilized to 55ing the decision to sell your existing property or purchase more real year lows and pricing has also stabilized and the housing affordabilityestate in this Marketplace. Additional factors include a robust growth index at its peak; more selling and buying will occur and likely setin Minnesotas Employment during this recovery period, a 51.6% in- new records for the Twin Cities Marketcrease in housing unit authorizations in the last 12 months and apromising early forecast for 2011.Population growth rates are on the Comments? Email Frank at firstname.lastname@example.org in both Minneapolis and Saint Paul urban areas with stable subur-
Legislative Q&Awith Patti Ann Kasper Calendar of Events Patti Ann Kasper is currently serving on the Government Affairs Committee March 27 at North Metro/St. Paul Board. Her Happy Birthday Gordon Oleson past legislative experience took her to April 2 the world of volunteer lobbying over Happy Birthday Jenna Paulzine the course of safety and installation of fire sprin- klers. Could you tell us about it? April 4 7 years. With 6 years A: On March 7th, House of Repre- Happy Birthday Brian Linné in the busi- sentatives file #HF460 (SF0297 in ness, Patti the Senate) which would prevent a April 18 Ann has been mandate requiring that all new Johnny Loewy—Mason City, IA awarded the single family homes have fire sprin- Graduate klers installed. Some of the con- REALTOR cerns in making fire sprinklers man- April 20 Institute Des- datory include: they substantially WCR Spring Fling Gala & Fundraiser ignation and the Short Sale Foreclo- increases the cost of building a With Keynote Address by Tami Bonnell sure Resource Designation. house, most homeowners would Braemar Golf Club Q: There has been some talk about not be able to maintain the sys- 11:00—2:00 pm new regulations in regards to fire tems themselves and would have to hire a plumber to do the an- nual maintenance. Fire sprin- klers present logistical prob- NexusPro Apprentice Program lems for homes that use pri- Mondays at 6:30 pm RSVP: Sheldon@exitrealtynexus.com vate wells. In addition, there are concerns that our cold Min- Join us every Tuesday at 10 am for our nesota winters may cause the PRO Development Nexus in Coon Rap- ids and at 1 pm in Burnsville. lines to freeze and burst, thus flooding the home in the mid- And, Wednesdays at 10 am for our dle of winter. Surprisingly, ac- NEXUS Brunch and Learn cording to studies reviewed by *All sessions are open to agents wish- our state association, they ing to learn more about real estate. Please call 763-548-1400 to reserve a have not been shown to sub- seat* stantially improve personal safety. Right now, this bill is not considered favorable to homeowners. Continued on next page…..
Legislative Q&A with Patti Ann Kasper Continued Technology SolutionsQ: There has been a lot of talk on Condo email. As a consumer, ask your REAL- Q: QR Codes….Huh??Associations charging high prices for cop- TOR® for additional information on cur- We are starting to see these funny blackies of documents. What is going on at the rent legislations that might affect you and white boxes all over! QR codes arelegislature to deal with this issue? and your home ownership. Many topics really a like a finger print or bar code to get come around more than once, like the you quickly to information linked to theYes, there is a bill introduced that will help code.eliminate price gouging by Townhome Mortgage Interest Deduction Eliminationand Condo Associations for the docu- and the property tax deductions. It’s Most smart phones have a way to read thements needed to close a real estate trans- important to have a REALTOR® on your code. All you need is an application like side to help you stay informed. NeoReader or QuickMark.action. In the past, some associationshave charged as much Got the app? Point your application in theas $400 for the docu- direction of the QR Code and let the app do the work!ments and, when aSeller is faced with a You can also create you own on bit.ly andshort sale, this can be a other sites on the web for free!severe hardship. Asso-ciations will be limitedto charging only 25¢ foreach page copied, theactual costs of electroni-cally transmitting thecopies, and for the em-ployee’s time searchingfor and retrieving re-cords including time forresponding to the request. This is greatnews which should eliminate the exorbi- Questions or Comments?tant fees some associations have been Contact Patti Ann Kasper atcharging for these required documents. email@example.comQ: What do you recommend for bothREALTORS® and consumers to do whenthey hear of something?A: You can certainly visit http://www.leg.state.mn.us to look up the con-tact information for your Senatorand Representative or to track billsand committee members. Whencontacting a representative, letthem know you are a constituent.This is important to them. Oftentimes, handwritten notes that arefaxed and mailed make a biggerimpact than a phone call or an
Insights with Karen Tobler e-Listings : EYE ON IT A marketing powerhouse Current Industry TrendsWith over 90% of consumers choosing to go online formuch of their real estate information, it is absolutelycritical to be a player in the game of technology. Not justa player, we are talking MVP.Luckily, EXIT has e-Listings.This robust system give agents the best tools to reachthat MVP status for each of their listings and gets theinformation to the consumer in the way they are search-ing for it, via social media and other internet sites.Virtual tours, website, automatic syndication, onlinemagazines and customized movie clips are a few of thekey benefits e-listings offers to maximize online expo-sure .Further, e-Listings showcases property photos easily andeffectively. 86% of buyers consider photos as the topqualifier in deciding whether or not to view a property.In addition, it’s 1-800 numbers, text messaging andSmartphone technology is second to none. In the era of“I need it now” information, can anyone afford not tohave this virtual advocate on their team? AVERAGE DAYS ON MARKET: 181 (Mar 2011)Comments? E-mail Karen at firstname.lastname@example.org MONTHS SUPPLY OF INVENTORY: 7.7 PERCENT OF LIST PRICE RECEIVED AT SALE: 88.6 % (March 2010) Information available through Minneapolis Area Association of REALTORS®, Inc
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