Sunday, December 13, 2015
Friday, October 9, 2015
Monday, June 22, 2015
Minneapolis, Minnesota (June 11, 2015) – With the sole exception of inventory, every market metric showed continued improvement during May. The number of signed purchase agreements in the 13-county Twin Cities increased 19.5 percent to 6,228. That marks the highest May pending sales count since 2005. Sellers, however, were only slightly more active than last year. New listings rose 0.3 percent to 8,590 for the month. Excluding April 2015, that’s the highest number of new listings for any month since the home buyer tax credit period of April 2010. Homes also sold in less time and sellers yielded a higher share of their list price.
The May 2015 median sales price of all MLS home sales increased 6.7 percent to $224,000. That’s within 3.6 percent of the May 2006 level and 6.3 percent of the record high seen in June 2006. Price per square foot offers a different perspective, as it accounts for the increasing square footage of homes selling. The average price buyers paid per square foot rose 3.5 percent to $128.
“Though it’s not the only important measure by a long shot, many factors have enabled prices to once again approach these levels,” said Mike Hoffman, Minneapolis Area Association of REALTORS® (MAAR) President. “It’s taken nearly 10 years just to get this close to break-even and this time the fundamentals are better, our population has grown and industry professionals and consumers are more cautious.”
Persistent rent hikes, low mortgage rates, solid job growth and some noticeable wage growth are all encouraging consumers to seriously consider homeownership. But sellers and builders have been reluctant to list and build at the same levels they did when demand was this high 10 years ago. That has kept us in a seller’s market for some time. The number of days a listing spends on the market also reflects this. Those selling their homes are waiting a median of 35 days before accepting an offer at a median of 99.5 percent of their current list price. May months supply of inventory fell 12.2 percent to 3.6 months. Markets with between five and six months of supply are considered balanced.
Over the last 12 months, buyer activity increased the most in the townhome segment, where properties are also selling the fastest. Condominium prices increased the most of any property type over the same period. New construction pending sales for May increased at about half the rate of previously-owned properties. The number of homes on the market in May fell for all property and construction types.
The finance environment remains attractive. Mortgage rates are hovering around 4.0 percent, compared with a long-term average of 7.0 percent. The Twin Cities housing affordability index increased 2.7 percent since May 2014. An educated and literate workforce combined with a healthy and diverse economy helps Minnesota compete for top talent and businesses on an international scale.
“Many brokerages are seeing record volume even as prices move toward 2006 levels,” said Judy Shields, MAAR President-Elect. “Buyers in a variety of segments in our wonderful region are eager to make homeownership a reality. Prospective sellers should take note—they’re likely to receive top dollar for their property.”
All information is according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from NorthstarMLS. MAAR is the leading regional advocate and provider of information services and research on the real estate industry for brokers, real estate professionals and the public. MAAR serves the Twin Cities 13-county metro area and western Wisconsin.
Home Upgrades with the Lowest ROI
Published: August 26, 2013 by NAAR HouseLogic.com
File these six upgrades under wish fulfillment, not value investment.
Of course, home owning isn’t just about building wealth; it’s also about living well and making memories -- even if that means outclassing your neighborhood or turning off future buyers. So if any of these six upgrades is something you can’t be dissuaded from, enjoy! We won’t judge. But go in with your eyes wide open. Here’s why:
1. Outdoor Kitchen
The fantasy: You’re the man -- grilling steaks, blending margaritas, and washing highball glasses without ever leaving your pimped-out patio kitchen.
The reality: For what it costs -- on average $12,000-$15,000 -- are you really gonna use it? Despite our penchant for eating alfresco, families spend most leisure time in front of some screen and almost no leisure time outdoors, no matter how much they spend on amenities, according to UCLA’s Life At Home study. And the National Association of Home Builders' 2013 What Home Buyers Really Want report says 35% of mid-range buyers don’t want an outdoor kitchen.
The bottom-line: Instead, buy a tricked out gas grill, which will do just fine when you need to char something. If you’re dying for an outdoor upgrade, install exterior lighting -- only 1% of buyers don’t want that.
Related: How to Buy a Gas Grill
2. In-Ground Swimming Pool
The fantasy: Floating aimlessly, sipping umbrella drinks, staying cool in the dog days of summer.
The reality: Pools are money pits that you’ll spend $17,000-$45,000-plus to install (concrete), and thousands more to insure, secure, and maintain. Plus, you won’t use them as much as you think, and when you’re ready to sell, buyers will call your pool a maintenance pain.
The bottom-line: If your idea of making it includes a backyard swimming pool, go for it. But, get real about:
- How many days per year you’ll actually swim.
- How much your energy bills will climb to heat the water ($760-$1,845 depending on location and temperature).
- What you’ll pay to clean and chemically treat the pool ($20-$100/month in-season if you do it yourself; $75-$165/month for a pool service).
- The fact that you'll likely need to invest in a pool fence. In fact, some insurance carriers require it.
Related:
Less expensive option: an above-ground pool
Lower maintenance option: natural pools
If you do put in a pool, you can save money by installing a solar heater.
3. In-Ground Spa
The fantasy: Soothing aching muscles and sipping chardonnay with friends while being surrounded by warm water and bubbles.
The reality: In-ground spas are nearly as expensive ($15,000-$20,000) as pools and cost about $1 a day for electricity and chemicals. You’ll have to buy a cover ($50-$400) to keep children, pets, and leaves out. And, like in-ground pools, in-ground spas’ ROI depends solely on how much the next homeowner wants one.
The bottom-line: Unless you have a chronic condition that requires hydrotherapy, you probably won’t use your spa as much as you imagine. A portable hot tub will give you the same benefits for as little as $1,000-$2,500, and you can take it with you when you move.
Related: What You Need to Know About Installing a Spa
4. Elevator
Your fantasy: No more climbing stairs for you or for your parents when they move in.
The reality: Elevators top the list of features buyers don’t want in the NAHB “What Buyers Really Want” report. They cost upwards of $25,000 to install, which requires sawing through floors, laying concrete, and crafting high-precision framing. And, at sales time, elevators can turn off some families, especially those with little kids who love to push buttons.
The bottom-line: If you truly need help climbing stairs, you can install a chair lift on a rail system ($1,000-$5,000). Best feature: It can be removed.
Related: 4 Easy-Living Tips for Aging in Place
5. Backup Power Generator
Your fantasy: The power in your area goes kaput, but not for you. You were smart enough to install a backup power generator. While the neighbors eat cold hot dogs by a flashlight beam, you’re poaching salmon in your oven and pumping out Red Hot Chili Peppers tunes.
The reality: Power outages may seem to go on forever, but they don’t. Fifty dollars worth of batteries can power portable lights, radios, and TVs; a car adaptor will charge your cell phones and iPods; and some dry ice will keep freezer food cold for at least a couple of days.
The bottom-line: If you live in areas where power shortages are the rule, not the exception, spend the money for reliable backup power: Your still-frozen steaks, home office fax, and refrigerated medicine will thank you. But if the power goes out rarely, then installing a standby generator is overkill.
Nationwide, homeowners recouped 52.7% on their average $11,410 investment in a backup generator -- one of the lowest ROIs on the annual Cost vs. Value Report. If you need occasional emergency power, a gasoline-powered portable generator ($200-$650) probably will suffice.
Related: What I Learned About Portable Generators One Dark and Stormy Night
6. New Windows
The fantasy: Brand new windows that don’t stick, and slash energy bills.
The reality: A $10,000 vinyl window replacement project will recoup about 70% of your investment at resale, and if they’re Energy Star-qualified, they can save you around $300 in energy bills per year. So, plan to live in your house about another 10 years to recoup the cost of new windows.
The bottom-line: We get it -- new windows are sturdy, pretty energy savers. But unless old window frames are thoroughly rotten, most windows can be repaired for a fraction of replacement costs. And if you spend about $1,000 to update insulation, caulking, and weather-stripping, you’ll save 10%-20% on your energy bill.
Monday, May 11, 2015
Saturday, May 9, 2015
Friday, May 8, 2015
How to Divide Plants
Make the most of your perennials by dividing and transplanting favorites that have outgrown their homes.
Follow these dividing and transplanting tips for lush and healthy gardens and landscaping.Why Divide and Transplant?
Plants need space to thrive. When they become too big for their garden spots, powdery mildew coats leaves, insects chow down on blooms and stems, and centers become brown.
When you divide and transplant, each perennial -- the new and old -- blooms more. Plus, divided plants are cheap plants — they fill in garden gaps and are a hit at neighborhood plant swaps.
When’s the Best Time to Transplant?
Transplanting rule of thumb: If it flowers in spring, transplant in fall; if it flowers in fall, transplant when the blossoms fade.
But really, anytime is an OK time to move perennials if you can dig the ground and water the transplants. If you transplant in warm weather, avoid hot afternoons.
Early fall is particularly good because rain is more plentiful in most regions, and roots have an entire winter to grow and anchor themselves into the ground. Some happy fall transplants include:
- Peony
- Bleeding heart
- Hosta
- Spring bulbs such as tulips and iris
- Coneflowers
- Black-eyed Susans
- Mums
You don’t need a surgeon’s touch to divide perennials, which are hardier than they look.
“Just dig or pull it out; you won’t hurt it,” says Sheri Ann Richerson, author of "The Complete Idiot’s Guide To Year-Round Gardening."
5 Essential Steps for Dividing Plants
- Prune the plant by about a third, which reduces its water requirements after transplanting.
- Place a shovel or spade where you want to divide the plant, push the tool down through the plant and roots, and pull up the divided plant.
- When dividing bulbs, dig up the mature plants and gently pull bulbs apart with your fingers.
- To divide hostas, cut roots with a sharp knife or shears.
- Trim the roots of divided plants, which makes them stronger and healthier (just like trimming split ends makes hair healthier).
- Give plants a nice long drink before transplanting. Immerse their roots in a bucket of water with a small amount of fertilizer for at least 30 minutes and no longer than overnight. Place the bucket in a shady place. This will decrease plant stress.
- Amend soil with compost from your pile or a slow-release fertilizer. Bulbs will appreciate a handful of bone meal.
- Dig a hole about twice the diameter of the plant.
- If you’ve got clay garden soil, place crushed gravel or terra-cotta pot shards in the bottom of the hole to increase drainage.
- Place plant in hole and cover with soil.
- Water thoroughly and check every day or two to make sure the soil is moist, not sopping.
- Divide and transplant perennials every three to five years.
- Dividing and transplanting temporarily stresses plants, so pick a day that’s not too hot or cold. A mild, overcast day about a month before the first hard frost is best.
- Let plants rest for a couple of weeks after blooming, which is stressful. Then transplant.
- If a heat wave suddenly appears, shade transplants with a beach umbrella and water daily.
Thursday, May 7, 2015
Consumers and network professionals have spoken!
Berkshire Hathaway HomeServices’ commercial, “Calls,” was today named
2015’s best national TV spot in real estate by an Inman News
poll of more than 15,000 readers. Berkshire Hathaway HomeServices
secured 5,522 votes to win the poll, which included TV spots from
industry competitors Coldwell Banker, Century 21 and Re/Max. The spot,
celebrating that magical moment when clients first learn
they’ve sold their home, is now running on HGTV.
Tuesday, March 10, 2015
Saturday, February 7, 2015
2015 Remodeling Cost vs. Value: Less Is More
Smaller replacement projects,
particularly those that enhance curb appeal, remain the most cost
effective way for sellers to improve value.
January 2015 | By Stacey Moncrieff
As the 2015 Remodeling Cost vs. Value Report makes clear, large-scale jobs aren’t likely to return sellers their full cost. But there are improvements worth doing in anticipation of an upcoming sale. Some will return almost 100 percent of their cost. Others may not have as great a payback, but they can improve the market position of the property in relation to the competition. (Think about the impact of beautiful kitchen photos on online home shoppers.) In addition, several pricier projects can provide owners with a few years of enjoyment while still offering a decent payback down the road.
As a general rule:
- Simpler, lower-cost projects tend to return greater value. The national average cost for a steel door replacement was $1,230, for example. That’s the least expensive project on the list, and it ranks highest on the payback scale, returning 101.8 percent nationally on average. In fact, in 43 of the 102 markets surveyed, REALTORS® said the new door would recoup more than 100 percent of its cost. Other projects expected to top 100 percent payback in multiple markets: the midrange garage door replacement, the upscale garage door replacement, the midrange wood window replacement, and the minor kitchen remodel. Notice a pattern? With the exception of the kitchen job, they’re all replacement projects. In general, replacements cost less and provide a bigger payback than remodels or additions.
- First impressions are important. The replacements that offer the greatest payback are the ones that are most obvious to buyers when they first view a house in person or online, such as new door or garage door. Siding replacement also provides great value at resale—particularly this year’s one new project, manufactured stone veneer, which is expected to recoup 92.2 percent of its cost nationally on average.
- Kitchens still offer the most remodeling bang for the buck. The only remodeling job breaking into the top 10 in terms of payback is the minor kitchen remodel with a national average cost of $19,226 and a national average payback of 79.3 percent.
Top 5 projects nationally in terms of cost recouped:
1. Entry door replacement (101.8%)
2. Manufactured stone veneer (92.2%)
3. Garage door replacement (88.5%)
4. Siding replacement, fiber cement (84.3%)
5. Garage door replacement (82.5%)
- Expect bigger payoffs in the West. In addition to reporting national averages, Remodeling magazine breaks down Cost vs. Value data by Census region. In the Pacific region—which includes Alaska, California, Hawaii, Oregon, and Washington—six projects are expected to top 100 percent payback. The nearest competitor is the East South Central region—Alabama, Kentucky, Mississippi, and Tennessee—where two projects are expected to top 100 percent payback.
What Is the Cost vs. Value Report?
The Remodeling Cost vs. Value Report, produced by Remodeling magazine in cooperation with the National Association of REALTORS® and REALTOR® Magazine, provides estimated costs for 36 midrange or upscale home-improvement projects, along with the percentage of cost that owners can expect to recoup when they sell. Projects range from a new garage door to a master suite addition.
Project costs for the 102 markets surveyed for the 2015 report were provided by RemodelMax, a publisher of estimating tools for remodelers, using Clear Estimates remodeling software. NAR members provided the expected value of the projects at resale.
To learn more and see all 36 projects broken down by region and market area, visit Remodeling at CostvsValue.com.
Remodeling magazine's 2015 Cost vs. Value Report, ©2015 by Hanley Wood LLC. Republication or re-dissemination of the Report is expressly prohibited without written permission of Hanley Wood, LLC. "Cost vs. Value" is a registered trademark of Hanley Wood LLC.
Stacey is vice president of
business-to-business communications for the National Association of
REALTORS®. In addition to overseeing REALTOR.org, REALTOR® Magazine, and
the quarterly REALTOR® Association Executive magazine, she manages a
variety of e-communications for REALTORS® and REALTOR® association
executives. She has been with the NAR for more 20 years, starting as an
associate editor with Real Estate Today magazine, where she covered
sales and finance topics.
Report: Home Remodeling Is Surging
Daily Real Estate News |
Friday, January 30, 2015
Home owners are remodeling their
homes at levels that haven’t been seen in decades. In fact, the home
improvement business could reach record levels this year, according to a
new report from the Joint Center for Housing Studies of Harvard
University.
Spending on discretionary home improvement projects jumped by nearly $6 billion between 2011 and 2013 -- the first rise since 2007, according to the report.
Some areas of the country are seeing even greater rises in home improvement expenditures. Washington, D.C., and Boston home owners are spending nearly $5,000 a year on average for remodeling; Las Vegas home owners are spending about $1,700, according to the report.
The top remodeling projects continue to target the kitchen and adding a new bathroom, but baby boomers also are increasingly retrofitting their homes for better accessibility and with age-in-place features. Also, more home owners are tackling home projects centered on energy efficient upgrades, such as for windows and heating and cooling systems.
Source: “Remodeling Helps Lift Housing Industry,” CNBC (Jan. 29, 2015)
What’s behind the increase? Potential trade-up home buyers are fixing up their existing homes for sale, federal and state subsidies are increasing the desire for energy-efficient upgrades, and landlords are sprucing up their properties to justify raising rents, the report notes. A strengthening job market is also helping to lead more home owners to take on home remodeling projects, following years of delaying projects.
Spending on discretionary home improvement projects jumped by nearly $6 billion between 2011 and 2013 -- the first rise since 2007, according to the report.
Some areas of the country are seeing even greater rises in home improvement expenditures. Washington, D.C., and Boston home owners are spending nearly $5,000 a year on average for remodeling; Las Vegas home owners are spending about $1,700, according to the report.
The top remodeling projects continue to target the kitchen and adding a new bathroom, but baby boomers also are increasingly retrofitting their homes for better accessibility and with age-in-place features. Also, more home owners are tackling home projects centered on energy efficient upgrades, such as for windows and heating and cooling systems.
Source: “Remodeling Helps Lift Housing Industry,” CNBC (Jan. 29, 2015)
Friday, February 6, 2015
Inventory Problems Stall Home Sales
Daily Real Estate News |
Friday, January 30, 2015
Pending home sales dropped in
December, despite interest rates being at the lowest levels in more than
a year, the National Association of REALTOR® reports. All regions
across the country posted declines in December.
In December, pending home sales nationally fell 3.7 percent month-over-month. Still, NAR’s Pending Home Sales Index, a forward-looking indicator based on contract signings, remained about 6 percent above year-over-year levels for the fourth consecutive month.
Total inventory dropped in December for the first time in 16 months, which left homebuyers with fewer choices of homes for-sale.
“With interest rates at lows not seen since early 2013, the strength in existing-sales in upcoming months will largely depend on the willingness of current home owners to realize their equity gains from the past couple years and trade up,” Yun says. “More jobs, increasing consumer confidence, less expensive mortgage insurance, and new low down payment programs coming into the marketplace will likely lead to more demand from first-time buyers.”
Regional Look
Across the country, here’s how pending-home sales fared in December:
In December, pending home sales nationally fell 3.7 percent month-over-month. Still, NAR’s Pending Home Sales Index, a forward-looking indicator based on contract signings, remained about 6 percent above year-over-year levels for the fourth consecutive month.
Lawrence Yun, NAR’s chief economist, says that inventory problems mixed with slightly higher home prices attributed to December’s decline in contract signings.
Total inventory dropped in December for the first time in 16 months, which left homebuyers with fewer choices of homes for-sale.
“With interest rates at lows not seen since early 2013, the strength in existing-sales in upcoming months will largely depend on the willingness of current home owners to realize their equity gains from the past couple years and trade up,” Yun says. “More jobs, increasing consumer confidence, less expensive mortgage insurance, and new low down payment programs coming into the marketplace will likely lead to more demand from first-time buyers.”
Regional Look
Across the country, here’s how pending-home sales fared in December:
- Northeast: posted the largest decline of any other region, dropping 7.5 percent in December month-over-month. Pending home sales, however, remain 6.3 percent above year ago levels.
- Midwest: decreased 2.8 percent in December, but remains 1.9 percent above December 2013.
- South: decreased 2.6 percent in December, but pending-home sales are 8.6 percent above the prior December’s levels.
- West: declined 4.6 percent in December, but pending-home sales are 6.3 percent above a year ago.
Home Ownership Rate Falls to 20-Year Low
Daily Real Estate News |
Friday, January 30, 2015
The U.S. home ownership rate posted
declines across all four regions of the U.S. in the fourth quarter,
plunging to its lowest level since the third quarter of 1994. But a
sharp rebound in household formation during the quarter has more
economists optimistic that a turnaround in the home ownership rate is on
the horizon.
The home ownership rate fell from 64.3 percent in the third quarter to 63.9 percent in the fourth quarter, reaching a 20-month low, the Commerce Department reported Thursday. In 2004, the home ownership rate peaked at 69.4 percent.
While the home ownership rate fell, however, household formation more than quadrupled during the fourth quarter to 1.7 million from 356,000 a year ago. The gains were mostly driven by renter households, the Commerce Department reported.
Still, housing analysts are optimistic from signs that household formation is picking up, particularly as the labor market strengthens too and credit requirements for qualifying for a mortgage are loosened up. Economists are expecting a rise in first-time buyers and a regain of momentum in housing this year.
"The combination of a high share of young adults living in the parental home, falling mortgage rates, and loosening credit means that the outlook for household formation is strengthening," says Paul Diggle, a property economist at Capital Economics in London. "That's one of the reasons why we are optimistic about the prospects for homebuilding over the next few years."
Many economists are predicting that the home ownership rate will stabilize in the coming quarters.
"The decade-long decline in the share of the population who own their home may now be drawing to an end," Diggle told Reuters News. "Wage growth may soon accelerate, helping young households to make the leap into home ownership. The survey evidence certainly suggests that owning a home remains part of most people's perception of the American dream."
Source: “U.S. Home Ownership Hits 20-Year Low, But New Households Growing,” Reuters (Jan. 29, 2015)
The home ownership rate fell from 64.3 percent in the third quarter to 63.9 percent in the fourth quarter, reaching a 20-month low, the Commerce Department reported Thursday. In 2004, the home ownership rate peaked at 69.4 percent.
While the home ownership rate fell, however, household formation more than quadrupled during the fourth quarter to 1.7 million from 356,000 a year ago. The gains were mostly driven by renter households, the Commerce Department reported.
Still, housing analysts are optimistic from signs that household formation is picking up, particularly as the labor market strengthens too and credit requirements for qualifying for a mortgage are loosened up. Economists are expecting a rise in first-time buyers and a regain of momentum in housing this year.
"The combination of a high share of young adults living in the parental home, falling mortgage rates, and loosening credit means that the outlook for household formation is strengthening," says Paul Diggle, a property economist at Capital Economics in London. "That's one of the reasons why we are optimistic about the prospects for homebuilding over the next few years."
Many economists are predicting that the home ownership rate will stabilize in the coming quarters.
"The decade-long decline in the share of the population who own their home may now be drawing to an end," Diggle told Reuters News. "Wage growth may soon accelerate, helping young households to make the leap into home ownership. The survey evidence certainly suggests that owning a home remains part of most people's perception of the American dream."
Source: “U.S. Home Ownership Hits 20-Year Low, But New Households Growing,” Reuters (Jan. 29, 2015)
Mortgage Rates Up for the First Time This Year
Daily Real Estate News |
Friday, January 30, 2015
Fixed-rate mortgages reversed course
this week, inching up, following weeks of declines, Freddie Mac reports
in its weekly mortgage market survey. Still, mortgage rates remained
near historical lows with the 30-year fixed-rate mortgage well-below 4
percent this week and the 15-year fixed-rate mortgage remaining under 3
percent.
Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 29:
"Mortgage rates ticked up this week for the first time in 2015 following positive home sales reports,” says Len Kiefer, Freddie Mac’s deputy chief economist. New-home sales jumped 11.6 percent in December, beating market expectations, while existing-home sales rose 2.4 percent to an annual rate of 5.04 million homes in December.
Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 29:
- 30-year fixed-rate mortgages: averaged 3.66 percent, with an average 0.6 point, increasing from last week’s 3.63 percent average. Last year at this time, 30-year rates averaged 4.32 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 2.86 percent, with an average 0.4 point, rising from last week’s 2.83 percent average. Last year at this time, 5-year ARMs averaged 3.12 percent.
- 1-year ARMs: averaged 2.38 percent, with an average 0.4 point, rising from last week’s 2.37 percent average. A year ago, 1-year ARMs averaged 2.55 percent.
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