Ignore the Headlines!

Why you should ignore the headlines when it comes to the housing market.

http://www.time.com/time/magazine/article/0,9171,1713483,00.html

Some characteristics of Minnesota home buyers:

• Median age of all home buyers was 36 years old. For first-time buyers, the median age was 28.
• Household income of home buyers was $69,300.
• 69 percent of home buyers said there were no children under 18 residing in the property.
• 56 percent of home buyers were married couples, 24 percent single females, 11 percent single males and 9 percent were unmarried couples.
• 6 percent of home buyers were born outside of the U.S., compared with 9 percent nationally.
• First-time home buyers accounted for 42 percent of homes purchased in 2007.
• 66 percent of first-time home buyers were between 25 and 34 years old.
• 30 percent of buyers use social networking websites (e.g., Myspace, Facebook, Linkedin).
• Among home buyers aged 18 to 24, 59 percent reported using social networking sites.
• 19 percent of homes purchased were new construction.
• 64 percent of homes purchased were detached single-family.
• The typical home buyer purchased a home 14 miles from their previous residence.
• The median price of homes purchased was $221,900 compared to $215,000 in the U.S.
• The typical buyer purchased a home that was 1,850 square feet in size.
• Recent homebuyers plan to live in their home a median of 10 years.
  
  Source: Minnesota Association of REALTORS®

5 Simple Ways to Increase a Home's Value

Good home maintenance is key to creating and preserving a home’s value. Not to mention, it also impresses potential buyers. Here are five basic steps that every home owner ought to take — before spending money on dream bathrooms or gourmet kitchens.

1. Safety. Make sure smoke detectors and carbon monoxide detectors are installed and in good working order. Check fuel-burning appliances to make sure they are properly vented and no gas connections leak. Make sure the electrical system is adequate. Flickering lights and popping breakers are the sign of a problem. Anchor handrails and grab bars adequately.

2. Preventive maintenance. Repair any leaks in the roof, seal gaps in the siding, paint bare wood, replace damaged decking, patch cracks in concrete, and caulk around tubs and showers.

3. Conserve energy. Install a programmable thermostat, weatherstrip doors and windows, fix leaking faucets, upgrade insulation, and replace leaky windows.

4. Go green. Consider environmentally friendly materials for windows, doors, siding, decking, fencing, roofing, flooring, and insulation.

5. Improve comfort. Get rid of clutter, open up spaces, update window treatments to allow in more light, and organize closets and storage.

HALLOWEEN SAFETY TIPS FOR KIDS

There are many ways to keep your child safe at Halloween, when they are more prone to accidents and injuries. The excitement of children and adults at this time of year sometimes makes them forget to be careful. Simple common sense can do a lot to stop any tragedies from happening.

• Help your child pick out or make a costume that will be safe. Make it fire proof, the eye holes should be large enough for good peripheral vision.
  
• If you set jack-o-lanterns on your porch with candles in them, make sure that they are far enough out of the way so that kids costumes won't accidentally be set on fire.
  
• Make sure that if your child is carrying a prop, such as a scythe, butcher knife or a pitchfork, that the tips are smooth and flexible enough to not cause injury if fallen on.
  
• Kids always want to help with the pumpkin carving. Small children shouldn't be allowed to use a sharp knife to cut the top or the face. There are many kits available that come with tiny saws that work better then knives and are safer, although you can be cut by them as well. It's best to let the kids clean out the pumpkin and draw a face on it, which you can carve for them.
  
• Treating your kids to a spooky Halloween dinner will make them less likely to eat the candy they collect before you have a chance to check it for them.
  
• Teaching your kids basic everyday safety such as not getting into cars or talking to strangers, watching both ways before crossing streets and crossing when the lights tell you to, will help make them safer when they are out Trick or Treating.
  
• Make Halloween a fun, safe and happy time for your kids and they'll carry on the tradition that you taught them to their own families some day!
  
  Sharla Stafford, Realtor
  Coldwell Banker Burnet, Minnetonka Office
  Distinctive Homes Division
  Cell: 612.282.6895
  Direct: 952.470.2578
  Fax: 952.474.9583
  www.StaffordFamilyRealtors.com
  skstafford@cbburnet.com

Open Houses - Sunday, October 14, 2007

Time: 1:00 PM to 3:00 PM - Sunday, October 14, 2007
Address: 3416 Robinwood Spur
Location: Minnetonka, MN 55305

Time: 2:00 PM to 4:00 PM - Sunday, October 14, 2007
Address: 5695 Star Lane
Location: Shorewood, MN 55331

Time: 2:00 PM to 4:00 PM - Sunday, October 14, 2007
Address: 2295 Clover Field Drive
Location: Chaska, MN 55318

Coming Soon - 5695 Star Lane, Minnetonka

Priced at $394,500. A Colonial with 4 Bedrooms up, totally updated on a wooded lot.

New Listing - 3416 Robinwood Spur

Priced at $415,000. A beautifully executed renovation turns this 50's walkout rambler into a stunning home that rivals new construction. Every surface has been renewed - from the exterior to the interior - with new siding, windows, roof, mechanicals, wiring, plumbing, wood floors, carpet, paint, millwork, doors, & light fixtures! With a gorgeous, top of the line Gourmet Kitchen decked out with Stainless Steel Appliances, Granite Countertops & Custom Cabinets! 3 Bedrooms on the main floor and a spacious Master Suite complete with a full Bath with Spa Finishes and Walk-in Closet with Custom Organizers. Situated on a quiet cul-de-sac with a park-like backyard, fully fenced with new drain tile & irrigation system. With easy access to the entire metro located in award winning Hopkins School District.

Weekly Market Activity Report

While sellers continue to list fewer homes, buyers remain firmly in control in the Twin Cities housing market. New listings on the market for the week ending September 16 were behind the same time last year by 11.4 percent, while newly signed purchase agreements (pending sales) fell by 26.3 percent for the same time period. With slow sales comes decreased inventory absorption; the number of homes for sale is 9.9 percent higher than at this time in 2006.

CURB APPEAL 101: Fall Tips to Make Your Landscape Shine

1. Convince yourself that raking leaves can be fun. Rather than wait for a single weekend, break this chore into stages. Matted leaves can lead to insect and disease problems and smother your turf, especially cool season grasses like Kentucky Bluegrass.
2. To fertilize – or not to fertilize? Cool season grasses like Kentucky Bluegrass, fescues and perennial ryegrass often need fertilizer this time of year. Grasses that go dormant in the winter, such as Bermuda, Zoysia and Centipede may not. Visit www.lowes.com for information on soil testing and choosing the right fertilizer.
3. Repair and re-seed. Fall is a great time to repair a damaged lawn and re-seed. Fill any holes or bare spots with topsoil and add grass seed. It’s important to choose the right kind of grass for your growing zone; go to www.lowes.com to learn what’s best for your area.
4. Don’t forget to water. New grass in particular needs frequent but shallow watering. Once the grass is established, water deeply to reach the roots. To minimize the threat of fungal disease, water in the morning or early afternoon so that the grass blades are not moist overnight.
5. Prune with care. Pruning promotes growth, so be careful not to encourage growth when plants are about to go dormant. By all means remove diseased, dead or broken branches.
6. Transplant trees and shrubs. Autumn is a great season for transplanting trees and shrubs, allowing roots to get established before the cold sets in. Also, heat stress is not a concern. Visit your neighborhood Lowe’s Garden Center for a broad selection of trees and shrubs that can bring new life to your landscape.
7. Spruce up flower beds. Replace warm-weather annuals with seasonal favorites like pansies and mums. Clean out summer perennials and add a fresh layer of mulch, which can help protect plants from hard freezes.
8. Divide established perennials. If your perennials are looking a bit lackluster or overgrown they may need to be divided. The best candidates have large, healthy clumps and have been in the ground for
   years. By dividing these in the fall, you’ll enjoy healthier plants in more places next spring.
9. Plant ahead for spring. Foolproof and fabulous, spring-flowering bulbs put gardening within everyone’s reach. When choosing bulbs, focus on your favorite color, or try shades that accent already established plantings throughout your garden. For more information on cutting gardens, see “Bulbs in Bloom” at www.LowesCreativeIdeas.com/OutdoorLiving.

Weekly Market Activity Report

Twin Cities consumers didn't do much laboring to purchase a home over Labor Day weekend, as sales activity for the week ending September 8 was down significantly. There were only 500 new purchase agreements signed in the metropolitan area during the week, the lowest number since the beginning of 2007. New listings increased slightly from the previous week, likely buoyed by post-holiday relistings.

Top 10 Cities with the Highest Cost Loans
The Chicagoland area ranked highest in the country in total high-cost loans in 2006, according to data released last week by the Federal Financial Institutions Examination Council. Chicago has led the nation in high-cost loans for the past three years.

"High-cost" loans are identified in federal mortgage lending data as first-lien loans with interest rates at least three percentage points above the U.S. Treasury standard. The U.S. Treasury standard stood at 5.19 percent in mid-July for a 30-year mortgage.

African-American home owners were nearly three times as likely to get high-cost loans as their white counterparts. Even when African-American applicants went through prime lenders, they got high-cost loans 37 percent of the time, according to the report. Latino home owners were twice as likely as white home owners to get high-cost loans. From prime lenders, Latinos got high-cost loans 19 percent of the time compared with just 9 percent of the time for whites.The top 10 areas for high-cost loans were:
1. Chicago-Naperville-Joliet
2. Los Angeles-Long Beach-Glendale
3. Riverside-San Bernardino-Ontario
4. Phoenix
5. Washington, D.C.
6. Atlanta
7. Houston
8. New York
9. Miami
10. Tampa, Fla.

Creating a Beautiful Autumn Lawn

Nothing improves curb appeal more than a thick, green lawn. Though summer is drawing to a close, now is just the time to stimulate a strong network of roots and top growth on lawn grasses. Here’s a short, nine-step course in keeping grass healthy. Much of the information comes from "Better Lawns Step by Step," by Joe Provey and Kris Robinson.

Mow regularly. Set the mower for 3 to 3 ½ inches. Cut no more than one-third of the blade height. Cutting too much shocks the grass and taller blades of grass allow fewer weeds to break through.

Keep the lawn mower blades sharp. Dull blades tear grass.

Get rid of the leaves. Heavy accumulations of leaves can weaken and kill grass.

Aerate regularly. Rent a core aerator that removes plugs of soil or hire a lawn maintenance company that uses instead of the kind that just punches holes. Go over the lawn three or four times.

Spread compost. Sprinkle it into the aeration holes. Don’t cover the blades of grass.
Lay 40 to 50 percent organic fertilizer over the soil surface after aerating and sprinkling compost.

Get rid of weeds. Use pre-emergent weed killer spring and fall. Pull the surviving weeds by hand. Only use chemical spot treatment if pulling them out doesn’t work.

Overseed existing laws with three to four pounds of seed per 1,000 square feet of grass. Chose top quality seed appropriate for your region.

Water, water, water.

Weekly Market Activity Report

The Twin Cities housing market is seeing huge week-to-week declines in seller activity as we enter the fall and the school year begins again. Just four weeks ago, home sellers placed 2,324 new houses on the market for sale; for the week ending September 1, only 1,659 new units were listed. Compared to one year ago, this most recent figure is a drop of 16.7 percent. Not surprisingly, buyer activity remains stunted as uncertainties in the mortgage market and a fragile consumer psychology persist. The most recent tracked week shows a pending sales decline of 22.5 percent from this time last year.

This week's edition of the MAAR Weekly Market Activity Report features several new updated figures. The Percent of Original List Price Received at Sale for July 2007 fell to 94.7 percent and likely will keep falling through the end of the year as the winter buyer pause creates additional short-term downward pressures on home prices. Mortgage Rates for September rose slightly to 6.8 percent, which, coupled with a slight seasonal decrease in the median sales price, caused the Housing Affordability Index to hold steady at 127 for September.

Weekly Market Activity Report

Sellers and builders continue to curb activity in the Twin Cities housing market, with the week ending August 25 posting only 1,874 new listings—down 9.5 percent from the same week in 2006 and even further from their early summer peak. Despite the decline in new seller activity, the number of homes on the market remains at a record high for this time of year with 34,225 residential units for sale. This persistently high inventory is due to slowed absorption caused by sluggish home sales; newly signed purchase agreements were 18.7 percent behind this time last year.
This week's edition of the MAAR Weekly Market Activity report features an updated September 2007 figure for our Supply-Demand Ratio (SDR). The SDR grew to 10.39, which means there are 10.39 homes for sale per buyer. This is an increase of 24.8 percent from last September, and this figure should continue to grow through December before declining in 2008 with the end of the winter season slowdown.

Weekly Market Activity Report

Activity in the regional housing market continues its downward trend as buyers and sellers respond to a changing market landscape. For the week ending August 4, newly signed purchase agreements (pending sales) posted 802 residential unit sales, down 15.4 percent from the same week in 2006. Sellers and builders are slowing their activity as well, as new listings were 8.0 percent behind for the same time period comparison. In the last 19 weeks, this is the 17th week of year-over-year declines in listings.

This week's edition of the MAAR Weekly Market Activity Report features updated figures for Percent of Original List Price Received at Sale, our Housing Affordability Index (HAI) and our Housing Supply Outlook (HSO). The average percent received at sale for July was 95.3 percent, down slightly from last month. The HAI held steady at 127 due to flat interest rates and home prices. And our HSO grew to a 9.7 months supply of homes on the market.

To see how the Twin Cities housing market performed in July, see our July 2007 Monthly Indicators. This report features a new format designed to be consumer friendly and easy to understand.

Open Houses - Sunday, August 19, 2007

Time: 1:00 PM to 3:00 PM - Sunday, August 19, 2007
Address: 2221 Lukewood Drive
Location: Chanhassen, MN 55317

Weekly Market Activity Report

As summer enters its final full month, both seller and buyer activity are beginning to gradually decline in the Twin Cities housing market. For the week ending July 28, there were just over 2,100 new listings on the market, down a few hundred units from the weekly velocity levels seen earlier this summer. Similarly, newly signed purchase agreements (pending sales) are down from the higher absorption levels seen in May and June. Compared to this time in 2006, new listings were behind by 1.9 percent and pending sales were behind by 22.0 percent.

This week's edition of the MAAR Weekly Market Activity Report features updated August 2007 figures for Supply-Demand Ratio (SDR) and Mortgage Rates. The SDR posted a figure of 8.57, which means that there are 8.57 houses on the market for every buyer. Mortgage rates held steady from last month at 6.7 percent. While rates have risen in recent months, they remain favorable relative to historical conditions.

Open Houses - Sunday, August 5, 2007

Time: 1:00 PM to 3:00 PM - Sunday, August 5, 2007
Address: 2229 Clover Field Drove
Location: Chaska, MN 55318

Weekly Market Activity Report

As the home sales slowdown continues in the Twin Cities housing market and throughout the country, slowed inventory absorption is keeping the number of homes for sale at record levels in July. There are currently over 35,000 residential properties for sale in the 13-county metropolitan region, up 12.0 percent from this time in 2006 and 56.7 percent from this time in 2005. The rise in inventory this year has less to do with new construction projects, as builder inventory has actually declined from this time in 2006 by 600 units.

Seller activity remains flat, with new listings for the week ending July 21 falling behind the same week last year by 0.5 percent. Buyer activity is even slower, with the number of newly signed purchase agreements declining by 10.2 percent for the same time period comparison.

Weekly Market Activity Report

Following the annual Independence Day break, the Twin Cities housing market rebounded the week ending July 14. Seller activity shot up almost 900 units from the previous week. There were 2,720 new listings on the market, down 4.2 percent from the same week in 2006. Buyers also returned from their holiday siesta, writing 893 new purchase agreements. While this is an increase over the previous week, it is behind last year at this time by 17.2 percent as the market remains in a relative power nap.

4 Tips for Cooling Down Your Energy Bills

You know August is approaching when temperatures are heating up and air conditioners seem to be constantly humming. Staying cool is on everyone's mind. But many home owners are equally concerned about how they can cut down on their energy consumption and reduce their monthly cooling bills. The American Council for an Energy Efficient Economy (ACEEE) has a few suggestions:

• Clean or replace air filters in air-conditioning units to keep cool air moving a reduce electricity consumption.
  
• Have an air conditioner tune-up performed by a qualified contractor.
  Make sure your attic, which traps a lot of hot air, is adequately insulated.
  
• Replace old equipment. A new high-efficiency unit not only pares down utility bills; it can help you qualify for a federal income tax credit. But before you buy something new, do your research. “Often people are so desperate to replace their equipment that they don’t take the time to research the investment, locking themselves into high cooling bills and less comfort,” said ACEEE researcher Katie Ackerly.

For more information log on to www.energytaxincentives.org/consumers