Weekly Market Activity Report

Our housing market is forming up; we can now see both the floor and ceiling. For the second consecutive week, pending sales activity in the Twin Cities market is flat compared to last year, dropping just 1.4 percent from a year ago for the week ending May 24. For the same time period comparison, new listings declined 6.4 percent and total listing supply actually declined, an anomaly for the spring market.

With sales halting their downward decline, new listings still sluggish and overall inventory leveled, the trends are coalescing around a clear picture: we have found the floor for buyer demand while hitting the ceiling of seller supply. Being at or near the bottom of the downward shift is certainly positive news, but keep in mind that the long upward climb out of our nadir will be gradual and measured.

This week's edition of the MAAR Weekly Market Activity Report features an updated Supply-Demand Ratio (SDR) figure for June 2008 of 8.23. This means that there are roughly 8.23 homes on the market for each buyer during the month of June, up 9.3 percent from June 2007.

Click the logo below or click here for this week's full report. Visit Market Info for more research reports.

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MAAR Blog – Fresh Cuts Nearly Every Day!

We're always talking about cool stuff over at our blog. In addition to reposting desirables for immediate gratification—like the Weekly Market Activity Report, which is available online well before you receive enotes each week—we mix in posts with further detailed housing market analysis, commentary on the things that affect our business and, yes, the irreverent.

Blogs tend to be looser than hard journalism. It's part of their draw. The function is still the same—to share news, information, tips, opinions, etc.—but the means to the end is often more enjoyable.

KRS-One called it "Edutainment."

Dear Seller, Dear Buyer
Ah, negotiation. An ancient and complex artform.

Lessons from the RREAR Pt. IV
Digging deeper into the data found in our Annual Residential Real Estate Activity Report.

To Buy or to Rent? That is the Question
Some people have to rent. Some people choose to rent.

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Lights, Cameras, REALTORS®! MAAR Is Looking For REALTOR® ACTORS!

Auditions June 23–27 for New MAAR Professional Video!
In both local and national polls of REALTORS®, promoting professionalism is high on the list of wants from REALTORS® of their associations. We hear you. Our existing professionalism resources are either proving difficult to locate on our website (hint: click here) or are outdated. We made a professionalism video several years back that we share in orientation, but it's starting to show its age.

In an effort to punch up our professionalism video for the classroom and for our website, we are making a brand new video. We have settled on an excellent video production company and an exciting concept, and we are now ready to put the call out to members to be involved in what should be an enjoyable experience. If you win a part, your face is certain to be in front of working REALTORS® and other real estate professionals for years to come.

We are offering most of the voice and acting roles to members through an audition process at the MAAR office during the week of June 23–27. Our talent search will include the parts of professional REALTOR(S)®, homeowner(s), buyer(s), narrator and possibly other smaller parts. If you fancy yourself an actor, we want to hear from you. Please contact Linda Stoeckicht at 952.988.3157 or lindas@mplsrealtor.com to sign up for an audition.

Final note: All parts are volunteer and all shooting is tentatively scheduled for a single date between July 14 and 28. Although we are unable to pay you, we can feed you on the day of the shoot. Every production worth its salt has a good food spread, and we won't disappoint on that level.

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No MAAR CE for RECampus Online Classes

IMPORTANT NOTICE: As of August 1, 2007 MAAR no longer issues CE credit for classes offered by RECampus. Unfortunately, members are still visiting the RECampus website, selecting Minneapolis as the administrative association, taking the RECampus classes and then requesting CE sheets.

In some cases, members are even completing classes that we have never heard of or have never had approval through the Minnesota Department of Commerce (which makes it impossible for us to issue CE).

We are working to find a resolution with RECampus, but for now we ask that members no longer visit RECampus for online courses. MAAR is no longer a partnering vendor and cannot issue CE for these classes. Thank you for your attention.

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Invitation to Next Broker Support Meeting

Who's in Charge?
Date and Time: Friday, June 13, 9:30 a.m. to 11:00 a.m.
Location: MAAR Office, 5750 Lincoln Drive
Register with: Linda Stoeckicht at lindas@mplsrealtor.com
or 952.988.3157. Brokers and managers welcomed. No cost.

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Price Declines Continue (esp. in CA, NV, FL) Says OFHEO

U.S. home prices fell in the first quarter of 2008 according to the Office of Federal Housing Enterprise Oversight (OFHEO) seasonally-adjusted purchase-only house price index. The index, which is based on data from home sales, was 1.7 percent lower on a seasonally-adjusted basis in the first quarter than in the fourth quarter of 2007. This decline exceeded the 1.4 percent price decline between the third and fourth quarters of 2007 and is the largest quarterly price decline on record.

Over the past year, prices fell 3.1 percent between the first quarter of 2007 and the first quarter of 2008. This is the largest decline in the purchase-only index's 17-year history. OFHEO's all-transactions House Price Index (HPI), which includes data from home sales and appraisals for refinancings, showed less weakness than the purchase-only index. The all-transactions HPI fell 0.2 percent in the latest quarter and was flat over the four-quarter period.

The map below is on page 21 of the report and is a good snapshot of the state of the U.S. real estate market. Monthly price trends are shown on pages 8 and 9 and are provided for months through March 2008. view the full report

Source: Office of Federal Housing Enterprise Oversight (OFHEO)

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Civic College – Learn the Ropes on Running for Office

REALTORS® have a long history of contributing to the communities where they work and live. They serve on the boards of community and nonprofit organizations and as local elected officials, and they volunteer with a host of groups and activities. If you are thinking about running for public office (legislature, county board, city council, school board) in either 2008 or 2009, we would like to make you aware of the Civic College program.

The Civic College program provides Minnesota REALTORS® with the tools andresources to put their passion for community service into action. It both challenges and equips selected participants to provide real leadership to their communities. This is not a partisan program but rather a "get you elected" program for people with a desire to serve in a public office. You will be given tools and training in building coalitions, public speaking, working with the media and other relevant topics to make such leadership a reality.

There is no charge for member participants for the Civic College course, but space is limited and interested parties must undergo a competitive selection process to participate. View the Session 1 agenda here to get an idea of the depth of this program's training. Contact Chris Galler at cgaller@mnrealtor.com or 952.912.2663 for more information.

The first class begins on Wednesday, June 11, and it runs for five sessions every other week.

Source: Minnesota Association of REALTORS®

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Public Affairs

REALTOR® Call for Action!
NAR is urging the Senate to act to make permanent the increased FHA and GSE loan limits in the economic stimulus package. The increased FHA/GSE loan limits will continue to provide a much-needed infusion of stability into the housing market and provide a source of safe and affordable mortgage options for homeowners.

The House has already done its part by passing legislation to enact reform proposals that make FHA/GSE increases permanent. Similar legislation is now awaiting action on the Senate floor.

• Please be sure to add comments@realtoractioncenter.com to your email safe list to ensure receipt.
• When you receive the Call for Action (CFA), be sure to respond as soon as you can.
• Encourage others to respond via the "Tell-A-Friend" feature. (Do not forward the CFA email you receive as it is encoded with your personal information.)

Be on the lookout in your email this week. If for some reason you do not receive the CFA email, please proceed directly to the REALTOR® Action Center (www.realtoractioncenter.com) to send your letters.

If you have questions about the FHA legislation, please contact Megan Booth at mbooth@realtors.org or 202.383.1222. Questions about GSE loan limits can be directed to Jeff Lischer at jlischer@realtors.org or 202.383.1117.

Source: National Association of REALTORS®

Brooklyn Park – Water and Inspections
According to Gary Brown, Director of Engineering for the City of Brooklyn Park, the city is several days out in getting to Point of Sale inspections. One of the main reasons is because the sellers or the seller's REALTORS® are not checking to see if the water is turned on in the home being inspected.

The City of Brooklyn Park can't perform the inspection nor can they turn the water on from a liability standpoint. If the home froze over the winter and the pipes have leaks, they can't be responsible for the damage to the home once the water is turned on. While this may seem to be a miniscule issue, it is causing the inspections to back up.

There are typically two valves associated with water service; the one in the street is turned on/off by the city for nonpayment or because the house was determined to be vacant, and the one in the basement next to the meter which is turned off the majority of the time. The City of Brooklyn Park would like to remind REALTORS® to go in the house and turn on a faucet to be sure the water is on before setting up an inspection.

Source: City of Brooklyn Park

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Education and Professional Development

The Education Season is Winding Down
Be sure to get signed up for classes as soon as you can. The spring schedule is nearly complete! All remaining classes are shown below.

Upcoming MAAR classes listed below. Start your registration process here.

Real Estate Math: Statistics
June 3, 1:00 p.m. – 4:00 p.m.
Certainly you have been asked if it is a "buyer" or "seller" market. How about "Where are interest rates going?" Do you know how many years the Twin Cities real estate market saw depreciation in the last 40 years? This class is not your typical boring statistics class. It will provide an arsenal of information you can use when working with the public. Learn about sources of information and tools that will help you answer those oh-so-common questions.
Credits: 3
Location: MAAR Office, 5750 Lincoln Drive, Minneapolis, MN 55436
Tuition: $36 REALTOR®, $72 Non-REALTOR®

eEssentials 6 – So You Found Me on the Web, Now What?
June 5, 9:00 a.m. – noon
With more than 90 percent of all buyers using the web as part of their home-buying process, simply having a website isn't enough. This course will review steps to acquiring and establishing a website. Then it will explore website issues surrounding content and what users look for in real estate websites. If you have a website or want to have one, this class is a must.
Credits: 3
Location: The PDC@RFC, 4450 W 76th St, Edina, MN 55435
Tuition: $36 REALTOR®, $72 Non-REALTOR®

Limit Your Exposure
SPF 30 Sunscreen for Your Business
June 5, 9:00 a.m. – 1:00 p.m.
This course is all about disclosure and foreclosure. There are many new statutory disclosures and this course will guide you through the maze. With foreclosures topping the charts, you will learn about short sales, priority and timelines in the foreclosure process.
Credits: 4
Location: MAAR Office, 5750 Lincoln Drive, Minneapolis, MN 55436
Tuition: $48 REALTOR®, $96 Non-REALTOR®

Code of Ethics / Agency & Fair Housing
June 6, 9:00 a.m. – 11:30 a.m. / 1:00 p.m. – 3:00 p.m.
The Code of Ethics (COE) portion of the program will provide a review of the National Association of REALTORS® (NAR) COE. You will receive a great review of the foundation of our business and presentations of real-world case studies that demonstrate the importance of the NAR COE. This class meets the NAR 2008 COE training requirement. The newly designed Agency & Fair Housing portion of the program reviews the various federal and state protected classes as they relate to REALTOR® duties and Minnesota Agency Law. This course will also provide a look at demographic changes in the real estate market, homeownership trends and a review of fair housing court cases involving real estate.
Credits: 2.5 for Code of Ethics / 2.0 for Agency & Fair Housing
Location: MN Landscape Arboretum, 3675 Arboretum Dr (aka Hwy 5), Chaska
Tuition: For our 30th anniversary, it's $30 for BOTH classes
or $30 for EACH class (sorry, no splitsies!)

Fraud
Identifying and Avoiding Fraud in Real Estate Transactions
June 9, 9:00 a.m. – noon
It is unfortunate, but fraud in real estate is a growing problem. This class will provide the information you need so you can avoid facing fraud charges and continue to be successful in real estate. Some of the subjects covered in this class include:
• Basics of fraud and the federal definition
• Downpayments
• Owner-occupant investors
• Cash-backs
• "Eligible" consumers
• RESPA
Credits: 3
Location: MAAR Office, 5750 Lincoln Drive, Minneapolis, MN 55436
Tuition: $36 REALTOR®, $72 Non-REALTOR®

Extreme Forms Makeover: Forms Update
June 9, 1:00 p.m. – 4:00 p.m.
On August 1 each year, there are a variety of forms changed or introduced. In this class, you will learn about the changes that went into place in 2007. The course will cover changes in forms relating to Agency and Representation, Seller Disclosure, Purchase Agreements and related addendums.
Credits: 3
Location: MAAR Office, 5750 Lincoln Drive, Minneapolis, MN 55436
Tuition: $36 REALTOR®, $72 Non-REALTOR®

Real Solutions for Real Problems in Real Estate
June 10, 1:00 p.m. – 5:00 p.m.
While many real estate transactions go smoothly, there are always those that don't. Many times, conflicts that occur in real estate are avoidable with just a little extra work. Learn some of the most common conflicts in real estate transactions and helpful tips on ways to avoid them. In addition, learn how to prevent agency-related conflicts.
Note: This class will meet your 1-hour Agency requirement.
Credits: 4
Location: MAAR Office, 5750 Lincoln Drive, Minneapolis, MN 55436
Tuition: $48 REALTOR®, $96 Non-REALTOR®

Wake Up, Shift Happens!
June 11, 9:00 a.m. – noon
The only constant in our real estate market is change, and the only way to be prepared is to understand the reasons behind the changes. Get the answers to such questions as "When will buyers come back?" and "Why are there so many listings?"
In an interactive, small-group setting, you will investigate:
• Recent shifts in the Twin Cities real estate market
• Projections for the Twin Cities real estate market
• Changes in today's real estate consumer
You'll walk away feeling like a budding economist armed with the answers to the important questions of a changing, shifting real estate market.
Credits: 3
Location: MAAR Office, 5750 Lincoln Drive, Minneapolis, MN 55436
Tuition: $36 REALTOR®, $72 Non-REALTOR®

Identity Theft
You, Your Business and Your Client
June 11, 1:00 p.m. – 4:00 p.m.
There are countless new victims of identity theft each day. Learn ways in which identity theft has an impact on the real estate transaction. Gain useful knowledge of the FACTA Act, including what you are required to do as a business person when it comes to protecting the identity of your customers. Explore case studies of real identity theft victims. You will leave with helpful tips on ways you and your customers can protect against identity theft.
Credits: 3
Location: MAAR Office, 5750 Lincoln Drive, Minneapolis, MN 55436
Tuition: $36 REALTOR®, $72 Non-REALTOR®

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Free e-PRO® Workshop – Wednesday, June 4!

Need 25 CE to Renew Your License?
You are invited to attend the upcoming InternetCrusade® Technology Workshop featuring the e-PRO® Certification course, the only technology course offered and endorsed by NAR. Attendees will walk away with valuable technology tips that can be put to use immediately.

• Discover the four essential elements of a successful website strategy.
• Learn easy ways to differentiate yourself from the competition.
• Find out how to leverage the power of a permanent email address.

Attendees will also receive a FREE full-featured website. This website includes everything you need to begin creating your own online branding including a web page for every listing with multiple pictures as well as free uploading of virtual tours. You also have the option to share your listings through syndication to Google, Yahoo and other media outlets.

You don't have to be a technology expert to attend this program. Get in tune with the wants and needs of today's Internet-empowered buyers and sellers. Start working smarter. Enroll at this FREE workshop and receive a $25 discount from the normal $359 fee and an 8-month enrollment (instead of 6 months) for this online course.

Watch an introductory video from Internet Crusade President Saul Klein on why you should attend an e-PRO Workshop!”or click here to sign up or call 1.866.377.0627 (toll free).

Next local e-PRO® Workshop:
Wednesday, June 4, 2008, 9:00 a.m. – 10:00 a.m.
The PDC@RFC, 4450 W 76th St, Edina, MN 55435

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Be a Hero to Your Clients
Listingbook™ is Coming to NorthstarMLS

Designed to complement NorthstarMLS, Listingbook offers a unique set of client servicing tools that benefit REALTORS® by increasing profitability, productivity and professional service. Listingbook Agent Essentials(SM) will be available to all REALTORS® as a member benefit at no additional cost.

Listingbook's Client Manager gives the agent a secure gateway for their buyers and sellers to access the MLS™ listings by invitation only. Clients are empowered with the information they need to make smart decisions.

Listingbook works for you 24/7, so you don't have to, acting as your personal assistant. Save time while making your communications easier, your clients happier, your relationships stronger and your business more efficient.

Automatically supply reliable, personalized, current market information, and interact with buyers while guiding and monitoring their activity. At the same time, keep anxious sellers calm in today's market with Listingbook's listing retention
and price reduction tools.

Listingbook was designed from the ground up by agents for agents to save you time and provide you with the high level of service that builds client-for-life relationships. For more information, contact Todd Swanson at tswanson@listingbook.com or 651.492.4222 or visit www.listingbook.com.

Source: Listingbook LLC

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Brochure Helps Buyers Get Off the Fence

"It's a Great Time to Buy" is a new REALTOR Benefits® brochure that explains to consumers the strengths of the 2008 market that they might not be aware of, including a 15-year high in seller inventories and a near 40-year low in interest rates. The increase in FHA availability is discussed, too. Order in packs of 100 here or call 800.874.6500 (select option 1).

Source: National Association of REALTORS®

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Foreclosure Prevention Workshop – Final Notice

Mortgage lenders and community-based organizations will be available to offer free advice and answer questions, and attendees will be able to hear short presentations on legal rights and the foreclosure process.

Future scheduled workshops:
Thursday, June 5: 4:30–8:30 p.m., Eagan Community Center, 1501 Central Pkwy, Eagan

Call the Home Ownership Center at 651.659.9336 or go to www.hocmn.org for more information.

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News from NorthstarMLS

Looking for Lakeshore or Other Properties in the Alexandria Area?
The Greater Alexandria Area Association of REALTORS® has joined the MLS Co-op and made all of their Active status listings available for search. To find a property in their area, log on to the MLS Co-op. After logging into the Co-op, click the "GAAAR" tab. You will automatically be taken into the Residential search screen. Other property types (including Lakeshore Residential) are available from the maroon submenu below the GAAAR tab.

Don't Use the Word "password" in Your NorthstarMLS Password
When setting your NorthstarMLS password, please do not use the word "password," even combined with numbers and other letters. If you do, it will automatically expire again within 4 days. For an unauthorized user trying to get through any company's system security, "password" is the most likely to get them in unless it is not allowed to be used. NorthstarMLS appreciates your understanding and willingness to use any other letter/number combination except "password," your first name or your last name.

Source: Regional Multiple Listing Service (RMLS)

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May 2008 Issue of Real Estate Insights Now Available

NAR's Real Estate Insights (REI) is produced by NAR Research and is chock full of timely real estate market research information. In addition to NAR's economic summaries (pages 4–5), page 8 begins an article on national home price activity. A summary of NAR's recent 2008 NAR Member Profile research begins at page 10.

Real Estate Insights: Web version | PDF version

Source: National Association of REALTORS®

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REALTORS®, Department of Justice Agree on MLS Policy

NAR has reached a favorable settlement with the U.S. Department of Justice, resolving the litigation between them over the display of listings from the MLS on brokers' virtual office Web (VOW) sites. The final order validates NAR's long-standing Internet data exchange (IDX) policy and strengthens the membership rules governing multiple listing services.

The order caps a three-year long battle between NAR and the Justice Department, which filed a lawsuit against the association in 2005 calling it anti-competitive for brokers to have unlimited say in where, and how, their clients' listings are displayed on other brokers' VOWs.

The final order expressly provides that NAR does not admit any liability or wrongdoing, and NAR will make no payments in connection with the settlement. The terms of the agreement preserve and strengthen the MLS as a means for broker-to-broker cooperation intended to serve real estate professionals who list or sell property in that MLS. "This will ensure that MLSs are used for what they were originally intended to do, which is help real estate professionals find buyers for people who want to sell their homes," said Laurie Janik, NAR general counsel.

NAR will be reinstating an updated version of its VOW policy, which governs the use of MLS data for brokers who offer brokerage services online by requiring customers to register with the brokerage before they can search for homes. That policy was rescinded in 2005 when certain provisions were challenged by DOJ. The revised policy continues to protect the rights of sellers who do not want their property or their property's address displayed on the Internet, and also protects sellers from having false information about their listings appear on the VOWs of a member of the MLS. Among other things, the revised policy requires brokers hosting others' MLS data on their site to turn off features—such as home value estimates and blogs—surrounding a listing at the request of the seller.

The agreement requires MLSs and local associations that operate MLSs to pass and implement the amended VOW policy within 90 days of the court's approval of the final order.

More about the settlement and related issues is at realtor.org.

Source: National Association of REALTORS®

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