News and Updates

Weekly Market Activity Report

Autumn may be bringing colder temperatures (and snow, too: what's up with that?!?) but the Twin Cities housing market is still hot. Contrary to the typical fall slowdown, pending sales are gaining weekly momentum as home buyers take advantage of the final days of the Federal tax credit.

For the week ending October 3, signed purchase agreements were a stunning 61.2% higher than last year, jumping from 647 to 1,043. New listings are a different story, however, down 8.0% below the previous year. Total active listings remain sluggish compared to a year ago, with the 24,354 on the market representing a 20.9% drop from a year ago.

There are some new stats this week that help bring some perspective on just how much better things have gotten for sellers in the last year:

• Days on Market Until Sale: at 129 days is 11 percent below last year.
• Percent of Original List Price Received at Sale: at 93.9% is 1.8 percent higher than last year.
• Months Supply of Inventory: at 6.6 is 30.5% lower than last year and is closer to a balanced market.

All three indicators are important reflections of market shift. Yet we can't minimize that sellers still face tough conditions, especially in the higher price ranges where sales are still on a downward trend.

VIEW FULL REPORT | VIEW MORE RESEARCH REPORTS

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Tick Tock On The Tax Credit Means More "Last Call" Buyers

Buyer activity took a step up in September as the final days of the federal tax credit for first-time home buyers ticked toward a November 30 deadline, contrary to the typical September slowdown in the Twin Cities housing market.

There were 4,986 signed purchase agreements during the month, up 23.5 percent from a year ago—the 15th consecutive month of year-over-year increases in pending sales. Since first-time home buyers don't typically go high end, a healthy portion of these sales are taking place in price ranges below $200,000.

The influx of new buyers has helped home prices increase over the course of the year. The September median sales price of $170,000 represents a slight dip from the prior month, but the dip is less extreme than what has been typical. Compared to last September, it's a 10.5 percent decline—the lowest year-over-year decline in 17 months.

The median sales price of traditional homes in September was $200,712, down 5.3 percent from a year ago. Lender-mediated homes posted a September figure of $127,000, down 12.4 percent from a year ago. Lender-mediated foreclosures and short sales made up 39.2 percent of the month's pending sales.

Foreclosures are being sold roughly three times more frequently than short sales, thus the inventory of available foreclosures is dropping more quickly than short sales.

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MAAR Dues eBilling . . . Coming November 2

The annual REALTOR® membership dues are moving entirely over to eBilling on November 2. Printed statements WILL NOT be snail mailed. You will see the statement in your email inbox. Do we have your correct email address? You can easily find out:

1) Visit mplsrealtor.com
2) Click the "My Account" tab (at the top)
3) Log in and select "Review or Change Member Personal Information" to check and update your email on the spot.

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The 100+ – September 2009 Update

Our tracking tool for local housing market activity has been updated with data through September 2009.

GO TO THERE

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Housing Supply Outlook – October 2009

The October Housing Supply Outlook is available.

Takeaway #1: If you're buying a home in the price range below $120,000, you'll have to move fast. There's only 2.9 months of supply in that range, which places it in the extreme seller's market category. The reason for the tight inventory picture? There's been a huge upsurge in home buying activity—sales are up 127.5 percent in that category over the last twelve months.

Takeaway #2: The number of new construction properties available for sale continues to shrink rapidly as builders pull back from creating new inventory. The current inventory of 2,426 listed new construction properties in the MLS system represents a drop of over 1,200 units from a year ago.

Takeaway #3: Unfortunately for builders, new construction home sales have also rapidly declined, falling by 18.8 percent (over 800 units) in the last 12 months.

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Monthly Market Indicators

During yesterday's PR wave, I neglected to make the Monthly Market Indicators (MMI) a part of our news release. Many of you noticed. I "forgot" to include the MMI so I could have an excuse to address you in this manner and get you to click on the MMI through enotes so I can track your interest. Thank you for playing along. But seriously, I just forgot. – G. Sax

VIEW MONTHLY MARKET INDICATORS

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Lost Your SafeMLS Keyfob?

If you lose your SafeMLS keyfob device, you can mark it as lost at NorthstarMLS.com. Upon doing so, you will receive a ten-day temporary password by email. Many agents who come to the office with lost keyfobs are unaware that a backup plan is already in place. Take advantage.

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Call for Action: Extend and Expand the Tax Credit

MAAR Members Score Big at MNAR Installation Luncheon

The Minnesota Association of REALTORS® (MNAR) held its Installation Luncheon on Thursday, October 8.

A member of MAAR will be the 2010 President. Congratulations to Mike Hoffman of Coldwell Banker Burnet.

In addition, congratulations to former MAAR and MNAR President John Anderson of Twin Oaks Realty in Crystal who received the Ed Anderson Political Achievement Award, which is annually given to the person who best reflects the outstanding dedication and political involvement that Past-President Ed Anderson demonstrated in his time as a leader with MAAR and MNAR. Recently John testified on behalf of NAR before the U.S. House of Representatives Committee on Financial Services. He was also Chair of NAR's 2003 Federal Housing Policy Committee.

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Events

Green Council Meeting – Thursday, October 15

Green Council Meeting
Date and Time: Thursday, October 15, 9:30 a.m.
Location: MAAR Office – 5750 Lincoln Drive, Edina, MN

Special Guest: Curtis Stendel, President of Panelworks Plus, Inc. will tell us how to "Survive and Thrive in a Changing 'Green' Building Market" and tell us about the SIP Industry. | MORE

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CURA Housing Forum – Friday, October 16

Minnesota Housing's Affordable Housing Plan for 2010/2011

Presenting Speaker: Dan Bartholomay, Commissioner of Minnesota Housing
Date and Time: Friday, October 16, 2009, Noon – 1:30 p.m.
Location: L-110 Honeywell Auditorium, Carlson School of Management
321 19th Avenue S, Minneapolis, MN 55455
(West Bank Campus)
Parking is available in nearby ramp.

Minnesota Housing works to meet Minnesotans' needs for decent, safe affordable housing and stronger communities by focusing on development and redevelopment programs, homeownership loan programs and the preservation of federally assisted housing.

RSVP required by October 14 to 612.625.9040 or curahf@umn.edu. CURA Housing Forums are free of charge and open to the public.

To sign up for CURA Housing Forum notices, go to www.cura.umn.edu or email your request to curahf@umn.edu.

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Walking the Walk: How Walkability Influences Home Values – October 20

ULI Minnesota presents:
Walking the Walk: How Walkability Influences Home Values
Date and Time: October 20, 2009, 3:45 p.m.
Location: 50 S 6th St, 15th Floor, Minnesota Room, Mpls., MN
Venue: Dorsey & Whitney
Register

The unprecedented declines in house prices nationwide over the past three years are prompting buyers, developers and investors to question the underlying sources of value in residential real estate.

A new study from CEOs for Cities shows that there is a strong and consistent connection between neighborhood walkability and home values. Reflecting the growing importance that many buyers are placing on convenience, energy saving, and lowering their carbon footprints, walkable houses command a significant price premium over otherwise similar houses with lower levels of walkability.

Economist Joe Cortright will describe the results of this study and explore its implications for the future of residential real estate markets in the years ahead.

Don't miss this important program. Be part of the change!

Source: Urban Land Institute (ULI) Minnesota

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The City of Minneapolis and Live MSP Invite You to Two Housing Resource Fairs!

South Minneapolis Housing Resource Fair | VIEW PDF FLYER
Tuesday, October 20, 5:00 p.m. – 7:30 p.m.
Park Avenue United Methodist Church, 3400 Park Ave S

North Minneapolis Housing Resource Fair | VIEW PDF FLYER
Wednesday, October 21, 5:00 p.m. – 7:30 p.m.
Minneapolis Urban League, 2100 Plymouth Ave N

Each event will have information for potential home buyers and current homeowners. If you are looking to purchase a home, you can learn more about downpayment assistance programs, the federal tax credit, and other programs and opportunities. If you are a current homeowner, learn more about low interest renovation loans, energy-efficiency programs, and loan modification and refinancing options to lower your monthly payment.

Meet one-on-one with lenders, real estate agents, and housing and financial educators. The open house events are free and refreshments will be provided. Events are sponsored by Freddie Mac and US Bank.

Help spread the word and feel free to contact Mary Kay Bailey at 651.315.1478 or Cherie Shoquist, City of Minneapolis, at 612.673.5078 or Cherie.Shoquist@ci.minneapolis.mn.us if you would like more information.

LiveMSP: Website | Facebook | Twitter

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A Broker's Blueprint for Sucess – Earn 7.5 CE Credits on November 5

Date and Time: Thursday, November 5, 2009, 8:00 a.m. – 5:00 p.m.
Location: Marriott Minneapolis West, 9960 Wayzata Blvd, St. Louis Park, MN 55426

What kind of issues keep brokers and managers awake at night? Have you wondered if your agents' actions or statements could create a liability for you? The Minnesota Association of REALTORS® has put together an outstanding program that is designed to help you in the day-to-day management of your agents and real estate business. The morning session will deal with legal issues and solutions, and the afternoon program will focus on areas of reducing your risk and improving your service to customers and clients.

Advance registration is required via www.mnrealtor.com. This program has been approved for 7.5 hours of real estate continuing education. For questions, contact vbrones@mnrealtor.com or 952.912.2667.

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2009 REALTORS® Conference & Expo, November 13–16

The 2009 REALTORS® Conference & Expo delivers money-making strategies to help you succeed with four days of intensive training and substantive programs for everyone who makes their living in real estate. Learn about opportunities to expand your market working with immigrants, foreign investors, and Americans buying property abroad. Hang with the most successful real estate pros in the country. Build your referral network and increase sales opportunities. Enjoy special events like the REALTORS® Celebrity Concert starring Reba McEntire. Combine business and fun in beautiful San Diego!

INFO & REGISTRATION  |  ONLINE CONFERENCE FLIPPY BOOK

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Departments

Public Affairs

Home Buyer Incentive Program
Check out www.livenearyourwork.net a website that promotes buying homes near the University of Minnesota. REALTORS® can list homes there and get free advertising. The program is offically called the University District Partnership Alliance Home Buyer Incentive Program and it is basically this:

Deferred Loan – $10,000 toward downpayment or closing costs; forgivable after 5-year home occupancy (owner-occupied homes only). | MORE INFO

For even more information, contact The Northeast Housing Resource Center at 612.378.7985.

Southwest Transitway
The Southwest Policy Advisory Committee (PAC) is expected to make a decision on the locally preferred alternative for the only Southwest LRT route that will be carried forward into the next stages of planning and construction at their October 14 meeting. The PAC's recommendation will be passed on to the Hennepin County Regional Railroad Authority (HCRRA), who will hold a public hearing:

Tuesday, October 20, 4:00 p.m.
A-2400 Hennepin County Government Center
300 South 6th St, Minneapolis, MN 55415

For more about the Southwest LRT project, visit www.southwesttransitway.org.

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Education and Professional Development

Spooktacular Savings
The CE Shop is offering "Spooktacular Savings" for Halloween, giving you the opportunity to enjoy a 15% discount on any online CE course taken through their branded site. Visit their course catalog at mplsrealtors.theceshop.com and enter the promotional code upon checkout: BOO.

Receive your 15% discount! It's that easy! Promotion expires October 31, 2009. Discount valid only on The CE Shop classes.

Harnessing the Power:
Skills Based Performance Management
(ABR Elective Course)
What separates the best from the rest? The best have systems, not just for their real estate businesses but for themselves. They have harnessed the power of performance management skills to challenge themselves, to manage their time effectively, to build credibility and develop a personal vision.

This course will show you how to eliminate the obstacles that conspire to prevent you from getting to that next level—in your business and in your life.

Date and Time: October 21, 9 a.m.–4 p.m.
Tuition: $69, or only $39 for WCR members

Short Sale and Foreclosure Certification Program
The National Association of REALTORS® (NAR) has developed a new Short Sales and Foreclosure Certification Program (SFR) for REALTORS®. SFR will be rolled out at NAR's annual conference and expo in November.

To earn the SFR certification, REALTORS® must attend a one-day education program, view three one-hour webinars, complete and submit an application form, and be a member in good standing with the National Association of REALTORS®. The normal application fee of $175 is waived through the end of 2009 as part of NAR's "Right Tools, Right Now" campaign. There are no recurring dues to maintain the SFR certification. REALTORS® may sign up for the webinars anytime. Webinars will be made available at www.realtorSFR.org in mid-October.

* MAAR is holding the one-day course that will meet the rest of the requirement on Friday, November 20: Foreclosure Opportunities 9 a.m. – 4 p.m for only $69.

More information and the application form (when available) can be found at www.realtorSFR.org. You can also VIEW THE INFORMATIONAL SFR BROCHURE

Matrix Classes Scheduled!
We've scheduled our Matrix and Matrix CMA courses (see full fall calendar). Please note that all Matrix courses through the end of the year will be demonstration only. If you wish to bring your own laptop, you may, but we are no longer able to provide laptops for use during these courses. CE will still be provided.

VIEW FULL FALL CALENDAR

CALL EPD AT 952.908.2602

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Green Council Meeting – Thursday, October 15

Green Council Meeting
Date and Time: Thursday, October 15, 9:30 a.m.
Location: MAAR Office – 5750 Lincoln Drive, Edina, MN

Curtis Stendel, President of Panelworks Plus, Inc. will tell us how to "Survive and Thrive in a Changing 'Green' Building Market" and tell us about the SIP Industry.

Founded in 1980, Panelworks Plus has supplied the panels for projects like the State Fair Eco House, the North House Folk School Eckel Fish House, the new Three Rivers Park District Silverwood Park Building, and many other residential and commercial projects.

Presentation Overview
With the increased demand by consumers for products that are "green" and energy efficient, builders and the building industry as a whole are being forced into making changes and learning that business as usual is not going to answer the questions of rising energy costs, global warming and new concerns that trigger consumers' buying decisions.

The housing market has been down for the past several years, but the Structural Insulated Panel (SIP) industry has continued to grow, rapidly gaining market share in new housing starts nationwide. While the general public may view SIP construction as a new technology, they may be surprised to learn how long the industry has been in existence and what it holds for the future.

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Education and Professional Development

MAAR is always looking for ways to help our members, so we are offering discounts, products and services from select companies. LEARN MORE about the benefits you receive through MAAR. Or visit Business AdvantEdge, one of our primary benefits providers.

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