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Govt. Affairs Committee Submits Public Comment on Draft Mpls. 2040 Plan

Minneapolis Area REALTORS® is pleased to share our official public comment letter regarding the Draft Minneapolis 2040 Comprehensive Plan. “I am particularly proud of our committee’s foresight and our organization’s due diligence with respect to our process in arriving at our prepared response,” said Eric Myers, Director of Government Affairs, Minneapolis Areas Association of REALTORS®. “A big thank you to our Chair, Subcommittee Chair, those who attended the city’s presentation and all the members who have been so attentive to this issue throughout this process. Thank you,” said Shae Hanson, 2018 Government Affairs Chair, Minneapolis Area Association of REALTORS®.

 

The Draft Minneapolis 2040 Plan was immediately shared with members. MAAR hosted Heather Worthington, Director of Long Range Planning-Minneapolis CPED, on June 8th. MAAR submitted the draft version to the National Association of REALTORS® for detailed policy analysis by Robinson & Cole (“R&C”) a Boston, MA based law firm, who returned expert recommendations. The analysis was shared with the members of the MAAR Government Affairs Committee. What results, is our 4 page comment letter which was officially submitted to the city on Friday, July 20th.

Our focus was on (4) main areas: 1) Lack of Meaningful “Action-Steps” Implementation Detail; 2) Three Legally Required Elements are Missing; 3) Further Study on Density Needed 4) More Carefully Examine Benefits and Potential Negative Impacts of Rezoning. Each of these topics are expounded upon in great detail in the letter. The density (“four-plex”) issue has thus far been the most contentious in the press and the public sphere. Please note MAAR’s GA committee comments on density is “Further Study on Density is Needed.” This does not suggest REALTORS® are FOR or AGAINST the concepts of density, upzoning, or ‘four-plexes,’ but simply suggests the city study the issue further.  

If you have any questions regarding our process or the content of the comments, please reach out to Eric Myers, Government Affairs Director at ericm@mplsrealtor.com or Fran Davis, Minneapolis Area REALTORS® Subcommittee Chair.

Please refer any press requests regarding the REALTORS® comments to Erin Milburn, Senior Director of Communications.

Sellers: flat. Buyers: down. Prices: up.

Seller activity was relatively flat in June while buyers pulled back somewhat. For the first time since 2010, new listings surpassed 9,000 in May of this year. That’s encouraging, even though June seller activity was down slightly compared to last year. Increasing or steady seller activity combined with a cool down in demand is consistent with a loosening marketplace. That said, buyers shopping this spring and summer will still face stiff competition. While sellers are receiving full-price-or-better offers in record time, listings still need to show well and be priced properly. June marked the seventh consecutive month of year-over-year declines in closed sales, likely reflecting the shortage of homes for sale.

Strong demand and low supply means sellers yielded an average of 100.3 percent of their list price in June, a record high for any month since at least the beginning of 2003. The shortage is especially noticeable at the entry-level prices, where multiple offers and homes selling for over list price have become increasingly common. The move-up and upper-bracket segments are less competitive and better supplied. Yes, the housing market is tight out there—sometimes frustratingly so. But over 54,000 Twin Cities buyers and sellers have managed to successfully transact real property so far this year.

June 2018 by the Numbers (compared to a year ago)

  • Sellers listed 8,730 properties on the market, a 1.2 percent decrease
  • Buyers closed on 7,063 homes, a 8.1 percent decrease
  • Inventory levels for June fell 15.9 percent compared to 2017 to 11,374 units
  • Months Supply of Inventory was down 14.8 percent to 2.3 months
  • The Median Sales Price rose 5.7 percent to $271,900, a record high
  • Cumulative Days on Market declined 14.6 percent to 41 days, on average (median of 16)
  • Changes in Sales activity varied by market segment
    • Single family sales sank 7.1 percent; condo sales rose 8.4 percent; townhome sales declined 13.7 percent
    • Traditional sales fell 6.6 percent; foreclosure sales sank 39.3 percent; short sales dropped 39.0 percent
    • Previously-owned sales fell 7.4 percent; new construction sales decreased 4.3 percent