Minneapolis Area MLS Membership Drops from 21,000 to 13,000 During Housing Market Crash

Just a quick note to say I heard this in a training session the other day.  Unfortunately, no one publishes accurate details as to exactly how many real estate agents are out there in the Twin Cities marketplace.  There are more real estate sales people who are licensed but they are not REALTORS.  To be a REALTOR, you must join one of the boards and pay your MLS dues.  It appears that as the housing market crashed, those willing to pay their dues membership to be REALTORS with access to the MLS crashed as well.

January 2012 Pending Home Sales Highest Since 2005

NEWS RELEASE
FOR IMMEDIATE RELEASEGreg Sax, Communications Manager
Minneapolis Area Association of REALTORS®
952.988.3123 (office)
612.860.2668 (cell)
gregs@mplsrealtor.com

David Arbit, Market Analyst
Minneapolis Area Association of REALTORS®
952.988.3150 (office)
davida@mplsrealtor.com

January Pending Home Sales Highest Since 2005

Minneapolis, Minnesota (Febuary 10, 2012) – There were 3,149 purchase agreements signed in the 13-county Twin Cities metropolitan area during January, a 25.5 percent increase over last January. No doubt driven by a mix of record-low mortgage rates, affordable prices, strong negotiating leverage and unseasonably warm weather, that’s the highest January pending sales figure since 2005.

Sellers were less active, as new listings fell 9.0 percent from January 2011 to 5,112 properties. The number of homes for sale continued to drop, as well, down 28.1 percent from last year to 16,463 active listings – the lowest inventory reading for any month since 2003. Another important housing metric, months supply of inventory, remained at a six-year low of 4.6 months.

October Homes for Sale“If you look deeper into the strong sales figures, you can see which segments are leading the charge,” said Cari Linn, President of the Minneapolis Area Association of REALTORS®. “With inventory down, especially among foreclosures, and good purchase demand, buyers are finally looking harder at traditional properties.”

Traditional sales surged 28.7 percent, while foreclosure sales fell 2.9 percent and short sales increased 16.8 percent. For sellers, the landscape is shifting. For six consecutive months, sellers received progressively more of their asking price than they did the year prior. In January, sellers received an average of 91.2 percent of their original list price.

Sellers are also watching market times closely. The average number of days a listing spends on the market before closing was down 8.3 percent to 142 days—the fourth consecutive year-over-year decrease. But those looking to sell their properties should be aware of distressed market activity.

In January, 43.2 percent of all new listings were either foreclosure or short sales. Together these lender-mediated properties made up 55.3 percent of all closings. Homes in financial distress are exiting the marketplace faster than they are entering it, but they have still managed to prevent market-wide price appreciation. The median sales price was down a modest 3.4 percent from January 2011 to $140,000, marking the smallest decline since November 2010.

“Price declines are subsiding, partly thanks to changes on the supply-side of the equation. Rising home prices will still be the final phase of recovery,” said Andy Fazendin, MAAR President-Elect. “We firmly believe that what we’re seeing now is setting the stage for better times ahead.”

All information is according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc. 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.

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Minneapolis Posts 5% Year over Year Decline in Home Prices – Case-Shiller Index Through November 2011

This past week the monthly Case-Shiller Home Price Index was released and the headlines are negative.  19 of the 20 metropolitan areas studied continued to decline through the month of November.  Minneapolis has shown signs of improvement as I have expected for the past few months.  While the price declines continue – down 5% year over year through November 2011, this pace of the declines have been slowing markedly since early in 2011 when we were posting 10-11% year over year declines.

It remains my expectation that in the Minneapolis area the Case-Shiller Index will start to show price increases for the Minneapolis area.  At this pace, that might not occur until we see the data from the second half of 2012.

Below is a table with all the cities studied in the Case-Shiller Index.

(Click on images to enlarge)

 

 

 

 

 

 

Table: S&P Indices: Case-Shiller

 

 

 

 

 

 

Chart: Calculated Risk Blog

The Case-Shiller Index used to get a lot of attention but I’m getting the sense the public is a little weary of more bad housing news. Perhaps everyone is finally desensitized to the news.  I also think that these reports have been bad for years so people just come to expect it.  It will be interesting to keep an eye on this to see if it does finally turn within the next 12-24 months.

 

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RE/MAX Results Continues on the Acquisition Trail Buying Rochester and Austin MN Franchises

RE/MAX Results just announced that it has purchased the RE/MAX franchises in Rochester, MN as well as Austin, MN.  Brenda Tushaus has a few more details on her blog post.  It appears RE/MAX Results wants to go toe to toe with Edina Realty in terms of marketshare across the state.

Are Third Party Real Estate Aggregator Sites Using Black Hat SEO Tactics to Block Real Estate Brokers?

Anyone who pays attention to internet marketing and specifically SEO (search engine optimization) strategies knows that black hat tactics are frowned upon in the business.  The big battle in real estate right now has to do with the web.  Over the past 5-6 years, the rise of third party real estate aggregators has been the cause of concern for real estate brokers.  The risk has been that the third party aggregators would disintermediate the brokers and real estate agents by being the first point of contact for real estate consumers on the web.

Real estate brokers lost control of their listings many years ago.  I think they were fooled by the allure of the web and getting additional exposure for their listings. They gave the listing information away for free in hopes of more eyeballs seeing their listings.  Many did not realize they were giving away the store when they did that.  More recently, real estate brokerages are fighting back and no longer allowing their listings to go to many of these third party aggregators such as Zillow, Trulia, and REALTOR.com.

Now these third party aggregators are being accused of using black hat SEO tactics to cut off links that go back to the original brokers site.  If this is true, that’s quite a stunt these sites have pulled off.  Let me get this straight, real estate brokers send their information to these third party sites for free, the third party sites use the listing data to generate tens of millions of dollars in advertising revenue, banner sponsorship sales, and then possibly lead referrals, and they are inserting “no follow” on the links back to the original brokers?  If that is true, why are we doing business with these firms?

Check out the story from AGBeat on what the CEO of VHT is accusing the third party aggregators of when it comes to black hat SEO for real estate.

If you are a real estate agent or broker reading this, I recommend that you share this post with others in the business so that they can understand the ongoing challenges the real estate industry faces with these third party aggregators.  In case you missed my last post, you’ll want to read about ARG Abbott Realty in San Diego pulling their listings.

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ARG Abbott Realty Group Pulls Listings from Real Estate Syndicators – Hammers Zillow, Trulia and REALTOR.com

I’ve come around on this issue and now agree with Jim Abbott, President and Broker for ARG Abbott Realty Group in San Diego.  (Edina Realty pulled its listings from the syndicators about two months ago and were one of the first of the larger regional brokers to pull the plug).

Jim Kelly’s 7 minute video absolutely shreds Zillow, Trulia and REALTOR.com as ripping off REALTORS as well as misleading consumers.  I find this all the time with these sites.  Over and over again the data is not accurate and up to date on Zillow or Trulia.  (I’m not quite as familiar with REALTOR.com and how good they are at keeping data accurate).  Zillow and Trulia will often lead properties listed for sale even though they are no longer on the market.  I see this time and time again.  I suspect they will contact me and tell me I am wrong, but I can back that up within 5 minutes of searching right now.

It is now time for ALL BROKERS to PULL THEIR LISTINGS now from Zillow, Trulia and REALTOR.com.

I encourage you to watch Jim’s outstanding video of clearly explaining what is going on.  Thank you Jim!

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REALTORS Confidence Improves

The National Association of REALTORS published its latest findings on how REALTORS are feeling about sales activity and there is a noticeable improvement in the findings.  Part of this might be due to seasonal issues but the could be discounted a bit because we are still in the depths of winter.  It does seem like things are starting to pick up in many segments.

Chart: HousingWire

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Plymouth and Maple Grove Townhome Associations Reject Investors and Renters

I was showing townhomes today to some investors who would of course turn them in to nice rental units.  However, we are increasingly running in to associations that have newly created restrictions against investors.  Typically the way it works now is that they require a new owner to live in the unit for 2 years before turning it in to a rental unit.  Apparently the thinking is that accidental landlords will become better landlords and have better renters than professional investors.  Perhaps they are right.

The boards believe they are better off with owner occupied units no matter what the price.  It’s a difficult decision because it’s likely that prices will continue to slide for these big townhome complexes as they seek owner occupants.  There are plenty of investors ready to purchase but can’t because of the restriction.

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County Road 116 and Hackamore Intersection to Get Traffic Lights – Medina and Corcoran

The intersection of County Road 116 and Hackamore Road in Medina and Corcoran has increasingly been the seen of serious car crashes.  For those in Medina and Corcoran who have to cross that intersection throughout the day, it feels like you are running the gauntlet.  There is a convergence of traffic in both directions causing significant safety concerns.

According to the Star Tribune, Hennepin County has agreed to install traffic lights at the intersection of County Road 116 and Hackamore in Medina as it is increasingly more busy and seeing a higher number of serious accidents.  It’s a big relief for those who live in Foxberry Farms and Bridgewater who have high school aged drivers trying to cross this intersection at least twice per day as they travel to and from Wayzata High School and Providence Academy.

(County Road 116 and Hackamore Road pictured below)

Recently a group of citizens organized by Mark Osmanski, collected nearly 300 signed petitions from area home owners and presented them to county officials including Hennepin County Commissioner, Jeff Johnson, as well as the lead Traffic Engineer for Hennepin County, Jim Grube during a public meeting recently held and organized by Mr. Osmanski.  At this meeting were about 40 people in total including Commissioner Johnson and Mr. Grube as well as Medina Mayor Tom Crosby, Corcoran Mayor Ken Geunthner and Corcoran Police Chief Sean Gormley.  Key traffic engineering staff was also present at this meeting which was held on December 16th, 2011 at the Hennepin County Public Works Facility in Medina.

At this meeting led and spearheaded by Osmanski there was an excellent discussion of the issues and the county was very receptive to the issues and concerns presented by Osmanski and others who gave testimony to the harrowing experience they or their children have faced.  A few of those who had been involved in serious crashes also spoke.

Someone raised the question…”do we have to wait until someone dies?”  Mr. Grube immediately responded and said no that is not the case and that’s not how the county operates or makes it’s decisions.  I personally attended this meeting and thought Mr. Grube did a good job of handling the questions.  While there were some pointed questions at times, the group was very respectful making for a productive meeting.

It turns out in preparation for the meeting Grube and his team had done some additional homework on the road to update their data as well and he concluded that it was indeed time for the county to take a hard look at that intersection and that it probably made sense to install a light there especially prior to the road construction set to shut down Highway 55 west of Arrowhead Road which will divert more traffic up and down County Road 116.

During the meeting Medina Mayor Crosby as well as Corcoran Mayor Geunthner spoke and said that they would gladly support the effort and the funds were there if the cities need to contribute.  Both acknowledged they would need council approval but didn’t foresee an issue with that.  (Note: some days after the meeting, we received an e-mail stating that Hennepin County would go ahead with the traffic light and install it on a temporary basis.  Temporary for the county would be up  to 25 years.  Now according to the Star Tribune story, the cities will have  to pay for the electricity to run the light. That should not be an issue).

It’s expected the light will be installed this spring which can’t come soon enough for area residents and drivers.  This issue is a great example of citizens organizing and raising an issue with their government in a professional and productive manner.  The individuals that really needs to be applauded for their efforts are Peter Hayden, Kristin Toste, Deb Engebretson, Mike Mrosak and Mark Osmanski who led the campaign.

(Video) John Murphy on the Case-Shiller Index – Minneapolis Home Prices

The Case-Shiller Index was reported last week but I thought I’d add some additional commentary on the matter especially in light of the latest data on construction spending.

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