Minnesota: Home Sales Rise 2 Percent In January

There is good economic news on the housing front. Nationally home sales rose 2.9 percent from January to February and Minnesota also saw its first real sign that real estate may be on the rebound. Seller, Molly Evans of Lakeville, put her home on the market for a while but took it off recently. She then put it back on after a $25,000 price drop. Her Realtor also created a personalized Website just for her home. Since then showings have skyrocketed. Greg Bauman, president of the the St. Paul Area Association of Realtors, said sellers have a lot to celebrate. "Our numbers are actually higher on the rebound when you look nationally right now. Pendings are up three to four percent nationally compared to the Twin Cities, which are up 20 percent. That's a significant change or difference from the total nation.

Minneapolis: Developers Preaching Patience With Condo Projects

Tom Lohmann of Pinehurst Properties has big plans for his condo project in SW Minneapolis at 3500 50th st W. Lohmann has been pitching the site as the future home of The Bancroft Condominiums, a high-end project just a few blocks from Edina. Bancroft LLC paid $3.5 million for the 1.6-acre site in December 2005. Lohmann isn't expecting to get much traction until next year at the earliest. " We don't want to make the mistake of going ahead with a project in a market that's just limping along...We're just biding time and hoping for a resurgence in the market." Lohmann has sold 8 of the planned 52 units and deposits have been refunded to some buyers who couldn't wait for an uncertain delivery date. Unit prices at The Bancroft with pricing at $510 per square foot range from $583,000 to more than $2 million for a penthouse. Downtown projects, the Nicollet and the Penfield are still on the drawing board until the market tides turn.

Nation: NAR Campaign Relates Long-Term Investment Value Of Real Estate

Beginning this year, the National Association of Realtors is reaching out to consumers with the facts about homeownership and the value of real estate as a long-term investment. The new advertising campaign will provide current, relevant housing data to help prospective buyers make informed decisions. Over the past 30 years, the median price of existing homes has increased an average of more than 6 percent every year and home values double nearly every 10 years. A Federal Reserve study has shown that the average homeowner's net worth is 46 times the net worth of the average renter. Despite positive research reports, some potential buyers are being kept on the sidelines as they react to national media reports about the market. "Nobody buys a home in the national real estate market," said NAR President Dick Gaylord. "All real estate markets are local and buyers and sellers who are thinking about making a move should consult with a Realtor in their local market." According to NAR's most recent forecast, existing-home sales are likely to total 5.66 million in 2007, the fifth highest on record, rising to 5.70 million in 2008 and 5.91 million in 2009. Existing-home prices are likely to be down 1.9 percent in 2008, hold steady in 2008 and rise 3.1 percent in 2009.

New Brighton: City Seeks 'Plan B' For Northwest Quadrant

The project is about $12 million in the red and New Brighton is concerned about the future of 100 acres of land at the NW corner of Interstates 35W and 694. The plan is to turn old industrial sites into offices, hundreds of new homes, stores and parks. So far, $85 million has been spent on the project but spiraling environmental costs and and the recent pullout of a major housing developer have raised concerns among some officials. Newly elected Council Member David Phillips wrote a resolution in January recommending a task force to study the situation but Council Member Mary Burg thinks the focus should be on attracting developers instead of analyzing finances. Mayor Steve Larson declined to voice his opinion on the task force. Cleanup of contaminated areas has already cost the city millions and questions remain as to the land being safe for building homes.

Attention all buyers:

The housing market will continue its downward spiral, forecasts say, and that means opportunities for buyers. But waiting for the market bottom may not be the smartest strategy. Here are 5 reasons to buy now
5 REASONS TO BUY

1. Prices in the neighborhood you are interested in are relatively stable. Either they are holding their own or increasing, or the pace of decline is slowing significantly. If you have to move and don't like apartments, the small penalty you pay for missing the bottom may not mean much.



2. You plan to stay in the home for more than five years. If you can stick it out that long before selling, economists say you’ll probably ride out any downturn and come out ahead on price.



3. Your rent rivals a mortgage payment. If you can afford to buy, it can give you one bonus that renting can't: the mortgage-interest deduction on your taxes.



4. You've found the right house in the right area for you. The schools are great. You love the area and know it would be hard to find another house like the one you have your eye on. In a better market, you would most likely have much more competition for that home.



5. You've built equity in your house and are moving to a place where homes are cheaper. In your new market, your money will go a lot further.

Best Home Selection. Ever.

Forget the negative hype about the housing market. There is an excellent inventory of homes for sale. If you are wondering whether you should purchase a home, consider these facts:

• As of Dec. 3, 2007 there were 33,146 homes for sale in the Twin Cities metropolitan area compared to only 30,183 homes for sale at this same time last year, according to the Minneapolis Area Association of REALTORS®. That’s 9.8 percent more choice for home buyers!

• There is a wide variety of high quality homes available in all price ranges and communities in the Twin Cities. You can choose from new construction, existing homes, starter homes, luxury properties, condominiums, co-ops, townhomes, and lofts.

• The greatest opportunities are with single-family detached homes. In November of this year, there were 12.9 percent more single-family homes for sale than in November 2006.

• First-time homebuyers looking for a great starter home will be pleased with the numerous choices. This November compared to last November, there were 100.4 percent more homes priced under $120,000, 47.5 percent more homes priced from $120,001 to $150,000, and 19.7 percent more homes priced from $150,001 to $190,000.

• The inventory of homes priced at $1 million and above was 18.5 percent more this November than last November. This provides tremendous opportunities for consumers interested in purchasing upper-bracket homes.

• Real estate is one of the best and safest long-term investments. Over 10 years, a $10,000 investment in the stock market at a normal 10 percent market rate of return would yield nearly $16,000. Compare that to a 5 percent ($10,000) down payment on a $200,000 home at a normal appreciation rate of 5 percent over the same 10 year period. Through the power of leverage, your return would be $125,000—nearly eight times the stock market return.

• Homeowners benefit from favorable tax laws, including deductions on mortgage interest and property taxes and up to $500,000 in capital gains tax exemptions on personal residences at the time of sale.

With the best home selection ever, you’ll wish you bought today.