West Savage Real Estate Blog

Tax Reform Heads to the President - Source: National Association of REALTORS

Lawmakers in the House and Senate passed tax reform legislation today, paving the way for the bill to go to President Donald Trump for his signature. The President has said he intends to sign the bill by Christmas.

NAR worked with members of the House-Senate conference committee to help educate them on how to improve the final bill. After the vote, President Elizabeth Mendenhall issued the following statement:

"The results are mixed. We saved the exclusion for capital gains on the sale of a home and protected the mortgage interest deduction for second homes. Many agents and brokers who earn income from personal services will also see some significant new benefits in their business.

Despite these successes, we still have some hard work ahead of us. Significant legislative initiatives often require fixes to address unintended consequences, and this bill is no exception. The new tax regime will fundamentally alter the benefits of homeownership by nullifying incentives for individuals and families while keeping those incentives in place for large institutional investors.

That should concern any middle-class family looking to claim their piece of the American Dream."

Although the final tax reform bill is far from perfect, it is significantly better for homeowners than previous versions. That’s thanks to the efforts you made. REALTORS® generated over 300,000 emails and telephone calls to members of Congress over two Calls for Action and held countless in-person meetings with legislators, all of which helped shape the final product.

Last-minute changes to the bill include the following improvements:

• Capital gains exclusion. In a huge win for current and prospective homeowners, current law is left in place on the capital gains exclusion of $250,000 for an individual and $500,000 for married couples on the sale of a home. Both the House and the Senate had sought to make it much harder to qualify for the exclusion.
• Mortgage interest deduction. The maximum mortgage amount for households deducting their mortgage interest has been decreased to $750,000 from the current $1 million limit. The House bill sought a reduction to $500,000.
• State and local tax deductions. Both property taxes and state and local income taxes remain deductible, although with a combined limit of $10,000. Both the House and Senate bills sought to eliminate the state and local income tax deduction altogether.
• Pass-through entities. The bill significantly reduces the effective rate of tax on business income earned by independent contractors and income received from pass-through entities. This change will lower the taxes of many real estate professionals.

Next steps

Enactment of the bill does not end NAR’s effort to reduce the negative impact on homeowners. “REALTORS®’ work on tax issues will continue," says Mendenhall, "and we look forward to joining members of Congress from both sides of the rotunda on that endeavor.”

Access details of the bill.

The "Ins" and "Outs" of Home Decor Predicted for 2018

While the basics of preparing a house for market remain the same – fresh paint, updated lighting and flooring, etc. – home décor trends change on a regular basis. There are some interesting shifts predicted on the horizon for 2018.   Some might surprise you. They surprised us for sure!  Here are a few that really stood out:  OUT:                                                                                                                     

• Stark white kitchens (white cabinets, white counters, white backsplash, etc.)
• Stainless steel sinks
• Accent Walls
• Word Art on walls, pillows, etc.  
• Architectural accents like pillars and barn doors

 IN:

• Kitchens with warm wood tones paired with heavy neutrals like cream, beige, blue and gray. Read: Heavy design look vs. light and airy
• Textures, such as wainscoating & millwork (in lieu of accent walls)
• Dark colors and jewel tones (think emerald, sapphire, navy and purple.) In fact, Ultra Violet is the 2018 design color of the year. We are also starting to see black rooms (paint) come into fashion.   This look is undoubtedly tricky to pull off.
• Brass.   Yes, it is back, though with a different flavor than in 1995. It seems to work well in a powder bath, or in the form of a gooseneck faucet – essentially as a statement piece.
• Imperfection:   We are referring to handmade items, pottery, personal pieces and organic flair.
• Statement Storage:   Trendy credenzas, buffet tables, and unique pieces that have storage capacity.
• Bold floral furniture paired with neutrals.    

      

JUST SOLD! 13717 Vernon Circle, Savage - Chad & Sara Huebener, Edina Realty - Lic. MN

JUST SOLD!  13717 Vernon Circle, Savage 

This 3BR 2BA four-level home features your dream kitchen, with beautiful tile floors and counters, a custom backsplash, stainless appliances and rich cabinetry! The main floor is open and vaulted to the family room. Two decks provide entertaining options for your guests - one off the dining area and one off the upper level family room! The upper level features a family room, two bedrooms and an updated full bathroom.   The master bedroom has a walk-in closet. 

The finished lower level features a large family room with a cozy fireplace, a bedroom and a 3/4 tile bath. Another lower level has the laundry and additional storage. This home sits on a fenced lot on a quiet, cul de sac street and backs up to Trost Park!

View our VIRTUAL TOUR.

Offered at $254,900.  SOLD AT $257,731

13717 Vernon Circle in Savage is proudly marketed by Chad & Sara Huebener of Edina Realty. For more information or to schedule a private showing call 952-212-3597. 

Weekly Market Activity Report - For Week Ending December 2, 2017

As the year works its way to a closing crescendo, it is evident that the year's predominant storyline is beyond a clever weekly jab. It has been an interesting and remarkably positive year for residential real estate. Even as some desirable housing tax breaks are on the verge of sunsetting, real estate, as a whole, remains in great shape.

In the Twin Cities region, for the week ending December 2:

• New Listings increased 6.7% to 817

• Pending Sales decreased 1.3% to 947

• Inventory decreased 22.7% to 9,429

For the month of October:

• Median Sales Price increased 6.1% to $244,000

• Days on Market decreased 14.8% to 52

• Percent of Original List Price Received increased 0.8% to 97.7%

• Months Supply of Homes For Sale decreased 14.8% to 2.3

 

JUST SOLD! 493 Stonewood Lane, Burnsville - Chad & Sara Huebener, Edina Realty, Lic. MN

JUST SOLD!   493 Stonewood Lane, Burnsville 

This richly-appointed, three bedroom + loft walkout townhome features beautiful interior finishes, rich maple woodwork, and soaring ceilings.  The main floor has a spacious foyer that leads to a dramatic two-story Great Room with a gas fireplace and motorized blinds. The Great Room opens to the kitchen with stainless steel appliances, a granite bar, custom backsplash and a pantry.   The vaulted, four season sunroom opens to the dinette, and leads to the deck, which overlooks mature trees behind the home.  

The second floor features two bedrooms, two bathrooms and the loft. The vaulted master suite has a French door entry and walk-in closet, and an adjoined full bathroom with a soaking tub and a walk-in shower. An additional ¾ bath with a granite top lies down the hall. 

The finished walkout lower level features a family room that leads to a patio, a bedroom, a ¾ bathroom and an enormous storage room. You’ll love additional touches such as a chair rail, slow close cabinets and beautiful lighting.   This home is located on a quiet, dead end street!

View our VIRTUAL TOUR.

Offered at $266,500     SOLD AT $260,000

493 Stonewood Lane in Burnsville is proudly marketed by Chad & Sara Huebener of Edina Realty.  For more information or to schedule a private showing, call 952-215-5012. 

 

 

How Tax Reform Impacts Homeowners in Minnesota (and other states if you're curious)

JUST SOLD in Oak Hills! 9320 W. 134th Street, Savage - Chad & Sara Huebener, Edina Realty, Lic. MN

JUST SOLD in Oak Hills!   9320 W. 134th Street, Savage  

This stunning full brick front two-story sits on a private, wooded, fenced lot on a no-outlet street in a family-friendly neighborhood. The interior has been beautifully decorated in today's stylish colors! The main floor features newly refinished hardwood floors, and a kitchen with white cabinetry, granite countertops and new stainless appliances. The main floor family room has a gas fireplace flanked by windows. Living and dining rooms, a den, and the laundry room lie on the main floor.  

The second floor features four bedrooms and two bathrooms, including a vaulted master suite with a French door entry, a sitting room, and a private dual sink bathroom with a whirlpool tub and a walk-in closet.   Another full bath lies down the hall.   The finished lower level has full-sized daylight windows, a cherry wet bar with granite surfaces and a lighted, coffered ceiling, a family room with a fireplace and built-ins, a bedroom, and a ¾ bath. 

Other features of this home include a motorized (with remote) foyer window treatment, a new maintenance-free AZEK deck, maintenance-free fencing, new landscaping by Curbside, a new furnace and water heater, and in-ground irrigation. 

 

View our VIRTUAL TOUR.

9320 W. 134th Street is proudly marketed by Chad & Sara Huebener of Edina Realty.  For more information or to schedule a private showing, call 952-212-3597.

 

Market flat in preparation for winter

The Twin Cities housing market is holding steady after both sales and prices reached record highs this year. In October, new listings were up 3.1 percent compared to last October but are on-track for a 2.0 percent decline for the year. Pending sales rose 3.9 percent for the month but will likely be flat compared to all of 2016. Closed sales eked out a 0.3 percent October gain but are also likely to be flat for the year. The number of homes for sale decreased 18.0 percent to 11,221. Absorption rates contracted as well.

Given strong demand and low supply, prices held their ground and marched higher. The median sales price rose 6.1 percent from last October to $244,000. This price metric will likely show a 6.5 percent annual increase. Home prices have now risen for the last 68 consecutive months or over 5.5 years. At 52 days on average compared to 61 last October, homes went under contract 14.8 percent faster. Sellers who list their properties are averaging 97.7 percent of their original list price, 0.8 percent higher than October 2016. The metro area has just 2.2 months of housing supply. Generally, five to six months of supply is considered a balanced market where neither buyers nor sellers have a clear advantage.

“We’re still very much on-track with last year’s sales levels,” said Cotty Lowry, Minneapolis Area Association of REALTORS^® (MAAR) President. “At this point in the year, we begin to look toward annual numbers that are less susceptible to weather and other variables. With only two months to go, we are running just about 70 sales shy of last year’s levels. That’s quite impressive given our dramatic supply shortage.”

Headline figures can often mask important details and specifics of which buyers and seller should be aware. For example, year-to-date, closed sales only fell for homes under $250,000. Sales activity increased for homes priced between $250,000 and $500,000, $500,000 and $1,000,000 and for properties over $1,000,000. Market times and the ratio of sales price to list price both improved for each of the above four price ranges. Traditional market activity continues to eclipse distressed activity.

The economy and political climate affect housing. The national unemployment rate is 4.1 percent, though it’s 2.9 percent locally—the third lowest unemployment rate of any major metro area. A thriving and diverse economy has been conducive to housing recovery, as job and wage growth are key to new household formations and housing demand. The Minneapolis–St. Paul region has a resilient economy with a global reach, a talented workforce, top-notch schools, exposure to the growing technology and healthcare fields, and a quality of life that’s enabled one of the highest homeownership rates in the country.

The average 30-year fixed mortgage rate has declined from 4.3 percent to 3.9 percent recently, still well below its long-term average of around 8.0 percent. One additional rate hike may be in the cards this year, but the Fed is focused on unwinding its large portfolio. Additional inventory is still needed in order to offset declining affordability brought on by higher prices and interest rates.

“Keep a close eye on some of the tax reform proposals meandering through Congress,” said Kath Hammerseng, MAAR President-Elect. “Unfortunately, some of the key proposals directly harm the middle class and disincentivize homeownership while adding trillions to the debt.”

JUST SOLD! 1240 Sapphire Lane, Shakopee - Chad & Sara Huebener, Edina Realty, Lic. MN

JUST SOLD!  1240 Sapphire Lane, Shakopee 

Welcome to 1240 Sapphire Lane! This three bedroom home sits on a quiet street and features an incredible, flat, functional backyard!  The interior features a vaulted and open floor plan with updated paint and carpet. The kitchen has been updated with stainless steel appliances, and leads to a large deck off the dining area.   The upper level living room is lofted to the kitchen, and leads to a full bathroom and two bedrooms, both with spacious closets. 

The finished lower level has a large family room with full-sized daylight windows, a bedroom, another full bath and the laundry. You’ll find all the convenient storage you need in a crawl space with concrete flooring under the kitchen.    

Other features of this home include a sheetrocked and heated garage and an extra parking pad with fencing alongside the garage, perfect for your boat or camper. The home is located in a quiet neighborhood close to parks, schools and shopping!

View our VIRTUAL TOUR.

Offered at $254,900.

1240 Sapphire Lane is proudly marketed by Chad & Sara Huebener of Edina Realty.  For more information or to schedule a private showing, call 952-212-3597.

JUST SOLD! End-Unit Rambler Townhome at 700 E. Nicollet Blvd. - Chad & Sara Huebener, Edina Realty, Lic. MN

JUST SOLD!  End-Unit Rambler Townhome at 700 E. Nicollet Blvd  

Welcome to this turnkey rambler-style, end unit townhome, with all living facilities on one level! The kitchen has dramatic windows and roll-out shelves, and opens to a vaulted family room with a gas fireplace.   Down the hall you’ll find the laundry, a 3/4 bathroom, and two bedrooms. The master bedroom is spacious, with a sitting area, huge walk-in closet, and full, private bathroom with dual sinks.   Just off the living room, you’ll find a covered deck with a ceiling fan, perfect for relaxing on a sunny day or watching a thunderstorm.  

The entire home has been repainted and has fresh carpet throughout. You’ll appreciate additional amenities including hardwood and tile flooring, large closets, and an oversized garage with a storage room and pull-down attic storage.   The house is situated at such an angle that there really is no common neighbor wall.   You’ll love the privacy here!  

The home is located in a prime location in Burnsville, close to parks, the YMCA, shopping and area conveniences!

View our VIRTUAL TOUR.  

Offered at $209,900      SOLD AT $210,000

700 E. Nicollet Blvd. is proudly marketed by Chad & Sara Huebener with Edina Realty.  For more information or to schedule a private showing, call 952-212-3597.