West Savage Real Estate Blog

JUST SOLD! 5BR on ONE LEVEL at 3213 Maple Drive!

JUST SOLD!  5BR UP walkout home sitting on a wooded, wetland, cul de sac lot in Maple Glen!  Walnut & maple finishes, tile floors, oil-rubbed bronze fixtures, wrought-iron spindles, custom lighting package, granite kitchen and granite-topped built-in formal dining room buffet.  Main floor den with French door entry.  Stately floor-to-ceiling stone fireplace with built-ins and piano windows.  Builder is custom-finishing the walkout basement for this client with a wet bar, pool room, den, family room and 3/4 bath.  Builder is adding a maintenance-free deck.   Completion due mid-December.

"The Monthly Skinny" - December 2011

In summary, buyer purchase activity is UP. Inventory is DOWN. Sales prices are down approximately 10%. Month's Supply of Inventory is down 30% - and is now at 5.7 months. Less than 5 months supply is considered a seller's market, so there are signs of balance on the horizon. Other variables apply.... Watch this video.

MORE is not always BETTER - What Edina Realty is doing about the 3rd party aggregator problem

By Sara Huebener

Unless you live, eat, and breathe real estate, you might be unaware of the biggest controversy that has tongues in the local real estate market clucking. That controversy is Edina Realty's decision to pull its listings off 3rd party aggregator websites.  Sound boring?   Au contraire.  If anything, this bold move has REALTORS talking, and it just might interest YOU as well.    

First, some background information:   All REALTORS (not to be confused with real estate agents) belong to the MLS.  By being a REALTOR and belonging to the MLS, we all agree to "reciprocity,"  meaning that when we sign a new property listing, we agree to enter it on the MLS and "share" it with other MLS subscribers, so they have the opportunity to show and sell the property to their buyer clients.  It is against our reciprocity rules to "sleeve" a listing - i.e. not publish it to the MLS (without written consent from the seller instructing us to do so.) 

All brokers like Edina Realty, Re/Max, Coldwell Banker Burnet, Counselor, etc. agree that in publishing our property listings, we agree to be truthful with other REALTORS, and represent the property as accurately as possible.   All brokerage websites are bound by a set of rules under the MLS in this regard.

Enter 3rd party aggregator websites - Trulia, Realtor.com, etc.   These national real estate websites receive our MLS data, however, they are not bound by the same rules that brokers in our industry are.   Hence, much of the data is outdated, incorrect, or the house is simply no longer available for sale.  These types of sites thrive off of analytics and site optimization, and so the more data they accumulate, the better.  There is little motivation, and no obligation, to ensure the data on these sites is correct and updated.   This explains why many homes which are not on the market appear on these websites. 

Edina Realty made a conscientious decision to pull its listings from Trulia as of November 30, 2011 because 3rd party aggregator websites create confusion for consumers on a multitude of levels.  (Realtor.com is still under evaluation for data removal, for internal reasons.)  Due to inaccurate data, it is common to receive calls from the general public about properties that are not available for sale, but which the consumer believes to be available for sale because these websites represent them as such.  Many of these properties have been cancelled or expired from the market, or, in some cases, were never available for sale to begin with.    

Take this story that just happened to a REALTOR in Edina, MN as an illustration: A client called his REALTOR  looking for information on a specific property he found on Trulia.  The REALTOR could not find the property on the MLS, which was especially baffling since MLS is the purest source database of listings available for sale.  His client was adamant about the house, so the REALTOR drove by the property.  He then called the homeowner via telephone to inquire about it, only to find the owner was someone he was in a professional networking organization with.  The "seller" was very upset that his home was displayed as available for sale on a national website, when in fact, it was not.  Nor had it ever been.   The "seller" had been late on two mortgage payments due to some difficult circumstances in previous months.  He had since come current on his loan, but his loan delinquency status had been logged and sold to Trulia, which listed his property as being for sale on its site.   He was livid, not to mention embarrassed, with the exposure of his home to the market when it was never for sale to begin with. 

Not only is a property's status often confused online.  Misrepresentation also occurs in the form of "neighborhood specialists."   Third party aggregator sites allow a REALTOR to purchase ZIP codes and be showcased as a top agent in a particular region.  (Our MLS, on the other hand, does not allow REALTORS to claim to be top salespeople in a region when that claim is untrue.)  These showcased agents are not showcased based on sales volume in that particular region.  Rather, their placement on the site is based on the dollar amount they paid the site to be showcased there.  

When a consumer searches for properties in a given area on a 3rd party aggregator site, they are directed to the "area specialist."  In many cases, this "area specialist" does not live or work anywhere near the target area, does not know the area, has never been in the property, and has very little working knowledge of the area, including the parks, schools and local amenities.   Hence, a consumer with questions on a property is led to believe the person showcased online can provide all the information regarding a specific property. 

Showcased agents DO work to convert the leads they acquire online, with the goal of helping the consumer to buy something, not necessarily the house, or even the neighborhood, that the consumer is inquiring about.   It is strictly a lead-generation system, actively at work. 

Edina Realty takes the stance that if a consumer hires an Edina Realty agent to sell his home, then any inquiry on an Edina Realty property should go to the agent representing the property for sale, so the consumer gets the most accurate information from the person who was hired by the seller to represent the property.  Throwing the information to the wind by submitting it online to any and all sites that will take the data and sell it to non-specialist agents for lead generation, is counterproductive to our clients and misses the point on the MLS's original intent of reciprocity.  

It is Edina Realty's stance that quality data on a well-trafficed website is preferable to inaccurate data in mass quantity on many sites.  If exposure to the market is the ultimate goal, there are two points to consider:   1.  Real estate is local, not national.  The average buyer purchases a home 12 miles from their current residence, according to the National Association of REALTORS 2011 Profile of Buyers and Sellers.   Edinarealty.com is the most popular, local, consumer real estate search engine.   2.   The same consumers who visit national aggregator sites are also visting edinarealty.com.   Someone relocating to Minnesota from out of state is going to begin a home search with Google, typing keywords like "real estate in Savage, MN" or "Eden Prairie homes for sale."   Edinarealty.com is at the top of search engine lists due to the investment the company has made in SEO (search engine optimization) and consumers will find what they are looking for online.  

True, some of our competitors have concern about Edina's bold move, because they have invested heavily in 3rd party aggregator websites, and now, due to 1/3 of the inventory being pulled, these websites no longer contain even remotely close to the complete list of available properties for sale, invalidating their usefulness for the consumer.   Other competitors, however, have come forward and said "Thank you.  It's about time someone had the guts to stand up to these aggregators."  

In closing, Matthew Ferrara, a national real estate trainer and speaker, wrote THIS about Edina Realty's bold decision.   And another REALTOR from out of state wrote this blog post  (geared towards REALTORS) surrounding this discussion.  Both are pretty telling of the reality of the 3rd party aggregator misuse of our MLS data.... which is really the data of our local homesellers and homebuyers.   By providing this data to aggregators to use and misrepresent, we are doing our sellers a disservice.  And the time to put a stop to this is now. 

JUST SOLD - New Construction in Spring Lake Estates!

 
JUST SOLD in Spring Lake Estates!   Craftsman-style two story with barrel-vautled front porch, 4BR up with private master suite and princess suite, granite surfaces, hardwood floors, arched entryways, butler pantry, wine storage, and so much more! 

 

November Housing Inventory Lowest Since 2004

This press release was just released by the Minneapolis Area Association of REALTORS and is pretty big news for our market.   I have highlighted the parts that we feel are of most significance, and added a couple brief comments at the end.  - Sara

Minneapolis, Minnesota (December 12, 2011) – Last month, the number of homes for sale in the 13-county Twin Cities metropolitan area plunged nearly 24.0 percent from last year to 19,516 – the lowest November inventory reading since 2004. In addition, November 2011 marked only the third month in more than five years (68 months to be precise) where there was less than six months supply of inventory. Sellers listed 4,102 new homes on the market, down 13.6 percent from last year. Buyers entered into 3,321 purchase agreements, up 30.2 percent over November 2010.

"Despite the dramatic drop in inventory, prices are still bound by distressed activity, budget-conscious consumers and a general sense of economic uncertainty," said Brad Fisher, President of the Minneapolis Area Association of REALTORS®. "Along with strong sales, these declines have moved absorption rates to levels only seen twice since 2006. This may have a considerable impact on the Spring 2012 market."

Some sellers are already starting to benefit from less competition. The share of asking price that sellers receive at sale has posted year-over-year increases for the fourth consecutive month. In November, sellers received an average of 90.9 percent of their asking price. That figure was likely helped by the 30.6 percent decrease in months supply of inventory – currently at 5.7 months. Generally, 5 to 6 months is considered balanced.

The median home price was down 10.1 percent from November 2010 to $149,250. Lender-mediated activity (foreclosures and short sales) comprised 44.1 percent of all closed sales and 41.9 percent of new listings.

The first and fourth quarters of the year tend to see the most distressed sales and listing activity. Consequently, traditional prices fell 9.2 percent to $187,400, foreclosure prices dropped 14.3 percent to $98,500 and short sale prices were down 11.5 percent to $130,000.

Market times were down 1.7 percent to 135 days, on average – the second year-over-year decrease in a row. The housing affordability index hit a new record high of 245, meaning that the median household income in the region was 245% of what is necessary to qualify for the median-priced home under prevailing interest rates.

"Prices don't reflect the improved supply-demand balance yet," said Cari Linn, MAAR President-Elect. "Although there are some reassuring patterns taking hold, it would be overly optimistic to say that all of the market's problems will be washed away by spring."

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.

This press release is consisent with information we just wrote for The POINTE Association's winter newsletter back on November 21.    Another point to note is regarding the roughy 40% distressed inventory quoted by this news article:  This statistic has remained consistent with our metro market for two years running, and this year is no expection.  However, locally in West Savage, that number has come down a little bit, as we are seeing fewer distressed sales relative to last year.

 

JUST SOLD! Nearly 15 Acres of Hunting/Recreational Land on Porter Creek!

JUST SOLD!  14.96 acres of hunting and recreational land.  Porter Creek runs through the heart of this vacant lot.   The perfect family getaway spot for biking, exploring, hunting, camping and ice fishing, just 16 miles from the heart of Savage!   Why drive up north?

Weekly Market Update for the Week Ending December 3

Our local REALTOR Association reports (on December 12):

As another new year approaches, we find ourselves settling in for the holidays, which typically come with slowed real estate activity. In the first week of the full holiday shopping season, we saw sales increase. We're talking about residential real estate, of course, although retail performed surprisingly well, too.

Sellers listed fewer properties during the week, choosing instead to hunker down in their living rooms rich with the aromas of pine-scented candles and cinnamon cider sticks.

In the Twin Cities region, for the week ending December 3:

 • New Listings decreased 9.3% to 1,006

• Pending Sales increased 36.4% to 885

• Inventory decreased 22.9% to 20,031

For the month of November:

• Median Sales Price decreased 9.9% to $149,500

• Days on Market decreased 1.8% to 135

• Percent of Original List Price Received increased 1.0% to 90.9%

• Months Supply of Inventory decreased 30.5% to 5.7

Our two cents (or three words, rather!) regarding the local marketplace:  INVENTORY IS LOW. Showings are still hobbling along, and considering we are two weeks from Christmas, the fact that showings exist are a very positive thing!  The thing to keep in mind for the winter market - buyers who house hunt in the winter are serious.  There is little tire-kicking going on this time of year.   We hope these balmy temps and low rates keep the buyers out there.   Doing so might produce a merrier Christmas for some sellers in this market! 

JUST SOLD! Arctic Lake Two-Story!

JUST SOLD!  Two-story home on a cul de sac backing to Arctic Lake!   This truly exceptional walkout home offers a private treed lot with lake views. The home boasts maple woodwork, granite surfaces, 2 stone fireplaces, in-floor radiant heat, tile floors, built-ins, workout room and sport court. Deck with amazing views!  Huge front porch!  Professional landscaping. A rare gem!

JUST SOLD! 4BR Two-Story with Soaring Ceilings - 2096 Alden Avenue

JUST SOLD!   This two-story home in Prairie Village offers 4 bedrooms and a unique and open floor plan, all situated on a quiet cul de sac street.   The main floor offers formal living and dining rooms and an enormous kitchen with a substantial amount of countertop space, tile floors, and 42” cabinetry.  A two-story Great Room with Cathedral ceilings and a den/bedroom option opening to a ¾ bathroom complete the main floor. 

The second floor offers three bedrooms, including a vaulted master suite with walk-in closet, sitting area and private full bathroom.   A loft overlooks the Great Room.   The lookout lower level is unfinished for future equity.  

The home includes a 3-car garage, an in-ground sprinkler system, and a fabulous two-tiered deck perfect for entertaining. 

VIEW OUR VIRTUAL TOUR  or ONLINE FLYER for 2096 Alden Avenue in Shakopee.  

VIEW OUR COLDWELL BANKER ON LOCATION Video for this home!

24 Hour Recorded Message  1-800-605-6994  Ext. 596

Offered at $259,900

This home is proudly marketed by Chad and Sara Huebener of Coldwell Banker Burnet - Scott County Regional REALTORS.  If you have questions about this home at 2096 Alden Avenue, please contact us at 952-212-3597. 

Weekly Market Update for the Week Ending Nov 26

Our local REALTOR Association reports (on December 5): 

Chatty in-laws were not able to curb the appetite of local home buyers, as purchase activity easily gobbled up last year's levels.  Sellers were apparently stuffed and lethargic, as they brought fewer new properties onto the market than during the same holiday week last year.

As we approach the slowest time of year for residential activity, expect transacted dollar volumes and sales counts to weaken from the spring and summer of this year.   Keep watching inventory declines; they could have a measurable impact on the Spring 2012 market.

In the Twin Cities region, for the week ending November 26:

• New Listings decreased 9.1% to 601

• Pending Sales increased 46.8% to 574

• Inventory decreased 22.8% to 20,318

         For the month of October:

• Median Sales Price decreased 9.6% to $154,500

• Days on Market decreased 0.5% to 134

• Percent of Original List Price Received increased 0.9% to 91.2%

• Months Supply of Inventory decreased 27.6% to 6.3

Locally, south-of-the-river market inventory is very low, and buyers remain active.  Pricing remains a driving force in the market, and buyers are pairing pricing with low interest rates to keep the market unusually busy for this time of year. This trend has pushed Days on Market downward.  We do expect a slowdown as Christmas nears and temperatures drop.  Stay tuned for next week's market activity report.