Weekly Newsletter March 5th
This week we have lots to talk about…our area real estate market in the Twin Cities of Minnesota. Our incredible current interest rates. One of the best places to live in Minnesota (Mounds View). A fun thing to do this spring…watch a Twins game. And who represents you in a real estate transaction?
Minnesota Real Estate Market March 5th
Weekly Market Activity
Here is our real estate market March 5th, 2021, Minnesota real estate weekly update. Welcome to our spring real estate season! Last year was one for the history books and hopefully the effects will be over soon. We are looking for a great 2021!
We still have coronavirus concerns for our nation, the State of Minnesota, and the Minneapolis/St. Paul metro area, but hope is eternal. We are still wearing masks in all indoor spaces and restrictions are now being relaxed. The Pandemic has impacted our Minnesota real estate market and virtually all aspects of our life. We still do Minnesota real estate business, just differently. As an example, the buyers are now driving their car to all showings. The sellers are taking precautions that include sanitizing their homes before and after showings. Showings are limited to 30 minutes. And only one showing group is allowed in the house at any one time. Young children are discouraged from attending showings. Of course, buyers and agents are wearing masks during all showings. Also, real estate closings have sellers pre-signing, and buyer(s) only attend closings. Only those only essential to the transaction can attend closings – that means no agents or loan officers. Lastly, we use virtual tours and lots of photos. That helps determine if the buyers want to see the home or make an offer-physically sight unseen. Open houses are rare and not recommending by the Board of Realtors.
We review real estate facts and future trends
The trends
After the Superbowl is the start of our spring Minnesota real estate season. We now have an abundance of buyers in the marketplace but not enough inventory of homes for sale. Our inventory of homes is low and last week we down 21.1% for new listings from the same week in 2020. We continue to see multiple offers on all listings. In this dynamic real estate market what does that mean to you? It means you need an experienced real estate agent to give you go suggestions and options in, so you come out ahead. That means getting maximum sales price for your house or be the one who gets the home with multiple offers!
The facts
Facts are helpful since they give us insight into analyzing the trends and our market future. Still, it is our job to interpret the data. Our current affordability Index for Minnesota real estate is 154, compared to 160 last year at this same time. So, the higher the number means the greater the affordability. As of right now our inventory of available homes for sale is 4,884. For a comparison, we had 8,377 in 2020. So, in other words, the inventory of homes for sale is down 41.7% from last year. In further contrast, in 2009 we had almost 36,000 homes for sale in the Minneapolis/Saint Paul metro area. Lastly, our Minnesota real estate pending sales for the week before last, which are those homes sold but not closed, was 1,026. In comparison to 1,076 pending home sales last year. As a result, we have 4.6% less pending sales than last year for that same week period. So as our pending sales slightly decreased, and our inventory dramatically decreased, our monthly supply of homes is now down to .9 month compared to 1.7 last year at this time.
More facts
Minnesota seller’s benefit when real estate values rise. The median sales price increased by 11.5% since this time last year. $301.000 is now the median sales price in the Twin Cities area. A good market indicator is the comparison of our sales price to original list price. Our average sale to list price is currently 99.5%. And that compares to 97% last year. Also, an equally important indicator of market strength is the average days on the market. So, 42 average days on the market reflects a healthy, and brisk, Minnesota real estate market (that compares to 67 days last year at the same time).
Our current interest rates in the Twin Cities
Low interest rates substantially increase the affordability of your home purchase. So, our current interest rates are a real benefit to our Minnesota real estate. In fact, many mortgage companies love to provide mortgages to Minnesota home buyer’s, and this is because of our low delinquency and unemployment rates. But most importantly our exceptionally low mortgage risk. So, we have some of the best home mortgage rates in the United States in our Twin Cities area. These rates are up from last week. Rates are 2.299% for VA, 2.299 for FHA and 2.699% for conventional. Just reach out to me if you need contact information of a lender with those rates.
My opinion of future Minnesota real estate trends
I have seen many types of real estate markets and trends in the last 30 years. But with coronavirus it makes this a more difficult spring and summer market to predict. But I believe from what I hear from many high-level business leaders and financial experts is that our economy has some difficult times ahead. So, it is my opinion that we will have an active spring with low home inventory. But as evictions and business closures run their course later this year it will affect inventory as people are forced to sell their home because of a job loss and the pandemic. So next fall and winter will be more sensible as inventory begins to meet demand. This spring and summer it will be beyond brisk – it will be crazy! Interest rates will continue to be historically low and the federal reserve says it will not raise rates next year. That will stabilize our Minnesota real estate.
This is a good time to discuss your housing needs for 2021!
City of Mounds View
Mounds View, Minnesota
Mounds View is in Ramsey County, Minnesota. It is part of the Minneapolis-Saint Paul metropolitan area that has 3.52 million residents. It is located north of the Twin Cities and 15 minutes from Minneapolis and 19 minutes to St. Paul.
Is Mounds View rated as a good place to live?
Niche.com rated Mounds View Minnesota the high rating of an “A”. Gave it A’s for public schools, housing, good for families, outdoor activities, diversity, commute and health and fitness.
Some general information I have found about Mounds View Minnesota.
Mounds View has a population of 12,872. The unemployment rate is only 3.3%. And the median home price is $247,400. Meanwhile the median age is 36.6. Lastly, the median income is $59,121. Those are just a few reasons why Mounds View real estate is in high demand.
How are the schools in Mounds View?
Medina Minnesota is served by…
Mounds View School District # 621. Niche.com gave it a high rating of a “A” . It has 11,957 students. A student-teacher ratio of 17 to 1. Also visit www.mnschools.com for additional information.
My conclusion
To summarize, I have found Mounds View to be a popular city. Importantly, it has great amenities that include…wonderful parks, trails, has a short commute to Minneapolis and St. Paul, has highly rated schools, and a small-town feel. In short, I strongly suggest considering Mounds View if you are planning on moving to the Twin Cities of Minnesota.
All homes listed for sale in Mounds View – CLICK
Who represents you in a real estate transaction?
The State of Minnesota required agents to have a buyer or seller sign a form that explains agency. Here is a summary of agency for buyers and sellers.
What are the different types of agency in Minnesota and representation in a real estate transaction?
· Seller’s/Landlord’s Broker: A broker who lists a property, or a salesperson who is licensed to the listing broker, 15. represents the Seller/Landlord and acts on behalf of the Seller/Landlord. A Seller’s/Landlord’s broker owes to 16. the Seller/Landlord the fiduciary duties described on page two (2). (2) The broker must also disclose to the Buyer 17. material facts as defined in MN Statute 82.68, Subd. 3, of which the broker is aware that could adversely and 18. significantly affect the Buyer’s use or enjoyment of the property. (MN Statute 82.68, Subd. 3 does not apply to 19. rental/lease transactions.) If a broker or salesperson working with a Buyer/Tenant as a customer is representing the 20. Seller/Landlord, he or she must act in the Seller’s/Landlord’s best interest and must tell the Seller/Landlord any 21. information disclosed to him or her, except confidential information acquired in a facilitator relationship (see paragraph 22. IV on page two (2)). In that case, the Buyer/Tenant will not be represented and will not receive advice and counsel 23. from the broker or salesperson.
· Buyer’s/Tenant’s Broker: A Buyer/Tenant may enter into an agreement for the broker or salesperson to represent 25. and act on behalf of the Buyer/Tenant. The broker may represent the Buyer/Tenant only, and not the Seller/Landlord, 26. even if he or she is being paid in whole or in part by the Seller/Landlord. A Buyer’s/Tenant’s broker owes to the 27. Buyer/Tenant the fiduciary duties described on page two (2). (2) The broker must disclose to the Buyer material facts 28. as defined in MN Statute 82.68, Subd. 3, of which the broker is aware that could adversely and significantly affect 29. the Buyer’s use or enjoyment of the property. (MN Statute 82.68, Subd. 3 does not apply to rental/lease transactions.) 30. If a broker or salesperson working with a Seller/Landlord as a customer is representing the Buyer/Tenant, he or 31. she must act in the Buyer’s/Tenant’s best interest and must tell the Buyer/Tenant any information disclosed to him 32. or her, except confidential information acquired in a facilitator relationship (see paragraph IV on page two (2)). In 33. that case, the Seller/Landlord will not be represented and will not receive advice and counsel from the broker or 34. salesperson.
· Dual Agency – Broker Representing both Seller/Landlord and Buyer/Tenant: Dual agency occurs when one 36. broker or salesperson represents both parties to a transaction, or when two salespersons licensed to the same 37. broker each represent a party to the transaction. Dual agency requires the informed consent of all parties, and 38. means that the broker and salesperson owe the same duties to the Seller/Landlord and the Buyer/Tenant. This 39. role limits the level of representation the broker and salesperson can provide and prohibits them from acting 40. exclusively for either party. In a dual agency, confidential information about price, terms, and motivation for pursuing 41. a transaction will be kept confidential unless one party instructs the broker or salesperson in writing to disclose 42. specific information about him or her. Other information will be shared. Dual agents may not advocate for one party 43. to the detriment of the other. (3) 44. Within the limitations described above, dual agents owe to both Seller/Landlord and Buyer/Tenant the fiduciary 45. duties described below. (2) Dual agents must disclose to Buyers material facts as defined in MN Statute 82.68, Subd. 46. 3, of which the broker is aware that could adversely and significantly affect the Buyer’s use or enjoyment of the 47. property. (MN Statute 82.68, Subd. 3 does not apply to rental/lease transactions.)
· Facilitator: A broker or salesperson who performs services for a Buyer/Tenant, a Seller/Landlord or both but 50. does not represent either in a fiduciary capacity as a Buyer’s/Tenant’s Broker, Seller’s/Landlord’s Broker or Dual 51. Agent. THE FACILITATOR BROKER OR SALESPERSON DOES NOT OWE ANY PARTY ANY OF THE FIDUCIARY 52. DUTIES LISTED BELOW, EXCEPT CONFIDENTIALITY, UNLESS THOSE DUTIES ARE INCLUDED IN A 53. WRITTEN FACILITATOR SERVICES AGREEMENT. The facilitator broker or salesperson owes the duty of 54. confidentiality to the party but owes no other duty to the party except those duties required by law or contained in 55. a written facilitator services agreement, if any. In the event a facilitator broker or salesperson working with a Buyer/ 56. Tenant shows a property listed by the facilitator broker or salesperson, then the facilitator broker or salesperson 57. must act as a Seller’s/Landlord’s Broker (see paragraph I on page one (1)). In the event a facilitator broker or 58. salesperson, working with a Seller/Landlord, accepts a showing of the property by a Buyer/Tenant being represented 59. by the facilitator broker or salesperson, then the facilitator broker or salesperson must act as a Buyer’s/Tenant’s 60. Broker (see paragraph II on page one (1)).
Some personal opinions…when you visit an open house, and the agent is the listing agent – they represent the seller so do not disclosure your motivation or negotiating strategy (since they will then tell the seller). When an agent is the listing agent and they say they can represent you also…while it is legal in Minnesota (but many States it is not), the agent is walking a fine line with representing both. I have had many say it feels more like a facilitator since how the agent can represent both. This is a conversation our Board of Realtors has had many times and continues to review with the Department of Commerce. It currently is accepted by the Department of Commerce in the State of Minnesota.
Fun Thing to Do Watch the Twins Game
Let me tell you about it.
Minnesota Twins are an American professional baseball team based in Minneapolis, Minnesota. They are a member of the Central Division. Named after the Twin Cities which includes St. Paul.
Franchise was founded in 1901 as the Washington Senators. The team relocated and was renamed “Minnesota Twins” in 1961. The Minnesota Twins have been Central League Champions the last wo seasons.
The Minnesota Twins play at Target Field located in the historic warehouse district of Minneapolis. The park opened in April 2010. In 2010 ESPN ranked Target Field as the number baseball stadium experience in North America. It is truly a fans stadium!
What about this year?
I am a season ticket holder and have just spoken to my rep today regarding future games. He says the Twins have asked the Governor to approve 25% capacity for games and the Twins have reached out to all season ticket holders to see if they want to attend. I picked the option where I have tickets to all games, but my seats are moved around to accommodate the reduced attendance and social distancing requirements. So, plan on outdoor baseball this spring!
The idea of having a hotdog as the sun sets on a warm evening outside while watching my favorite team sounds wonderful right about now. Some normalcy would be welcome.
The website for Twins information and to purchase tickets – Click Here. Visit my business Facebook page at The Anderson Team REMAX Results for Minnesota Twin’s ticket giveaways. We will have them this spring and summer.
Go Twins!
Next week we will talk about another aspect of what is great in Minnesota.
Honestly if you cannot find something fun to do in the State of Minnesota all year long…then you are not looking!
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We have so many fun things to do in Minnesota…even in a pandemic! If you need some ideas for fun things to do just give me a call or email me.
Jeff Anderson
The Anderson Team
RE/MAX Results
612-386-8600
