Tara O'Brien's Minneapolis Real Estate Update: January 2011

3 bedrooms, 2 bathrooms complete home remodel for only $99,000. Perfect home with top of the line finishes. Nicest home in price range. Back porch, great yard. New everything. Finished basement with den and huge family room. New stainless steel appliances, new counter tops, custom cabinets, open floor plan, huge living room with coved ceilings. Very light and on a quiet street.

Tara O'Brien, Edina Realty
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Beautifully restored huge 2 story. New hardwood floors, new carpet, new ceramic tile floors. New upgraded kitchen, custom cabinets, granite counter tops and stainless steel appliances. Great location, huge new 2 car garage, new front porch windows and patios on back. Huge home for the money. Gorgeous woodwork throughout, four finished levels, and more. A must see.

Tara O'Brien, Edina Realty
MinneapolisCondosTaraOBrien

By: Gwen Moran

Published: October 22, 2010

How you manage your home ownership finances affects your credit score—and your ability to refinance later.


1. Postpone that refinance until your credit is squeaky clean
Even a small blemish on a credit report can cost you at closing. Money expert Denise Winston found that out firsthand: Her husband hadn’t paid a $40 pager charge. The unpaid bill was turned over to a collection agency and ended up damaging his credit score.

Because of that one small unpaid bill, the interest rate on the couple’s mortgage was 0.25% higher than if he'd had a clean score. Put another way, that’s $13,000 over the life of the loan.

The lesson? Even small items can damage your financial position. Get your credit report beforehand to see if there’s anything damaging. If so, consider postponing a refinance or HELOC (home equity line of credit) until small but potentially costly dings fade over time.

2. Pay your mortgage—now
Not all late payments are created equal: Almost nothing hits your credit score harder than a late mortgage payment. Payment history generally accounts for 35% of your credit score, which is bad enough, but credit score agencies consider late home payments graver than late credit card or car loan payments.

In fact, credit score agency VantageScore will knock off more than 100 points beyond what it would do for delinquent auto loans or credit cards.

But if you think you can improve your credit score with early payments, think again. Geoff Williams, co-author of Living Well with Bad Credit, says it may make a slightly positive impression on today’s risk-averse lender, but it won’t make a big difference in getting future credit.

3. Cool it on second mortgages and HELOCs
Drawing down a second mortgage or HELOC can have a negative impact on your credit score because 30% of your credit score is based on how much you owe to creditors. However, if you pay the loan on time, it will have less of an impact, says Winston.

Also, you can mitigate the credit score damage of a HELOC by staying within 30% of the limit.

4. Protect your mortgage to protect your insurance rates
Late payments on your mortgage may also affect your home owners and automobile insurance rates, potentially costing you hundreds of dollars a year, says Williams. Insurers may assume that if you’re strapped for cash and pay your bills late, you’re more likely to file a claim because you need the money.

5. Pay your utility bills and property taxes on time
If you're late on your utility bills and your account is assigned to a collection agency, that agency may report it, causing a drop in your credit score, says Winston. The good news is that utility companies often don’t bother to report late bills to credit bureaus until your delinquency becomes serious.

Interestingly, late payment of property taxes won’t affect your credit score unless you find yourself with a lien on your property. Since liens are public records, they may appear on your credit report and might cause a drop in your credit score.

6. Refinancing? Beware of taking out equity, too
Refinancing your home generally won’t have an impact on your credit score as long as you continue to pay your loan on time, says Williams. However, if you extract equity in the deal, you could marginally affect your credit score because the amount you owe will increase.

Gwen Moran is a freelance business and finance writer from the Jersey shore. She’s the co-author of The Complete Idiot’s Guide to Business Plans and writes frequently about real estate.

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Occupations that will grow the most in 2011 are in the IT and health care sectors, according to the company.

Popular job site Monster.com recently ranked Minneapolis among the 10 hottest job markets in the United States for 2011.

The Maynard, Massachusetts-based online employment site identified the top markets based on the number of available jobs per person, ranking Minneapolis sixth. Washington, D.C., topped the list, followed by San Francisco, Boston, Baltimore, and Seattle.

Monster.com also identified the top occupations for 2011 in these 10 markets. According to the company, the hottest jobs mostly fell within the IT and health care industries.

“This is largely due to the economic recovery where communities across the nation are starting to spend more on things like IT infrastructure and other areas where they’d previously avoided spending on for as long as possible,” Jesse Harriott, senior vice president and chief knowledge officer for Monster.com, said in a statement. “Meanwhile, health care has long been immune to the economic recession, especially given the skills shortage in that industry due to Baby Boomers retiring, taking those skills with them in the process.”

According to Monster.com, occupations within the IT industry that will grow the most include IT project managers, database administrators, software engineers, computer support specialists, and computer and information research scientists.
Within the health care support market, the job postings that are most likely to increase in prevalence are for nursing aides, orderlies, and attendants; occupational therapist assistants; dental assistants; home health aides; and pharmacy aides.

Monster.com’s full list of the 10 hottest job markets in the United States is as follows:
1. Washington, D.C.
2. San Francisco
3. Boston
4. Baltimore
5. Seattle
6. Minneapolis
7. Cleveland
8. Tampa, Florida
9. Dallas
10. Kansas City, Missouri

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Buyers were more eager to get back in the game than sellers for the week ending January 15. There were 1,286 new properties added to the Twin Cities residential real estate market, down 22.9 percent compared to the same week last year. This marks the third consecutive week of year-over-year declines in seller activity after three consecutive weeks of year-over-year gains.
There were 558 Pending Sales for the week, down a slight 2.3 percent from year-ago levels. That's the smallest decline in purchase demand in six weeks.
Active Listings for Sale were up 6.3 percent to 21,744 homes. That's the fourth consecutive week of decreasing inventory gains compared to last year.
-mplsrealtor.com

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Twin Cities home buyers and sellers both showed week-over-week increases coupled with year-over-year declines. The 1,490 New Listings were up over 120.0 percent from the previous week but down 10.7 percent from the previous year. The 475 Pending Sales were up over 70.0 percent from the previous week but down 8.7 percent from the previous year.
Moral of the story? The market has embarked on its typical new year's ascent as we begin our long drive toward spring. We likely won't match 2010 levels until the summer months – when we're finally comparing two nonincentive markets on a level playing field.
Inventory was the metric to watch for the week, as the number of active listings for sale snuck in only 7.2 percent above year-ago levels. That's the smallest inventory increase since the first full week in August 2010. As of January 18, there were 21,687 homes available for purchase. While that's plenty of product for buyers to sift through, sellers will have to ensure that their properties show well and are
priced aggressively. -from MplsRealtor.com

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Labels: homes for sale in minneapolis, minneapolis condos, minneapolis homes for sale., minneapolis market, Minneapolis Neighborhoods, minneapolis real estate, minneapolis realtors

With roughly three job seekers per opening, the area’s employment is expected to recover fully by mid-2011.

The Minneapolis-St. Paul metro area has been named one of the nation’s top job markets, according to a report released by Forbes. The metro area placed fourth in the rankings, which were released last week—trailing only Washington, D.C.; Boston; and Austin, Texas.

According to Forbes, the Twin Cities’ employment is expected to recover fully by mid-2011, far earlier than a national recovery, as found by a recent Moody’s Economy.com analysis of the region.

Job growth is mostly expected in manufacturing and professional services like accounting. The Mall of America, a retail and tourist destination that is expanding, would also contribute to job growth in the region, according to the magazine.

Forbes reported that there are roughly three job seekers per advertised opening in the Twin Cities. The metro area’s unemployment rate is currently at 6.5 percent, whereas the national average is at 9.4 percent. Statewide jobless rate sits at 7.1 percent.

Topping Forbes’ list is the nation’s capital, with roughly one advertised job opening for every unemployed worker in the region, which includes parts of Maryland and Virginia.

Boston and Austin follow closely with job seekers per opening rates of 2.1 and 2.39, respectively. Las Vegas was the worst job market in the nation, with more than eight unemployed workers for every job opportunity posted online. Most of California and Florida’s major cities were close behind.

Forbes compiled its 2011 lists of America’s Best and Worst Job Markets with metro unemployment data from the U.S. Bureau of Labor Statistics, and job site Juju.com’s monthly Job Search Difficulty Index for major cities. Research firm Moody’s provided additional analysis for the trends in each labor market.

—Nataleeya Boss
(edit@tcbmag.com)

Buyers and sellers were less active in the closing week of 2010 than they were during the final week of 2009. Following three consecutive weeks of increases, sellers pulled back and listed 677 new properties or 1.6 percent fewer than they did last year at this time. This is slightly below the three-month average but up from the holiday week.
Buyer activity continued along its seasonal decline. The 279 purchase agreements signed for the week were down 26.2 percent from the year prior. While the number "26.2" may pique the interest of marathoners, the rest of us are ready to see the market sustain gains in purchase demand. On average over the last three months, the year-over-year decline is a frigid 20.3 percent.
The number of active listings available for purchase rose 10.5 percent from last year to 21,597 properties. That gain came in slightly under the three-month average change in inventory levels but is in line with historical seasonal changes.
From MAAR, enotes.

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Labels: homes for sale in minneapolis, minneapolis real estate, minneapolis realtors, minnesota real estate

This large home is located just blocks from coffee shops and stores. Walk to the bus stop which is steps away. Home has been completely renvoated, all four levels. Room for large family or roommates. Great character in the woodwork that is original and in great shape. Hardwood floors, new kitchen with granite counters, stainless steel appliances, breakfast nook, tile floors and new light fixtures. Home has all new carpet, finished basement and attic and new 2+ car garage. A must see at this great price, $170,000. Call today for an appointment to see.

Tara O'Brien, Realtor
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Labels: minneapolis market, Minneapolis Neighborhoods, minneapolis real estate, minnesota real estate, powderhorn minneapolis, powderhorn park home for sale

This new 2 bedroom condo is perfect for anyone looking 55+. Plenty of square footage, 2 full bathrooms, garage stall, great floor plan, balcony, pets allowed, security building, wonderful activities and more. Best price for this floorplan, by far. Priced to move quickly at $147,000.

Tara O'Brien, Edina Realty
MinneapolisCondosTaraOBrien

Buyer activity for the week ending December 25 was fairly even with last year – down only 3.3 percent to 379 purchase agreements signed. The lowest weekly sales volume on record is 235 and it occurred during the final week of 2007. Weekly sales volumes have lingered between 400 and 700 units since the beginning of May 2010.
Sellers were outwardly optimistic about future purchase activity as they listed 657 new homes on the market, up a substantial 47.3 percent from the same week in 2009. That's the largest year-over-year gain in seller activity since mid-April 2010.
Inventory levels are still on their seasonal uphill climb, and this won't change until the snow starts melting. At this rate, that could be May! In all seriousness, there are currently 21,161 Twin Cities properties being actively marketed. That's 11.5 percent more than the same week last year. This is nothing extraordinary and is in line with the usual seasonal changes.
As 2010 limps into the history books, we happily bid it adieu as the outlook for the latter half of 2011 continues to look up.
From: Minneapolis Association of Realtors

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Labels: minneapolis market, minneapolis real estate, minnesota real estate, real estate sales

Beautiful condo overlooking the pool and courtyard. Completely updated throughout. Kitchen has granite countertops, new cabinets, stainless steel appliances, undermount sink, new fixtures. Condo has all new carpet, custom paint, slate flooring, open floor plan. Bathroom has slate tile shower, new cabinetry, new sink, updated light fixture and more. This is a must see condo central to everything. 1 bedroom, 1 bathroom, parking is additional. $124,900.

This unit can also be rented for $1150 per month.


MinneapolisCondosTaraOBrien

Tara O'Brien, Edina Realty
612-810-7728

Labels: condo for sale, minneapolis condos, minneapolis market, Minneapolis Neighborhoods, minneapolis real estate, minneapolis realtors, minnesota real estate, the towers condo