Just Listed brings you the latest news and information from the Twin Cities-area commercial and residential real estate market and beyond from veteran reporters Jim Buchta and Janet Moore.

Posts about Foreclosures

The lowdown on the upswing in Minneapolis development

Posted by: Jim Buchta Updated: July 16, 2014 - 12:47 PM

As the numerous construction cranes that dot the Minneapolis skyline suggests, the city is in the midst of a development boom fueled by a steady economic recovery. If you're interested in getting a better understanding of the many facets of the city's economy, click here to see "Minneapolis Trends," a 44-page quarterly review of socioeconomic and housing data. Below is an exerpt that focuses on housing.

Minnesota's busiest real estate agents sold foreclosures and dream homes

Posted by: Jim Buchta Updated: July 9, 2014 - 11:18 AM

Dream homes and distressed sales helped propel Minnesota's busiest real estate agents to the top of their class last year, according to an annual survey by Real Trends, a Denver-based real estate research company, and Trulia.com. That survey is completely voluntary, but is vetted to make sure that agents aren't over-reporting sales. Here's a link to the complete list of top agents/teams in Minnesota, but here are top three in each category.

Top agents by volume

  1. George Stickney, a Coldwell Banker Burnet agent who specializes in luxury listings in the western suburbs and Lake Minnetonka, sold $74 million.
  2. Chad Schwendeman, an EXIT Lakes Realty Premier agent who sells in the Baxter, MN area, sold $49 million - a good share of that was lakeshore.
  3. Bruce Birkeland, a Coldwell Banker Burnet agent who specializes in upper-bracket houses in the Minneapolis lakes neighborhoods, sold $43 million.

Top agents by transactions

  1. Jeremy Peterson of ReMax Results specializes in the south metro and had 256 sides.
  2. Jeremy Chubb, a 25-year old who sells for Epic Real Estate Services in Anoka, had 211 sides.
  3. Chad Schwendeman of EXIT Lakes Realty Premier had 210 sides.

Top teams by volume

  1. The Minnesota Real Estate Team, which has more than 50 agents working with Re/Max Advantage Plus, sold $250 million.
  2. John Schuster Team of Coldwell Banker Burnet, which has about a half-dozen agents who specialize in foreclosures, sold $93 million
  3. Brace Helgeson Team, which has about a dozen agents who specialize in the southwest suburbs for Coldwell Banker Burnet, sold $85 million

Top teams by transactions

  1. The Minnesota Real Estate Team of Re/Max Advantage Plus had 1,278 sides.
  2. John Schuster Team, which includes about a half-dozen agents with Coldwell Banker Burnet, had 490 sides.
  3. The Bruce McAlpin team, which includes two agents who specialize in Sherburne, Wright and Stearns counties for Edina Realty, had 455.5 sides.

A deluge of housing data

Posted by: Jim Buchta Updated: June 24, 2014 - 10:33 AM

After months of discouraging signals, a flurry of monthly reports released this morning offer some positive news for the housing market. Here's a summary:

  • The S & P Case-Shiller report says that house prices are rising, but at a more moderate pace. The group's 10-city and 20-city composites posted annual gains of 10.8 percent, significantly lower rate when compared to last month. Nineteen of the 20 cities saw lower annual gains in April than in March, but California (Los Angeles, San Diego and San Francisco) saw returns worsen by approximately three percentage points. Boston was the only city to see its annual rate improve. In the Twin Cities metro, year-over-year prices were up 9.4-percent and 1.1 percent from March. Here's the full report.
  • Sales of new single-family houses during May surged, according to a joint joint report from the U.S. Census Bureau and the Department of Housing and Urban Development. New homes sold at a seasonally adjusted annual rate of 504,000, 18.6 percent above the revised April rate of 425,000 and 16.9 percent above the May 2013 estimate of 431,000. The median sales price of new houses last month was $282,000. The seasonally adjusted estimate of new houses for sale at the end of May was 189,000. This represents a supply of 4.5 months at the current sales rate.
  • Fewer homeowners are falling behind on their mortgage payments. CoreLogic said this morning that in the Twin Cities metro the foreclosure rate among outstanding mortgage loans was 0.53 percent during April, a decrease of 0.55 percentage points compared to last year when the rate was 1.08 percent. Nationwide, the foreclosure rate stood at 1.77 percent. Also in the Twin Cities, the mortgage delinquency rate (mortgage loans that were 90 days or more delinquent) fell to 2.43 percent compared with 3.36 percent for the same period last year, representing a decrease of 0.93 percentage points.

How Twin Cities home sales during May compared with today's national report

Posted by: Jim Buchta Updated: June 23, 2014 - 2:40 PM

Long-awaited good news for the housing recovery: After several months of declines, existing home sales across the country rose 4.9 percent from April to May  - a stronger-than-consensus gain, according to a monthly report from the National Association of Realtors and Wells Fargo Securities. Sales were down five percent compared with last year.

That national report, which is seasonally adjusted, doesn't include local data, but earlier this month we reported that home sales (not seasonally adjusted) in the Twin Cities increased nearly 26 percent from April to May, though May sales were11 percent lower than last year.

Trends of note:

  • Single-family home sales have been gaining steam, rising 5.7 percent across the U.S.
  • Distressed sales - mostly foreclosures - have been dwindling, accounting for only 11 percent of all U.S. sales last month. Distressed transactions fell to 11 percent of total purchases, the lowest share since at least 2008. (Short sales accounted for 3 percent and foreclosures for 8 percent).
  • With more traditional buyers in the market and inventory still tight in most large metros, prices continue to rise. The median price of all sales last month was $213,400, a 5.1-percent increase over the previous year.
  • A shortage of entry-level houses and a tough mortgage market are making it keeping many first-time homebuyers out of the market, they accounted for only 27 percent of total sales.

We'll have the latest local data on July 14 when we report the June homes sales for the Twin Cities metro.

One in 10 Twin Citians upside down on their mortgage

Posted by: Jim Buchta Updated: June 5, 2014 - 9:56 AM

With home prices on the rise, fewer homeowners owe more than their houses were worth. A new CoreLogic report says that during the first quarter one in 10 Twin Citians, or 12.7 percent of all properties with a mortgage nationwide, were upside down on their mortgage. That's about 6.3 million homes compared to 6.6 million homes, or 13.4 percent, during the previous quarter. As a year-over-year comparison, the negative equity share was 20.2 percent, or 9.8 million homes, last year.

"Prices continue to rise across most of the country and significantly fewer borrowers are underwater today compared to last year," said Anand Nallathambi, said CoreLogic's president and CEO. "An additional rise in home prices of 5 percent, which we are projecting will occur over the next 12 months, will lift another 1.2 million properties out of the negative equity trap."

A housing recovery is underway, but the homeownership gap in Minnesota is deepening

Posted by: Jim Buchta Updated: May 27, 2014 - 9:54 AM

The foreclosure crisis in Minnesota is nearing an end, but communities of color are still struggling to keep pace with the recovery. That's according to an annual report released this morning by the Minnesota Homeownership Center, which provides homeownership counseling, foreclosure prevention service and other support to Minnesota homeowners. 

For example, in North Minneapolis prices have fallen so far that a homeowner who bought in 2006 at the neighborhood’s median price would need to see their 2013 home value increase by 85 percent to return to its purchase price. On the other hand, in Southwest Minneapolis, house prices have risen to pre-crash levels. 

“This report gives us a clear understanding of how homeownership impacts communities – from safe neighborhoods and engaged citizens, to better educational achievement and health – as well as the barriers and opportunities that will influence our next generation of homebuyers,” said Julie Gugin, executive director of the Minnesota Homeownership Center. 

  • Other highlights:
  • The state’s nearly 12,000 foreclosures in 2013 matched the number experienced in 2006 – the first year of the crisis -- and were less than half of the more than 26,000 of foreclosures experienced at the peak in 2008
  • Even though a housing recovery is underway, Minnesota’s homeownership gap now stands near levels not seen since 1990. Closing that gap will require stabilizing the hardest-hit neighborhoods by tailoring the education and support to the needs and cultures of future homebuyers of color.
  • What influences the next generation of buyers: For Millennials, home purchases have been delayed by a slow start to their careers and high levels of student loan debt. Still, 93 percent of Millennial renters hope to own a home someday. 
  • In greater Minnesota, local economies and the availability of homes are driving the next generation of homeownership.  

This June, the Minnesota Homeownership Center and its network of nonprofit partners, the Homeownership Advisors Network, will offer free homebuyer education to potential homebuyers

Click here for info. 

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