Trulia's latest Trends report takes an interesting look at rents and house prices for the 100 largest metro areas in the nation. It shows some interesting shifts in the market. Namely, prices gains have moderated dramatically now that prices are being driven by wages rather than the rebound factor (investors and bargain shoppers).
On the price side, for the first time in 26 months, no housing market saw an annual increase over 15 percent duing July. On the rental side of the equation, rents rose the most in markets that saw the strongest job growth. San Francisco was tops with a 14.3 percent gain, while the Twin Cities had a 3.4 percent gain - the 24th largest in the nation.
Edina Realty broke ground this week on a new office building in Plymouth - the company's first new facility since 2007.
The 10,000 square-foot, one-level building will house about 100 agents and staff and is being built on a vacant lot at 9605 Schmidt Lake Rd. and will replace a facility that's at 4425 Highway 169 North. It'll serve agents that focus on markets ranging from Minneapolis to St. Michael.
Edina Realty, an affiliate of Berkshire Hathaway, has been remodeling, upgrading and moving its offices to better accommodate the changing ways agents do businesses - namely an increasing reliance on technology for an increasingly mobile sales force. The existing Plymouth building didn't lend itself to such a transformation and another suitable building wasn't available. used in the neighboring Maple Grove location, which relocated in Nov. 2013
Edina Realty CEO Greg Mason, president Barb Jandric, regional manager Terry McDonough and Plymouth office manager Jeff Shuman were on hand for the occassion.
“Our current facility is not ideal for the way agents do business today,” said Shuman. The offices will have several Apple TVs and fully outfitted private workspaces with computers, printers and phones. The building is being designed by Mohagen Hansen architects and is being constructed by Shingobee Builders; it'll be owned by United Properties. The Plymouth office is Edina Realty’s third largest and construction is expected to be completed by January 2015.
Home builders picked up the pace this month. Twin Cities builders were issued 443 permits to build 903 units, according to the Builders Association of the Twin Cities. Half of those units (a single permit can be issued to build multiple units) were rental apartments and other kinds of multi-family housing.
Both permits and the number of units were up considerably from last year, but the number of planned units was down slightly from the previous month. The report comes after a quieter June report, but such volatility is common from month to month.
Here's a link to the full report with all the numbers.
It's going to be an interesting night at the Minneapolis City Planning Commission's Committee of the Whole meeting Thursday. Developers will be releasing a bevy of interesting new details on three high-profile housing developments planned for in and around downtown.
House prices in the Twin Cities and across the country are rising, though not as quickly as last year, according to the latest S&P/Case-Shiller House Price Indices, which show prices in the Twin Cities rising 1.3 percent from April and 8.4 percent compared with last year. A 20-city composite including the largest metros in the nation was up 1.1 percent from May and 9.3 percent from last year.
While the month-to-month increase in the Twin Cities was one of the biggest gains since last year, the more moderate annual gain nationwide was below expectations.
“Housing has been turning in mixed economic numbers in the last few months," said David Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. "Prices and sales of existing homes have shown improvement while construction and sales of new homes continue to lag. At the same time, the broader economy and especially employment are showing larger improvements and substantial gains.”
Here are a few highlights from the report:
After six years in the making, Twin Cities-based Artspace received word that its first off-shore project is one step closer to reality.The nonprofit real estate developer, in partnership with Honolulu-based PA’I and Honolulu-based HKI, plans to build the Ola Ka ‘Ilima Artspace Lofts, a mixed-use arts development that includes 84 units of affordable housing live/work housing for artists and their families, space for other non-profits and gathering space for community events.
The Hawaii Housing Finance and Development Corporation (HHFDC) approved the Artspace request for low-income housing tax credits to help finance the $38 million project, which will be located in the Kaka’ako neighborhood of Honolulu.
"The HCDA has been following this project for over a year now, and we're excited that it's one step closer to providing much needed housing for lower income groups," said Hawaii Community Development Authority Executive Director, Anthony Ching.
The tax credit brings $17 million in upfront equity to the project’s capital budget, enabling Artspace to focus on the final phase of fundraising. Construction is expected to start in 2015.