Editorial: For sale: Signs of hope for real estate
It's a buyer's market if you're in it for the long haul.
Realtor Greg Bauman started worrying about the health of the Twin Cities real estate market when prospective buyers began calling him from California to bid on homes based solely on Internet listings.
It seemed odd to Bauman that buyers would skip the step of actually visiting the properties. The phenomenon was yet another sign that speculation in residential real estate was out of control. Although bad-news headlines have been the norm ever since -- and no one can predict when we'll reach the bottom of the housing cycle -- this is no time to panic.
For existing homeowners, this week's news that the median sale price dropped 12.5 percent in February to $195,060 was sobering, especially versus a median of $225,000 in 2006. Back when those California cyber speculators were calling Bauman, homeowners and potential buyers were riding a wave of median increases of 8 or 9 percent a year.
But a drop in the median is not all bad news. Bauman, who serves as president of the St. Paul Area Association of Realtors, points out that the big February dip signaled a purging of lower-priced properties, including bank-owned houses. Sales of homes priced below $150,000, including some that had been foreclosed upon, was a key factor. The purge is a necessary part of the market cleansing now taking place throughout the Twin Cities.
The upside to falling prices is that some buyers who were priced out of the market during the frenzy of speculation will now be able to find larger, affordable homes as prices fall. Many of those will be first-time buyers who will benefit from newly increased FHA loan limits and low interest rates.
As the Realtors will tell you, it's a good time to be a buyer.
March 14, 2008
March 12, 2008
Signs of Improvement in the Local Housing Market
FOR IMMEDIATE RELEASE
Contact: Patrick Ruble
Saint Paul Area Association of REALTORS®
Phone: (651) 772-6343
E-Mail: pruble@spaar.com
Wednesday, March 12, 2008
Signs of Improvement in the Local Housing Market
Gregory Bauman, Realty Executives and President of the Saint Paul Area Association of REALTORS® stated today.
Saint Paul, MN-
Consumers and REALTORS® agree that, in the past two months, there has been an increase in foot traffic through open houses and a stronger interest in showings of “for sale” properties in the 13-county Twin Cities metro area. REALTOR® offices in the east metro have reported February showings up more than 10 percent over the previous month. March showings have come on even stronger.
“The interest of home buyers to make that purchase decision has ramped up this past month,” Gregory Bauman, Broker Owner Realty Executives and president of the Saint Paul Area Association of REALTORS® stated today. He went on to say, “We are beginning to see positive signs that the credit crisis is being addressed at the federal level and this will translate into more confidence at the local level where the transactions take place.”
While this heightened level of activity has not resulted in stronger closed home sales for January and February, there are some positive indicators that bode well for the future of existing, residential real estate sales: pending sales, inventory and affordability.
Pending sales, a leading indicator of future closed home sales, moved strongly forward from January to February increasing 20.49 percent for the month. There were 3,087 pending sales reported in February compared to 2,562 in January. That is the third highest percentage increase of pending sales from January to February in the past eight years. That rate was exceeded in 04 (21.02 percent) and 05 (33.9 percent).
At the end of February there were 29,667 active listings reported for the 13-county metro area in the Regional Multiple Listing Service of Minnesota’s (RMLS) system. That is a 5.0 percent increase from February 07 when 28,256 active listings were reported. The significance of the current level of inventory is the rate at which new inventory has been added to the system.
The rate of new listings added to the inventory during the first two months of 08 has slowed significantly compared to 07 and 06 when the market began to show serious signs of deterioration. From January 08 to March 08 the level of inventory increased by 12.29 percent, a reasonable number as the traditional selling season kicked off. During the same three month period of 06 the level of inventory increased by 22.71 percent while in 07 the increase was reported at 16.38 percent. The Months Supply of Inventory (MSI), the amount of time it would take to sell through the current number of listed properties, is 10.2 months. That’s a drop from the 12.1 MSI reported in January 08.
“The current state of the real estate market is truly an opportunity for first-time home buyers and those looking to purchase more house for their money,” stated Gregory Bauman, Broker Owner Realty Executives and President of the Saint Paul Area Association of RELATORS®. Bauman added, “It will take good credit and, if you are selling, the willingness to negotiate a reasonable selling price to achieve your homeownership goals today. Residential real estate is where we raise families and become part of a larger community. It remains a stable investment if handled responsibly.”
Prolonged pressure from the high level of inventory, lack of buyer activity, credit concerns and the negative economic information continued to weigh down the median sales price of homes in the metro area. The median price of a closed home sale for the 13-county metro area was $195,060, a decrease of 12.53 percent from one year ago. As the median price drops and single-family residential properties become more affordable to consumers the level of sales activity should begin to increase substantially. There were 2,009 recorded closed home sales in the 13-county metro area.
Housing statistics include existing single-family homes, condominiums and townhouses. Statistics are provided by the Saint Paul Area Association REALTORS® and are based on data supplied by the Regional Multiple Listing Service.
The Saint Paul Area Association of REALTORS® represents 4,000 members involved in all aspects of the real estate industry.
For more information about Twin Cities area home sales statistics, contact Patrick Ruble at 651-772-6343 (pruble@spaar.com). Or Gregory Bauman, Realty Executives at 612-760-9393(gregbauman@realtyexecutives.com).
March 6, 2008
NEW REALTY EXECUTIVES OFFICE OPENS IN Wayzata
FOR IMMEDIATE RELEASE
Contact: Marissa Leon
Public Relations
Realty Executives International
Phone: (602) 957-0747
E-Mail: MarissaLeon@Realty Executives.com
Thursday, March 06, 2008
NEW REALTY EXECUTIVES OFFICE OPENS IN Wayzata
New real estate franchise arrives in local area
Wayzata, Minnesota (Grassroots Newswire) 03-06-2008 -- A new Realty Executives office has opened at 810 Lake Street East Suite 270 in Wayzata, the 70th Realty Executives office in the Midwest.
Barry Cavalancia has owned and operated Realty Executives brokerages in Plymouth, Saint Paul, Edina, Minneapolis Uptown since May, 2004.
The Wayzata office is in Crosscreek, a retail center in downtown Wayzata. They have leased space for the next 5 years at this location. The Address is 810 Lake Street East Suite 270, Wayzata, MN 55391. Cavalancia says "Downtown Wayzata has a small town feel with big city living". Along Lake Street in Wayzata is 4 other real estate offices- CBB, Edina, Keller Williams, and RE/Max with over 800 agents who will see our sign daily. We are located on the lakeshore side of the street and plan this spring to staff the shopping rotunda with an Executive to attract lakeshore buyers who we will give lakeshore tours from the lake. "We are excited” comments Barry.
Realty Executives International, the Phoenix, Arizona-based parent company and franchisor, was the first 100-percent commission real estate company in North America, creating the new method of operating a real estate agency in 1965.
This concept attracts the most experienced, confident and hard-working agents, who are discovering the increased income potential of affiliation with an international company like Realty Executives, which has been perfecting the concept for more than 42 years.
For more information on Realty Executives Associates, please contact Barry Cavalancia at 612-990-6375. Or visit www.RealtyExecutivesMidwest.com.
About Realty Executives International
The Phoenix-based, privately held company has more than 800 franchises in ten countries, including offices in the United States, Canada, South Africa, Mexico, Australia, Israel, Costa Rica, France, Greece and Indonesia. Publications like Entrepreneur, Success and Inc. magazines have all ranked Realty Executives International, Inc as a leader based on franchise growth, management stability and financial soundness. For additional company information, call 1-800-252-3366, or visit www.RealtyExecutives.com.
March 5, 2008
Realty Executives VP Named President Saint Paul Area Association of REALTORS®
FOR IMMEDIATE RELEASE
Contact: Marissa Leon
Public Relations
Realty Executives International
Phone: (602) 957-0747
E-Mail: MarissaLeon@RealtyExecutives.com
March 05, 2008
Realty Executives VP Named President Saint Paul Area Association of REALTORS®
Saint Paul Area Association of REALTORS® (SPAAR) celebrated the installation of their 2008 leadership
Phoenix, AZ (Grassroots Newswire)- Directors during their annual Inauguration, held this year at the Saint Paul Hotel in downtown Saint Paul.
The Saint Paul Area Association of REALTORS® proudly announced its 2008 Executive Committee: President Gregory Bauman with Realty Executives Twin Cities; President-Elect Rae Jean Malone with Keller Williams Integrity; Secretary Jennifer Snyder with RE/MAX; Treasurer Mya Honeywell with Coldwell Banker Burnet; Director-at-Large Richard Mesenburg with Edina Realty; and Past President Steve Hyland with Split Rock Realty.
The association also welcomed newly elected Board of Directors members Jason Gorman with Keller Williams Premier Realty; Thomas Janos with RE/MAX Associates Plus, Inc.; Jennifer Mains with Keller Williams Premier Realty; Mechelle Malone with Keller Williams Integrity; and Winder Webb with Keller Williams Premier Realty.
Returning Board of Directors members include: Denny Aubin with Edina Realty; Mya Honeywell with Coldwell Banker Burnet; Cedar Kirtley with Coldwell Banker Burnet; Greg Lemmons with Capital Title Corp.; Carina McCall Schafer with RE/MAX Resources; John Piché with Century 21 Jay Blank Realty; Jim Reiter with Century 21 Jay Blank Realty; Jesse Sampair with Sampair Companies; Jennifer Schweiker with Cardinal Realty; and Jim Young with Edina Realty.
June Wiener with Cardinal Realty was awarded the REALTOR® of the Year Award, the highest honor a REALTOR® can receive from an association, for her dedication to increasing professionalism within the industry; her extensive expertise; and her commitment to building and strengthening communities.
The Saint Paul Area Association of REALTORS® is the leading resource for the real estate industry in the Twin Cities and represents nearly 4,500 members involved in all aspects of the real estate industry.
About Realty Executives International
Realty Executives International, the nation’s first 100-percent commission company, has been perfecting its business model for more than 42 years and is one of the fastest-growing real estate franchises in North America. The Phoenix-based, privately held company has more than 800 franchises in ten countries, including offices in the United States, Canada, South Africa, Mexico, Australia, Israel, Costa Rica, France, Greece and Indonesia. Publications like Entrepreneur, Success and Inc. magazines have all ranked Realty Executives International, Inc as a leader based on franchise growth, management stability and financial soundness. For additional company information, call 1-800-252-3366, or visit www.RealtyExecutives.com.
###
Photos available for this release:
Realty Executives Midwest
To view photos, go to www.enewsrelease.com/pressroom and enter Release ID: 136115
March 4, 2008
NEW REALTY EXECUTIVES OFFICE OPENS IN FARGO - MOORHEAD
FOR IMMEDIATE RELEASE
Contact: Jim McCreary
Broker Owner
Realty Executives North Plains
Phone: (701) 207-0100
E-Mail: Homes@JimMcCreary.com
NEW REALTY EXECUTIVES OFFICE OPENS IN FARGO - MOORHEAD
New real estate franchise arrives in local area
Fargo - Moorhead North Dakota (Grassroots Newswire) 03/04/2008- A new Realty Executives office has opened at 1401 32nd Street South in Fargo, the seventy second Realty Executives office in the Midwest Region.
Jim McCreary formerly with RE/MAX of Fargo, has been appointed to manage the new Fargo - Moorhead office.
Twelve of the area’s top real estate Executives have partnered to bring the first Realty Executives franchise to North Dakota. The new company’s name is Realty Executives North Plains.
Realty Executives International, the Phoenix, Arizona-based parent company and franchisor, was the first 100-percent commission real estate company in North America, creating the new method of operating a real estate agency in 1965.
This concept attracts the most experienced, confident and hard-working agents, who are discovering the increased income potential of affiliation with an international company like Realty Executives, which has been perfecting the concept for more than 42 years.
For more information on Realty Executives North Plains, please contact Jim McCreary, Tracy Green or Greg Baldwin at 701-499-5300. Or visit them at RealtyExecutivesFargo.com
About Realty Executives International
Realty Executives International, the nation’s first 100-percent commission company, has been perfecting its business model for more than 42 years and is one of the fastest-growing real estate franchises in North America. The Phoenix-based, privately held company has more than 800 franchises in ten countries, including offices in the United States, Canada, South Africa, Mexico, Australia, Israel, Costa Rica, France, Greece and Indonesia. Publications like Entrepreneur, Success and Inc. magazines have all ranked Realty Executives International, Inc as a leader based on franchise growth, management stability and financial soundness. For additional company information, call 1-800-252-3366, or visit www.realtyexecutives.com.
###
Photos available for this release:
Realty Executives North Plains
To view photos, go to www.enewsrelease.com/pressroom and enter Release ID: 135826
"How To Insulate Yourself Against Negative News Reports"
"How To Insulate Yourself Against Negative News Reports"
by Denise Lones
Here we go again!! The news media is back and playing its old game of pummeling the airwaves with predictions of doom for the real estate industry. "The Big Crash Is Coming," "Disaster Ahead," "The Bubble Is About To Burst." Blah, blah, blah.
And it's working. People are scared. You can't go to a supermarket or coffee shop without overhearing a conversation about how bad the market is. Whenever you hear a piece of information pounded at you from different sources, naturally it's going to sink in.
But it's up to you to think. Don't just blindly believe a newsreader just because they are on television. True, numbers have been falling. Nobody can deny that. But, the "end of the world" hype is just not supported by any evidence. You must always remember that news media love predictions of disaster because it scares people into watching the news—even if it never happens.
This phenomenon of modern news is on display every time a storm brews in the ocean. Suddenly, the Final Days of Earth are upon us—then the storm turns to a little rain and it's all over. News people love reporting about imminent air disasters, L.A. car chases, and Wall Street's ups and downs.
The problem is that the facts don't support the wild claims.
When a market crashes, there must be a catalyst for that crash. There isn't one. There are only fluctuations. Today's fluctuations may be swinging downward more than last year, but it's by no means a crash. There has been no event—like the stock market crash of 1929 or other disaster—large enough to cause a crash.
Further, I'll go on to say that we are in one of the best times in real estate history. No, I'm not kidding. I'm very serious here. While agents are panicking all across the country and thinking about getting back into the corporate world, I say this is the best time to be a real estate agent.
The news media would laugh at me, but they're not in the trenches every day with me and they don't see what I see. What do I see?
A strong economy. This is a key factor in any analysis of the real estate market. The current economic viability of the United States ensures that no matter how wild the real estate market fluctuations may be, there are still people with money. And people with money will always want new property.
Job growth. Similarly, so long as new jobs are being created, there will always be a demand for housing. Companies open up new facilities and their employees who move there need places to live.
A moving population. Americans move more than ever before. The average time people spend in a home has dropped dramatically over the past 30 years. They buy, sell, move again, buy summer homes, buy winter homes, buy investment property, and buy homes for their parents.
So what's all the hype about, right? How can I possibly make these apparently outlandish statements while the news media is saying the exact opposite?
Well, the market HAS cooled a little bit. No, I take back the word "cooled." That just feeds the media's "crash" frenzy. The numbers have slightly declined, but they've declined in a market that was in the midst of the biggest boom in history. That fact must be taken into consideration for any accurate analysis.
Remember, the past ten years have been spectacular—in fact, abnormally high. Numbers may be dropping a bit, but they're dropping to a level that is still above average.
Let's put things into a numbers' perspective. If our market in 2005 had increased by 25%, then "cooled" 4% in 2006, then we're still 21% up! This is not a "crash." This isn't even "cooling," but according to the news media the real estate market as we know it is about to explode. I don't think so.
Okay, let's play their game and we'll say the market crashes tomorrow. According to the media, this would mean that there is no more real estate activity or reason for anyone to buy. What they do not take into account is the fact that no matter what happens in the real estate market, the necessities of life guarantee real estate transactions. Even if interest rates went up to 18%, there would still be a lot of real estate activity.
A good agent survives and even thrives in a more difficult market. People need agents more in such a market. They need your help, advice, research, and skills. The agent who embraces a downturn in the market is the one who will take advantage of such a market and make it work in their favor.
Remember 20 years ago when interest rates went into double digits? Were real estate agents not working? No. Were people not selling? No. Things may have worked a bit differently, but good agents were making money.
The market also takes care of itself in up-and down-turns because when interest rates rise, prices drop. There is always a balance effect. Not to mention there are scores of people who come out of the woodwork to take advantage of a "down" market by buying at lower prices—people who would not buy in an "up" market, because prices were too high. Different market, different clients.
So, stop fearing the crash! First of all, there isn't one. And even if there were, your best antidote is the knowledge that no matter what kind of market we're in, you can survive. Your attitude is your greatest ally. As long as you understand how it all balances out and you know how to adapt to market fluctuations, you'll thrive by providing the same informed service to your clients.
by Denise Lones
Here we go again!! The news media is back and playing its old game of pummeling the airwaves with predictions of doom for the real estate industry. "The Big Crash Is Coming," "Disaster Ahead," "The Bubble Is About To Burst." Blah, blah, blah.
And it's working. People are scared. You can't go to a supermarket or coffee shop without overhearing a conversation about how bad the market is. Whenever you hear a piece of information pounded at you from different sources, naturally it's going to sink in.
But it's up to you to think. Don't just blindly believe a newsreader just because they are on television. True, numbers have been falling. Nobody can deny that. But, the "end of the world" hype is just not supported by any evidence. You must always remember that news media love predictions of disaster because it scares people into watching the news—even if it never happens.
This phenomenon of modern news is on display every time a storm brews in the ocean. Suddenly, the Final Days of Earth are upon us—then the storm turns to a little rain and it's all over. News people love reporting about imminent air disasters, L.A. car chases, and Wall Street's ups and downs.
The problem is that the facts don't support the wild claims.
When a market crashes, there must be a catalyst for that crash. There isn't one. There are only fluctuations. Today's fluctuations may be swinging downward more than last year, but it's by no means a crash. There has been no event—like the stock market crash of 1929 or other disaster—large enough to cause a crash.
Further, I'll go on to say that we are in one of the best times in real estate history. No, I'm not kidding. I'm very serious here. While agents are panicking all across the country and thinking about getting back into the corporate world, I say this is the best time to be a real estate agent.
The news media would laugh at me, but they're not in the trenches every day with me and they don't see what I see. What do I see?
A strong economy. This is a key factor in any analysis of the real estate market. The current economic viability of the United States ensures that no matter how wild the real estate market fluctuations may be, there are still people with money. And people with money will always want new property.
Job growth. Similarly, so long as new jobs are being created, there will always be a demand for housing. Companies open up new facilities and their employees who move there need places to live.
A moving population. Americans move more than ever before. The average time people spend in a home has dropped dramatically over the past 30 years. They buy, sell, move again, buy summer homes, buy winter homes, buy investment property, and buy homes for their parents.
So what's all the hype about, right? How can I possibly make these apparently outlandish statements while the news media is saying the exact opposite?
Well, the market HAS cooled a little bit. No, I take back the word "cooled." That just feeds the media's "crash" frenzy. The numbers have slightly declined, but they've declined in a market that was in the midst of the biggest boom in history. That fact must be taken into consideration for any accurate analysis.
Remember, the past ten years have been spectacular—in fact, abnormally high. Numbers may be dropping a bit, but they're dropping to a level that is still above average.
Let's put things into a numbers' perspective. If our market in 2005 had increased by 25%, then "cooled" 4% in 2006, then we're still 21% up! This is not a "crash." This isn't even "cooling," but according to the news media the real estate market as we know it is about to explode. I don't think so.
Okay, let's play their game and we'll say the market crashes tomorrow. According to the media, this would mean that there is no more real estate activity or reason for anyone to buy. What they do not take into account is the fact that no matter what happens in the real estate market, the necessities of life guarantee real estate transactions. Even if interest rates went up to 18%, there would still be a lot of real estate activity.
A good agent survives and even thrives in a more difficult market. People need agents more in such a market. They need your help, advice, research, and skills. The agent who embraces a downturn in the market is the one who will take advantage of such a market and make it work in their favor.
Remember 20 years ago when interest rates went into double digits? Were real estate agents not working? No. Were people not selling? No. Things may have worked a bit differently, but good agents were making money.
The market also takes care of itself in up-and down-turns because when interest rates rise, prices drop. There is always a balance effect. Not to mention there are scores of people who come out of the woodwork to take advantage of a "down" market by buying at lower prices—people who would not buy in an "up" market, because prices were too high. Different market, different clients.
So, stop fearing the crash! First of all, there isn't one. And even if there were, your best antidote is the knowledge that no matter what kind of market we're in, you can survive. Your attitude is your greatest ally. As long as you understand how it all balances out and you know how to adapt to market fluctuations, you'll thrive by providing the same informed service to your clients.
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