THE BRIX REPORT Volume IV “C I T I E S I N B L O O M ” Life & Real Estate in the Twin Cities
THE BRIX REPORT Volume IV “C I T I E S I N B L O O M ” Life & Real Estate in the Twin Cities
Cover Photo by Jessica Zerby @jessicazerby
BRIX Real Estate is a boutique brokerage operating in the Twin Cities that puts clients first in every respect. By celebrating and refining the craft of real estate, participating in the betterment of our local community and taking great pride in the relationships we build, we work tirelessly to provide exceptional service and an elegant, streamlined approach to every aspect of our service.
BRIX St. Paul 1390 7th Street West St. Paul, MN 55102
BRIX Minneapolis 748 North 3rd Street Minneapolis, MN 55401
BRIX Burnsville 101 Burnsville Pkwy, Suite 200 Burnsville, MN 55337
BRIX Maple Grove 6885 Sycamore Lane North Maple Grove, MN 55369
BRIXTWINCITIES.COM ¡ 612-927-2749
Contributors Luke Finsaas
Editor, Writer, Designer Luke Finsaas is a writer, designer, and developer from the Twin Cities. His work at Revolver was recognized as “Best of MN 2015” by City Pages and Star Tribune. Find more of his work at lfinsaas.com.
Wale Deen Agboola
Kristy Hanson
Wale Agboola is a photographer + storyteller based in Minneapolis + Brooklyn, NY. His work explores simplicity, color, and movement. You can find more of his work at deenstudio.com.
Kristy Hanson is a writer, bodyworker, and yoga teacher based in Amsterdam, NL, formerly of the Twin Cities. She’s the author of Karma, A Love Story, and can be found riding her bike and practicing yoga around the city. Visit kristyleehanson.com to see what else she’s been up to.
Photographer
Writer
Note on Market Report Data
Market Report Data represents 2018 compared to 2019 and represents all property types, including single-family homes, townhouses and condos. Source of all data is the Minneapolis Area Association of Realtors, Multiple Listing Service. Information is deemed reliable but not guaranteed.
© 2 0 1 9 B R I X R E A L E S TAT E
Table of Contents 7
L E T T E R F R O M B R I X R E A L E S TAT E
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T H R E E N E I G H B O R H O O D S T O W AT C H Large unidentified alien aircrafts (ahem, we mean stadiums) have crashed into the Twin Cities, sending shockwaves through the metro’s real estate market.
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HIDING IN PLAIN SIGHT From underground speakeasys to a bar at the top of the (former) tallest skyscraper from here to the Pacific, ‘secret’ establishments are popping up throughout the metro.
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THE OASES IN THE TUNDRA It’s hard work to relax nowadays. Don’t fear. We’ve found a mix of highly-rated oases in the Twin Cities Metro.
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P R E PA R I N G Y O U R H O M E F O R S A L E You want to get the most money for your home, but what really increases its value? Get the inside scoop on how to get 15-20% more for your home.
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CITIES IN BLOOM Local photographers show us what our cities look like when they’re just... right.
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SPOTLIGHT ON: CRISIS NURSERY The Twin Cities have a number of organizations that fight to uplift and empower. One that holds a special place in our hearts is the Greater Minneapolis Crisis Nursery.
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EVENT RECAP: SUMMER VIBES 2 It might have rained, but we danced and sang like champions, holding our fists to the sky like true Minnesotans.
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BRIX MARKET REPORT What neighborhood heated up in 2019? Where do we think the market will go in 2020? We have all the answers you’re looking for.
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Letter from BRIX Real Estate A
t the time we’re writing this introduction letter, our cities aren’t exactly blooming— next week, temperatures are expected to drop below zero, snow on the way, the days are shortening... But still, in spite of the cold, we’re naming this year’s edition of the BRIX Report “Cities in Bloom.” Not only are home valuations close to fully “bloomed,” our cities feel grown up, too. They have their own vibe, a way of being that doesn’t require a comparison to a coastal neighbor or the Windy City down south. Not that the Twin Cities hasn’t had an identity in the past. With the passing of Prince last year, we heard all about old Minneapolis and its thriving music scene.
The answer seems too hard to put into words. And that’s why we decided not to even try. Instead, we asked some of our cities’ best photographers and artists to submit images that capture that feeling when everything just comes into alignment, when the world is right and you feel deep gratitude for the trees, the sidewalk, the buildings reaching up into the warm dawn light, or your grandma on the porch, or a beautiful plate of food, or kids playing soccer in the park, or the wide waters of the Mississippi at sunset— whatever it is that makes you feel love for and from these cities of ours.
But each generation must claim the city as their own. Our era is marked by great food and stunning creativity, accompanied by the stalwarts of Midwestern values: hard work, good humor, humility, gentle skepticism, and good cheer. Also, a billion dollar stadium.
We’ll also go inside the secret bars and restaurants of the Twin Cities—speakeasies in Mendota, high-end eateries set down alleys, and bars at the top of the (former) tallest skyscraper from here to the Pacific. More in the mood for relaxation and mindfulness? We’ve got you covered. We’ll also walk you through how to prepare your home for sale, three neighborhoods we’re watching, and of course, we’ll have all the numbers from last year in the BRIX Market Report.
But what else is it? What makes a community feel like a community?
Until next time, BRIX Real Estate
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Three Neighborhoods to Watch Downtown East, St. Paul Midway, & Ford Parkway by B R I X R E A L E S TAT E
Downtown East
A
fter years of anticipation, the glass Viking ship named “US Bank Stadium” has fallen from the stars with a terrific thud, sending shockwaves across the metro and proclaiming a new neighborhood: “Downtown East.” “Downtown East” did exist before, but as a bifucated neighborhood. You had the Mill District on one end—one of the first MPLS condo communities—and then the rest: a scrappy inbetween zone linking the Financial District and the cultural tapestry of Cedar-Riverside. US Bank Stadium and its sister park, The Commons, completely reframe the neighborhood. We expect the dark UFO to exert a gravitational pull on the east side of downtown, pulling in more investment and conjuring more
The Armory
apartments out of the old surface lots. For now, the neighborhood is mostly corporate chain restaurants and Starbucks (with a few of the scrappy bars hanging on—we see you Bar Zia), but given enough time this neighborhood may surprise us all. Take, for instance, the opening of The Armory, a mid-sized club that’s already hosted Billie Eilish, Lizzo, Jaden Smith, and many more. Here’s hoping that the renaissance continues.
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Allianz Stadium in St. Paul Midway
St. Paul Midway
A
second attack on Twin Cities’ surface lots began in August 2016 when then-Mayor of St. Paul, Chris Coleman, stole an MLS soccer stadium out from under the Minneapolis City Council and dragged the steel structure across the river to St. Paul’s Midway neighborhood. Paid for almost entirely by the team and its backers, the steel nest of Allianz Field landed almost directly between Minneapolis and St. Paul on Snelling Avenue, overlooking HWY 94. The MN United FC finished their first year at the stadium bringing in 335,291 attendees to seventeen games.
Clown Lounge (sans clown memorabilia, RIP). Prices in Midway have been low historically, priming the neighborhood for historic transformation. If Allianz Field and MN United FC can keep traffic rumbling through, expect this neighborhood to see a Northeast Minneapolistype transformation in the coming years.
Even after a single year, Saint Paul Midway is already transforming. Deep pits have opened along Snelling Avenue, preparing for 6-story market-rate apartment buildings. Bars have been sold and are undergoing renovations. The most iconic venue in the neighborhood, Turf Club, was purchased in late 2013 by the owners of First Avenue and now presents national acts upstairs while continuing to serve small shows and drinks downstairs at the cozy
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Turf Club
Photo by Taylor Dahlin
Photos by Wale Deen Agboola
Ford Parkway in Highland St. Paul
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he train has left the station. The battle is over. The dust is settling.
After years of rancorous debate, as Minnesota Public Radio put it, the Ford Site in Highland will be redeveloped by the Ryan Companies. The plan calls for 3,800 new housing units (20% income restricted), 265,000 square feet of housing space, 150,000 square feet of retail space, and a water feature.
Only time will tell what happens with this neighborhood, but nestled along the Mississippi with relatively easy access to both Minneapolis and St. Paul, Highland could become the next‌ Bloomington? Maple Grove? Edina? We’ll have to wait and see.
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Hiding in Plain Sight Down an alley, up a skyscraper, through a metal door— secret establishments of the Twin Cities by L U K E F I N S A A S
Prohibition at the Foshay Tower
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PROHI BITION O
n September 1st, 1929, the Foshay Tower opened its doors to 25,000 party-goers, including senators, cabinet members, and congressmen. Wilbur Foshay—an art student turned energy mogul—had invited the mob to see his new corporate headquarters, a 32-story building, then the tallest from Chicago to the Pacific Ocean. The dedication ceremony was legendary: fireworks, lavish food, half-nude dancers, gold watches for each guest. There was even a march composed by John Philips Sousa. Unfortunately, the Great Depression hit so soon after the dedication that Foshay’s $20,000 check to Sousa bounced. Wilbur never spent a night in his penthouse in the sky. Luckily, the building and Wilbur’s art-deco penthouse remain intact and today, you can go get a drink in his almost-home. Head to the W Hotel and take the elevator to the top floor where you’ll find PROHIBITION, a bar at the top of the Foshay Tower. Stroll through the penthouse preserved against time and admire the skyline. I suggest having a gimlet or an aviation in hand to complete the mood.
@prohibitionfoshay 821 S Marquette Ave 13
DEMI E
xecutive Chef Gavin Kaysen has been on a culinary tour de force. Since 2014, he’s opened the chic Spoon & Stable, the impossible-to-get-reservations-at Bellacour in Wayzata, and now—the crowning jewel—Demi, a restaurant where it’s somehow even harder to get reservations.
town-style ‘newspaper’ a
Down an alley in the North Loop, this 20-seat restaurant is rumored to be in line to claim the Twin Cities first Michelin Star. Yes, it’s pricey (like really pricey, think $200+ per person). And yes, it’s foody—but in all the best ways. Demi transcends a meal. It’s a story, a dance, a journey. The flavors are unexpected and profound; the wine pairing is perfect. A friend of mine cried after taking a bite of a dessert pastry. He’d grown up in Turkey and somehow, they’d infused it with memories of his childhood, like Ratatouille in real life. An (almost) priceless experience, in my humble opinion.
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@demi.mpls 212 N 2nd St., Suite 100
VOLSTEAD HOUSE S
ometimes the old ways are the best ways—at least at the Volstead House Speakeasy & Whiskey Bar. These folks are on a mission to reclaim classic cocktails.
r’ as men
You enter through Burgers & Bottles, another casual neighborhood hangout, passing through a red door to enter the sepia-toned world of the past. The space is intimate and moody, with an enormous whiskey list and friendly bartenders. A small patio is cleverly hidden away from public eyes and once a week or so, there’s live music or dancing, or some other type of entertainment. And then there’s the burger. At 8 ounces, this Beefy Titan of the South Metro flops over the perimeter of the bun, swiped with molassesdijon mustard glaze, topped with cheddar and bacon, and charred to perfection. I’m not sure if this burger is ‘classic’ or ‘speakeasy’ by any stretch of the imagination—but it doesn’t matter much, being so dang delicious. @volsteadhouse 1278 Lone Oak Rd in Eagan
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YOUNG JONI
BACK ROOM
Y
ou’ve likely heard of Young Joni by now. The brainchild of wife-husband duo, Ann Kim and Conrad Leifur, this Northeast restaurant has been lauded with just about every award, including “Restaurant of the Year” from Star Tribune and “Best New Restaurant” from GQ and Eater. If you haven’t eaten there yet, go make a reservation. But I’m here to tell you about what’s behind this restaurant. Just off 13th Avenue, down the alley, look for a red light. If it’s on, the Young Joni Back Room is open. Talk to the doorman to get the wait time. Before you know it, you’ll be ushered into what feels like… a cabin up north. Wood-paneled walls, overstuffed couches, a massive tape-to-tape player pumping out fun, chill tunes—it’s a theatrical whimsy, complete with a fake, resort-town-style newspaper as its menu. The space pays homage to Leifur’s beloved North Dakota lake cabin. Whether you’ve entertaining a date or a friend, the Young Joni Back Room is one of the best places in the Twin Cities to spend an evening.
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@youngjoni_mn 165 13th Ave NE
THE MUDD ROOM AT L U C K Y 1 3 s
M
endota Heights is not where one would expect to find a speakeasy.
Beneath Lucky 13s, a beloved neighborhood restaurant and bar, is The Mudd Room, a fullfledged prohibition-flaunting establishment, complete with stone walls, beautiful ceilings, and “a bar with stories to tell,” as one Yelp reviewer put it. The cocktail list includes solid takes on the classics and bartender creations with fun names. They also serve solid appetizers and small plates. For those looking for live music, you’ll find the red velvet curtain raised to showcase live jazz on stage (most) Thursdays through Saturdays. Whether you’re looking to spice things up or catch a jazz combo wailing away into the night, plug Lucky 13s in to your GPS. Look for the side door and a telephone. Pick it up and wait for instructions. You won’t be disappointed.
@muddroomspeakeasy @demi.mpls 1352 Sibley Memorial Highway 212 in Mendota N 2nd St., Suite 100
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The Oases in the Tundra by K R I S T Y H A N S O N
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hese days, relaxing is hard work. It can feel like more trouble than it’s worth to find not only the time to relax, but also a place to relax in. Never fear, BRIX is here. Sit back, take a load off. We’ve found a mix of highly-rated oases in the Twin Cities metro dedicated to relaxation and rejuvenation. You’ll leave these spas and massage studios feeling like a brand new person.
Avivage Massage
Woodhouse Day Spa
T
his award-winning spa has two locations in Minnesota, both fully committed to relax and recharge you. These spaces offer bodywork, facials, waxing, hand and feet services. Got a bit of insomnia? They also offer sleep treatments. Been looking for a seaweed pedicure? Look no further. Craving some quality R&R with a loved one? Check this place out! You can book sessions à la carte or choose from a variety of packages, all designed to bring you to a state of maximum bliss. Make a day of it with “The Woodhouse Experience,” over five hours of Woodhouse’s signature services, including a facial, pedicure, and massage.
Hot Tip: Try the Woodhouse Signature Four-Handed massage. Two massage therapists, one you. Woodbury 9040 Hudson Road #206, Woodbury Maple Grove 12425 Elm Creek Boulevard North, Maple Grove
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110 South Greeley Street, Stillwater
Just For Me “The Spa”
W
ant to take your relaxation on the road? Get out of town and take yourself on a mini-retreat to historic Stillwater. From the outside, Just For Me “The Spa” looks like a rustic log cabin. But walk inside and you’ll be blown away by their modern amenities and services. This unique spa houses a full-service salon, a pool and sauna, and a salt cave. They’re also currently in the process of adding an ancient minerals healing pool. What’s an ancient minerals healing pool? We don’t know! But it sounds heavenly. The spa even rents out nearby properties so you can get your massage and swim in before heading over to your own cottage to nap between services.
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Hot Tip Be sure to sit in the salt cave! Clients report feeling refreshed and rested afterwards.
Hot Tip Book the Signature Couple’s Massage and get tea, truffles, and a peppermint foot rub. The tea is made in-house by Tai, the owner.
649 Grand Ave #2, St Paul
Avivage Massage
W
alking into Avivage, you’ll immediately feel at home. The space is imbued with that classic Saint Paul design: warm wood builtins, beautiful stained glass windows, a hutch. You need to work out the kinks, relax, check in with an old injury? This is the place for you. They specialize in deep tissue, cupping, relaxation, prenatal, and couples/doubles massage. They actively welcome the LGBTQIA Community and any body who’s hoping to reduce their stress levels and find a little inner peace. The word Avivage is french, meaning to make a little brighter. You’ll definitely leave this space feeling a little sunnier and at peace with yourself.
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1224 2nd Street Northeast, Minneapolis
NE Wellness
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t the 2009 Art-a-Whirl, NE Wellness opened their doors to offer community acupuncture in a single room. Since then, they’ve grown into a one-stop shop for all your wellness needs. You can sign up for a single service OR you can get down with a monthly membership. What do they have worthy of a monthly membership? What don’t they have is more like it. Infrared saunas, acupuncture, massage, gua sha, cupping, chiropractic, integrative health coaching, and more. All housed in one building? Amazing! The business started with the idea that healthy people create healthy communities. As such, they try to make all of these services financially accessible. Head on over. Tell them BRIX says hi.
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Hot Tip Connect with NE Wellness’s humble beginnings and check out their community acupuncture.
Hot Tip Be sure to schedule yourself a massage with Jen Hinz of Red Thread Wellness. As a happy customer wrote of her: “Hands down, no pun intended, the BEST massage I have ever had!”
278 East Travelers Trail, Burnsville
Valo Health & Wellness Collective
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alo is a collective dedicated to health and wellness for all. They’re also firm believers of supporting women in business. While offering primarily massage, beginnerfriendly gentle yoga, acupuncture, and Traditional Chinese Medicine services, Valo also offers cupping, ionic foot detoxes, facials, health consulting, and energy work. Special educational events also fill their calendar. Brand new to the world of wellness? Go visit Valo! They pride themselves on intuiting client’s needs and customizing services to all individuals.
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by B R I X R E A L E S TAT E
You want to get the most money out of your home, but how do you do it? Do you invest in a bathroom remodel, change out the carpets, or fix the gutters? Well, folks, have we got a list for you. We find that addressing the following issues will typically result in an increased sales price of 15-20%.
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Interior • •
Hardwood floors should have a minimal amount of scratches or wear, unfinished or pet-stained areas. Carpet should be well-maintained, showing no heavy traffic on the carpet or pad. If your carpet is in good condition, you should have it professionally cleaned several days prior to putting your home on the market. If you’re wondering if you should replace the carpet because of the obvious stain that you can’t get out, the answer is YES. If you are asking yourself if the stain is obvious, the answer is also YES.
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If you have managed to maintain your 1960s-70s vinyl kitchen flooring: congratulations! Let everyone know that you were right all along; it is now back in style! However, if it is torn, worn, stained or scratched, it should be replaced.
Interiors continue on the next page —>
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Interior (cont.) •
•
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If you have broken floor tiles or missing grout, you should replace the missing tiles with matching ones and regrout the floor. Hopefully, there is a box of extra tiles sitting in your garage, basement or attic. If you can’t find matching replacements for your missing tiles, you may need to replace that flooring. Fresh paint or like-new condition on the walls, trim and ceilings is recommended. Scratched, damaged, and missing finish on trim is one of the greatest eyesores for buyers.
•
•
Have the furnace or boiler cleaned, tuned and safety-checked. A home inspector will be less likely to recommend a replacement or safety check if they see a recent inspection sticker from a licensed HVAC technician on the unit. Remove any fixtures or appliances you intend to keep and find and replace with a tasteful option. If you do not, don’t be surprised if a buyer wants to keep them.
If someone has been smoking inside the property you will most likely need to replace all carpets, wash all woodwork, paint all walls and ceilings.
Exterior •
•
Remove any chipping and peeling paint and repaint the affected areas with a matching exterior paint. If your home was built prior to 1978, this will be a must if you want your home to be eligible for Federal Housing Authority (FHA) qualified buyers. Pull weeds and remove excess brush. If applicable, put down fresh mulch, and edge the sidewalks and driveway. Be sure to also clean gutters, trim overgrown bushes and trees, especially if they are blocking windows
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or come into contact with the home or roof. If the roof on your home or garage has fewer than 2 years of life remaining, this will almost certainly come up in the home buyer’s inspection as well as the lender’s appraisal. If this concern is not addressed, the buyer’s lender will not lend on the property. It is typically less expensive to fix this ahead of time than mid-transaction as you will be able to choose the contractor and roofing material. You will also be able to market your home with a new roof, which may likely increase the price of the offer(s) you receive.
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A Word about Repair Allowances Offering an allowance for repairs is ineffective for a couple of reasons. A buyer (especially a first-time buyer) will often believe that a repair will cost two to four times the actual cost. Therefore, the credit that a buyer will expect and accept will be far more costly to the seller than a simple repair. Since buyers are typically emotionally driven, they tend to make their offer based upon what they actually see and how they feel in the property. So if you offer a credit, you will still be receiving an offer based upon the current condition of the home. You’ll then be expected to make the repair credit concession as well. This can end up costing the seller at least twice as much as doing the repair prior to listing.
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It is best practice to consult an experienced real estate agent as soon as you start to consider selling your home. Even if selling your home is years away, it is never too early to engage professional advice and create a timeline for preparation. A real estate agent will provide the objective third-party opinions needed for your sale. Remember, you are not preparing your home for your own purchase; rather, you are preparing it for today or tomorrow’s most likely buyer. Anticipating the correct buyer demographics for your home is an important part of the skillset of an experienced real estate professional.
Cities in Bloom Curated by Wale Deen Agboola & Luke Finsaas
How do you describe loving a city? How do you capture the moment when the sky is swaddled in falling snow and it’s dawn and you’ve got a cup of coffee and everything is soft and cozy? Or an afternoon stroll along the river, or the heat wafting up from the street during a block party, or the neon light of your favorite bar? It’s too hard to capture, concisely, in words. That’s why we asked local photographers to try and capture the feeling for us. We hope you enjoy.
Featured Photographers
Jessica Zerby
Jessica Zerby is a Minneapolis-based Creative Producer at Target Creative and Photographer who, over the past decade, has produced an eclectic body of independent films, portrait series, and advertising campaigns. A strategic and fearless storyteller, Jessica dove into the industry after graduating from Columbia College Chicago with degrees in Documentary Photography and Art History. You can find her joyfully adding stamps to her passport and advocating for diversity, inclusion, and representation on and off set.
Awa Mally
Awa Mally is a Togolese-American photographer based in Minneapolis. She uses photography not only for her own expression but to display the glory within the African Diaspora. Her mission is to bring young people access to art as well as empowering them, all the while connecting various branches of the diaspora.
Lydia Toll
Lydia Toll is an innovative brand and lifestyle photographer with an eye for natural beauty and detail. Having traveled the world for work documenting unique places and spaces, she is most in her element when presented with the unexpected.
Sarah White
Sarah White is a Minneapolis-based documentary photographer known for her soulful exploration of culture, style, and portraiture. Blending aesthetic influences from Brooklyn to Barcelona, she finds inspiration in the intersections of music and art, individuality, and empowerment. Light and emotion inform her signature style. As a bodyworker/activist/artist, White channels her multi-faceted lens as a medium for empathy and truth through visual storytelling.
Roy Son
Roy Son is a commercial and lifestyle photographer based in Minneapolis. An avid traveler, Roy has a passion for local culture and cuisine, capturing the stories, sights, smells and sounds of the worlds he encounters.
Victoria Campbell
Victoria is a freelance photographer and small business owner of Victoria Campbell Prints. Originally from the UK, Victoria, her husband Sam and dog Ralph, have lived and worked between Minneapolis and England for the past 6 years and are now a permanent residents of good ol’ Minnesota. Victoria works with local and international based publications, brands, and restaurants.
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Jessica Zerby JESSICAZERBY
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Awa Mally A W A M A L LY
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Sarah White 34 FOTOSFORBARCELONA
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Victoria Campbell 36
VICSJCAMPBELL
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Roy Son ROYSON
Lydia Toll 40
LY D I AT O L L
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SPOTLIGHT ON
Greater Minneapolis Crisis Nursery
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ow, we can’t talk about that special love we feel for our communities without talking about the people who make our communities worth living in. There are quite a few organizations and leaders in Minneapolis and St. Paul that fight to uplift and empower the people around them. One organization that holds a special place in our hearts is the Greater Minneapolis Crisis Nursery. Their mission is straightforward, inspiring, and no easy task: to end child abuse and neglect and create strong, healthy families. The Nursery was born out of a dire need to support local families in crisis and a collaboration between a number of organizations in Minnesota in the late 1970s. Due to the efforts of many, the Nursery opened their doors
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in 1983 and have been tirelessly providing services and support for families in Minnesota ever since. They provide care for close to twenty newborns and children up to six years old on a daily basis. (That’s over five thousand annual nights of care!) Not only that, but they also operate a crisis hotline, provide services and educational support to parents, have a mental health program, and more. Can you believe they’re one of only twenty residential crisis nurseries in the country? At our 2020 BRIX Report launch party, we’ll host a silent auction for our Cities in Bloom photographs. Eighty percent of proceeds will go towards supporting the artists. The rest? It will be donated to the Greater Minneapolis Crisis Nursery. Let’s do what we can to support an organization that supports so many in our community. Want to learn more about donating or volunteering with this organization? Visit crisisnursery.org.
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summer vibes 2
BRIX Real Estate hosted Summer Vibes 2: A Party So Nice We Threw It Twice, in August 2019 at Centro in Northeast Minneapolis.
amazing Tom Petty cover band
just off America’s Got Talent!
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We had something for everyone: face painting, squirt guns, cocktails, tacos, a DUNK TANK. The Danger Committee, Sophia Eris, and All Tomorrow’s Petty performed outstanding sets while the Centro team served up incredible tacos and small batch cocktails. Lizzo’s DJ! Yeah, it rained a little (ok, it poured for a few minutes), but boy, did we have a good time. What do you say, Summer Vibes 3: Three Fast, Three Furious?
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BRIX MARKET REPORT When we analyze a market, we want to understand why home prices are going up or down, how fast a home will likely sell, and what homebuyers are snapping up or skipping over. Consumers today are awash in data on the housing market, and that data is often inexplicable and even contradictory. We’re in the business of giving advice to our clients and we want that advice to be based on all the facts in our arsenal.
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The Market Snapshots in The BRIX Report compares the data from 2018 to 2019 and uses four key market indicators to give you a sense of trends.
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What Do The Numbers Mean?
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D AY S O N M A R K E T This is the median number of days from the listing date to the day that the listing broker reports in the MLS that the seller has accepted a contract for purchase. We show Median Days on Market, which represents the point at which half the homes went under contract in fewer days and half went under contract in more days. When the total number of Days on Market decreases from one year to the next, this indicates that it is a “seller’s market” because buyers are quickly going under contract on homes. Homes at the upper end of the price range in nearly all communities have longer Days on Market, simply because there are fewer buyers of more expensive homes.
MONTH’S INVENTORY We show this as the active inventory of homes for sale versus the previous twelve months of homes reported as Under Contract. Think of it this way: if the Month’s Inventory is two, this means that the available number of houses would be sold out in two months. This is based on the rate of sales in the past year. A low Month’s Inventory shows that houses are selling quickly. There are fewer buyers for higher priced homes, so the higher end market usually has a greater Month’s Inventory.
MEDIAN SALES PRICE Median represents the point at which half of the homes that sold in a given year were priced higher and half were priced lower. Calculations are based on Sold data and the prices do not account for seller concessions (e.g. a closing cost credit). We don’t use Average Sales Price because even just a small number of very high or very low priced transactions can distort our understanding of the market. A year-to-year decrease or increase in Median Sales Price needs to be carefully analyzed. In a market with a relatively small number of sales, it may mean that a number of much lower or much higher priced homes were sold in this year compared to the previous year.
T O TA L S A L E S This is a count of the actual sales that have closed in a given year. Calculations are based on sold data from the Northstar Multiple Listing Service and do not include off-market transactions. A decrease in Total Sales doesn’t necessarily mean that the market is declining, because if the Inventory is low there may simply not be enough houses to meet buyer demand. An increase in Total Sales from one year to the next may reflect a variety of conditions, such as the opening of a major new subdivision or condo building, or a dramatic change in interest rates.
APPLE VALLEY D AY S O N M A R K E T
18 Days
INVENTORY
/ 0%
SALES PRICE
1.3 M.
/ 0%
SOLD HOMES
$282,000
/ +6.4%
996
/ -1.6%
ARDEN HILLS D AY S O N M A R K E T
27 Days
INVENTORY
/ +42.1%
SALES PRICE
$339,000
1.6 M.
/ -5.9%
SOLD HOMES
/ -6.1%
THE BRIX MARKET REPORT
111
/ -5.9%
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BLOOMINGTON D AY S O N M A R K E T
18 Days
INVENTORY
/ -5.3%
SALES PRICE
1.4 M.
/ 0%
SOLD HOMES
$279,900
/ + 7.7%
1,296
/ +1.6%
B R O O K LY N C E N T E R D AY S O N M A R K E T
18 Days
INVENTORY
/ +5.9%
SALES PRICE
$220,000 50
1.1 M.
/ -15.4%
SOLD HOMES
/ +7.8%
434
/ -2%
THE BRIX MARKET REPORT
B R O O K LY N PA R K D AY S O N M A R K E T
20 Days
INVENTORY
/ +5.3%
SALES PRICE
1.5 M.
/ 0%
SOLD HOMES
$265,000
/ + 6%
1,241
/ -0.6%
BURNSVILLE D AY S O N M A R K E T
19 Days
INVENTORY
/ -5%
SALES PRICE
$273,500
1.5 M.
/ -7.1%
SOLD HOMES
/ +4.4%
THE BRIX MARKET REPORT
989
/ -3.7%
51
CHAMPLIN D AY S O N M A R K E T
19 Days
INVENTORY
/ 0%
SALES PRICE
1.7 M.
/ 0%
SOLD HOMES
$270,000
/ +5.9%
427
/ +1.9%
COLUMBIA HEIGHTS D AY S O N M A R K E T
17 Days
INVENTORY
/ 0%
SALES PRICE
$220,222 52
1.3 M.
/ 0%
SOLD HOMES
/ +4.9%
347
/ +7.8%
THE BRIX MARKET REPORT
COON RAPIDS D AY S O N M A R K E T
18 Days
INVENTORY
/ 0%
SALES PRICE
1.2 M.
/ -7.7%
SOLD HOMES
$235,000
/ +3.5%
1,089
/ -1.2%
C O T TA G E G R O V E D AY S O N M A R K E T
20 Days
INVENTORY
/ -4.8%
SALES PRICE
$290,000
2 M.
/ +17.6%
SOLD HOMES
/ +10.5%
THE BRIX MARKET REPORT
801
/ +18.8%
53
C R Y S TA L D AY S O N M A R K E T
15 Days
INVENTORY
/ 0%
SALES PRICE
1 M.
/ -9.1%
SOLD HOMES
$233,500
/ +6.1%
424
/ -2.5%
EAGAN D AY S O N M A R K E T
17 Days
INVENTORY
/ -10.5%
SALES PRICE
$305,000 54
1.5 M.
/ 0%
SOLD HOMES
/ +8.9%
1,067
/ -0.3%
THE BRIX MARKET REPORT
EDEN PRAIRIE D AY S O N M A R K E T
24 Days
INVENTORY
/ -7.7%
SALES PRICE
2.1 M.
/ -12.5%
SOLD HOMES
$359,500
/ +6.7%
1,090
/ -4.7%
EDINA D AY S O N M A R K E T
31 Days
INVENTORY
/ -6.1%
SALES PRICE
$473,606
3.5 M.
/ -5.4%
SOLD HOMES
/ +5.2%
THE BRIX MARKET REPORT
988
/ +4.1%
55
FRIDLEY D AY S O N M A R K E T
18 Days
INVENTORY
/ +5.9%
SALES PRICE
1.2 M.
/ 0%
SOLD HOMES
$240,500
/ +9.4%
381
/ -9.9%
GOLDEN VALLEY D AY S O N M A R K E T
22 Days
INVENTORY
/ 0%
SALES PRICE
$343,000 56
1.9 M.
/ 0%
SOLD HOMES
/ +10.7%
406
/ +1.2%
THE BRIX MARKET REPORT
HOPKINS D AY S O N M A R K E T
14 Days
INVENTORY
/ -22.2%
SALES PRICE
1.3 M.
/ 0%
SOLD HOMES
$259,950
/ +4%
249
/ +3.8%
INVER GROVE HEIGHTS D AY S O N M A R K E T
20 Days
INVENTORY
/ -9.1%
SALES PRICE
$265,250
1.6 M.
/ +5.90%
SOLD HOMES
/ +4%
THE BRIX MARKET REPORT
485
/ -7.8%
57
LAKE ELMO D AY S O N M A R K E T
52 Days
INVENTORY
/ +108%
SALES PRICE
5.1 M.
/ +2%
SOLD HOMES
$468,000
/ -1.1%
275
/ -1.4%
LAKE MINNETONKA AREA D AY S O N M A R K E T
45 Days
INVENTORY
/ +9.8%
SALES PRICE
$489,000 58
4.6 M.
/ 0%
SOLD HOMES
/ -1.9%
1,066
/ +1.8%
THE BRIX MARKET REPORT
LAKEVILLE D AY S O N M A R K E T
25 Days
INVENTORY
/ -3.8%
SALES PRICE
2.5 M.
/ -7.4%
SOLD HOMES
$370,922
/ +4%
1,353
/ +2%
LITTLE CANADA D AY S O N M A R K E T
25 Days
INVENTORY
/ +4.2%
SALES PRICE
$264,500
1.7 M.
/ +13.3%
SOLD HOMES
/ +0.9%
THE BRIX MARKET REPORT
128
/ -1.5%
59
MAPLE GROVE D AY S O N M A R K E T
21 Days
INVENTORY
/ -12.5%
SALES PRICE
1.8 M.
/ -5.3%
SOLD HOMES
$314,885
/ +5.8%
1,510
/ +1.2%
MAPLEWOOD D AY S O N M A R K E T
20 Days
INVENTORY
/ +5.3%
SALES PRICE
$250,000 60
1.5 M.
/ 0%
SOLD HOMES
/ +6.45%
546
/ -1.8%
THE BRIX MARKET REPORT
MEDINA D AY S O N M A R K E T
51 Days
INVENTORY
/ -30.1%
SALES PRICE
6 M.
/ +7.1%
SOLD HOMES
$616,560
/ -8.7%
149
/ +2.8%
M E N D O TA H E I G H T S D AY S O N M A R K E T
17 Days
INVENTORY
/ -41.4%
SALES PRICE
$424,250
2 M.
/ -16.7%
SOLD HOMES
/ +10.2%
THE BRIX MARKET REPORT
201
/ +6.3%
61
S I N G L E F A M I LY
MINNEAPOLIS D AY S O N M A R K E T
19 Days
INVENTORY
/ +5.6%
SALES PRICE
1.7 M.
/ + 6.2%
SOLD HOMES
$278,500
/ +5.1%
3,996
/ +2%
TOWNHOMES/CONDOS
MINNEAPOLIS D AY S O N M A R K E T
34 Days
INVENTORY
/ +17.2%
SALES PRICE
$286,700 62
2.6 M.
/ +8.3%
SOLD HOMES
/ +10.3%
1,638
/ +4.4%
THE BRIX MARKET REPORT
MINNETONKA D AY S O N M A R K E T
22 Days
INVENTORY
/ -12%
SALES PRICE
1.5 M.
/ -25%
SOLD HOMES
$239,950
/ +9.1%
349
/ +11.1%
MOUNDS VIEW D AY S O N M A R K E T
15 Days
INVENTORY
/ -31.8%
SALES PRICE
$245,000
1.2 M.
/ -14.3%
SOLD HOMES
/ -0.8%
THE BRIX MARKET REPORT
135
/ +9.8%
63
NEW BRIGHTON D AY S O N M A R K E T
18 Days
INVENTORY
/ +12.5%
SALES PRICE
1.3 M.
/ +18.2%
SOLD HOMES
$277,500
/ +6.7%
270
/ 0%
NEW HOPE D AY S O N M A R K E T
18 Days
INVENTORY
/ 0%
SALES PRICE
$259,900 64
1.3 M.
/ +18.2%
SOLD HOMES
/ +6.5%
292
/ -5.5%
THE BRIX MARKET REPORT
OAKDALE D AY S O N M A R K E T
17 Days
INVENTORY
/ -15%
SALES PRICE
1.2 M.
/ +9.1%
SOLD HOMES
$233,000
/ +3.6%
463
/ -1.35%
OTSEGO D AY S O N M A R K E T
21 Days
INVENTORY
/ +10.5%
SALES PRICE
$324,945
2.8 M.
/ +7.7%
SOLD HOMES
/ +8.2%
THE BRIX MARKET REPORT
586
/ +8.9%
65
P LY M O U T H D AY S O N M A R K E T
23 Days
INVENTORY
/ -11.5%
SALES PRICE
2.2 M.
/ -4.3%
SOLD HOMES
$380,000
/ +2.7%
1,524
/ +1.7%
PRIOR LAKE D AY S O N M A R K E T
27 Days
INVENTORY
/ -6.9%
SALES PRICE
$361,000 66
3.3 M.
/ 0%
SOLD HOMES
/ +11.1%
631
/ +6.8%
THE BRIX MARKET REPORT
RICHFIELD D AY S O N M A R K E T
13 Days
INVENTORY
/ -17.1%
SALES PRICE
1.1 M.
/ +10%
SOLD HOMES
$272,000
/ +8.8%
505
/ -4.5%
ROBBINSDALE D AY S O N M A R K E T
13 Days
INVENTORY
/ -19%
SALES PRICE
$240,000
1.4 M.
/ +27.3%
SOLD HOMES
/ + 7.5%
THE BRIX MARKET REPORT
301
/ +1.4%
67
ROGERS D AY S O N M A R K E T
25 Days
INVENTORY
/ +4.2%
SALES PRICE
1.8 M.
/ -35.7%
SOLD HOMES
$331,900
/ +0.6%
254
/ -0.8%
ROSEVILLE D AY S O N M A R K E T
18 Days
INVENTORY
/ +5.3%
SALES PRICE
$275,000 68
1.4 M.
/ +4%
SOLD HOMES
/ +5%
520
/ +4%
THE BRIX MARKET REPORT
SAVAGE D AY S O N M A R K E T
21 Days
INVENTORY
/ -4.5%
SALES PRICE
2.3 M.
/ -14.8%
SOLD HOMES
$323,250
/ +2.6%
641
/ +4.2%
SHAKOPEE D AY S O N M A R K E T
22 Days
INVENTORY
/ +4.8%
SALES PRICE
$274,808
2.1 M.
/ +16.7%
SOLD HOMES
/ +9.9%
THE BRIX MARKET REPORT
788
/ +2.6%
69
SHOREVIEW D AY S O N M A R K E T
18 Days
INVENTORY
/ +12.5%
SALES PRICE
1.7 M.
/ +30.8%
SOLD HOMES
$288,500
/ +8.9%
432
/ +2.1%
SHOREWOOD D AY S O N M A R K E T
44 Days
INVENTORY
/ +22.2%
SALES PRICE
$630,000 70
4.4 M.
/ 10%
SOLD HOMES
/ +14.9%
168
/ +20.9%
THE BRIX MARKET REPORT
S O U T H S T. PA U L D AY S O N M A R K E T
18 Days
INVENTORY
/ -5.3%
SALES PRICE
1.2 M.
/ -14.35%
SOLD HOMES
$223,200
/ +3.8%
356
/ -6.8%
S T. M I C H A E L D AY S O N M A R K E T
25 Days
INVENTORY
/ -3.8%
SALES PRICE
$305,000
2.8 M.
/ +55.6%
SOLD HOMES
/ -0.2%
THE BRIX MARKET REPORT
347
/ -1.7%
71
S T. A N T H O N Y D AY S O N M A R K E T
17 Days
INVENTORY
/ -15%
SALES PRICE
1 M.
/ -23.1%
SOLD HOMES
$287,000
/ +0.7%
102
/ -23.9%
S T. L O U I S PA R K D AY S O N M A R K E T
21 Days
INVENTORY
/ +10.5%
SALES PRICE
$305,000 72
1.6 M.
/ 0%
SOLD HOMES
/ +6.3%
869
/ -8.2%
THE BRIX MARKET REPORT
S I N G L E F A M I LY
S T. PA U L D AY S O N M A R K E T
19 Days
INVENTORY
/ +5.6%
SALES PRICE
1.8 M.
/ +5.9%
SOLD HOMES
$227,700
/ +5.9%
3,002
/ -4.35%
TOWNHOMES/CONDOS
S T. PA U L D AY S O N M A R K E T
29 Days
INVENTORY
/ -6.5%
SALES PRICE
$205,000
2.2 M.
/ 0%
SOLD HOMES
/ +7.9%
THE BRIX MARKET REPORT
567
/ -6.1%
73
S T I L LW AT E R D AY S O N M A R K E T
34 Days
INVENTORY
/ +30.8%
SALES PRICE
2.8 M.
/ +3.7%
SOLD HOMES
$345,000
/ +3%
392
/ -2.2%
VA D N A I S H E I G H T S D AY S O N M A R K E T
19 Days
INVENTORY
/ +11.8%
SALES PRICE
$270,125 74
1.7 M.
/ +6.2%
SOLD HOMES
/ +9.2%
227
/ -6.2%
THE BRIX MARKET REPORT
W AY Z ATA D AY S O N M A R K E T
80 Days
INVENTORY
/ +122.2%
SALES PRICE
7.6 M.
/ +22.6%
SOLD HOMES
$645,000
/ -13%
97
/ -4%
W E S T S T. PA U L D AY S O N M A R K E T
15 Days
INVENTORY
/ -25%
SALES PRICE
$230,000
1.3 M.
/ 0%
SOLD HOMES
/ +4.5%
THE BRIX MARKET REPORT
309
/ +10.45%
75
WHITE BEAR LAKE D AY S O N M A R K E T
15 Days
INVENTORY
/ -6.3%
SALES PRICE
1.3 M.
/ +8.3%
SOLD HOMES
$260,000
/ +6.2%
367
/ -17.3%
WOODBURY D AY S O N M A R K E T
25 Days
INVENTORY
/ +4.2%
SALES PRICE
$352,500 76
2.4 M.
/ +4.3%
SOLD HOMES
/ +8.5%
1,650
/ +6.2%
THE BRIX MARKET REPORT
M E T R O AT A G L A N C E
13 COUNTY METRO D AY S O N M A R K E T
23 Days
INVENTORY
/ +4.5%
SALES PRICE
$282,000
2.2 M.
/ 0%
SOLD HOMES
/ +6.4%
THE BRIX MARKET REPORT
58,846
/ +0.9%
77
The 2020 BRIX Real Estate Predi A
s we predicted in last year’s BRIX Report, 2019 delivered a “slowing of appreciation” for the Twin Cities Real Estate Market in comparison to the appreciation observed in the past several years. Growth was still strong at 4%; however, this was a notable slowdown from the previous 5.6% appreciation of the previous year, as demonstrated by the Case-Schiller Home Price Index for the Twin Cities (https://fred. stlouisfed.org/series/MNXRSA). This measured slowdown was expected and is an indicator of a transition away from a “seller’s market” towards a “balanced market.” The transition from a seller’s market to a balanced market and eventually a buyer’s market is a natural and healthy cycle. However, we have been anticipating this transition for several years, and yet the transition has been very slow in coming. This begs the question, “What’s the delay?” There are several significant factors which are suppressing the housing inventory and exacerbating the inventory imbalance. • •
78
An aging population. Older people are more likely to own their own homes, yet less likely to want to move. Fewer available homes for sale due to greater numbers of rental properties. This is a result of the last recession which generated high rates of investment purchases due to foreclosures and short sales.
•
•
More 2nd and 3rd time homebuyers are choosing to retain their existing home as an investment property instead of selling it when making a new purchase. Increased rental rates coupled with changes in lending guidelines made it much easier to use rental income as an offset to debt for purchase mortgage qualification. Young people are waiting longer to buy their first home and therefore, the type of property that first-time buyers are purchasing is changing from a “starter home” to a larger home which can accommodate more people. Instead of buying a home that was meant to serve the homebuyer as an individual for 5-7 years, buyers are often buying later in life and often with a partner. The homes they are buying tend to be larger, more expensive and suitable for longer habitation. The result is that the rate of turnover is slowing as people feel less pressure to upscale their home purchases.
The above factors are resulting in extremely low housing inventory. This brought many multiple-offer situations throughout the 2019 Spring Market resulting in the continued upward pressure on home prices. Another major factor in the slow transition to a balanced market is the historically low interest rates. With the added fuel of low interest rates making home purchasing possible for more buyers, an increase in new buyer activity only added to the supply/demand imbalance, further extending the seller’s market.
diction:
Continued Slowing of Appreciation
What awaits us in 2020?
W
e expect a continued slowing of appreciation, with the caveat that this will be slight or possibly non-existing in the current interest rate environment. Appreciation rates will likely be very similar to 2019 at roughly 4%. We predict a stable year for the Twin Cities real estate market with the major headlines focusing around the ups and downs of interest rates. Many people will refinance their existing home loans, many will purchase homes and there will be few foreclosures and short sales. This is a good time to buy in a stable market and if you played your cards right on your last purchase, a very good time to sell.
With slowing appreciation, the value of good real estate advice will become paramount as margins become thinner. When appreciation becomes more measured, a dartboard approach to real estate investing will prove precarious. Home buyers should build a team of trusted professionals to guide their purchases and investments. Sellers should prepare for longer marketing times and carefully weigh out the value proposition of agents.
79
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W H AT R E A L LY M AT T E R S ? Some realtors boast about how many homes they’ve sold. Others talk about how fast they can sell a house or how low their commission is. But are you getting top dollar? Our Sellers get 8.5% above market average.* Whether you’re selling a home in the city or a home in the country, BRIX Real Estate will get you the most.
Buy & Sell with BRIX BRIXTWINCITIES.COM · 612-927-2749
* based on price per square foot, as of December 2018. All data pulled from MLS 1/1/2018 to 1/1/2019 in 13 county metro.