The BRIX Report Volume VII: "Serenity Now" Life and Real Estate in the Twin Cities.

THE BRIX REPORT

Volume VII “SERENITY NOW”

Life & Real Estate in the Twin Cities

THE BRIX REPORT Volume VII “SERENITY NOW”

Life & Real Estate in the Twin Cities

Cover & Back Photo by Lydia Toll

BRIX St. Paul 1390 7th Street West St. Paul, MN 55102

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 Minneapolis 748 North 3rd Street, Suite 100 Minneapolis, MN 55401

BRIX Maple Grove 6885 Sycamore Lane N, Suite 105 Maple Grove, MN 55369

BRIX Burnsville 101 Burnsville Parkway, Suite 200 Burnsville, MN 55337

BRIX Stillwater 124 2nd Street, Suite 110 Stillwater, MN 55082

Contributors

Kristy Hanson

Editor, Writer

Kristy Hanson is a freelance writer, designer, and developer based in Amsterdam, formerly of the Twin Cities. She’s the author of Karma, A Love Story, contributor and co-editor of the Book of Admiration, and is still proud of the math award she won in the sixth grade. Visit kristyleehanson.com to view her other projects and see what she’s been up to.

Lydia Toll

Tracy Mumford

Tracy Mumford is a podcast producer and writer based in Minneapolis. She has made/is making Don’t Ask Tig, Julie’s Library, The Slowdown, Decomposed, Spectacular Failures and the Peabody Award-winning 74 Seconds. She works at The New York Times. Follow her on Twitter at @mumfordmumford.

Photographer Luke Finsaas

Lydia Toll is a Minneapolis photographer and creative, specializing in brand and lifestyle work with over 10 years in the industry. Her work has taken her all over the world, where she looks for and finds beauty everywhere. lydiatoll.com

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.

Myra Jensen

Writer Writer Zach McCormick

Zach McCormick is a journalist and copywriter based in Minneapolis, MN, who has written for a variety of local and national publications and brands, including Red Wing Heritage, Minnesota Monthly, Vasque Footwear, Minnesota Public Radio, The Growler Magazine, City Pages, and more. zmccormick.com

Myra Jensen is a real estate agent at BRIX Real Estate and writer in Minneapolis. Find more of her work and tips at nwmetrolife.com

Note on Market Report Data

Market Report Data represents 2021 compared to 2022 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.

Writer

Letter from BRIX Real Estate . . . . . 9

Hot Spots . . . . . 10

Warm and Cozy Twin Cities Winter Activities for the Family . . . . . 12 by Myra Jensen

Hygge You Can Hear . . . . . 16 by Zach McCormick

Page Bliss . . . . . 20 by Kristy Hanson

Crafty Times . . . . . 22 by Tracy Mumford

The Top Five Questions from Home Buyers & Sellers, Answered . . . . . 26 by Kirk Duckwall

A Wondful Carol . . . . . 30 by Kristy Hanson

Event Recap: Festivale BRIX . . . . . 32

Market Report . . . . . 34

2023 Guidance . . . . . 43

Letter from BRIX Real Estate

Life has tested us, again and again. No one claimed it would be easy. We are all survivors. Yet, even warriors rest in order to fight another day. We must breathe. Now is our time to slow down, to feel and articulate our needs. Serenity is essential.

As we look ahead to the new year, it is natural to reflect on the challenges born of the year behind us. And what a year it was.

At the beginning of 2022, who would have imagined that within two months Russia would invade Ukraine? The war was unthinkable until it was happening, causing a mass humanitarian catastrophe, as well as a global food and energy crisis. The ongoing war involving a major nuclear power already threatens to be one of the most deadly since World War II, and there is no end in sight.

At home, our already divided country became increasingly polarized with the overturning of Roe v. Wade in 2022, as well as voter suppression, among many other issues. Inflation has only turned up the heat on all of it.

Meanwhile, in the real estate market, we also saw an unthinkable, unprecendented reversal.

2022 began with a booming, energized economy and record low interest rates. Home prices surged across the country and here in the

Twin Cities. Multiple offers, waived inspection contingencies — the year looked as though it'd be a true Seller's market, start to finish.

But the Federal Reserve responded to runaway markets with seven aggressive rate hikes, curbing mass inflation. This quickly turned the Seller's market into a Buyer's market — of sorts. Home owners are reluctant to trade homes, as they've locked in their mortgages during the period of record low interest rates. We leave 2022 in a Buyer's Market without many buyers.

We are far from overcoming these challenges. Yet, we must still wake up every day and be present to the needs of our families, our friends, and our communities. This is only possible by finding peace and calm in our lives and ourselves in order to share it with others. We need to slow down and take time to see the beauty around us. We must be just as kind with ourselves as we strive to be with others. We need serenity.

In the seventh edition of the BRIX Report, you will find Twin Cities real estate market information and advice, as well as some of our favorite places and ways to find calm close to home.

We hope you enjoy.

- BRIX Real Estate

Hot Spots

It’s usually deep into winter, the ninth month of snow, after day after day of darkness. It’s slipping on that patch of black ice for the umpteenth time and Gary from work shouting across the parking lot, “Just do the penguin walk!” as he shuffles to his own car. Or that moment you break your credit card (again) scraping frost off your windshield because you still can not find that scraper and you keep forgetting to buy a new one.

It’s around then that the dreams start: of turquoise waters, white sand beaches, piña coladas, a breeze that doesn’t hurt your face.

If you can travel, awesome. If a busy schedule, kids, or that chicken coop that sounded like a good idea last summer are keeping you from a tropical paradise, don’t fret. We're here to say there are plenty of hot spots close to home.

Rooftop at Hewing Hotel

Hewing Hotel

So chic! So hip! So hot! This North Loop mainstay has tasty cocktails and eats in the attached lobby restaurant, but on the roof? A dry sauna and bubbling spa pool (aka hot tub), as well as more tasty cocktails and eats. All registered guests are able to access the sauna. Slip away for a staycation and enjoy that Minneapolis Skyline.

300 N Washington Ave, Minneapolis · hewinghotel.com

The Nordic Nook

The Nordic Nook is billed as a sauna and oasis for good reason. Nestled close to Theodore Worth Park in Golden Valley, this isn’t just a sauna — it’s a plunge pool, a yurt, outdoor shower and retired huskies relaxing in the snow. Booking here is for private groups only, no drop-ins.

512 Ardmore Drive, Golden Valley · nordicnookoasis.com

Watershed Spa

Soak, steam, and sauna your chills away — this communal bathhouse spa has it all. Stick to water and heat, or opt in for a massage, facial, or acupuncture session. This space is geared towards relaxation and regeneration and is the first of its kind in the Twin Cities! Treat yourself!

514 2nd St SE, Minneapolis · watershedspa.com

612 Sauna Society

This here’s a sauna co-op born of a 2016 kickstarter, featuring a board of directors and everything. What does this mean for you? It means you can either book a standard reservation OR you can become a member. Members get access to all sorts of hot deals, discounts, and advanced access to booking. This is a mobile sauna unit, meaning they're roaming the metro. Check their website for their availability and current location.

mobile · 612saunasociety.com

If escaping the winter winds isn’t in the cards for you this season, here are some alternatives to warm your bones and break a sweat, without leaving state lines.

Warm and Cozy Twin Cities Winter Activities for the Family

by Myra Jensen

Photo from Beyond Neon Art Shanty Project

The St. Paul Winter Carnival

The St. Paul Winter Carnival is a 10-day event that takes place in late January through early February. Legend has it that King Boreas, God of the Northern Wind, takes over the city of St. Paul as his winter playground until being removed by Vulcanus Rex, God of Fire, to make way for summer. There are hundreds of mostly free events throughout St. Paul during the carnival, including the Grande Day Parade, Torchlight Parade, and Medallion Hunt! St. Paul · wintercarnival.com

Art Shanty Projects

Each winter, Art Shanty Projects gathers local artists to build brightly colored temporary structures — or “shanties” — on a frozen local lake, making a small interactive, artistic village! The festival is open for four weekends from the end of January through mid-February. artshantyprojects.org

Minnesotans know that fully embracing the snow, ice, and cold is the best way to survive the long winter. Here are some fun winter activities — indoors and out — that will prevent cabin fever and keep you feeling warm and cozy all season long!

Ice Castles

Explore the glowing ice castles, slides, caverns, tunnels, and arches during your visit to the Ice Castles at Long Lake Regional Park. Tickets can be purchased online. Pro Tip: visit Monday, Wednesday, or Thursday for smaller crowds and lower ticket prices.

Long Lake Regional Park · icecastles.com/minnesota/

Night Trains

The Twin City Model Railroad Museum boasts 10,000 square feet of model train layouts. This is captivating for both kids and adults all through the year, but it's even more magical when the lights are dimmed and the trains, buildings, and landscapes of the Twin Cities are all lit up for the Night Train exhibit! The Night Trains run from November through February on Saturdays from 3pm - 7pm. Check the website for hours.

668 Transfer Road, St. Paul · tcmrm.org

Canadian Pacific Holiday Train

If big trains are more your thing, the Canadian Pacific Holiday Train travels through Canada and the U.S. each December, collecting donations for local food shelves. The 14-car holiday decorated train makes several stops throughout Minnesota mid-December with a presentation and live music performance at each stop.

cpr.ca/en/holiday-train/united-states

Photos clockwise from top left: Ice Castles by Greg Gjerdingen; Night Trains by Cocoabiscuit; Canadian Pacfic Holiday Train by Jerry Huddleston.

Twin Cities Regional Parks

There are 56 Regional Parks and Park Reserves and over 20 Nature Centers throughout the metropolitan area. Most have a variety of winter activities including hiking, snowboarding, sledding, snowshoeing, cross-country, downhill skiing, and more. Many of the parks offer lessons and inexpensive equipment rentals.

The Elm Creek Park Reserve in Maple Grove features a dedicated winter recreation area with tubing, sledding, snowboarding, downhill skiing (beginner and child), cross-country skiing and warming chalet with rentals.

Theodore Wirth Regional Park is a beautiful winter setting with ski trails, a skiing, snowboarding and snow-tubing hill, winter fat biking trails, and a warming shelter. Keep your eyes peeled for Zug Zug, an iceman sculpture hiding in the park.

Como Regional Park in St. Paul features “Mount Como”, the Como Park Ski Center with ski, snowshoe, and snowboard rentals. There is downhill skiing and snowboarding with tow ropes, and over 3 miles of cross-country ski trails. The Como Zoo and Conservatory are also open all winter!

Visit mn.gov/greatoutdoors/ to search for winter activities near you!

Photo by Lorie Shaull

Hygge You Can Hear

by Zach McCormick

The 4 Coziest Music Venues in the Twin Cities

Aster Cafe

In the depths of the Minnesota winter, it can be all too easy to succumb to the siren call of your sofa, but we’ve got a secret — you can stay cozy without staying home!

Proper venue selection is key to maintaining peak coziness when you venture outside of your nest. Luckily for us, the Twin Cities’ music scene offers an abundance of options for mellower moods and lowkey listening. Save the downtown danceterias and headbanger hangouts for another weekend, and get hygge with it at these comfy local music venues!

Aster Café

While “Hygge Heavy Hitter” is something of a contradiction in terms, it could easily apply to our first cozy music venue on this list — the dreamy, intimate Aster Café. Situated just across a cobblestone-lined street from the Mississippi River in Northeast Minneapolis's St. Anthony Main neighborhood, the Aster’s brick facade oozes old world charm.

Once inside, you’ll find a modest stage backed against the front window, kitty-corner from a tall, dark, and handsome wooden bar crowned with subtle stained glass accents. Shaded lamp fixtures offer moody, romantic lighting for

125 SE Main St, Minneapolis · astercafe.com

evening shows, and the place gets plenty of sun during brunch hours as well. Speaking of food, Aster’s is great, with a menu full of fresh veggies, flatbreads, and even chef-y dinner fare.

Aster is a great place to catch singer-songwriters, bluegrass pickers, and swing combos. Most shows are seated affairs, and pros in the know tend to reserve their seats in advance through Aster’s website, as things can book up quickly on weekends. Sit back, order a cocktail, wink at your date, and enjoy the show.

Perfect for Folkies, Foodies, & First Dates

kj’s hideaway

Housed in the basement of the historic Hamm’s building in Downtown St. Paul, kj’s hideaway is a cozy little club that manages to embody the secretive, subterranean appeal of a speakeasy without any of the sleaze that sometimes accompanies that term.

With a brick-backed bar, plentiful tables, and a low-slung, black-curtained stage, kj’s paints the perfect picture of a classic basement jazz club. Well-mixed cocktails and a solid beer and wine list make it an easy place to enjoy a

beverage.There’s even a menu of bar snacks if you get hungry.

While kj’s opened relatively recently in the fall of 2021, this basement room has been a great place to see jazz in St. Paul for years, having been the former home of legendary local jazz club the Artist’s Quarter, as well as the Dakotabacked Vieux Carré. kj’s continues to honor that legacy by booking plenty of jazz, but they’ve also expanded their bookings to include funk, Americana, and more.

Perfect for Jazz Cats & Speakeasy Sippers

kj's hideaway

408 St Peter St, St. Paul · kjshideaway.com

The White Squirrel

On a historic St. Paul thoroughfare known for its Irish bars and Italian restaurants, The White Squirrel is most definitely the new kid in town. But change is good, and this artsy, eclectic little cocktail bar has already left a positive stamp on the neighborhood it arrived in just over a year and a half ago.

While The White Squirrel may be brand new, the building itself isn’t. This homey little storefront dates all the way back to the 19th century. The cozy bones remain but these days, the building wears a fresh remodel that feels

974 7th St W, St. Paul · whitesquirrelbar.com

hip, artsy, and energetic. Plus, cool touches abound, like the arched ceiling above the stage, and the wraparound booth bench with lovely textile upholstery.

The Squirrel books a truly eclectic mix of acts. On any given week, you might catch neighborhood singer songwriters, avant garde jazz combos, metal bands, or country twangers. Whatever the music, you’re guaranteed an intimate, face-to-face connection with the artists, as well as an excellent, creative cocktail, if you’re so inclined.

331 Club

The 331 Club is like your favorite pair of black jeans — a little bit comfy and a little bit rock and roll. This Northeast Minneapolis institution is capable of drawing top-tier local music talent while still feeling like a cozy neighborhood bar.

Maybe it’s the sumptuous booth seats that line the entryway, or the long, well-loved bar rail. Whatever the reason, 331 oozes authentic Nordeast cool, giving you a taste of the dive bar experience with elevated appointments and refreshments. Peep their great tap list, featuring plenty of brews from nearby breweries, plus a smart, simple, and delicious cocktail menu.

Peak cozy hours at the 331 occur on weeknights, when the venue’s small but mighty stage plays host to folk family jams, songwriter’s nights, bluegrass, hot jazz, and other musical stylings of moderate volume. If cozy isn’t synonymous

with “quiet” for you, then feel free to stop by on the weekends, when indie rockers, punks, rappers, and all manner of artsy eclecticism take over the bar.

331 13th Ave NE, Minneapolis · 331club.com

Perfect for Eclectic Listeners, Hipsters, & Cocktail Sippers

Perfect for Relaxing Rockers & Art Gallery-Goers

331 Club

Wild Rumpus Books

PAGE BLISS

OUR FAVORITE COZY BOOKSELLERS IN THE TWIN CITIES

I can think of nothing cozier than snuggling up on the couch with a steaming mug and cracking open a book while it weathers outside. You know what I mean when I say ‘weathers’ – rains, sleets, snows, gusts, blusters, etc. Maybe there’s a purring cat or snoring dog nearby. Perhaps there’s a window to gaze out of or a fire crackling nearby and dinner’s bubbling away in the oven.

Well, I can think of one thing that’s just the teensiest bit cozier.

Bursting into a crowded bookstore, the fresh smell of paper and ink, a broken-in couch or armchair closeby. The heat hits your cheeks and you take off your mittens to pluck spines off the shelves. A friendly bookseller is nearby, ready to throw recommendation after recommendation into your lap. If you’re lucky, there’s still a cat or dog nearby and plants hanging from the ceiling.

In the Twin Cities, we're blessed with many indie booksellers that fit this bill. Here are our faves:

Photo by Kent Kanouse by Kristy Hanson

Wild Rumpus

At first glance, Wild Rumpus appears to be like any other bookstore. At second glance, it quickly becomes apparent that it’s anything but ‘just another bookstore.’ From their indoor spooky shed to the painted ceiling to the enthusiastic booksellers, you can tell Wild Rumpus was inspired (and is maintained by) a healthy admiration for the imagination.

2720 West 43rd Street, Minneapolis · wildrumpusbooks.com

Black Garnet Books

BGB is light and airy with enormous windows, wide aisles, and plants galore. This bookseller features writings by BIPOC authors, with a mission to address inequalities in the publishing and literary world. You can expect to find a thoughtfully curated catalog and a space that whole-heartedly cares about its community.

1319 University Ave W · blackgarnetbooks.com

Excelsior Bay Books

A locally-owned, indie bookshop snuggled into Excelsior’s downtown, this place has been a mainstay of Main Street for almost 25 years. Settle in at their reading area in winter months to page through some bestsellers. During summer months, grab a book you’ve been meaning to read and walk over to Lake Minnesota to bask in the sun.

36 Water Street, Excelsior · excelsiorbaybooks.indielite.org

Other Skies Weird Fiction

A bookstore that celebrates all you weirdos out there — or, at least, all you weird-fiction-loving weirdos. This is a brand spankin’ new bookstore in West St. Paul with an eager purveyor. Inside you can find rare and collectable books, great conversation, and two coffins full of… books.

803 Dodd Road, Saint Paul · instagram.com/otherskiesbooks

Cream & Amber

Not your average bookstore, Cream & Amber serves up coffee, beer, and monthly book subscriptions — their three loves! Started by duo Kacey Hruby Wyttenhove and Katie Terhune in 2019, you'll want to grab a seat on their back patio during warmer months or reserve their community room for your next book club meeting — and enjoy their local brews!

1605 Main Street, Hopkins · creamandamber.com

Thankfully, the Twin Cities is lousy with bookstores. We recommend paying every bookstore a visit, but in particular these:

• Subtext, Downton St. Paul

• Magers & Quinn, Uptown Minneapolis

• Moon Palace, South Minneapolis

• The Bookstore, Pine City

• Valley Bookseller, Stillwater

Essay by Tracy Mumford

As in “my house is the one in the middle of the block — the dark gray one. With tentacles.”

People talk about the hobbies they picked up during the pandemic: baking, board games, Peloton. I went fully down the crafting rabbit hole. I marbled paper. I sewed my own pants. I started quilting. I made Muppets of myself and my family members, even when they did not ask for them.

The most visible result of my crafty fever dream is the sea creature lurking just below the surface of my yard. Eight purple paper mache tentacles reach up with hungry arms, arcing on either side of the front walk. They’ve somehow lasted through the extremes of Minnesota weather, needing only minor repair — mostly due to squirrel damage.

Making them was a feat of endurance. The first was fun and all, and then I remembered I was making eight. There were late nights with the wire cutters and the spray paint and my arms up to my elbows in what was basically cement, questioning all of my life choices.

But for anyone else who has been feeling the isolation of the last few years, the tentacles have been an unexpected solution for me. If I’m standing in my yard, nearly everyone who passes will stop to say hello. Sometimes, cars pull up just to take pictures and talk. A whole school bus of children came one time, unannounced.

If you, too, have dreams of DIY lawn art, I’m here to say that goal is attainable. Here's how:

For a little over a year, I’ve lived in the Tentacle House.

MINDSET

The first thing you need is a questionable idea. Mine was: “what if it looked like a sea monster was coming out of my wood chips?” For best results, you should add a second questionable idea, to really compound things. For me, it was: “what if I made the tentacles myself?”

BELIEVE WHAT YOUTUBE TELLS YOU

YouTube is going to lie to you. It lies to people everyday about how old the earth is and how crypto is a good investment. YouTube lied to me about how easy it is to make waterproof paper mache structures. I believed it, otherwise I never would have started.

BUY MORE MORTAR THAN YOU THINK

That “easy” waterproof paper mache process? Instead of the classic paper mache formula of paper and glue, it requires swapping your old friend Elmer’s for your new pal, mortar. Mortar is the cement mix that keeps brick buildings standing — and, as it turns out, tentacles, too. When you go to Home Depot, don’t think, “jeez, why do they sell it in 50 pound bags, that seems like a lot.” Think: “I’m going to need two of those.”

GET YOURSELF INTO AN OVERLY AMBITIOUS

LEAN ON YOUR NEIGHBORS

Have you discovered your neighborhood Buy

Nothing group yet? It’s the only morally sound reason to still be on Facebook. If you need a roll or two of chicken wire for the tentacle skeletons, or a porch-full of unread newspapers for your paper mache, or even a little bit more mortar because you somehow went through 100 pounds of it, don’t be afraid to ask for help.

It takes a village.

GET READY TO ANSWER QUESTIONS

“Are those tentacles?” Yeah. “Did you make those?” Yeah. “That’s a real choice, huh.” Yeah.

The most frequent question I get is “why?” The variations being: “why tentacles?”, “why are they in your yard?”, “why are they still in your yard?”

I don’t have that profound of an answer: I made a weird thing. Other people like to stop and chat about that weird thing.

We should all make more weird things.

by Kirk Duckwall

Where does the market truly stand?

Is it true that the number of homes sold is down by 30% over last year?

Yes. However, what many news outlets fail to mention is that home sales jumped drastically in the second half of 2020 and stayed relatively strong through May 2022. This was because of the demand for single family homes during COVID and historically low interest rates.

As I am writing this mid-December, the number of buyers is tracking with 2015 buyers. So, what was the market then? In 2015, it was a 2.5 on the BRIX Market Meter (brixtwincities.com).

Today, we are at a 3.75. Both of these fall within the standard Buyer’s Market range — normal for this time of year.

We also see inventory dropping and prices flattening, both hitting their seasonal bottom. Again, normal trends for this time of year.

If rates stay similar to where they are now, we should see a “spring market” — February through April — perform much closer to historical averages. This would mean we'd swing back to a Seller’s Market during that time frame, at a minimum.

How long will it take for my home to sell?

Again, this is a story of normalization. The era of getting a bundle of offers for your house in a day or two is in the past. In April 2022, the median time on market was 7 days; as of December 2022, we're seeing closer to 30.

But April 2022 was the anomaly. Over the last decade, the average in April has been closer to 20

days. The average days on market in December is in the low 30s. However, with a solid pricing and marketing strategy, days on market can be usually be cut by about half, though different property types and locations vary in their flexibility. Prior to listing, have your agent check the current market for your property.

BRIX Real Estate's own Kirk Duckwall is here to answer the real estate questions that everyone cares about.

What should I do to get my home ready?

The good news is, in most cases, you do not need to remodel the kitchen or replace the deck. The main things are general cleanliness and decluttering followed by good flooring and paint. How do you know if you have good flooring and paint? If you look at a stain, crack, wear mark or smudge on the floors or walls and wonder: will a buyer notice or care about this?

The answer is yes, they will. Replacing flooring or painting has one of the highest returns

on investment — around 300%. There may be other items you may want to address but I would recommend consulting your agent prior to just moving forward on any projects. I know I have probably saved clients tens of thousands of dollars by not moving forward on unnecessary projects.

Too often a seller will think ‘what would I like?’ instead of the correct question: ‘what would it take to sell with the best return?’

Will interest rates come back down?

From 6.5 or 7%? Most likely yes. Will they come back down to 3 or 3.5 % anytime soon? Most likely no. In the last 20 years, rates have been much closer to 5% than 3%.

Does buying down an interest rate make sense?

It depends. How long are you going to be in the home? Are you planning on refinancing? What is the rate at today and is it affordable?

If you are only going to be in the house for a few years, the answer is most likely no. If you're planning on refinancing within a couple of years, the answer is again most likely no. If your monthly payment is affordable for you, it could likely be no.

All of that said, if it was me and rates were at 6% and I was going to be in the home for 5 or more years, I would likely buy the rate down closer to 5%. If an opportunity came up to buy a home that I wanted in my price range, I would figure out how to deal with the rate.

When I buy, how do I avoid overpaying?

Don’t worry about what other buyers are doing. Plan out what you are going to do. These are the questions you will want to answer.

Where is the Market Meter at? Check brixtwincities.com — is it at a 3.5 (Buyer’s Market) or a 8.2 (extreme Seller’s Market)? What does a full comparative analysis show for a value range? How long has the house been on the market? 1 day or 30?

Answering these and planning your offer strategy off of these insights can help you avoid overpaying.

If you can find a home that is significantly underpriced even if there's multiple offers, or it's poorly marketed, or it's overpriced but has a longer than normal time on market, it is very likely you have an opportunity to not only avoid overpaying but to get a house at a really good value.

A Wonderful Carol

by Kristy Hanson

On a windy December evening in 2022, I rushed around my apartment, bundling up in my winter gear. I was running late to meet friends for an early dinner before attending the opening night of A Christmas Carol at a community theater — I couldn't find my rear bike light!

I've had this bike light for years, even though I constantly misplace it. It traveled with me across the states when I rode my bike cross-country one summer. It even crossed an ocean with me when I moved from Minnesota to Amsterdam. It's survived my leaving it outside on my bike in all sorts of weather. Finally, I found the light on a dish by the door (the most reasonable place for it and therefore the last place I would've looked) and rushed out the door.

When I greeted my friends at the restaurant, one of them said, "From Thanksgiving to Scrooge!" At first, I was confused. It took me an embarrassingly long time to remember: the last time I had seen these friends was at a Thanksgiving dinner my partner and I hosted in 2021. We were sure the dinner wouldn't happen, certain that the COVID tests we required guests to take would all come back positive. But they

didn't and soon we were all packed into the living room mixing cocktails and puzzling how we'd fit everyone at the dinner table.

At the end of Thanksgiving night, after more than a few bottles of wine, we went around the table, each person sharing what they were thankful for. As I'm writing this, I can't quite remember exactly what everyone said (I mean, it's been over a year, plus the bottles of wine). However, I do remember everyone gesturing at the group and mentioning gratitude for being together, for being able to be together.

At the restaurant, I understood why my friend mentioned Thanksgiving, but I was still lost on Scrooge. It wasn't until I settled into the stiff theater chair and opened my program that I slapped my palm to my head in realization.

I had mixed up A Christmas Carol and It's a Wonderful Life. While the stories are similar, the main characters are near opposites. Whereas Scrooge starts as a cold, selfish, money-focused man, George Bailey is kind and generous to a fault. But both men come to the same conclusion: how great it is to be alive, to share

our gifts and wealth with our loved ones and strangers, to appreciate what we have and give what we can.

After the play, we celebrated the opening night with prosecco and sparkling water, hugged, and promised not to let so much time pass before we saw each other again. On the way home, my friend's greeting kept repeating: "From Thanksgiving to Scrooge!"

I realized that I associate one holiday with gratitude and the other with giving. But that's too rigid. Both are about gratitude and both are about giving — maybe because the acts of giving and sharing gratitude are made of the same stuff.

If A Christmas Carol and It's a Wonderful Life teach us anything, as they're meant to do, it's that there's always something to be grateful for. There's always something to give. Joy is an essential ingredient of the good life.

In fact, recent studies demonstrate that these acts — gratitude and giving — are wonderful for our own emotional and mental health. Practicing and sharing gratitude can help us feel more positive towards others, ourselves, and our interactions. Volunteering time and/or money seems to have the same effect.

Intuitively, this makes sense. Helping build something good will strengthen our interpersonal relationships. Volunteering with local organizations can help us feel tied to our communities. Even walking a friend’s dog or volunteering to take that newborn for a morning not only helps that friend out, but there’s a good chance that dog is going to love you and that newborn will someday call you their favorite Aunt.

That bike light I went on about at the beginning of this story? A friend gifted it to me years ago.

He wanted me to be safe while biking at night. Now, every time I crash through my house digging for it, I smile and feel connected to that friend, regardless of how long it's been since we’ve talked. The power of my gratitude hasn’t faded with time.

The ripple effects of a thoughtful gift are many, whether you are the giver or receiver. I use the word 'gift' loosely here. Gift as a cash donation, volunteered time, a small present for a loved one, a smile and wave for a neighbor. So why not share a bit of ourselves throughout the year? Connect with a neighbor or local organization and practice accepting care and generosity from others. If it makes you feel worse, by all means stop. But I'd guess giving and sharing gratitude will brighten your life, which is (I have to say) such a gift.

Want to help, but don’t know where to start? Contact your local school district or neighborhood church. Reach out to the municipality or check in with any of the following Twin Cities organizations below.

No Dog Left Behind

No Dog Left Behind is a volunteer-run organization that’s all about saving lives, one dog at a time. They educate dog owners and help pups find their forever families.

Greater Minneapolis Crisis Nursery

The Crisis Nursery offers free services to families and children with the goal to end child abuse forever. They believe one way to do this is to help create strong, healthy families.

MN Prison Writing Workshop

This organization works within the prison system to offer high-quality creative writing programs and “promote a vision of rehabilitation and restorative justice through art.”

In 2022, we held our annual party in early fall and wow — Festivale BRIX was a blast. Friends enjoyed delicious food and tasty drinks from Centro, per usual, facepainting, mechanical bullrides, music from Bluewater Kings Band, and the debute of our very own mascot, BRIXIE.

Want to come next year? Talk to your BRIX agent — they’ll have your invite ready!

It's BRIXIE!

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.

The Market Snapshots in the BRIX Report compare the data from 2021 to 2022 and use four key market indicators to give you a sense of trends.

What Do The Numbers Mean?

Days on Market

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.

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.

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.

Total Sales

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.

How

to Think About 2023

by Adam Duckwall

Volatility will likely permeate the 2023 real estate market. Mortgage rates play a major role in both home affordability and housing inventory. Because the underlying factors influencing interest rates are themselves volatile — e.g., bond prices, the strength of the economy, world events and crises, the Federal Reserve, and, of course, inflation, among others — interest rates will be difficult to predict. While Fannie Mae anticipates an average 30-year fixed rate of 6.8%, the Mortgage Bankers Association predicts only 5.2%. The variation in these predictions is night and day for buyer activity.

Lower rates translate to lower mortgage payments and increased affordability. Lower interest rates also increase the likelihood that current homeowners will make a move, thus increasing inventory. Mortgage interest rates change the supply and demand pressures of the housing market, and the volatility of 2023 rates may create waves through the real estate industry.

The National Association of Realtors predicts sales in 2023 will decrease 6.8% from 2022 levels. However, Zillow predicts midwest markets will be the healthiest in the country. Therefore, check your sources and make sure they are reliable and local

For Buyers

During the pandemic market, it was difficult to be competitive as a buyer without Conventional financing. Since the market cooled, we have seen buyers purchase using FHA and DVA loans, which signals a re-opening of the housing market to many. If rates fall, affordability and supply will increase, as will demand. To avoid a competitive market with multiple offers and waived inspection contingencies, purchasing when rates are higher may be a better option.

For Sellers

Be cautious of making emotional decisions based on real estate news that may not apply to your situation. Make sure your strategy is data-driven and locally focused. Track mortgage rates to anticipate buyer activity. A significant drop in rates will create an influx of buyers and strengthen your position. Currently, inventory favors sellers. However, pricing should be competitive and avoid both over or underpricing. If you are selling and purchasing, strategize to weigh the benefits of sale timing vs. your needs as a buyer.

Shaun Higgins

Ben Coulter

James Thovson

BRIX St. Paul 1390 7th Street West St. Paul, MN 55102

BRIX Minneapolis 748 North 3rd Street, Suite 100 Minneapolis, MN 55401

BRIX Maple Grove 6885 Sycamore Lane N, Suite 105 Maple Grove, MN 55369

BRIX Burnsville 101 Burnsville Parkway, Suite 200 Burnsville, MN 55337

BRIX Stillwater 124 2nd Street, Suite 110 Stillwater, MN 55082

WHAT REALLY MATTERS?

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 9% over our competition.*

Whether you’re selling a home in the city or a home in the country, BRIX Real Estate will get you the most. * based on price per square foot, as of December 2022. 'Competition' defined as other brokerages that have a similar average sale price. All data pulled from MLS 1/1/2021 to 1/1/2022 in 13 county metro.