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SOUTHWEST EDITION • 2015

B U Y • BU I L D • L I S T • I M P R OV E

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2 | HOME 2015, Southwest Edition

‘Strong start to year’ sets tone for 2015

h e T w i n C it i e s regional housing ma rket st a r ted 2015 on an enthusiastic but not overly dramatic note, according to a February release from the Minneapolis Area Association of Realtors. Both seller activity and pending buyer activity increased relative to January 2014. Sellers introduced 4,497 new listings to the marketplace, 5.9 percent more than last year. Buyers entered into 2,986 purchase agreements, 7.8 percent higher than the pending sales count at this time last year. Inventory levels were lower, down 6.3 percent to 11,926 homes currently on the market. Many in the industry are expecting more inventory during the spring market—both in a month-tomonth sense as well as yearover-year. The median sales price rose 8.5 percent to $195,000, the strongest gain since last Febr u a r y. T hi s i ncre ase marks 35 consecutive months of year-over-year median price gains. Price per square foot — perhaps a more telling figure — rose 6.6 percent to $118. Absorption rates were dead-even with last January. Months supply of inventory was flat at 2.9 and still suggests the arc of the market

is bending toward sellers. That said, today’s landscape is slightly less competitive than in past months. Partly as a result, days on market until sale rose 7.5 percent to 100 days. Digging deeper, the trend of less foreclosure and short sale activity continued. Traditional pending sales rose a significant 21.9 percent, while foreclosure and short sale pending sales each fell about 25 percent. That changing mix of product has helped catalyze the nearly three straight years of price gains seen in the region. “Both buyers and sellers appear confident and energized and the traditional segment enjoyed a strong start to the year,” said Mike Hoffman, president of the Minneapolis Area Association of Realtors (MAAR). “The steady, ongoing improvement and normalization we saw in January could be indicative of the year as a whole but only time will tell.” Su r pr i si n g ly, i ntere st rates have again sunk below the 4.0 percent mark. Historically and persistently low mortgage rates tend to spur purchase demand. This highly attractive financing environment can potentially offset home price increases and also encourages renters

to consider homeownership. The Twin Cities housing affordability index of 206 remained stable. This means that the median household income was 106 percent higher than the necessary income needed to qualify for the median-priced

home under current interest rates. Another factor motivating home buyers is the dramatically improving jobs scene— both locally and nationally. In December, the Bureau of Labor Statistics reported that the Twin Cities again had the

lowest unemployment rate of any major metro in the nation at 3.3 percent. At 5.6 percent, the national rate is the lowest it’s been since June 2008. Private job creation is accelerating and figures from past months have been revised upward.

“Consumers seem excited about the upcoming spring market,” said Judy Shields, M A A R P r e s i d e nt - E l e c t . “Weather permitting, we’re expecting a strong turnout for both buyers and sellers. It shou ld b e a n excit i n g year!”

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HOME 2015, Southwest Edition | 3

HOUSE

hunters

Area Realtors  Greg Gilbert is with RE/MAX Results in Eden Prairie. Greg Gilbert

Kelly Arbuckle

 Kelly Arbuckle is with RE/MAX Advantage Plus in Chanhassen.  Joshua Ives is with Edina Realty in Chanhassen.  Shannon Thein is with Coldwell Banker Burnet of Wayzata.  Christy Schuler is with Chestnut Realty in Chaska.

Joshua Ives

Shannon Thein

 Nathan Haasken is with Chestnut Realty in Chaska.  Mike & Amy Ihrke are with Lakes Area Realty.

Chaska’s newest housing stock is going up along County Road 140.

 Wyn Ray is with Coldwell Banker Burnet in Chaska.

Christy Schuler

Nathan Haasken

FILE PHOTO BY MOLLEE FRANCISCO

Taking the pulse of the local housing market BY MOLLEE FRANCISCO mfrancisco@swpub.com

h at ’s t r endi n g ? W h o ’s buying? What properties are flying off the MLS? We asked a handful of local Realtors to share their insights on the current housing market in the southwest metro. Here’s what they had to say:

HOW IS THE REAL ESTATE MARKET DOING IN THE SOUTHWEST METRO? Joshua Ives (Edina Realty): Very well — 2013 and 2014 were very good for the housing market rebound. The end of 2014 slowed down and 2015 looks to have slight price increases and total listings on the market. If mortgage rates rise, as most think they will later this year, buyer demand will most certainly slow. The southwest metro is doing well, but other areas of the metro were hit much harder and have seen larger percentage price increases. This speaks to the aboveaverage stability of our area. Kel ly A rbuck le ( R E/ MAX Advantage Plus): The real estate market in the southwest metro continues to improve. We’ve seen a rise in median sales prices in both Carver and Scott counties. Carver County is showing a median sales price of roughly $261,500 — up by 3.5 percent in the last year. Scott County is showing a median sales price of $240,000, up 5.7 percent. The Twin Cities as a whole shows almost a 7 per-

cent increase with a median sales price of approximately $207,000. M ike & A my I h rke (Lakes Area Realty): Building continues and expansion is rapidly moving even further from the Twin Cities. Areas along Highway 212 are hotbeds for large developments and buyers are excited about the new options available to them. The expansion possibilities and continued supply of open land provides unique oppor tunities for growth that neighborhoods closer to the Twin Cities no longer have. Shannon Thein (Coldwell Banker Burnet): The biggest growth in Carver County comes in the $160,000$253,000 price range for single fami ly homes. P rices overall are up on average 1.8 percent. The average price per square foot of $117 is up 3.4 percent over the last 12 months. Prices for upper bracket homes ($400,000 and up) were flat overall in the past year. Scott County has seen slightly greater overall growth in the home market over the past year with a 5.5 percent increase. The strongest growth is in the $159,000 — $ 227,000 range. Townhouse sales are up over the past year and condos are down. Price per square foot is up 4.6 percent in the past 12 months in Scott County to an average of $113. Greg Gilbert (RE/MAX Results): The southwest metro market has had an early kick off to the spring market. If a home is clean and fairly priced, it will sell rather

quickly. Two factors are driving the market — Historically low interest rates and low inventory. Given the wonderful schools, parks and lifestyle of the southwest metro area, homes are selling much better than other parts of the Twin Cities. The southwest area is a great place to raise children.

WHAT KIND OF HOUSING ARE BUYERS IN THE SOUTHWEST METRO CURRENTLY LOOKING FOR? I h r k e : B uyer s i n t he southwest metro are loving the availability of new construction options. New neighborhoods are selling fast and build options give buyers an opportunity to put their own stamp on things. This is par ticularly true in the $ 300,000 — $ 500,000 range. We are also seeing lots of interest in town homes and condos as more buyers enter the market. Gi lber t : Buyers today are searching for well-maintained homes — single family homes, townhouse or condos. New construction is going to have today’s fashion. Existing homes need to have fresh decor and be clean to get top dollar. The foreclosure market has been reduced greatly with housing values moving up. Many owners who were “under water” just two years ago, can now sell without bringing a check to closing or waiting for their lender to eat any shortcomings in their mortgage. Ives: There are fewer investment/fixer-upper opportunities today with the im-

proved market. Single family properties have seen the most activity. New construction was hit hard, but has come back very strong in the west metro in addition to other areas of the Twin Cities. Christy Schuler (Chestnut Realty): Many buyers this year are looking for more space and a home that they can move into without having to do a lot of work. The pricing has been rising steadily over the past three years as the market continues to get stronger so the “good” buys on the fixer-uppers or investments are not as easy to find.

WHO IS BUYING? Thein: Buyers I have seen are empty-nesters looking to downsize. They don’t want a project. They want something that is updated and ready to move into. I also see first-time home buyers who are savvy and are looking to build equity for themselves and are willing to do a little work. Schuler: You have many first-time buyers still looking as well as move-up buyers that are wanting more space. We are finding seniors looking for that one-level living as well. Nathan Haasken (Chestnut Realty): I have been working with a lot of first-time homeowners and families looking to upgrade. The firsttime buyers are trying to take advantage of the low interest rates and are starting to understand home values are increasing. The families upgrading are also trying to take advantage of the lower interest rates especially now that a majority of them have

Mike & Amy Ihrke

equity in their current homes.

WHAT PRICE RANGE ARE BUYERS INTERESTED IN? Wyn Ray (Coldwell Banker Burnet): The recent lowering of FHA mortgage insurance will make the $ 225,000 to $ 325,000 price range much more affordable for 2015 firsttime home buyers. Move-up buyers are generally purchasing in the $325,000 to $425,000 price range because in 2015 many will be able to sell their houses, due to rising home prices. The low interest rates have made it more about the “monthly cost” versus the “price” when they decide to sell and purchase. Competitive jumbo loan products and rates are once again available and this has helped the $500,000 to $1,000,000+ priced houses sell. Haasken: Right now, the hot market are homes listed at $450,000 and under. That is the market area where a lot of first-time buyers and families looking to upgrade fall in line with financially. G i l b e r t : P r ic e s f r om $150,000 to $400,000 have been moving off of the market. Schuler: Pricing seems to be most desired under $ 250,000 as these are typically the first-time buyers or someone getting out of a townhome, but as spring approaches you will begin noticing that the move-up buyers will be selling their homes and looking at things under $500,000.

Wyn Ray

What features are buyers currently looking for in a home? What’s trending? Ives: Kitchens are still king. Granite, stainless steel appliances and an open concept are what most buyers want. More buyers are looking for an office space than I’ve seen in previous years. Arbuckle: Kitchens and baths are still important features for buyers. I find buyers who desire the open floor plans and not boxed-in spaces. Upper level laundry areas close to bedrooms are big hits with buyers, too. Storage and large closet areas are a must. Maintenance-free decks and fencing always get the thumbs up. H a a sken : Homes with private to semi-private views are in hot demand. Ray: Most homebuyers are following a new construction trend which is to build a smaller f loorplan. “Green” and “smart” home features are catching everyone’s attention, whether in new construction or existing homes for sale. I h rke : F i nished base ments are big, or at least open and relaxed entertaining space. Fireplaces are always a must. We are seeing families with an interest in spaces for the kids, sport courts, video game space. As spring approaches, outdoor living space will be huge. Porches, decks, fire pits, all a plus when looking for that perfect property.

4 | HOME 2015, Southwest Edition

Staged for

SUCCESS

The house you live in is not the house you sell BY UNSIE ZUEGE uzuege@swpub.com

ould you paint your door red i f some one told you it would sell your house faster? When it comes to selling a home, most people don’t realize the home that they live in is different from a home they’re trying to sell. Hiring someone with a fresh pair of eyes and a bead on what resonates with home buyers could mean the difference between a home selling within days, or sitting on the market for months. With kids growing up and moving out, wanting a smaller mortgage, and wanting to downsize in general, Greg and Linda Shifflett of Victoria have considered putting their house on the market. “We have been thinking of selling for a couple years now,” Linda Shiff lett said. “But we’d think about what we’d have to do to get the house ready. It’s always been a monu ment a l t ask wit h painting and dry wall. It was overwhelming, and we kept putting it off.” That is, until this past Christmas. “We decided to bite the bullet and start,” Shifflett said. “It’s a healthier real estate market, and when we bought our house nine years ago, it was at the height of the real estate boom, and then the recession hit. So this is finally the time that we finally sell and not give our house away.” The idea of hiring a stager to help them get their home ready for market didn’t occur to them until Shifflett visited her chiropractor. They had the most amazing decorations, Linda said, and asked who’d done it for

them. Mary Morley of Carver, who has a company called Creative Living Spaces, Shiff lett was told. Morley is a decorator, home and commercial office stager. And it turns out, Morley is someone Linda knew from church. W hi le Li nd a wa s c onvinced hiring a stager could help them prep their home for sale, her husband, Greg, wasn’t so sure. “My husband is such a skeptic about paying money for things like that,” Shifflett said, “but by the time Mary was done with our house, I was so tired of hearing him say, ‘Let’s see what Mary says.’”

MAKE IT MEMORABLE Realtor Cari Linn of the Walker Linn Company, Eden Prairie, does staging for her clients as it makes a difference, she said. Her clients come from throughout the southwest metro. “Staging helps set the palette of the home for the buyer and gives spatial dimension. It’s a way to separate your home from another. You want it to be memorable to the buyer. It’s tough to sell a house that isn’t memorable, that doesn’t have an emotional feeling to it. By staging, we hope to raise that, to make the buyer feel they would like to live in the house. “It’s not really the number of bedrooms and bathrooms that sells a home,” Linn said. “It’s how a house feels ... it starts at the front door, the path up to the front door. Is it clean and well maintained? It gives a buyer an idea of what they’re going to be looking at inside. You only have a few seconds to make that that first impression.” The seller doesn’t have to act on all the suggestions. “I never tell a seller they

PHOTO COURTESY OF HOME BY DESIGN

A staged family/great room helps create a warm and inviting entrance to the home. have to do anything,” Linn said. “We make suggestions — how to declutter, if you have to repaint, or re-carpet. Or they ignore suggestions completely.” Linn underst a nd s why some p e ople would resist. “It’s very overwhelming,” Linn said. “A stager tells you what to pack up or get rid of it. That for some people is paralyzing. And sometimes it’s not affordable. Some people are willing to change out counter-tops, for example, but not everyone can. “We try to show the home in its best light,” Linn said. “Staging is just a matter of putting on some makeup, making it look its best with whatever you’ve got. You live in a house one way; you sell it in another.”

A COHESIVE LOOK Stagers look at a home differently, agrees Realtor Bon-

Simple staging any home seller can do  In winter, keep all exterior sidewalks clear of snow and salted for safety, if necessary.  Keep the inside of home well- lighted; also make sure the exterior lighting is bright and welcoming to avoid having the realtor fumble with a lock box combination in the dark and cold of Minnesota evenings.  Place an extra rug directly inside the door for boots or shoes. Clients don’t want slush on the floor anymore than the homeowner, and an absorbent rug is really the best solution.  Exterior pots with displays of greenery, pine cones, dried flowers, etc. are always welcoming as well. --Realtor Barbara Swanson, RE/MAX Advisors West, Chaska

nie Willet of Coldwell Banker Burnet, Eden Prairie. She sells homes throughout the Lake Minnetonka and southwestern suburbs. “I work with stagers,” Willet said. “They truly help sell a home. We offer it as part of the selling of the house. We provide a consultation, and

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clients can choose to do all, or parts of it. They decide. Sometimes we stage the entire house; sometimes it can be as minimal as buying new towels for the bathroom, or new pillows or throws in the living room. Sometimes, there’s not enough personality in a home, so we give it some.

“I’ve had a house, after it was staged, sold in 11 days,” Willet said. “And furniture sells houses. If you can bring in different furniture that fits into the overall style of the home, it provides a more cohesive look for buyers. They get more of what they would see in model homes. The biggest thing, for stagers, is to get the homeowner to declutter, to put away personal things.

BARBIE’S DOLL HOUSE Morley has been staging homes since childhood, when she designed and decorated houses for her Barbie dolls, she explained with a laugh. She also has a real estate back g rou nd a nd severa l years ago became a certified staging professional. “You want to visualize the house as the buyer buy-

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HOME 2015, Southwest Edition | 5

PHOTOS COURTESY OF HOME BY DESIGN

The family/great room before staging.

STAGING continued from 4

ing into the house,” Morley said. “They’re buying space, so you make the house look as spacious as possible, and appealing for all eyes. “Not everyone likes animal patterns or hunting themes.” Morley uses items that homeowners already have, but will rent accessories if necessary. “I make a laundry list of what needs to come out,” Morley said about how she works. “It takes a couple stages, seeing what to move and do, paint, neutralize, then I come back put the jewels on — like new towels or linens.” W h i le h i r i n g a st a ger can cost out of pocket if the realtor doesn’t offer it as part of the service — Morley charges $ 250 an hour for a consultation — first

impressions are important, in everything. “ You pr ic e you r home at what your realtor tells you,” Morley said, “but when people buy it’s an emotional t hi ng. It h a s to fe el li ke home. The $2,000 to $ 5,000 you put into it (staging), you get back three to four times more in value. “First impressions are impor tant,” Morley said. “When I have to go into a home after it’s been on the market, that face has a lready been out there. People are shopping (for homes) on the Internet, using technology. So you have to be aware of what photographs well. Pastels don’t take good pictures. You need brighter colors, in accents, or pillows, pictures or lamps. You may not be a red person, for for selling a house, you make the change, and you get it back.”

PHOTO COURTESY OF GREG SHIFFLETT

Home stager Mary Morley, at right, with client Linda Shifflett, after she removed the clutter of wall art and a overwhelming table centerpiece. Then she added the “jewels,” which in this case were beautiful cloth napkins.

THAT VALANCE Back at the Shifflett home, Morley did an initial consultation and walk through. “The first thing she did was give us our marching orders,” Shifflett said. “And we listened because we knew she had a realty background. She made everything look simple and clean. The rooms looked bigger. It looks like a model home.

“She told us what color to paint the house,” Shifflett said, “the things to take down, and she had an amazing ability and confidence, after seeing our house for one time, of moving furniture around. “At first, I was like, no, it’s not going to work,” Shifflett said, about one such suggestion. “But afterwards, I thought, ‘Why hadn’t we had

it that way before?’ One suggestion was more difficult to take. “There were things I loved, but Mary pointed out they could be a deterrent to a buyer,” Linda said. Like what? “This valance I loved and my husband has always hated,” Linda said. “I thought it added color to the butler’s pantry, but Mary was very

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nonthreatening and noncondescending in explaining we didn’t need it. I finally said, ‘OK, I get it.’” Morley’s touches have prompted a change of heart, well, almost. “Even if we don’t sell our house,” Shifflett said, “we’re so excited by the way the house looks now. The value in what she’s done makes it looks so great.”

6 | HOME 2015, Southwest Edition

EDEN GARDENS HEADS DOWN THE

Green Path New Eden Prairie development the first of its kind

Above: The Eden Gardens home includes solar panels, but most green elements aren’t this visible.

BY KARLA WENNERSTROM editor@edenprairienews.com

d e n P r a i r i e ’s Eden Gardens is the first development-wide effort to reach the “Advanced” level of Minnesota Green Path Certification, said Matt Hanish, vice president of Homestead Partners. Homestead Partners is the developer and JMS Custom Homes is the builder for the new Eden Gardens, the green, midmarket neighborhood under construction in Eden Prairie. The first home in the Eden Ga rdens development, at 16416 Thatcher Road in Eden Prairie, is part of the Spring

PHOTOS BY KARLA WENNERSTROM

Eden Prairie’s Eden Gardens is billed as the first development-wide effort to reach the “Advanced” level of Minnesota Green Path Certification. Parade of Homes, which includes a Green Path Energy Tour.

Homes are open from noon to 6 p.m. Thursday through Sundaythrough March 29.

Hanish said that green building practices are becoming more prevalent, and are

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The Eden Gardens’ home kitchen. featured in this year’s Parade of Homes. He said that all the homes indicated as “Green” on the tour have reached at least the “Tested” level of Green Path certification. At the Eden Gardens home, one of the first things you notice are the solar panels, but Hanish said that, although all the homes will be solar ready and able to accommodate electric cars, most of the things that are “green” about the home aren’t that obvious. “There’s a perception by consumers that green means straw walls and a wind turbine on the roof,” he said. Hanish said that green development is more about the materials and construction, efficiently using the materials to eliminate waste and ensuring the energy efficiency will save the consumer money in the long term. “Every aspect of our market is pushing toward energy efficiency,” Hanish said. “This is the future.” The next two homes in the green, midmarket neighborhood were set to begin construction the first week in March. The approximately eightacre property along Highway 212, at the southwest corner

of Scenic Heights Road and Eden Prairie Road, was purchased by the city of Eden Prairie to be resold immediately to Eden Gardens LLC so the project could move forward. Plans call for 36 single family homes including 20 mid-market homes and 16 market-rate homes. The midmarket home cost limit is at $372,000. Every home will be built to Minnesota Green Path Adva nc e d C er t i f ic at ion . That testing and rating is done by a third party, he said. The landscaping includes plans for community gardens, rain gardens, pervious pavers and a green roof at the park shelter and solar lighting in the central park. Construction waste was to be sorted and recycled and lawns will use a low-maintenance grass blend. “We’re really hoping this type of community design will catch on and be prevalent in our market,” he said. “It’s an opportunity for buyers to live in an area that I think is the future of development,” he said. For more information, visit www.paradeofhomes.org.

HOME 2015, Southwest Edition | 7

FRESHENING UP BY AMANDA MCKNIGHT amcknight@swpub.com

itchens can be the runt of the l it t er when it comes to rooms in a house. They’re certainly no fun to clean – even with a dishwasher – and they are often small since most homeowners prefer the space in their homes be used for large living areas. But what if the kitchen could be your new favorite room in the house? According to Dan Jaskowick, owner of Cabinets by Dan in Savage, many people are making the switch to larger, more open kitchen designs that absorb the traditional dining room into the kitchen itself to form a multipurpose social hub in the house. “Typically the table and chairs are going away and they’re doing a big island with seating off that, whether it’s a club-shaped end or a thermometer-shaped end,” said Jaskowick. “The eating area that’s typically adjacent to the kitchen just gets absorbed into the kitchen. The island additions are probably number one by far when it comes to recent trends.”

Breathing life into the kitchen

Islands are a great addition to a kitchen not only because they add seating and increase the likelihood of your kids hanging out while you make dinner, but they also add multiple square feet of counter space for food preparation or even a buffet for a party.

BEVERAGE BAR For homeowners who love to entertain, adding a beverage bar is always a good idea provider there is space, said Jaskowick. “We’ll build coffee and wine bar areas with a builtin coffee maker and a beverage fridge,” he said. “So there’s kind of zones for these things sometimes instead of just having a regular refrigerator. “If you’re having a party, then people can gather at the beverage bar instead of being in the main fridge next to the stove and clogging things up.” Not that being a frequent entertainer is a prerequisite for having a beverage bar. Something as simple as keeping soda, wine and beer in a separate cooler could free up an entire shelf for actual food in the regular refrigerator. It’s all about keeping

Above: A kitchen before being remodeled by Cabinets by Dan.

Left: The same kitchen after being remodeled.

things user friendly for the owner of the kitchen, said Jaskowick. A nd when it comes to being user friendly in 2015, t here a re some f u n a nd unique possibilities. “Every kitchen is different, but we can radically change it within the same space,” said Jaskowick. “In every kitchen we do now, the bottom cabinets are all drawers and not shelves or doors. It’s more cost effective to buy two drawers than to have two doors with two

roll-outs inside. You end up with less usable space because roll-outs need to clear the hinges and doors,” he explained. “We always look for the best use of space.”

HIDE THE TRASH Another way to save space while also cleaning up the look of a kitchen is to hide the trash and recycling cans in a drawer next to the sink. Jaskowick said this is a standard design element in most kitchens now. Having

the sink, dishwasher, trash can and recycling all in a contained area makes dinner cleanup much easier. “It makes it very user friendly,” said Jaskowick. “Just scrape, rinse, load. It makes it very convenient.”

NOOKS AND CRANNIES The fun thing about kitchens, he said, is there are a number of ways to hide appliances or utilize nooks and crannies. “Instead of doing a microwave that opens in a

base cabinet, you can have a drawer that retracts with a button, and the sides are very short, so you don’t have to reach down into it to put a bowl of soup in,” Jaskowick explained. “It’s a way of hiding the appliance, and it’s a great way to make it more user friendly. “There’s so many things you can do nowadays to make you r kitchen user friendly, it’s crazy,” he said. “It’s more about how much you want to spend and can your kitchen accommodate it than anything.”

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8 | HOME 2015, Southwest Edition

Spring Parade of Homes underway 285  The Spring Parade of Homes is presented by the Builders Association of the Twin Cities and features 431 new homes to tour.

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 The tour runs through March 29, Thursdays through Sundays from noon to 6 p.m.

Eden Prairie

 All the homes are free to tour with the exception of three Dream Homes that each request a $5 donation to the BATC Foundation.  A guidebook provides complete information about the tour, including maps and photos or illustrations of all the homes, and is available, free of charge, at area Holiday Stationstores.  For more in-depth searches go online to www. ParadeofHomes.org.

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sponsored by Xcel Energy. Over half (236) of the Parade Homes have been tested by an independent energy rater to earn a HERS (Home Energy Rating System) and has its own Home Performance Report (HPR) that graphically explains the home’s HERS test results. The HPR allows homebuyers to compare the expected energy

use between homes. The lowest priced home is #65, at $142,100. The twob e d r o om , t wo -b at h t w i n home by BDM Construction, Inc., is located in Isanti. The most expensive home, #345, is constructed by M & M Home Contractors, Inc. The lake-front, Orono residence is priced at $2,500,000. There are a total of 41

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Eden Prairie Rd.

including maps and photos or illustrations of all the homes, and is available, free of charge, at area Holiday Stationstores. More in-depth searches and information about each builder is available online at www.ParadeofHomes.org. Online visitors can use t he T rip Pla n ner to map a route between selected home s (a nd l at er ac c e s s them via their mobile dev ic e ) , a n d f i n d i nt e r a c tive Personal Designers to change colors and finishes on a variety of photos, then save them to their own Idea Gallery to share. A kitchen focus in theguidebook editorial includes several photo pages of top kitchen style trends, counter top c a re tips, c abi ne try picks, plus the favorite at-home kitchen tool from seven top local chefs. T h e P a r a d e o f Ho m e s will once again feature the Green Path Energy Tour,

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he Spring Par a d e o f Home s , in its 67th year, i s pre sente d by the Builders Association of the Twin Cities (BATC) and features 431 new homes to tour, more than in any tour since fall of 2008. The tour runs through Ma rch 2 9, T hu rsdays through Sundays from noon to 6 p.m. A ll the homes are free to tour with the exception of three Dream Homes that each request a $ 5 donation to the BATC Foundation to enter. Spring Dream Homes are #116 in Stillwater by Hartman Homes and priced at $2,277,000; #268 in Minne apoli s by R id ge C re ek Custom Homes and priced at $1,849,400 ; and # 273 in Wayzat a by Ren ai ssa nc e Builders and priced at $1.5 million. A comprehensive guidebook provides complete information about the tour,

ENERGY

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This Eden Prairie home is one of 431 on the spring tour. homes priced over $1 million and 47 priced u nder $ 3 0 0,0 0 0. The total value of all homes on the tour is $253,321,730. Homes are located throughout the region, from the urban core Minneapolis (5), Edina (12), Bloomington

(3) and Golden Valley (3) to the outskirts of the region (Big Lake, Cambridge, River Fa l ls W I, Fa ribau lt, a nd Watertown). The suburban cities with the highest number of homes are Blaine (31), Lakevi l le (2 9 ), Ply mout h (24), and Woodbury (23).

Must haves for a comfortable move

hen pr eppi n g for the big move into your new home, it often seems like there aren’t enough hours in a day. With all the packing and planning, it’s easy to get lost in the midst of the chaos. But, there are a few surefire ways to make your move seem less like a full time job. “Moving into a new home is always an exciting experience, but one that requires quite a bit of planning.” said Robin Peterson, president of Coldwell Banker Burnet. “You can eliminate unnec-

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essary stresses by giving yourself enough time to get prepared and organized.” Here’s how:  Leave it: Don’t clutter your new home with old unused items. Take only what you need and give away, sell, donate or throw out the rest.  Take Matters into Your Hands: Don’t put all your faith in the movers to deliver your items in one piece. Pack a couple boxes of fragile or special items and take them to the new place on your own. Make sure to set them out of the way from all the action.

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 Plan a Few Days Ahead: Pack an overnight bag with all the basics you’ll need for a couple of days. Also, have several changes of clothes picked out so you can hang them up in your new closet right away. If you’re headed back to work the Monday following the move, or simply need to run quick errands, you’ ll have it handy and wrinkle-free.  D o n’ t Fo r g e t A b o u t Food: Box up your non-perishable items ahead of time, but save the refrigerated foods for last; use icepacks if needed. Make sure that your perishable foods are the last to be loaded on the truck, and the first to be taken out so you can stock up the fridge in the new place.  Supplies: Prep a bag w i t h cleaning supplies, p a p e r towels, toilet paper and o t h e r m u s t haves that you think y o u ’ l l need immediately, and bring it over in yo u r c a r with you.

HOME 2015, Southwest Edition | 9

Remodeling showcase set for March 27-29

n it s 2 8 t h ye a r, t he Builders Association of the Twin Cities (BATC) is presents the Parade of Homes Remodelers Showcase March 27 — 29. Visitors can tour 62 gorgeous remodeled homes from 52 professional remodelers on March 27 from 1 p.m. to 7 p.m. and March 28 and 29 from noon to 6 p.m. Entry to all the homes is free with the exception of one Dream Remodeled Homes that requests a $5 donation to support the BATC Foundation. Guidebooks are available at Holiday Stationstores featuring all 61 homes.

DREAM HOMES BENEFIT BATC FOUNDATION T he BAT C Fou ndation Dream Remodeled Home this spring is a lakeside residence in Chaska, #R20 by Xpand, Inc., that has been completely renewed for its homeowners. Visitors pay a $5 donation to tour, which helps the foundation continue to build and remodel homes for area families in need. Guidebook readers can also learn more about the BATC Foundation and two projects they will be completing in 2015 — a fully accessible home in partnership with Homes for our Troops, and a renovated

 The Spring Parade of Homes Remodelers Showcase is March 27-29, with 62 remodeled homes open from 1 p.m. to 7 p.m Friday and from noon to 6 p.m. Saturday and Sunday. A total of 52 professional remodeling firms are participating in the tour.  Online tour planning can be found online at www.ParadeofHomes.org. group home in partnership with Homeward Bound.

INTEGRATED ONLINE OPTIONS The comprehensive website at www.ParadeofHomes.org includes all the entries easily searchable on the map or by remodeler name or project type. The Trip Planner maps routes between homes, and interconnected company pages provide more information about the remodeling firm. The mobile site at m.Paradeofhomes.org is fully integrated with the full site, and lets smart phone and tablet users search for remodeled homes, learn more about remodelers and take advantage of the Trip Planner. You can also view the entire guidebook online by using our Digital magazine link on

the Parade of Homes website home page.

PROJECTS OF ALL TYPES T he r emo dele d home s on tour feature virtually every type of remodeling. Kitchens remain the most popu lar project, with a l l but five homes including at least some work in the kitchen. Visitors can see 18 additions, at least 22 baths, 17 family rooms, 11 whole house remodels and fou r teardowns. There are historic renovations and plenty of modern updates to tour, all featuring the latest and most innovative finishes, colors and styles.

REMODELED HOMES LOCATED ACROSS METRO Much of the Twin Cities is represented in this Spring’s Remodelers Showcase, with homes located in 27 cities across t he met ro region. T her e a r e 1 2 r emo dele d homes in Edina and seven in Minneapolis. Woodbury has five homes, Lakeville has four, while Bloomington, Plymouth and St. Paul each have three. Other remodeled homes are located in municipalities further from the center cities like Hudson, WI, Chaska, Blaine and Prior Lake.

COURTESY OF BATC

There will be 62 homes featured in the Parade of Homes Remodelers Showcase.

Chaska is location for Remodelers Showcase dream home

u ri ng each Re modelers Showc a s e t o u r, t h e Builders Association of the Twin Cities ( BATC) charitable arm, the BATC Foundation, selects one or two special Remodelers Showcase remodeled homes as Dream Remodeled Homes. The Parade of Homes Remodelers Showcase is from 1 to 7 p.m. Ma rch 27 and from noon to 6 p.m. March 28 and 29. The public is invited to help area families in need by visiti ng t hese homes, which require a $ 5 donation to enter. All proceeds help continue the foundation’s work building and remodeling homes for low-income or specially challenged Twin Cities’ families. All other Remodeled Homes are open for viewing at no cost. This Spring, the Remodelers Showcase Dream Remodeled Home is a gorgeous lake -side remodeled residence located in Chaska: What happens when you take a nice home overlook-

Remodelers Showcase Entry #R20 Xpand, Inc. 9336 Rhoy Avenue, Chaska Whole Home Remodel Lakeside Re-Awakening

ing Lake Bavaria and turn a good remodeler loose? In this case, a whole house remodel that adds more space for its active fami ly that flows better, creates outdoor l iv i n g to m a x i m i z e l a ke views, and freshens everything up with a distinctive new look.  Delightful exterior transformation using stone, shakes, new gable, and traditional details that turned ordinary into extraordinary.  Expanding the existing deck and adding a new screen porch with a vaulted ceiling and semi-octagonal design offer 180-degree lake views.  The new two-level sport court with vintage locker

room and adjacent exercise room ensures this active family can enjoy life in Minnesota year- round.  Confi guring a new garage entry with mudroom,

and moving the powder room created additional storage for convenience and opened up the revamped entry.  A new pantry for extra storage combined with a

facelift created a beautiful new look to the existing kitchen.  Xpand, Inc. brought t h e i r d i s t i n c t ive d e s i g n sense and attention to de-

tail throughout, making sure existing spaces feel like new again.  Family-owned business committed to top value and personal service.

10 | HOME 2015, Southwest Edition

Local Market Update – January 2015 A RESEARCH TOOL PROVIDED BY THE MINNEAPOLIS AREA ASSOCIATION OF REALTORS®

Eden Prairie

- 2.3%

+ 6.8%

- 12.3%

Change in New Listings

Change in Closed Sales

Change in Median Sales Price

January 2014

2015

New Listings

Closed Sales

Median Sales Price* Average Sales Price* Price Per Square Foot*

Year to Date +/–

2014

2015

+/–

-2.3%

+ 6.8%

$300,000

$263,000

-12.3%

$300,000

$263,000

-12.3%

$324,095

$321,041

-0.9%

$324,095

$321,041

-0.9%

$117

$132

+ 13.4%

$117

$132

+ 13.4%

93.7%

92.9%

-0.9%

93.7%

92.9%

-0.9%

Days on Market Until Sale

121

102

-15.7%

121

102

-15.7%

Inventory of Homes for Sale

265

252

-4.9%

Months Supply of Inventory

3.0

2.9

-3.3%

Percent of Original List Price Received*

* Does not account for seller concessions. | Activity for one month can sometimes look extreme due to small sample size.

2014

January 88

2015

-2.3% New Listings

Carver County

+ 6.8% Closed Sales

+ 34.3%

- 13.0%

+ 16.5%

Change in New Listings

Change in Closed Sales

Change in Median Sales Price

January New Listings Closed Sales

+ 6.8% Closed Sales

2015

-2.3% New Listings

2014

Year to Date

2014

2015

+/–

2014

2015

+/–

140

188

+ 34.3%

140

188

+ 34.3%

-13.0%

Median Sales Price*

$236,000

$275,000

+ 16.5%

$236,000

$275,000

+ 16.5%

Average Sales Price*

$329,155

$316,152

-4.0%

$329,155

$316,152

-4.0%

$121

$120

-0.6%

$121

$120

-0.6%

Price Per Square Foot* Percent of Original List Price Received*

94.9%

93.6%

-1.4%

94.9%

93.6%

-1.4%

Days on Market Until Sale

109

+ 14.7%

109

+ 14.7%

Inventory of Homes for Sale

452

516

+ 14.2%

Months Supply of Inventory

2.9

3.8

+ 31.0%

* Does not account for seller concessions. | Activity for one month can sometimes look extreme due to small sample size.

2014

January

2015

2014

Year to Date

188

2015

188

140

140 92

+ 34.3% New Listings

-13.0% Closed Sales

+ 34.3% New Listings

-13.0% Closed Sales

** Each dot represents the change in median sales price from the prior year using a 6-month weighted average. This means that each of the 6 months used in a dot are proportioned according to their share of sales during that period. | Current as of February 2, 2015. All data from NorthstarMLS. | Powered by 10K Research and Marketing.

HOME 2015, Southwest Edition | 11

Easing restrictions 2015 predicted to be a year of more flexible mortgage options BY MEGHAN DAVY meghand@weeklynews.com

he 30-year fixedrate mortgage has been below 5 percent for five years now, contributing to a spike in home affordability. It remained around 4 percent last year and industry experts don’t expect a rise of more than one percentage point over the course of 2015. In an effort to expand credit accessibility, Fannie Mae and Freddie Mac are reendorsing “3 percent down” programs for eligible borrowers with strong credit. Documentation requirements may be relaxing as well. Previously, borrowers were advised to arrive at meetings with lenders armed with two years’ worth of tax returns and W-2 forms, two months worth of pay stubs and bank statements, proof of any investment accounts, a letter from any prospective donors who may be planning to provide some funding for refinancing or a mortgage, and in the case of a refinance, proof of six months’ worth of mortgage payments. Now, most lenders are simply looking for pay stubs and W-2 forms, nixing federal tax returns.

LAST YEAR A year ago, self-employed borrowers often needed to present additional proof of income, credit history and other qualifications to be considered for a home loan, along with those seeking

“Building good credit can help you unlock the path to getting a car, starting your own business, and buying a home.” Gary Korotzer Wells Fargo large mortgages and those looking to settle or refinance in neighborhoods with pricier real estate, such as large cities and wealthier suburbs. Now, industry analysts recommend doing research and finding a lender that will understand individual histories and needs, whether they include unemployment, self employment or pay by commission. Additionally, borrowers looking to purchase real estate in pricier areas previously faced possible difficulties in securing a loan. Jumbo mortgages may require a high credit score — more than $ 625,500 in high-cost areas and $417,000 in other cases coupled with a large down payment — but are now comparable to conforming loans. Yet prospective borrowers with poor credit must

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take lending realities into account, as most mortgages still require excellent credit. While many lenders will allow a larger down payment to soften the blow of low credit scores, many borrowers who closed on mortgages backed by federal giants Fannie Mae or Freddie Mac had an average credit score of 755 to 850 last year; Borrowers working with the Federal Housing Administration (FHA) had an average score of 682.

GOOD CREDIT A KEY “Credit plays an important part in meeting your financial goals. Building good credit can help you unlock the path to getting a car, starting your own business, and buying a home,” said Gary Korotzer, leader of the Wells Fargo Consumer Credit Solutions Marketing team.

“There are many things you can do to make sure you start using credit wisely, including making payments on time — every time.” The industry began implementing harsher regulations on credit scores a couple of years before the market crash, and many in the industry blame those regulations for the sluggish housing market recovery. Even borrowers with near-perfect credit must practice calm, as new home purchases with a mortgage can often take about three weeks to close currently, and refinancing can take anywhere from 45 days to three months. “ T he pr o c e s s h a s i m proved from a year ago, but it is still labor intensive. Borrowers need patience and perseverance,” said Mike R ai mi, president of WCS

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Lending, in a 2014 statement.

LOW DOWN PAYMENT Still, it may be possible to get a mor tgage wit h a low down payment without relying on an FHA loan. Developed in the 1930s as part of Franklin D. Roosevelt’s New Deal, the program has generated more than 40 million loans since, and many go to first-time buyers. FHA loans allow borrowers to put down 3.5 percent of a home’s purchase price, and since the Recession have been a go-to for prospective buyers, particularly with poor credit. Yet a recent increase in FHA mortgage premiums for the life of the loan (which es-

sentially increase the loan’s interest rate by .5 percent) coupled with the relative ease with which lower loan limits have recently become available, is sending many cu r rent a nd prosp e c t ive borrowers shopping for the lowest down payment they can find. Organization continues to be the most basic tenant of loan qualification. Proof of steady income and dedication to timely bill payments, regular debt repayment and general financial responsibility will help plead a prospective borrower’s case to lenders, and can help ensure that a mortgage is eventually secured.

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12 | HOME 2015, Southwest Edition

Taking stock of recent real estate activity

wo steps forward, one step back. That’s how the 2014 housing recovery went in most local U.S. markets, according to an annual report of the Minneapolis Area Association of Realtors for the the Twin Cities region. It was another recovery year but not without its hurdles – some new, some familiar. Metrics like sales price and new listings showed improvement, while new home construction and inventory didn’t quite meet expectations. Though the rate of improvement is uneven across areas, price tiers and market segments, overwhelmingly encouraging data sets a positive tone for 2015. While that data confirms that recovery is still underway, it also suggests that the 2014 recovery was not as strong as in 2013. Moderate inventory gains meant less robust – yet still mostly positive – price growth. Since prices have risen, the affordability picture isn’t what it was in 2012 or 2013, though affordability remains above its long-term average. Factors such as inadequate mortgage liquidity, stagnant wage growth and student loan debt have served as impediments to both first-time and move-up buyers.

SALES Interest rates remained lower than most expected. That helped fuel buyer activity. In general, sales continue to skew away from the distressed segments and toward traditional sales. Overall pending sales increased 6.1 percent to 49,610 for the year. In 2015, watch for stronger seller activity to increase inventory levels, which could alleviate shortages in certain areas and segments.

LISTINGS Those shopping for homes saw their searches return fewer homes but listings of higher quality. With 11,822 active listings as of the end of 2014, consumers had 7.2 percent fewer options in 2014

than in 2013. Persistent price gains meant once-underwater sellers could finally list their homes, but it would be good to see more sellers finding the extra confidence to sell. Seller activity increased 2.3 percent to 73,768 new listings. Expect that to continue in 2015.

DISTRESSED PROPERTIES In almost every community, foreclosure and short sale activity is declining and is near multi-year lows. That’s a good thing, since these distressed

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product types sell at a steep discount to their traditional counterparts. In 2014, the percentage of closed sales that were either foreclosure or short sale fell 41.8 percent to 16.5 percent.

PROPERTY TYPES With boomers emptying their suburban nests and millennials having their own unique set of preferences, market activity can often vary by property type, but the prevailing trend in median sales

prices for both single-family homes and condos-townhouses was up – finishing 2014 with increases of 6.6 percent and 8.2 percent, respectively.

PRICES Prices in most areas have enjoyed another year of gains. The overall median sales price rose 7.2 percent to $205,739 for the year. Home prices should continue to rise in 2015 but perhaps at a tempered pace as the market approaches a natural balancing point.

Price gains should be more in line with historical norms in 2015.If the economic tailwinds stick around as they should, housing will get a boost in 2015. Qualified firsttime buyers need good jobs and access to mortgage capital. Watch for movement on housing finance reform. Rates should be stable until mid-2015, when the Federal Reserve is expected to raise the key federal funds rate. By almost all measures, the economic landscape has im-

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proved. Recent gross domestic product growth is rising at a 5.0 percent annual rate. The national unemployment rate is under 6.0, down from a 10year high of 10.0 in October 2009, and stocks are reaching all times highs. The deficit is down by two-thirds, gas prices are at multi-year lows and we’re in the midst of the largest stretch of job gains on record. Given all that, 2015 should hold much promise. Here’s to making the most of it.

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