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Year: <span>2021</span>
Median price rises as buyers compete for scarce housing stock
MINNEAPOLIS (December 13, 2021) — Closed sales of residential homes were down 4.1% compared to November 2020, continuing a year-end cooling trend in the Minnesota housing market. In an indicator that buyers are still actively pursuing purchases, the median sales price rose 7.2% to $304,500. At the same time, days on market—the average time a property is available between listing and closing—shrank 13.2% to 33 days. New listings inched up 2.1% to 5,645 properties. Sellers remained in a strong position, receiving 99% of their asking price, a statistic that remains unchanged from last year. Overall, the number of homes for sale dropped 22.2% to just 9,355 units. This leaves just 1.2 month’s supply of properties on the market, down 20% from last November.
“November’s decline in closed sales marks a return to seasonal normality. Despite comparisons to the unusually high number of sales a year ago, this month’s closed sales reflect a healthy and robust market,” said Chris Galler, CEO of Minnesota Realtors. “Buyers are still highly motivated and willing to meet or exceed the asking price. Inventory is a persistent challenge, which is likely to continue tempering the market when the 2022 sales season gets under way.”
November year-over-year summary of key market indicators:
- Closed sales decreased 4.1% to 7,761
- Median sales price increased 7.2% to $304,500
- Average sales price increased 7.3% to $351,921
- New listings increased 2.1% to 5,645
- Pending sales increased 4.0% to 6,662
- Days on the market decreased 13.2% to 33 days
- Homes for sale decreased 22.2% to 9,355
Closed Home Sales Across Minnesota by Region
In December, closed sales declined in seven regions compared to a year ago, bringing Minnesota’s average to -4.1%. Bucking the trend, five regions reported increases, with two areas marking double-digit gains: Southwest at 15.5%, and Upper MN Valley at 13.3%. Southwest Central saw the largest decline with closed sales at -20.9%. Two other regions with significant declines were West Central at -16.2%, and South Central at -11.2%. See the chart below for more details comparing closed home sales for November 2021 to November 2020.
The seven-county Twin Cities region comprises Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties. The official Minneapolis-St. Paul-Bloomington metropolitan statistical area recognized by the Census Bureau consists of 16 counties, on which MAR & SPAAR local associations report.
A fresh coat of paint can cover a multitude of scuffs and revitalize even the dreariest space. For many new homeowners, painting is the first step in transforming a house into a home.
Of course, there’s a lot more to painting than breaking out the brushes and rollers. Choosing the right color scheme is key to creating a living space that reflects your taste and aesthetics while complimenting the character of your home. Here are some tips to help you get pro results from your DIY painting projects.
Study Your Space
Let the design, layout, and age of your home guide your color choices. A Victorian-era house might call for the vibrant colors of a 19th century “painted lady.” A sleek modernist structure could be better suited to muted shades with eye-popping accents. Be sure to consider the light, too. A wall of orange-peach coral in a bright, sunlit room will have dramatically different characteristics than the same shade in a room that relies on artificial light. The size and shape of each room also influences color. Small rooms tend to “shrink” when colors are dark, while wider more cavernous spaces can feel cozier and more intimate when painted with darker shades. And don’t forget to consider how the rooms relate to each other. Open-plan homes with less defined living areas require more tightly coordinated color palettes those with more enclosed spaces.
Choose Your Palette
Once you know your space, it’s time to find the colors that will define it. From Architectural Digest to Pinterest there are myriad sources to inspire you. Whether you tear pages from magazines or build a carefully curated folder of sources from the web, find color palettes that create the mood you want to cultivate in each room. Perhaps you like neutral tones with punches of color. Or maybe you lean toward bold contrasts. It’s worth taking the time to explore. The more precisely you pinpoint your preferences, the more satisfying the result will be.
Coordinate Your Fabrics
Before you run to the paint store with your color palette, be sure to consider the furnishings, rugs, and upholstery that will be part of the final mix. Do those powder blue curtains harmonize with the seafoam green you envision on the walls? Will the brown couch disappear into the maroon wall behind it? Is the finished room a warm and cozy nest accented with floral pillows and crochet blankets? Or perhaps you’ve chosen industrial grays and blacks to set the stage for a suite of mid-century modern furnishings with gleaming chrome accents. When you put it all together, the pairing of paints and textiles will exceed the sum of their parts, creating a mood and atmosphere that is uniquely your own.
Pop Your Colors with Accents
When thoughtfully deployed, accent colors pull a room together, unifying its range of colors and textures. When choosing accents, consider the hues in rugs, furnishings, and other textiles. Lifting one of those colors on to a wall can harmonize and fuse the most disparate elements. If your space is large and open, consider creating an accent from the palette of a neighboring area. Whether contrasting and bold, whimsical and playful, or tastefully understated, accents complete a space and set the tone for living in it.
Expand Your Color IQ
Just as the color spectrum contains a multitude of possibilities, there are nearly endless resources for learning more. This article from Houselogic is a good place to begin expanding your palette of knowledge. A Brilliant Way to Create a Color Scheme for Your Dream Home.
We are grateful and thankful for all of our clients, family, and friends!!
Looking for projects with a greater return of investments in your home? Here are 3 projects to that can boost the value of your home.
Improving Energy Efficiency
Installing a new smart thermostat, or switching to LED lights are a few simple improvements. Some other larger investments to look at are windows, furnace, and air-conditioning to help lower the heating and cooling costs for your home. improvements can vary widely.
Kitchen Updates
Simple projects in your kitchen could be painting the cabinets, changing out the hardware, or even installing a new faucet. If your looking at a larger investment, cabinets, a new island , and new appliances go a long way yo update to your kitchen.
Bathroom Updates
A fresh coat of paint, changing out the faucet, and adding new towels or rugs are simple updates for the DIYer. More expensive projects would be replacing the shower or floor tile, new cabinets, and changing out the toilet. Depending on the investment, it will go a long way to help transform the space.
Days on the market shorten as the median price rises on limited inventory
MINNEAPOLIS (November 10, 2021) — October closed sales dropped 16.2% compared to the previous October, marking a return to a more typical seasonal slow down across Minnesota. This shift was reflected in the number of homes for sale, which shrank 18.6% over last year, with just 11,696 properties on the market statewide. New listings sank 10.2% to 8,428. Overall, there was only 1.5 months of inventory available, down 21.1% from a year ago. Buyers who remained active continued to compete aggressively for homes, pushing the median sales price up 8.2% to $308,500. On average, sellers were receiving 99.7% of their asking price, an increase of 0.4% above last October.
“The extraordinary number of closed sales we saw in October 2020 was really a historic outlier. This month’s numbers are more closely aligned with expectations for the fall,” said Chris Galler, CEO of Minnesota Realtors. “Buyers who are still in the market are highly motivated to close, and willing to pay more. Interest rates remain low, so if the overall rate of inflation in the economy at large is kept in check, we will likely see resurging closed sales in the spring.”
October year-over-year summary of key market indicators:
- Closed sales decreased 16.2% to 8,713
- Median sales price increased 8.2% to $308,500
- Average sales price increased 5.8% to $354,686
- New listings decreased 10.2% to 8,428
- Pending sales decreased 10.6% to 7,994
- Days on the market decreased 23.1% to 30 days
- Homes for sale decreased 18.6% to 11,696
Closed Home Sales Across Minnesota by Region
The Minnesota real estate market slowed in October, with closed sales down in 11 regions compared to October 2020. Two regions, Headwaters and Northwest, marked single-digit increases, while the rest of the state saw double-digit declines. In three regions, the drop in closed sales exceeded 20%: Arrowhead at -23.5; North Central at -21.3; and Upper MN Valley at -21.2%. See the chart below for more details comparing closed home sales for October 2021 to October 2020.
The seven-county Twin Cities region comprises Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties. The official Minneapolis-St. Paul-Bloomington metropolitan statistical area recognized by the Census Bureau consists of 16 counties, on which MAR & SPAAR local associations report.
Buyers still chasing limited number of affordable homes
As the fall season arrived, September closed sales of residential homes in Minnesota declined 8.4% compared to last year. Correspondingly, new listings fell 8.5% over last year and pending sales were down 15.3%. Responding to the lean inventory, buyers competed for limited housing stock, reducing the average time homes stayed on the market to just 27 days, a 34.1% decrease over last September. Sellers received 100.4% of their asking price for homes, a 1.2% increase. The overall number of homes for sale shrank 19.8% to 12,618, and the months supply of homes was down 23.8% to only 1.6 months supply.
“Due to the extremely high number of closed sales in 2020, we’ve been expecting this year’s numbers to be lower for the last four months and the September numbers reflect that trend,” said Chris Galler, CEO of Minnesota Realtors. “So, while this year’s gains in closed sales may only be single digits, during a two-year period it’s been a gain of more than 20%, which is pretty astounding.”
Galler noted that looking back since 2019, the median home price has also averaged a double-digit increase, and continues to rise as demand outpaces supply.
September year-over-year summary of key market indicators:
- Closed sales decreased 8.4% to 8,997
- Median sales price increased 10.8% to $310,000
- Average sales price increased 10.0% to $354,426
- New listings decreased 8.5% to 9,957
- Pending sales decreased 15.3% to 8,050
- Days on the market decreased 34.1% to 27 days
- Homes for sale decreased 19.8% to 12,618
Closed Home Sales Across Minnesota by Region
Closed sales were down across the state with 11 regions reporting declines compared to September 2020. In five regions, declines were in the single digits, including the seven-county Twin Cities which was down -6.7%. Eight regions saw double-digit declines, with the greatest declines in: Northwest at -27.9%, West Central at -18.5%, and East Central at -16.7%. See the chart below for more details comparing closed home sales for September 2021 to September 2020.
The seven-county Twin Cities region comprises Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties. The official Minneapolis-St. Paul-Bloomington metropolitan statistical area recognized by the Census Bureau consists of 16 counties, on which MAR & SPAAR local associations report.
Minnesota is home to 3 of the top 50 best places to live, according to money.com. The website’s methodology for determining the 50 best places to live looked at population size, cost of living, diversity, health, and quality of life, among others.
Chanhassen was selected for the #1 spot because of its history with music (Prince/Paisley Park) and theater (Chanhassen Dinner Theater), and access to outdoor spaces (Minnesota Landscape Arboretum).
Coming in at #29: Woodbury, with its 3,000+ acres of parks, and its recent building spree of housing units and retail.
And at #32: Rosemount, for its small-town feel, parks, and community events, such as the Haunted Woods Trail.
View the full list here: https://money.com/collection/best-places-to-live-2021/
It’s unavoidable: winter is coming. The term “winterization” can be misleading since the hard work needs to happen in autumn! And while seasoned homeowners might know the ins & outs of winterization, first-time homeowners might not, so we compiled a helpful checklist of fall home to-dos to assist your clients through the yearly process:
- Rake up leaves
A fall classic. You can also mow your leaves instead of raking them and they will decompose and nourish your lawn over the winter! - Remove or cover your air conditioner
This is an easy one to forget but make sure to remove window units or place a cover on the outdoor unit. This will ensure they’ll stay in good shape during the long winter months. - Remove garden hoses from faucets
This should be one of the first on your to-do list. When freezing temps hit, the water can freeze, expand, and crack the faucet or pipes. - Keep out the critters
Take a tour of your home, look for any cracks that might let an unwelcome guest sneak inside. Seal any openings with spray foam or steel wool. - Clean out gutters
Clogged gutters can cause ice dams in the winter, so it’s important to clean out any fallen leaves, twigs, or other gifts from nature. - Check your furnace
Have a heating & cooling professional check and tune up your furnace for the heating season. It’s an easy way to make sure your furnace will be in tip-top shape for when it’s needed. It’s also a good time to replace the filter. - Inspect your roof
Your roof is the first line of defense in protecting your home, if shingles are missing or damaged, water can leak in during winter. - Check your snow blower & snow removal equipment
Check that your snow blower, shovels, & other winter maintenance equipment are easily accessible, so when the first snow comes, you’ll be ready! - Check your windows & doors
Look for any spots where air can escape. Apply caulk or weatherstripping to avoid chilly drafts! - “Fall”-proof your space
- Floors: Scan your floors and steps for any fall risks. Look for clutter, slippery stairs, or loose rugs. Where possible, add sticky padding to prevent slips.
- Activities: Do you have a daily routine? It might be helpful to put in grab bars in the shower, or a second handrail by the stairs.
- Lighting: Is your home bright enough to see any potential hazards?
- Leaving: Examine your outdoor paths and steps. Are there any broken steps or overgrown shrubs that might trip you up when leaving your home?
In the quest for more room, homeowners are rediscovering an overlooked space.
When it comes to home improvement projects, the attic is the final frontier. In fact, nationally, basement renovations far outpace attics. But in an era when buying a new home is more expensive and competitive than ever, many homeowners are looking to their attics for additional space. Whether you need a new home office or an extra bedroom, it’s cheaper to convert an attic than adding a new room from scratch.
Assessing Costs
That said, attic makeovers are not cheap. Although some DIYers can pull together a simple man-cave for around $5,000 to $15,000 (not including beer), professional renovations are considerably more. Home Advisor estimates that nationally, the average attic renovation costs about $50,000. Here in the Twin Cities, some design-and-build firms charge as much as $140,000 to $200,000 for premium builds, depending on the size of the space, complexity, and added amenities (a bathroom can tack on $20,000 to $30,000). So, whether hiring a firm or going DIY, there are many expenses to factor:
- Design and plans
- Pulling permits and inspections
- Site prep
- New framing (and demolition work if needed)
- Installing ducts and vents
- New HVAC system
- Building a dormer window
- Adding stairs
- New doors
- Wiring
- Lighting
- Insulation
- Drywall
- Flooring
- Millwork and finish
- Cleanup and waste removal
- Final inspection (required in some townships and cities)
Before You Even Think About Starting
Be sure to check your community’s building codes before launching an attic renovation. Zoning laws in some areas prohibit using attics as living spaces. If renovations are allowed, you may still have to obtain a building permit (these can be very expensive), especially if you are adding wiring or ventilation.
Renovate Your Attic in 10 (not so easy) Steps
- Design It
Hiring an architect to appraise the space and create a design is an investment that can save a lot of aggravation and costly mistakes. The architect can also help you map out the entire renovation process. - Clean and Inspect It
If your attic is already partially finished with a floor and walls, and is being used for storage, your first task is to clear it out. After that, inspect the insulation in the walls and beneath the floor, and determine its condition. If it’s compacted or damaged, you’ll need to remove and replace it. - Wire It
When you’ve got your permits in order, hire an electrician to install wiring in the walls and ceiling. - Light It
Your attic’s dusty, dim windowpanes might have worked fine when the space’s sole function was storage, but a living space needs more light. Depending on the room’s configuration, you could install brighter dormer windows or skylights.
Tip: If windows aren’t an option, build ceiling lights into your wiring scheme. - Ventilate It
If your attic does not currently have duct work, consult an HVAC specialist to see what it will cost to expand your system. More cost-effective options include baseboard heaters and a mini-split air-cooling system designed for individual rooms. - Subfloor It!
Most modern attics don’t have floors and are made of little more than joists and insulation. Building a thick subfloor provides the foundation for carpet or other finished surfaces like wood or tile.
Tip: A subfloor adds insulation value and reduces noise for the floors below. - Insulate It
If needed, replace and upgrade the existing insulation. Batt insulation with a vapor-retarding face is an ideal choice for attics because it is easy to install and can be layered where needed. - Drywall It
Who would think that sheets of cardboard and gypsum could so magically transform a space? This is the stage where your room really starts taking shape.
Tip: If you’re installing the drywall yourself, take a page from the pros and hang it horizontally. Although it takes more care and effort, it will minimize the number of seams you’ll need to mud over, creating a cleaner finish. - Paint It
Before you break out the color palettes, be sure to thoroughly prime the drywall. After that, pluck your favorite shade from the rainbow and put on at least two coats.
Tip: If the space is small and doesn’t have much natural light, go for lighter, brighter colors that open it up. - Floor It!
Lay down a classic look for your new home office with the warm glow of oak. Or indulge your inner hippie with a stretch of purple shag. It’s shag-a-delic baby! Whatever your taste or style, there are acres of floor options to choose.
Tip: If you like a quiet home, carpeting provides maximum noise reduction. Wood floors, on the other hand, can make every footfall sound like a tap-dance routine.
Learn More About Remodeling an Attic
Before you pick up a hammer and build your dream attic, pick up a pen and do some research. Here are a few helpful resources:
