Last week, Chase Bank (apparently of Manila) contacted me with the message that they were calling in "An attempt to collect a debt."  They alleged that they did not receive my mortgage payment. The payment is an electronic transaction that is set to occur monthly through my credit union (of course I'm not foolish enough to have an account with a bank). The first idiot was adamant that I needed to wire payment immediately, and that I had obviously not sent it yet. Up a level to a supervisor who told me that the electronic payment I had been making monthly was actually sent by my credit union through the postal service, and that the postal service probably lost it. I was told that it was absolutely not received. I was a deadbeat upon whom any allegation of payment made would have to be pr... 11/01/2011

New York Times reporters Jennifer Medina and Sabrina Tavernise wrote yesterday of the shifting patterns of American migration.  The article documents the lack of residential mobility among Americans since the beginning of the recession.  There is reason to believe that some of the immobility is due to the lack of employment opportunities in traditional big city centers of commerce and industry.  There is little reason for anyone to relocate in search of a job when few exist.  If the recession were to recede, and more employment opportunities return, it's likely that there would be an increase in migration, but only for the most transient of job seekers.  Homeowners who are surviving by keeping their lower paying jobs will not be in a position to seek out greater opportunities in other a... 10/28/2011

Housing start data was released a little over an hour ago, and September was up 15% to the highest level in seventeen months.  A fair number of the starts were multi-family construction, facilitating America's conversion to being a nation of renters.  This is probably good news for builders, and they certainly could use some good news.  It is, however, mixed news for homeowners who would benefit from inventory drawdown more than increased construction activity. There is something that just doesn't seem right about the immobility of homeowners today.  There are so many folks underwater that they have no traditional way to make the home upgrades that they want and feel that they need.  The three most common alternatives for homeowners who want to change homes are, forget it and stay where... 10/19/2011

The Apple Valley 2011 sales environment looks on track to exceed 2010.  According to data provided by the Regional Multiple Listing Service of Minnesota, Apple Valley, has 537 closed sales so far this year.  There are 96 accepted offers awaiting closing, which suggests that, with another two and a half months left, 2011 total units sold should easily exceed the 2010 total sales of 618.  There are 283 active home listings which calculates to about five months of inventory.  If you have a home to sell, the absorption rate, the calculation of the ratio of homes for sale compared to the number of homes sold, can help you form an expectation of the amount of time it will take to sell your home.  There were 349 homes listings in Apple Valley so far this year that have terminated, either becau... 10/13/2011

There are two broad groups of renters.  There are those who are trying to figure out how they're going to come up with the next month's rent payment, and there are those who are trying to figure out why they are still making a rent payment.  The first group have problems that real estate professionals may not be able to address.  This post is for the benefit of the second group.   You are making a monthly payment that will be consumed just in time for the next monthly payment.  You probably recognize the potential uptick in your lifestyle if you were to own your own home, but it's a really big commitment.  Times are uncertain, the economy is a little weird, etc.  You're doing OK paying your landlord's mortgage for him, and you're almost resigned to your environment in the land of the bl... 10/06/2011

Apple Valley market activity for the first three quarters of 2011 is similar to Dakota County tabulations.  According to data from the Regional Multiple Listing Service of Minnesota, Inc., There are 287 active residential real estate listings in Apple Valley with 515 closed sales, year to date.  Inventory is just over five months and a little lower than the overall Dakota County inventory which is closer to six months. The percentage of distressed property listings and sales are similar to the overall county numbers.  36% of the active listings are disclosed as distressed (either lender owned or potential short sales), and 45% of the closed residential sales this year were disclosed as distressed sales. There have been 346 cancelled or expired listings in Apple Valley this year.  If you... 10/03/2011

There are probably millions of homeowners who are living in a home that does not fit them.  They made a reasonable down payment when they bought their homes several years ago, and they have made all their payments on time.  The result of the housing crash has left them with a home that is worth less than they now owe, and that makes it difficult to buy a new home.  Payoff of the current mortgage plus a downpayment on a new home plus selling and moving expenses equals a hurdle just too high to make a switch.  If this description fits you, maybe you're content to remain where you are until the kids grow up and move out.  The growing pains of your current home will have healed themselves, and the place isn't awful.  It's just not what you want.  You may have felt this way for two or three ... 10/02/2011

Buying real estate to be used as a home is not primarily investing, it is purchasing a consumable.  We don't really invest in cars, boats, food, toilet paper, or a warehouse to store them and ourselves in.  We buy them so we can use them.  Just as most consumables depreciate over time, homes sometimes will depreciate.  Normally, we purchase consumables when we need them.  That is, unless they're on sale and we have enough extra cash or credit to stock up.  Most of us know that real estate is on sale right now, and a large portion of the sales this year were to investors.  If investors recognize that real estate is on sale, consumers should take a good look at what they're missing.  Maybe you're two bed condo or town house is adequate for now, and you aren't planning on expanding the fam... 09/27/2011

There are a lot of folks who want to sell their homes.  Many have been on market for the summer months with nothing to show for it but a fishbowl full of business cards left by buyer's agents during showings.  The listing is either expired, or soon to expire, and they are unsure of their next step. Maybe they will just re-list the home with the current agent.  That's the easiest course, since he's already asking for an extension of the listing.  No need to interview other agents and go through the paperwork needed to set things up.  Just sign one form and let things ride.  Well, unless there are substantial changes to the price, condition, or marketing, there will be no changes.  Better get a bigger fishbowl if you choose to continue with the same failed strategy. Maybe it would be bett... 09/15/2011

Independent School District 196 classes start in just a couple weeks.  The day after Labor Day, or the day after the State Fair ends, will once again mark the beginning of the countdown to June 8, 2012, the last day of classes.  The entire school calendar is posted online at the District 196 website.  Check it out here:  school calendar.  The school year is 174 days long for the students who are counting, and there are only two months, April and May, with more than nineteen days of classes. Plan your getaway weekends now if they include reservations of any kind.  The teacher convention break will be Thursday and Friday, October 20-21.  If you are planning a fall weekend, you are probably not the only one.  Likewise for the Thanksgiving, winter (including the federal designated holidays ... 08/21/2011

The end of summer brings the Minnesota State Fair, held annually on Labor Day and the eleven days preceding it.  From August 25 through September 5, this year, somewhere near 1.7 million people will attend the end of summer party which showcases Minnesota's agriculture, art, and industry.  If you've been there, you know that it is big and it has more than anyone can see in a day or two.  If you haven't had the pleasure of attending the fair, it would be worth a try.  You can divide the fair into a few general parts.  There's exhibits, fun stuff to do, entertainment, and food.  Exhibits range from commercial and corporate to livestock and environmental.  Entertainment is free except for grandstand features, and it has included past performances ranging from John Phillip Sousa to Christin... 08/18/2011

Just checked out my own home on Zillow and there was some surprising information.  Zillow managed to get the right aerial photo and street address, but not much else.  As of today, my home on eight acres is located on 2.59 acres and is worth $106,900.  I should really be calling the county assessor's office quickly.  I'm also mowing way too much grass. The home was worth a little more six months ago -- $365,000, and still more on January 1, 2010 -- $542,000.  There was a period of time between January 2010 and January 2011 when the Zestimate dropped to $154,000 before the rebound and subsequent slide to its current $106,900. Realistically, the house is worth somewhere between their high and low guesses. That's only a four hundred thousand dollar spread. Zillow's stock may be a winner, a... 08/02/2011

Home listings in Apple Valley, MN appear to be at a reasonable level.  According to Regional Multiple Listing Service of Minnesota data, there are currently 329 homes listed for sale in Apple Valley, with 159 classified as single family homes.  Since the beginning of 2011, 372 homes have sold.  Of that total, approximately 35% (131) were listed as lender owned property at the time of sale, and 11% (41) disclosed that they were possible short sales. With more than half of Apple Valley's home sales in the non-distressed category and a healthy number of YTD sales, it appears that the market is in fair condition and that it is very possible for a home owner who wants to move up or downsize to complete a sale with realistic pricing and time lines.  Homeowners everywhere have put their lifest... 07/30/2011

If you're thinking about selling your home, you probably have a lifestyle benefit in mind.  Maybe you want a smaller place because the nest is empty, or a larger place because the nest is full.  Maybe you're sick of winters and want to move to a sun state, or you want to go where employment opportunities are better.  maybe you just want to move to a nicer neighborhood with better schools, or less crime, or neighbors who actually mow their lawns and sleep at night.  There are all sorts of reasons that changing homes could make your life better. We have become accustomed to building equity in our homes through appreciation and debt paydown, and that has made a lifestyle upgrade easier.  Today, the value of our homes is not what it was last year, or a few years ago, and that increases the ... 07/17/2011

Home Staging Is Much More Than De-Cluttering and Moving Furniture - Part 4 Staging A Home - Minneapolis, MN This Four Part Series takes place in one home and I am highlighting the suggestions I made to the client in various rooms. Part 4: The Porch This porch was an addition; built around the original stucco exterior of the home. It looks out onto a stunning landscaped yard. Let's take a look. ERRrrrrrrrkkkkkkkkk......hold on! Is it the porch???     Let's check again......maybe we took a wrong turn.     Nope I think it's the porch but it sure is looking like an office to me. Pretty tough to sell a wonderful 4-season porch (a huge plus in Minnesota) when it isn't looking like a porch. Easy Home Staging suggestion: Stage it for it's original purpose.         That's it. No paint, no repair... 07/07/2011

There are a few things we may be able to learn about home buying from how we behave when gas prices change.  The spring gas price increases and home buying decrease of the last several years are mostly pertinent to investors buying stock in home building companies and commodities traders.  When gas prices spiked, we complained about having to spend so much, and we may have tried to curtail some of our driving time.  We still put gas in the tank when we needed to fill it, and we still used our cars and trucks to continue living our normal lives.  When gas went from $3.00 to $4.00, we didn't lose money when we filled the tank.  Neither did we make money when prices dropped below $3.00, as they did last year.  Home prices and home demand have dropped in the last several years, and that is ... 07/05/2011

Home Staging Is Much More Than De-Cluttering and Moving Furniture - Part 3 Home Stager Minneapolis, MN In this series I have been showing rooms in one home and explaining the suggestions I made in each room. Part 1 was the Family Room, Part 2 was the Living Room, and Part 3 now looks at the Dining Room. The suggestions for this room were simple. Simplify and Paint! The room had too much going on with the table and chairs, chairs in the corners, a huge hutch, a busy rug, and art work that was too small for the walls and not really "dining roomish". The furniture was all antique (table needed some repair) which can be beautiful but it sets a tone that isn't modern or one that a younger buyer can relate to. The original paint color was not doing much for the room as with the other rooms in... 07/05/2011

According to information gathered from the Regional Multiple Listing Service of Minnesota, Inc., the number of year over year total closed home sales has increased about 0.34% in these six selected cities which represent almost three quarters of all transactions in Dakota County.   Data from the entire county shows a drop of about 0.45% since last year.  Here are the individual year over year changes in number of sales through May 31: Apple Valley  (0.85%) Burnsville         2.39% Eagan                0.92% Farmington     1.01% Lakeville           (3.52%) Rosemount       0.48% What do these numbers mean for someone contemplating buying or selling real estate today?  Not much.  We may surmise that the market activity in Dakota County is relatively stable, with few changes in the number o... 06/22/2011

There are a lot of fence sitting homeowners who want to move to another home.  They may want to upsize, downsize across town or across country-size, but they are worried that they will lose money in the transaction.  The fear of financial loss is keeping them from making a decision that they feel would be of significant personal benefit to them and their families.  I understand the anxiety and hesitation, but don't feel that hesitation and indecision is of any benefit.  My investments include a position in a business development company, and the stock is down over 20% since I bought it.  I'm sitting on it partly because the dividend is double digit, and partly because I think it has a chance of going up in value.  The stock actually has a fair chance to post significant gains in the nex... 06/21/2011

In an interesting article in the Minneapolis Star Tribune this morning, Eric Wieffering does a nice job differentiating a bottom from a rebound.  He compares the dot com bottom and the bottom in tulip prices to an eventual housing bottom.  He makes a valid case for caution by anyone who expects the eventual end of home price deterioration to be followed by a rapid return to previous levels.  It's difficult to argue against his opinion. We are not going to run out of houses any time soon, no matter what the price.  Inventory, in most real estate terms, refers to the number of homes actively being marketed for sale.  The other way of looking at inventory is that there are probably more homes in this country than there are potential occupants, whether owners, renters, or squatters.  The ma... 06/05/2011