Description: Acres: .45 | Beds: 4 | Baths: 2 | TFSF: 1,900+ | Garage: 2 | This rambler is located in a prime area in Minnetonka Schools near various shops, restaurants, parks, and more. The main level features 4 bedrooms and a completely updated full bath with modern finishes. The main level has excellent natural light, hardwood floors, a fireplace, large windows and walks out to the back porch area. The porch leads to a completely flat backyard. Enjoy convenient living in a nice Minnetonka neighborhood with a spacious basement that awaits your finishing touches!
Description: Acres: .19 | Beds: 2 | Baths: 2 | TFSF: 1,700+ | Garage: 1 | This home was completely rebuilt to 2018 codes by Pillar Homes and set in a prime location, a block from SLP High School. Interior updates include a new electrical system, plumbing system, heating system, a/c, water heater, water softener, drywall, doors, trim, flooring, carpeting, paint, completely updated bathrooms, a brand new kitchen with beautiful cabinets, a center island, stainless appliances, granite and more. Exterior updates include all new windows, doors and maintenance free siding.
Mortgage Rates: Mortgage rates continued to fall and currently sit at a 9 month low of 4.45% for a 30 year fixed, conventional mortgage.
The US Federal Reserve has done an about face as their sentiment has quickly shifted to a more dovish tone for interest rate policy in 2019 in the face of what appears to be the beginning a global, economic slowdown. The People’s Bank of China also appears to be reacting to that information as on January 15th, they launched a record liquidity injection into their economy equal to $83 billion US dollars. Both of the above mentioned actions signal a suppression of long term interest rates by central banks and governments, at least into the near future.
Home Builder Confidence: In January, the home builder confidence index received a small boost of 3.5% from 56 to 58.
Closed Sales: Closed sales in the Twin Cities fell 21% in December to a four year low of 3,725 closings. December is the Twin Cities’ slowest month so a decline was expected but closed sales were down 9% from December of last year.
New Listings: New listings fell 40% in December with 2,401 homes and condos hitting the market. That decline was expected and new listings were up 4% from December of last year.
Homes for Sale: The home inventory level in the Twin Cities fell 20% in December leaving 8,256 homes for sale. That is up 20% from December of last year but is still extremely low, historically and appears to be setting the stage for another move up in home prices when demand cyclically rises in the spring.
Median Home Price: The median home price in the Twin Cities fell 3% in December to $258,000 but is still up 4% year over year.
Pending Sales: Pending sales fell 25% in December with 2,933 homes coming under contract. A monthly decline like that was expected but pending sales were down 4% from December of 2018. That is the first time pending sales in the Twin Cities have fallen below 3,000 in any given month since 2014.
This concludes my insight for January. Please don’t hesitate to connect with me if you would like to discuss the market conditions in your particular neighborhood or price bracket and thank you for taking the time to watch this video.
Description: Acres: .21 | Beds: 3 | Baths: 4 | TFSF: 3,300+ | Garage: 2 | This luxurious, walkout end unit has windows on 3 sides and all living facilities on the main. The home is tucked into a private setting in a prime, quiet location. The main floor features high ceilings, a beautiful chef's kitchen, a wall of windows with nice views, a large master suite and high end finishes. The lower level features two more suites, large windows, a private entrance and plenty of entertaining space. Outdoor space includes a maintenance free deck, a lower level patio and lawn.
The Nick Leyendecker Team of Coldwell Banker Burnet, one of the Twin Cities’ top producing residential real estate practices, has become Leyendecker Realty, a full service independent brokerage. Leyendecker Realty will continue to serve the Twin Cities metro area from its headquarters in Minnetonka and will be led by real estate leaders, Nick and Sage Leyendecker.
The transition from real estate team to independent brokerage will allow the company and its employees to achieve new levels of growth while providing the autonomy they feel is needed to efficiently evolve with the ever-changing real estate environment.
“Our goal is to to raise the bar on the residential real estate industry and we are thrilled to launch Leyendecker Realty as our vehicle for achieving that,” said Sage Leyendecker, co-owner and operations director. “Our team has always had a reputation for high standards but we feel that operating independently will enable us to deliver an even better service, improve the lifestyles of our team members and open doors for future growth.”
About Leyendecker Realty
The Nick Leyendecker Team of Coldwell Banker Burnet has evolved to Leyendecker Realty, a full service residential brokerage. They represent buyers and sellers of real estate in the Greater Minneapolis and St. Paul metropolitan region.
Leyendecker Realty’s sales team is led by Nick Leyendecker, a 17 year veteran of the Twin Cities residential market. According to REAL Trends, Nick is ranked #25 (for 2016 units sold) and consistently ranks in the top 50 of the more than 18,000 licensed real estate agents in Minnesota. Nick is also a member of the Institute for Luxury Home Marketing’s ‘Million Dollar Guild’, a designation earned for his performance in handling properties valued at or above $1 million.
Mortgage Rates: Mortgage rates nationwide have retraced from 4.95% in mid-November, back down to a 3-month low as I record this of 4.63% for a 30 year fixed, conventional mortgage.
In his most recent speech, Fed Chairman Powell appeared more dovish with language that could be an indication of a slow-down in the Fed’s plans to normalize interest rates. They are meeting today, the 18th and tomorrow, the 19th and the minutes from those meetings will provide us with further insight into what they claim their plans will be. Those minutes will likely be released before this video is published.
From my perspective, by keeping interest rates at zero for 8 years and by massively increasing their balance sheet during that time, the Fed has created an economic environment that has them holding a double edged sword. Additional rate hikes and liquidations are likely to continue to be very bearish for equity markets but a premature ending of the tightening cycle is likely to be very bearish for the U.S. dollar and could also be bearish for equity markets as the Fed would essentially have to admit that the U.S. economy is not as healthy as they had previously thought.
Update on 12/20/18: The Fed did move forward with another rate hike on Wednesday and despite some dovish talk about reducing the number of rate hikes in 2019, they claimed to remain committed to shrinking their balance sheet by continuing to liquidate treasury bonds which sent stocks crashing and is likely to continue to put upward pressure on long term interest rates into the foreseeable future.
Home Builder Confidence: In December, the nationwide home builder confidence index fell another 6% to a 3 ½ year low of 56.
Closed Sales: Closed sales in the Twin Cities fell 12% in November to 4,653 closings. That was an expected decline for this time of year and closed sales are flat year over year.
New Listings: New listings fell 34% in November with 3,994 homes hitting the market. A decline that was expected month over month but new listings are notably up 13% year over year.
Homes for Sale: The home inventory level fell 15% in November leaving 10,268 homes for sale. That monthly decline was also expected but homes for sale are notably up 14% year over year.
The Median Home Price: The median home price in the Twin Cities remained flat at $265,000 which is pretty much in line with the cyclical trend.
Pending Sales: Pending sales fell 20% in November with 3,879 homes coming under contract. A monthly decline like that was expected but that pending sales are notably down 4% year over year.
This concludes my insight for December. Please don’t hesitate to connect with me if you would like to discuss the market conditions in your particular neighborhood and I thank you for taking the time to watch this video.
Description: Acres .59 | Beds: 3 | Baths: 3 | Sq Ft: 1,500+ | Garage: 2 | This newly updated and modernized home sits on a completely flat and massive lot with direct access to walking paths. The main level has vaulted ceilings with high quality finishes including brand new flooring, fresh paint, white enameling throughout, new granite counter tops, light fixtures, hardware and more! There are three bedrooms up including a spacious master suite with a private, full bath. Additional updates include a newer AC, roof, windows, water softener and water heater.
Description: Acres: .28 | Beds: 3 | Baths: 2 | Sq Ft: 2,500+ | Garage: 2.5 | With a prime location near Ridgedale and The Shops at West End, this rambler sits on a flat and fenced lot in a quiet neighborhood two blocks from trails, bike paths and Willow Park. The main level has a spacious kitchen, hardwood floors, all three bedrooms and walks out to a patio and landscaped backyard. The detached, over-sized 2 car garage has additional space and a connected workshop that was completely updated in 2012 with new subpanel electrical, flooring, walls, insulation and lighting.
We are proud and grateful to have been able to organize and volunteer at an arts and crafts event today at Suite Living Memory Care & Assisted Living in Vandais Heights, MN.
A big thanks to our friend, Audrey McElwain at Suite Living for helping us put it together. Their facility and staff are excellent and the people we had the pleasure of visiting with today were so beautiful and special!
Home Builder Confidence: In November, home builder confidence nationwide fell 12% to 60 which is a two-year low. That is the largest decline in home builder confidence since February of 2014. Aside from February of 2014, the only other time that home builder confidence has fallen that significantly in a single month was in October of 2001, due to the attacks of 9/11. (source) (chart)
While anything above 50 is still considered a positive rating, the market has been showing signs of stretched affordability and the dynamic of pinnacle home prices combined with rising mortgage rates has begun to create some uncertainty among the home building community.
Mortgage Rates: Mortgage rates continued upward volatility in October with the average for a 30-year fixed conventional mortgage ranging from 4.7% to 4.9%. In November that upward volatility continued as that rate has hit a new 7-year high two weeks ago of 4.95% but then pulled back last week to 4.81%.
As of their last meeting, The Federal Reserve remained committed to another rate hike in December and continued liquidation of their bond position. So long as the Federal Reserve remains committed to tightening while the U.S. government continues to borrow to finance deficit spending, I expect this upward pressure on long term interest rates to continue.
Closed Sales: Closed sales were up a marginal 2% month over month with 5,265 closings in October but were still down more than 20% from August. That is up 4% year over year and up 13% from five years ago.
New Listings: As expected, new listings were down another 12% in October with 6,012 listings hitting the market. That is a 9% increase year over year and down 3% from five years ago.
Homes for Sale: The home inventory level finally fell in October after a 9 month incline. We ended October with 11,785 homes for sale. That is down 9% month-over-month but up 2% year-over-year. Overall inventory is still down 30% from five years ago.
The Median Home Price: The median home price in the Twin Cities was up a marginal 1% month over month in October but remained in a downward trend from August. That is up 8% year over year and up 36% from five years ago.
Pending Sales: Pending sales, a leading indicator for future closings and have been predictably in decline since May due to the seasonal downturn in market activity. In October, 4,771 homes came under contract which is down 1% month over month, down 1% year over year and up 10% from 5 years ago.