Our Twin Cities Real Estate Blog

April 8, 2021

Just Listed: 5098 93rd Lane N, Brooklyn Park, MN 55443

Active | List Price: $399,900
Turn-key, 2019 End Unit Townhome

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Description: Beds: 3 | Baths: 4 | Sq Ft: 2,200+ | Garage: 2 | This turn-key, 2019 townhome is an end unit, privately situated in an end building of this development. This home features a front and back yard and has sunlight pouring through windows on three sides of the unit. A bright and open layout offers modern finishes, a gas fireplace and smart home technology including a Ring Doorbell and a security system. The kitchen features dark stained cabinetry, quartz countertops, a subway tile backsplash and a spacious center island with electricity and storage. There are three bedrooms and laundry upstairs including a large owner’s suite with two walk-in closets and a spacious, private bathroom featuring a double vanity and separate tub and shower. The lower level offers extra storage, a family room, ¾ bathroom and walks out to the 2-car, insulated garage. This development has sidewalks throughout and is located near Noble Sports Park, the grocery store, gas stations, coffee shops, multiple restaurants and has quick and easy access to 610.

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For more information or to arrange a private showing of this listing, email or call us today at 612.888.HOME (4663).

Posted in JUST LISTED
March 24, 2021

Under Contract: 13718 Coyote Court, Minnetonka, MN 55305

Under Contract | List Price: $1,399,900
Custom, Walkout 2-story by Gonyea set on a Premium, Cul-de-sac Lot with Breathtaking, Sunset Views of the Cullen Nature Preserve

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Description: Acres: 5.9 | Beds: 5 | Baths: 5 | TFSF: 4,800+ | Garage: 3 | This custom 2-story by Gonyea is intelligently designed and loaded with high end finishes. The home is set on a premium, walkout lot in a quiet cul-de-sac with breathtaking nature and sunset views. Walk to Meadow Park or the Minnetonka Loop Trail and enjoy quick access to 494 and Ridgedale Mall. The main floor is bright and open featuring floor to ceiling windows, crown molding, hardwood floors, natural wood beams, coffered ceiling accents and more. The impressive chef’s kitchen features high end, stainless appliances including two ovens, a 6-burner gas stovetop, a large farm sink, ornate tile backsplashes, floor to ceiling cabinetry, quartz and quartzite countertops, a spacious storage pantry and a butler’s pantry with wine fridge. The upper level features 4 bedrooms all connected to bathrooms including a luxurious owner's suite and upper level laundry. The lower level is also bright and open featuring 10' ceilings, a full wet bar and walks out to the private backyard.

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For more information or to arrange a private showing of this listing, email or call us today at 612.888.HOME (4663).

Feb. 19, 2021

Twin Cities' home prices are set to explode during the spring of 2021

By Nick Leyendecker, Co-Founder | Broker | REALTOR®

You can track Twin Cities housing market data here. You can track mortgage rates here. You can track home builder confidence here. You can track showing activity here.

As the U.S. dollar continues to devalue, the setup heading into the spring housing market has never been more favorable for existing home sellers in all segments, with the exception of upper bracket homes (inner city) that are being negatively impacted by pandemic induced migration patterns.

Let’s break break down the dynamics.

Record Low Home Inventory: Thus far, the pandemic has put downward pressure on new listings which has exasterbated what were already record low levels of housing inventory. We are now heading into the 2021 spring market with only 4,900 homes, condos and lofts for sale in the Twin Cities which is 43% lower than the 8,400 units we had heading into the 2020 spring market and 38% below the previous record low from 2018.

Record Low Mortgage Rates: The Federal Reserve’s immediate response to the pandemic has been the same response they have had to all other negative economic data over the past 12 years, print more money and buy up more long term debt. During 2020, the Federal Reserve bought $1 trillion of US mortgage backed securities which sent mortgage rates (which were already at record lows) plunging to new record lows. We are starting the spring market with the national average for a 30 year fixed mortgage at 2.7%, about 23% below the 3.5% rate we had heading into the 2020 inflation cycle. Falling mortgage rates and increased mortgage liqudity spur demand by increasing affordability and by pulling some demand from the future to the present.

New Construction Price Increases: With no end to the expansion of the money supply in sight and with the reduction in productive capacities around the world from pandemic related government restrictions (more money chasing fewer goods) commodities are dramatically inflating. While there are a wide number of raw materials involved in the construction process, the commodity most specifically related to building homes is lumber. Lumber prices have tripled over the past 12 months which has forced builders to increase their base prices approximately 5% +/- to start 2021. The rising price of competing new construction is alleviating some inventory pressure in the newer home market which is helping to lift prices for existing homes that are actively competing against new construction.

The Median Home Price: We began the 2020 selling season with less favorable inventory, less favorable mortgage rates and lower construction costs, yet the median home price moved up 17% during the upward cycle. During this past winter, the median price has only corrected 4.4% from $315K to $301K in February which is where we begin the 2021 upward cycle. Given that the current setup is even more favorable, I could see the median home price rising more than 20% in 2021.

There are many home sellers who opted out of selling in 2020 because of the pandemic. If enough of them choose to sell in 2021, that additional inventory could cool down the rate of inflation but even with that extra inventory, I forecast the median home price in the Twin Cities will gain at least 15% in 2021, likely pushing above the $340k level.

Home Builder Confidence: Over the past three months, the NAHB housing market index has fallen marginally from 90 to 84. Home builders site affordability concerns from inflating construction costs as the primary concern. Here is a link to the data.

That concludes our Twin Cities housing market insight for February of 2021. Please don't hesitate to reach out to us if you would like to go more in depth on a particular market segment or dive into the current fair market value of a property you own or manage.

Posted in Market Insight
Dec. 29, 2020

Home inventory in the Twin Cities has just fallen to a new historical low, mortgage rates fall further

You can track Twin Cities housing market data here. You can track mortgage rates here. You can track home builder confidence here. You can track showing activity here.

Twin Cities Housing Market: December - 2020

One of the three primary impacts that the pandemic has had on the Twin Cities housing market (besides record low mortgage rates caused by monetary intervention and waves of migration from the city to the suburbs) has been a reduction in the volume of new listings, as fear and/or economic uncertainty has caused many people who were thinking of selling or moving in 2020 to put things on hold. With that side effect of the pandemic exacerbating the already seasonal trend of declining inventory, the number of homes for sale in the Twin Cities metro has just fallen below 7,000 units for the first time in recorded history.

Mortgage rates have been steadily declining since November of 2018 and have fallen 50% over that time. If that trend continues, the market is set up for another massive move up in housing prices when demand trends back up in the spring of 2021.

Mortgage Rates: Mortgage rates in the U.S. continued to trend downward through November and December and currently sit at a record low of 2.67% for the average 30-year fixed mortgage.

Home Builder Confidence: The NAHB housing market index in the US fell to 86 in December of 2020 from a record high of 90 in November and compared to forecasts of 88. “Housing demand is strong entering 2021, however the coming year will see housing affordability challenges as inventory remains low and construction costs are rising,” said NAHB Chairman Chuck Fowke.

Closed Sales: The Twin Cities market had 5,658 closings in November which is down 20% month over month but up a whopping 19%, over November of 2019.

The Median Home Price: The median home price fell 2% to $310,000, for closed sales in November. That is up a massive 11%, year over year and up 43% over the past 5 years.

New Listings: 4,061 new listings hit the market in November. That is down 42%, month over month, but still up 2%, year over year.

Homes for Sale: Housing inventory continued to decline in November as the month ended with a record low, 6,770 active listings. That is down 22%, month over month, down 37%, year over year and down a whopping 53% from the inventory level 5 years ago.

Pending Sales: Pending sales volume continued to slow in November with 4,669 homes, condos and townhouses having fallen under contract in November. That is down 27% month over month but still up 14%, year over year.

Showing Activity: Showing activity returned to normal in June and is now almost perfectly mirroring year over year trends.

By Nick Leyendecker, Founder | Broker | REALTOR®

Posted in Market Insight
Dec. 29, 2020

Just SOLD: 13077 Coral Sea Court NE, Blaine, MN

SOLD | List Price: $520,490
New Construction by Capstone on a Gorgeous Lot

We represented the buyer of this property which sold for $520,490 and closed on 12-18-20.

Description: Acres: .45 | Beds: 5 | Baths: 4 | Sq Ft: 3,400+ | Garage: 3

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To schedule a free equity analysis email or call us today at 952.222.SOLD (7653). 

Posted in JUST SOLD
Dec. 16, 2020

Just SOLD: 3411 Pierce Street NE, Minneapolis, MN

SOLD | List Price: $349,900
Beautifully Updated Charmer across from Cavell Park in the Walk-able Waite Park Neighborhood

We represented the seller of this property which sold in 4 days for $360,000 (103% of list price) and closed on 12-15-20.

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Description: Acres: .11 | Beds: 2 | Baths: 2 | Sq Ft: 2,400+ | Garage: 1 | This turnkey, Waite Park home has been meticulously cared for and significantly updated by the current owners. The home is a modified two-story with cape cod charm, set on a beautifully landscaped lot right across the street from the sport courts and playgrounds of Cavell Park. The location is walk-able to coffee, restaurants, golf, hiking/biking paths and more. The main floor is bright and spacious featuring modern finishes, re-finished hardwood floors, crown molding, a large eat in kitchen addition and walks out to a thoughtfully designed, private backyard patio space that interacts perfectly for indoor/outdoor entertaining. The upper level features full ceiling height, an office, a full bathroom and two bedrooms including a primary with a walk-in closet and private deck. The lower level is great for entertaining with a large family room and built-in bar. Some additional updates include hardware, light fixtures, carpet, paint, windows, furnace, A/C, maintenance-free siding and more.

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To schedule your free equity analysis email or call us today at 952.222.SOLD (7653).

Posted in JUST SOLD
Nov. 24, 2020

The seasonal slowdown has finally begun, but it is different this year, as the pandemic continues to cause distortions in the housing market

Twin Cities Housing Market: October + November - 2020

You can track the Twin Cities housing market data here. You can track mortgage rates here. You can track home builder confidence here.

The median home price held at a record high of $315,000 in October while mortgage rates continued to fall, inventory continued to hit record lows (seasonally adjusted) and home-builder confidence almost jumped off the chart to set another record high.

So far, the pandemic and the government and central banking responses to the pandemic have caused housing market distortions in three primary ways.

1) Record Low Mortgage Rates: In March, the Federal Reserve launched an unprecedented expansion of their balance sheet buying up long term debt pushing long term interest rates (which includes mortgage rates) to all-time lows which has boosted the affordability of mortgage debt, spurring demand.

2) Waves of City Dwellers Moving to the Suburbs: Both the reduced desire for and the reduced availability of city activities such as the arts, sporting events, night clubs, restaurants, live music, etc. has reduced the usefulness of living in the city. The work-from-home phenomenon has significantly reduced commuting frequency which has also reduced the relative usefulness of living in the city. The stay-at-home and socially distance culture has pushed people outdoors. Since city properties tend to be smaller lots of between .1 and .2 acres or condos with zero land, people have been looking to the suburbs where lots tend to be larger and where there is more space to be socially distanced. This wave has caused the suburbs to receive a relative boost and the inner-city neighborhoods, especially downtown and Minneapolis Lakes, to take a relative hit.

3) Downward Pressure on Inventory: The fear of virus transmission and just the overall concern over moving amidst a pandemic have caused people to postpone moving which has put downward pressure on the already low inventory level.

Analyzing the Monthly Data

Mortgage Rates: Mortgage rates in the U.S. continued to fall into record low territory through October and November and currently sit at 2.84% for the average 30-year fixed mortgage.

Home Builder Confidence: The NAHB housing market index in the US increased to an all-time high of 90 in November 2020 from 85 in the previous month, and above market forecasts of 85. The construction market has been supported by record-low mortgage rates and higher demand for suburban houses as people are moving away from big cities due to the coronavirus pandemic.

Closed Sales: The Twin Cities market had 6,244 closings in October which is down 10% over the past two months but up a whopping 14%, year over year.

The Median Home Price: The median home price moved back up to $315,000 for closings in October  after a slight dip to $310,000 in September. That is up a massive, 13%, year over year and remains a record high for the Twin Cities marketplace.

New Listings: 6,765 new listings hit the market in October. That is down 15%, month over month, but up 15%, year over year.

Homes for Sale: Despite the strong seasonal listing volume, the home inventory level continued to decline in October as the month ended with only 8,068 active listings. That is down 14%, month over month, down 35%, year over year and down a whopping 47% from 5 years ago.

Pending Sales: Pending sales volume continued to slow through September and October with 6,174 homes, condos and townhouses having fallen under contract in October. That is down 16% over the past two months but still up 20%, year over year.

Showing Activity: Showing activity overall has returned to normal and is now almost perfectly mirroring year over year activity. https://www.showingtime.com/impact-of-covid-19

Mortgage Delinquency in the US: Because there is a moratorium on foreclosure currently in place, delinquent owners are not currently being forced to catch up on payments, refinance or sell. Until that moratorium expires, it will be difficult to derive anything specific from the delinquency data, so we are going to suspend our reporting on mortgage delinquency until the information becomes more relevant.

So long as the cost of taking on mortgage debt continues to fall, the ease of taking on mortgage debt continues to expand and home prices continue to rise, delinquency is not likely to evolve into a foreclosure crisis, as people will continue to have the option of refinancing (given higher values and lower rates) or selling to capture equity. In the event that home prices stop rising in a meaningful way, mortgage rates start rising in a meaningful way, lending standards begin to tighten in a meaningful way, or any combination thereof, the risk of a foreclosure crisis will be back on and we will resume analysis of mortgage delinquency data.

By Nick Leyendecker, Founder | Broker | REALTOR®

Posted in Market Insight
Nov. 23, 2020

Just SOLD: 1950 Bluestem Lane, Shoreview, MN

SOLD | List Price: $219,900
Turnkey Unit in the Beautifully Landscaped, Maturely Wooded Village at Rice Creek Community

We represented the seller of this property which sold in 3 days for $224,000 (102% of list price) and closed on 11-20-20.

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Description: Beds: 2 | Baths: 2 | Sq Ft: 1,600+ | Garage: 2 | This turnkey unit is set in the beautifully landscaped, maturely wooded Village at Rice Creek community which is walk-able to the extensive Rice Creek Regional trails and off-leash dog park with quick and easy access to 35W. The bright and spacious main floor walks out to a charming, private patio space and features a half bath, convenient under-stair storage/pantry space with built-in shelving and a large kitchen featuring a center island and breakfast bar open to the living and dining room spaces. The 2-car garage is insulated, finished and freshly painted. The upper level offers a spacious owner’s suite with a ceiling fan, 2 large closets and a walk-through, luxurious bathroom featuring a double vanity and separate jetted tub and shower. Laundry is conveniently located on the upper level along with a large loft area and second bedroom. All the walls and ceilings have fresh paint and brand new carpet is scheduled to be installed prior to closing.

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To schedule your free equity analysis email or call us today at 952.222.SOLD (7653).

Posted in JUST SOLD
Nov. 10, 2020

REAL Trends 2020: Nick Leyendecker ranked among the top 50 residential agents in MN

FOR IMMEDIATE RELEASE

Contact: Steve Murray - (303) 741-1000 - smurray@realtrends.com

November 10, 2020, Minnetonka, MN

For the fourth consecutive year, Nick Leyendecker was named one of America’s most productive sales associates as a part of “America’s Best Real Estate Agents”, a ranking report produced by REAL Trends and Tom Ferry International.

Once again, Nick achieved remarkable results for his clients. During 2019, he sold 56 properties representing a total sales volume of $22.5 million, ranking him #33 among Minnesota's 18,000+ residential real estate agents for sold volume. 

As he has in the past, Nick substantially outperformed the overall real estate industry. His average sales price to list price ratio in 2019 was 101%, compared to the average of 99.8% for all real estate brokers in the 13 county Twin Cities marketplace. His average days on the market in 2019 were just 13.9, three times faster than the industry average of 49 days. On average, he is selling his listings faster and for more than the asking price; therefore, people who list their homes for sale with Nick are walking away from their closing with more money, and more quickly, than other sellers.

REAL Trends America’s Best Real Estate Professionals ranks over 14,500 residential real estate professionals solely based on their excellence in real estate sales during calendar year 2019. All production numbers are independently verified by a third party to ensure accuracy and report integrity. This group of highly successful real estate sales agents represents the top 1 percent of all real estate practitioners in the United States.

“Congratulations to Nick who made the America’s Best list,” says Tom Ferry, owner and founder of Tom Ferry International. "I have the pleasure of working with successful real estate professionals, day in and day out, and I know all the hard work, late nights, and huge effort that goes into achieving such incredible results," says Ferry. “There are multiple ways to become successful in real estate. Yet, despite the differences, the real estate professionals on this list have one thing in common—they are simply the best. Congratulations to all recipients of this prestigious recognition.”

The America’s Best are ranked in twelve categories:

By Transactions
Agent-owned brokerages by Transaction Sides
Individuals by Transaction Sides
Teams, Small (2-5 licensed members) by Transaction Sides
Teams, Medium (6-10) by Transaction Sides
Teams, Large (11+) by Transaction Sides
Team-owned brokerages by Transaction Sides

By Volume
Agent-owned brokerages by Volume
Individuals by Volume
Teams, Small (2-5) by Volume
Teams, Medium (6-10) by Volume
Teams, Large (11+) by Volume
Team-owned brokerages by Volume

To qualify for inclusion, an individual agent must have closed at least 50 transaction sides or $20 million in sales volume in 2019. For real estate agent teams, the minimum is 75 transaction sides or $30 million in closed sales volume.

"Those individual agents and teams who make up the 2020 America’s Best Real Estate Professionals represent only about 1.5% of all Realtors® in the country yet account for over 10% of the closed transactions, and more than 16% of all the sales volume closed last year,” says Murray. “To say that Nick is an exceptional sales professional is an understatement. To attain this level of sales is extraordinary.”

“I’m pleased and honored to be ranked on this ranking of the country’s top residential real estate agents for the fourth consecutive year,” says Nick, “It represents the time and effort that we put into each client that we serve and the amount of dedication it takes to build a successful career in real estate. The level of sales it takes to qualify makes it a special recognition and we feel very blessed to be in a position to consistently produce at this level.”

Information on those receiving this recognition can be found online at https://www.realtrends.com/rankings/americas-best.

METHODOLOGY

REAL Trends + Tom Ferry America’s Best Real Estate Professionals honors America's finest real estate agents and their companies and is compiled and analyzed by REAL Trends.

The rankings are compiled based on surveys from virtually every nationally branded network, many state and local associations of Realtors®, MLSs, all applicants from past years’ rankings, and the 900 largest brokerage firms in the United States. Verification from an independent source is required for all submissions. In addition, REAL Trends senior staff reviews every submission for completeness and accuracy.

About The REAL Trends + Tom Ferry The Thousand

The REAL Trends + Tom Ferry America’s Best Real Estate Professionals ranking report is sponsored jointly by REAL Trends and Tom Ferry International. REAL Trends America’s Best honors America’s elite real estate agents and their companies and is compiled and analyzed by REAL Trends.

REAL Trends is a leading source of analysis and information for the residential real estate brokerage industry. Tom Ferry International is a nationwide real estate business and life coaching and training company.

Nov. 3, 2020

Just SOLD: 10490 29th Avenue N, Plymouth, MN

SOLD | List Price: $462,500
Beautiful Two-story with Medicine Lake Views

We represented the buyer of this property which sold for $445,000 and closed on 10-29-20.

Description: Acres: .42 | Beds: 3 | Baths: 2 | Sq Ft: 2,100+ | Garage: 2

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To schedule a free equity analysis email or call us today at 952.222.SOLD (7653). 

Posted in JUST SOLD