Our Twin Cities Real Estate Blog

June 21, 2022

Just SOLD: 15244 40th Avenue N, Plymouth, MN 55446

SOLD | List Price: $279,900
Charming, Low-maintenance Townhome in Wayzata Schools

We represented the seller of this property which sold in 5 days for $295,000 (105% of list price) and closed on 6-17-22.

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Description: Beds: 3 | Baths: 2 | Sq Ft: 1,500+ | Garage: 2 | This charming, low-maintenance townhome sits in the centrally located Creekside of Plymouth community. The south facing, quad style orientation with centrally located garages allows for tons of natural light and privacy. The upper level is bright and open with a vaulted ceiling and large windows, 2 bedrooms and a full bathroom with a new vanity. The kitchen has room for a dining space and walks out to the spacious dining room and south facing deck. Paint, carpet, doors, Sheetrock and baseboards have all been updated in the lower level which offers another bedroom, bathroom, laundry and large family room. There is plenty of storage under the stairs/flooring and in the garage. Enjoy a short drive to plenty of restaurants and retail, or walk to Plymouth Creek Park and many walking paths.

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

Posted in JUST SOLD
June 1, 2022

Just SOLD: 13755 Bird Song Court, Minnetonka, MN 55305

SOLD | List Price: $1,925,000
Stunning New Construction in Wayzata Schools

We represented the buyer of this property which sold for $1,900,000 and closed on 05-31-22.

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Description: Acres: .87 | Beds: 5 | Baths: 5 | Sq Ft: 6,300+ | 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, Luxury Homes
May 23, 2022

Just Listed: 9989 Dell Road, Eden Prairie, MN 55347

Active | List Price: $4,500,000
A Modern Take on Classical Architecture with Breathtaking Views of the MN River Valley

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Description: Acres: 1.46 | Beds: 6 | Baths: 6 | Sq Ft: 10,100+ | Garage: 9+ | Set at Eden Prairie's highest point, this modern take on classical architecture is a masterclass in artistic design, intelligent engineering and quality craftsmanship, specifically designed to maximize the expansive, breathtaking views of the Minnesota River Valley. The home is laden with the finest finishes imported from all over the world and the most luxurious of features. With stone and paver patios, maintenance free decking, or flat, usable lawn space outside each level, all surrounded by evergreens and abundant wildlife, you can enjoy the property's beauty, charm, privacy and panoramic views, inside and out, through all four seasons. Poured concrete walls, spray foam insulation, high-end windows and in-floor, zoned, radiant heat on every floor including the 6+ car, 4,500 square foot, subterranean garage, make this one of the most energy efficient homes ever built in Minnesota. See the link above for supplements for more details.

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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).

May 17, 2022

Just SOLD: 14761 Cobalt Street NW, Unit 39, Ramsey, MN 55303

SOLD | List Price: $259,900
Beautifully Renovated Townhome on Private Cul-du-sac

We represented the seller of this property which sold in 4 days for $269,000 (104% of list price) and closed on 5-5-22.

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Description: Beds: 3 | Baths: 2 | Sq Ft: 1,500+ | Garage: 2 |  This beautiful, completely updated townhome is set on a maturely wooded cul-du-sac offering privacy and views out of every window. The main floor is bright and open with high end features including LVP flooring, a beautifully updated kitchen with tile backsplash, new countertops and appliances including a gas stove. The main floor bedroom is serviced by a spacious ¾ bath. The family room boasts a lovely tiled, gas fireplace and walks out to a generous sized deck. Two spacious bedrooms including a primary bedroom with a large, custom, walk-in closet are serviced by a full bath on the upper level. Further updates include fresh paint, new carpet, custom closets throughout the home and garage, a new water heater & softener, updated electrical and smart home features throughout that can all be controlled from your smart phone! Enjoy the convenient location, walkable to Solstice Park, nearby multiple restaurants and easy access to St. Francis Blvd and HWY 10.

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

Posted in JUST SOLD
May 17, 2022

Just SOLD: 2415 Woods Drive, Victoria, MN 55386

SOLD | List Price: $949,900
Pristine, Custom Built Two-story in Woods of Lake Wasserman

We represented the seller of this property which sold in 2 days for $975,000 (103% of list price) and closed on 5-6-22.

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Description: Woods of Lake Wasserman | Acres: .31 | Beds: 5 | Baths: 5 | Sq Ft: 4,200+ | Garage: 3 | Nestled in the Woods of Lake Wasserman, this pristine, custom built two-story is loaded with high end finishes and features, inside and out. The bright and open main floor features hardwood floors, custom paneling, crown molding, built-ins and upgraded fixtures. The chef’s kitchen is complete with stainless appliances, quartz countertops, a generous pantry and large island. There are four bedrooms up including a luxurious primary suite featuring a vaulted ceiling, private bathroom with a double vanity, soaking tub, large shower, generous walk-in closet and separate access to the laundry room. Enjoy additional entertaining space in the lower family room complete with a custom dry bar and 9’ ceilings and look out windows. Extensive outdoor landscaping includes granite bouldering sourced from Northern MN, native plants and trees, a natural bluestone patio anchored by a cedar pergola, a maintenance-free deck with privacy screen and is completely fenced with steel ornamental fencing.

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

Posted in JUST SOLD, Luxury Homes
April 27, 2022

Mortgage rates hit 11-year high, Twin Cities' home prices continue seasonal rise

(Data Sources: You can track Twin Cities housing market trends here. You can track mortgage rates here. You can track home builder confidence here. You can track lumber prices here.)

As the Federal Reserve has continued to ramp up tough talk on inflation and rate hikes, bond yields and mortgage rates have continued their historic rise. The bond market is now pricing in 9+ quarter point rate hikes for 2022. Mortgage rates are now up 65% YTD and up 93% from their cycle lows in January of 2021 which is the fastest rise in mortgage rates on a rate of change basis, ever.

Despite rising rates, home prices for most Twin Cities' market segments continued to rise for closed sales in March (as expected) but on lower sales volume as rising mortgage rates and historically low inventory have put a damper transactions. The segments that have performed the best in terms of price inflation YTD have been water front properties, luxury homes in the suburbs (especially homes built in 2010 or after) and single family homes under $600K in the suburbs. The segment with the least amount of price inflation has been the condo/loft segment of Minneapolis where prices have for the most part been neutral to marginal gain, YTD.

The Median Home Price: The median home price in the Twin Cities moved up 4.1% in March to $354,000 which is up 8% YOY and is a new record high. Despite dramatic increases in the cost of capital, we expect home prices to continue to rise through June or July this year. The suburb market segments for both single family and townhouse/condo/lofts continue to outperform the inner city segments.

Home Inventory: The home inventory level in the Twin Cities moved up 11% in March to 5,278 units which is down 7.2% YOY but remains a seasonally adjusted, record low. Historically low and falling (in rate of change terms) inventory has been a primary theme of this now 10 year bull market in U.S. home prices. We expect inventory to chase demand into the spring market and then peak sometime between late summer and early fall.

Pending Home Sales: 5,257 homes came under contract in the Twin Cities in March. That is up 36% MOM as expected but remains down 7.2% YOY as low inventory and rising interest rates continue to impact overall sales volume.

New Listings: 6,527 new homes, condos and townhouses hit the Twin Cities market in march. That is up 44% MOM but down 3.1% YOY. We expect new listings, in pursuit of rising prices, to continue their seasonally dramatic incline through May or June.

Mortgage Rates: Mortgage rates have moved up another 22% in the past month and are now up 65% YTD and up 93% from their cycle lows back in January of 2021. From a ROC (rate of change) perspective, that is the most aggressive rise in mortgage rates, ever. The bond market is now pricing in 10 (quarter point) rate hikes for 2022 as the Fed continues to talk about "getting tough" on inflation.

Lumber Prices: Lumber prices have dis-inflated 25% over the past month but remain a little more than double their pre-pandemic price levels.

Home Builder Confidence: The NAHB housing market index in the US fell to 77 in April of 2022 from 79 in March, which was in line with market expectations. The index fell for a fourth straight month to the lowest level since September of 2021, as dramatically rising mortgage rates, persistent supply chain disruptions, elevated housing prices and construction costs continue to destabilize the housing market.

This concludes my Twin Cities housing market insight for April of 2022. Please don't hesitate to call us at 952-222-SOLD 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 that you currently own or manage.

Sources: NorthstarMLS, Infosparks Data, Hedgeeye Risk Management, FreddieMac.com, Nasdaq.com, TradingEconomics.com, fred.stlouisfed.org

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

Posted in Market Insight
April 21, 2022

Just SOLD: 4118 Hemlock Lane N, Plymouth, MN 55441

SOLD | List Price: $239,900
Charming Townhouse Nestled in Westridge Community of Plymouth

We represented the seller of this property which sold in 4 days for $275,000 (115% of list price) and closed on 4-20-22.

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Description: Beds: 3 | Baths: 3 | Sq Ft: 1,700+ | Garage: 2 | This charming, well maintained townhouse is nestled in the peaceful, maturely wooded Westridge community of Plymouth. The SE facing unit is privately positioned with sunlight pouring into the unit and has views of sprawling green space out of every window. Located at the end of a street, there are 2 additional parking spots for guests directly in front of the unit. The main floor features vaulted ceilings, abundant natural light, a deck directly off of the kitchen, 2 generous bedrooms including a primary suite with a walk-in closet and private bathroom. Enjoy the cozy family room with fireplace in the lower level along with an additional bedroom, ½ bath and laundry room. Additional features include brand new central air and an oversized attached garage with extra room for storage or workspace. The unit is just a short walk to bike paths and parks, and a bike ride or short drive to Clifton E. French Park, Medicine Lake, multiple restaurants, shops and is easily accessible to 494 or 169.

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

Posted in JUST SOLD
March 30, 2022

Just SOLD: 6125 Foxtail Drive, Lino Lakes, MN 55110

SOLD | List Price: $689,900
Custom Home on Beautiful, Wooded Lot

We represented the buyer of this property which sold for $678,000 and closed on 3-28-22.

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Description: Acres: 1.07 | Beds: 4 | Baths: 3 | Sq Ft : 3,000+ | Garage: 2

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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 SOLD, Luxury Homes
March 17, 2022

The spring market begins with the lowest inventory ever, mortgage rates continue to rise

(Data Sources: You can track Twin Cities housing market trends here. You can track mortgage rates here. You can track home builder confidence here. You can track lumber prices here.)

The spring housing market of 2022 has kicked into gear in the Twin Cities with record low inventory as a tail wind and dramatically rising mortgage rates as a headwind.

The bond market is now pricing in 7 (quarter point) rate hikes this year as the Fed continues to vow its commitment to battle inflation with tighter monetary policy in 2022 while (ironically) they continue to wrap up the largest expansion of money and credit by a central bank in the history of the United States and possibly in the history of the world. For context, since the onset of the pandemic, the Federal reserve has expanded the supply of US dollars in circulation by 46% (M2 money supply) and has more than doubled their balance sheet from $4T to $9T, most of which was used directly to buy US government bonds and mortgage backed securities.

With economic data likely decelerating in Q2 of this year and with the NASDAQ and the Russel 2000 already bouncing into bear market territory (with the other indexes not far behind), it will be interesting to see how long the Fed holds on to the tightening narrative this time. If yesterday's rate hike itself were to mark the cycle peak for bond yields and mortgage rates, it wouldn't be the first time.

The Median Home Price: The median home price in the Twin Cities for sales closed in the month of February was $340,000. That is up 2.7% MOM and up 8.2% YOY as the spring market has kicked into gear. We expect home prices to continue to rise through June this year despite the climbing mortgage rate headwind, but that the rise will not be as extreme as it would have otherwise been, had mortgage rates remained stable in the 3% range.

Home Inventory: The home inventory level in the Twin Cities fell 1% MOM in February to 4,489 units which is down 17% YOY and is a new record low. Historically low and falling (in rate of change terms) inventory has been a primary theme of this now 10 year bull market in U.S. home prices. We expect inventory to chase demand into the spring market and then peak sometime in late summer or early fall.

Pending Home Sales: Pending home sales in the Twin Cities moved up 22% MOM in February as the spring market kicked into gear. That figure is down 9% YOY, in small part due to uncertainty and affordability issues surrounding rapidly rising rates but in larger part due to the fact that we currently have the lowest inventory level in history. We expect pending sales to continue their seasonally dramatic incline through May.

New Listings: 4,486 new homes, condos and townhouses hit the Twin Cities market in February. That is up 22% MOM but down 6.1% YOY. The YOY decline in new listings is in part due to rising costs and supply chain issues which have made it more difficult for home builders and developers to add inventory on the new construction side. We expect new listings, in pursuit of rising prices, to continue their seasonally dramatic incline through May or June.

Mortgage Rates: Mortgage rates moved up another 8% last week and are up 56% YTD. That is the most aggressive quarterly move up in mortgage rates since 1980 when mortgage rates moved up from 12% to 18%. The bond market is now pricing in a full 7 (quarter point) rate hikes for 2022. With economic data likely decelerating in Q2 of this year and with the NASDAQ and the Russel 2000 already bouncing into bear market territory (with the other indexes not far behind), it will be interesting to see how long the Fed holds on to the tightening narrative this time. If yesterday's rate hike itself were to mark the cycle peak for bond yields and mortgage rates, it wouldn't be the first time.

Lumber Prices: The re-inflation of lumber prices continued in February as lumber jumped 30% MOM to $1,223, more than triple 2019 price levels.

Home Builder Confidence: The NAHB housing market index in the US edged down to 82 in February of 2022, the lowest in four months versus market forecasts of 83. “Delivery delays are raising construction costs and pricing prospective buyers out of the market. Residential construction costs are up 21% on a year over year basis, and these higher development costs have hit first-time buyers particularly hard" said NAHB Chairman Jerry Konter.

This concludes my Twin Cities housing market insight for March of 2022. Please don't hesitate to call us at 952-222-SOLD 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 that you currently own or manage.

Sources: NorthstarMLS, Infosparks Data, Hedgeeye Risk Management, FreddieMac.com, Nasdaq.com, TradingEconomics.com, fred.stlouisfed.org

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

Posted in Market Insight
Feb. 9, 2022

Will rising mortgage rates take a bite out of Twin Cities' home price inflation in 2022?

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

(Sources: You can track Twin Cities housing market trends here. You can track mortgage rates here. You can track home builder confidence here. You can track lumber prices here.)

Mortgage rates moved up 15% in January to near a 2-year high, as the bond market priced in an anticipated 5 Fed rate hikes in 2022.

Hiking interest rates into a slowing economy has historically been very bad for the U.S. stock market. In recent history (the dotcom bust of the early 2000s, the 2008 financial crisis, the 2018 stock market crash and the 2020 stock market crash), crashing stock prices have been very dovish for monetary policy as the Federal Reserve has consistently used monetary intervention (QE & artificially low rates) to support "the economy" or better put, to support asset prices. With evidence of an economic slow down in 2022 starting to emerge, one could speculate that the tightening the Fed is about to embark on is likely to cause or contribute to a crash (as defined by a fall of 20% or greater from a stock's peak) in U.S. equities, the pricing in of which appears to have already begun. As of Monday, the S&P 500 is down 5.82% from its January peak, the Nasdaq is down 12% from its November peak, the Russell 2000 is down 17% from its November peak and Bitcoin is down 36% from its November peak. Some of the higher risk, more speculative tech stocks which have benefited greatly from the 0% interest rate environment, have been flash crashing with facebook (the largest collapse in valuation of a U.S. company in history) and Snap, Inc. both falling 26% in a single day.

If the Fed moves forward with their rate hike plans and if economic data in 2022 starts coming in unfavorable, as it looks like it may, U.S. equity prices are likely to enter "crash" territory which would put the Fed in a very difficult position in having to choose between fighting inflation by tightening monetary policy or fighting recession (A.K.A. supporting asset prices) by keeping 0% interest rates and QE in place. Getting rising inflation under control in a central bank managed economy has historically required a long and painful process of bringing interest rates well above the rate of inflation for a sustained period of time. With debt levels (government, consumer, business, mortgage and student) all at record highs, I believe there is currently more political pressure to keep the easy money flowing than there is political pressure to get inflation under control, so my speculation, at least for 2022, is that the Fed will eventually be forced by the market to abandon the inflation fight and return to the dovish policies that got us here, not necessarily because it’s the right thing to do, but because the process of getting Americans psychologically and financially prepared for the pain that must actually be endured to get inflation under control, is politically nonviable.

There is no question that a significant and sustained increase in mortgage rates would have a downward impact on housing affordability and therefore a downward impact on housing demand. According to research from Hedgeye Risk Management, mortgage rates need to rise 75 basis points (or ¾ of a percentage point) before they begin to impact affordability in a meaningful enough way to affect housing prices. With that said, that conclusion was derived from studying more balanced markets in terms of supply and demand fundamentals.

Since August of 2021, the 30-year mortgage rate has risen 85 basis points (from 2.65% to 3.5%) so it has certainly risen enough to have an impact, however, while mortgage rates were rising in January, home inventory in the Twin Cities continued to fall, down another 6% MOM to a new record low. The housing market is currently so significantly under-supplied ahead of the peak season (for a majority of market segments) that I believe home prices in the Twin Cities will continue to rise during the first half of 2022, regardless of a rising interest rate headwind, just maybe not as much as they would have otherwise risen had mortgage rates remained under 2.75% or under 3%.

Conclusion: I believe the Fed is likely to abandon their rate hike plans in the face of falling stock prices which would likely result in mortgage rates coming back down at some point this year. However, even if the Fed doesn't back off, while rising mortgage rates will undoubtedly impact housing affordability and therefore demand, because the supply and demand fundamentals are so heavily distorted towards sellers to start this year's market cycle, rising mortgage rates will likely only dampen the rate of increase but will not be able to prevent home prices from rising during the first half of 2022.

The Median Home Price: The median home price in the Twin Cities stayed flat at $331,000 in January which is likely the bottom of this winter correction cycle. With inventory sitting at a record low 4,000 units in the Twin Cities, the stage is set for another inflationary spring for home prices, despite rising interest rates.

Home Inventory: Home inventory fell 6% in January and down 20% YOY to yet another record low of 4,033 units. That record is likely stand for some time because January inventory is typically the cycle bottom. The overall inventory is set to rise as both buy and sell activity increases until the next seasonal peak in late summer/early fall.


Pending Home Sales: Pending sales fell 3% in January to 3,164 units which is also likely a cycle bottom. We expect demand to move up significantly in February as the spring market of 2022 kicks into gear.


Mortgage Rates: Mortgage rates moved up 15% in January to 3.55% for the average 30-year-fixed conventional mortgage in the U.S. That rate represents almost a 2 year high and is up 85 basis points YoY from when a 30-year-fixed mortgage was locking in at 2.65%.

Lumber Prices: Lumber prices were very volatile in January. They moved up another 15% and then fell 30% to end the month down 15% MOM. That is still a 180% increase from pre-pandemic prices.

Home Builder Confidence: The NAHB housing market index in the US fell by 1 point to 83 in January of 2022 from a 10-month high of 84 in December which was slightly below market forecasts of 84.


This concludes my Twin Cities housing market insight for February of 2022. Please don't hesitate to call us at 952-222-SOLD 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 that you currently own or manage.

Sources: NorthstarMLS, Hedgeeye Risk Management, FreddieMac.com, Nasdaq.com, TradingEconomics.com

Posted in Market Insight