How the Twin Cities Real Estate Market will Set Records in 2011!

A recent review of the 2010 Twin Cities Housing Market provides just enough evidence to support both optimism and doubt moving forward in 2011 if you only deal with raw housing data and media speculation. However, there are indicators showing the potential for a record setting second half of 2011.

With the 55 year low mortgage rates and the highest home affordability index on record, it can be clearly stated that the timing is right for purchasing real estate. The facts are clear with respect to affordability, yet the media and consumer doubt lies among factors associated with the potential release of vast numbers of Real Estate Owned (REO's) properties from banks holding past redeemed assets. There are no clear facts associated with how banks will release their assets and how that inventory may impact the perceived ‘soft bottom' of the local real estate marketplace.

Minnesota is not at all near the top of the list of States with highest Foreclosure Rates. Nevada tops the nations foreclosure rates for the 4^th consecutive year at 9% or simply put 1 in 11 homes were foreclosures in 2010. Arizona second highest foreclosure rate for a second year in a row at 5.73% or 1 in 17 homes, followed by: Florida at 5.51%, California at 4.08%, Utah at 3.44%, Georgia at 3.25%, Michigan at 3.0%, Indiana at 2.87% and Colorado at 2.51%. 2010 was both a ‘boom' and ‘bust' year in sales overall with the first quarter Tax Credit blitz that created a second half ‘hangover' in sales coupled with the typical second half drought in sales that encompass less than 35% of annual sales. Frank D'Angelo, President/CEO for EXIT Realty Nexus in Coon Rapids MN suggests the following to the all local homeowners and those contemplating home-ownership: "Look at the additional factors beyond housing statistics, mortgage interest rates, foreclosure rates and speculation regardingthe decision to sell your existing property or purchase more real estate in this Marketplace. Additional factors include a robust growth in Minnesotas' Employment during this recovery period, a 51.6% increase in housing unit authorizations in the last 12 months and a promising early forecast for 2011.Population growth rates are on the rise in both Minneapolis and Saint Paul urban areas with stable suburban growth rates. Therental vacancies have plunged by 6 to 7.5% in the two urban centers supporting the fact that there are likely large numbers of credit worthy consumers wondering what to do in the area of home ownership. More importantly, many of those credit worthy consumers are beginning to come back into the market seeking inventory typically higher than the conventional first time homebuyers inventory.

D'Angelo goes on to say that REALTORS® need to focus on the consumer's perspective of making safe and sound investment decisions versus the most over-used statements such as, ‘It's a great time to Buy!' REALTORS® have been saying ‘It's a great time to buy' for too many years and that statement may have created a sense of urgency at the top of the market; however, it is literally meaningless at the bottom of the market. "Selling from the bottom of the market is completely different than selling from the top", D'Angelo says. Consumers have been pistol-whipped by the media over this historic real estate market decline and are a bit ‘gun-shy' to review whether it's a good time to buy, sell or both. D'Angelo goes on to say that every region of the Twin Cities has unique marketplace differentials. Neighboring communities have very large differences in median sales prices in 2010 versus any other year in the past. That information supports the pro-market evidence that some municipalities are becoming pro-active with local REALTOR® associations, lenders and even a few builders and developers are getting back into the market pro-actively.  REALTORS® should be focusing on ensuring consumer confidence regarding their real estate investments versus creating a sense of urgency.  As more and more consumers feel confident interest rates have stabilized to 55 year lows and pricing has also stabilized and the housing affordability index at it's peak; more selling and buying will occur and likely set new records for the Twin Cities Market.

Tami Bonnell, President, U.S. Operations of EXIT Realty Corp. International will be addressing this very topic ‘Making 2011 your best year yet' to all local REALTORS® and affiliates on Tuesday March 22^nd at the Embassy Suites (Minneapolis Airport) from noon to 3pm. Tami Bonnell will also be returning to the Twin Cities as the keynote speaker for the Women's Council of REALTORS® on April 20^th at the Braemar Golf Course in Edina from 11am-2pm. She will address all REALTORS® and affiliates how the significant changes in the Real Estate Industry will affect everything including how all real estate professionals and affiliates will do business from marketing to connecting with consumers. No one has a better understanding of where the Real Estate Industry is heading than Tami Bonnell. She is a thirty-year veteran and was instrumental in building three major real estate brands across the nation. Among her many achievements, she was recognized by real estate trend-watcher, Stefan Swanepoel, as one of the 100 Most Influential Women in Real Estate. Ms Bonnell has been featured speaker at the National Association of REALTORS® convention to the Top 500 Power Brokers, the Women's Council of REALTORS®, Inman News Connect Conference and the RISMedia's Leadership Conference. All real estate professionals and affiliates are welcome to attend. To RSVP to either speaking engagements, simply email the local President of the Women's Council of REALTORS® Karen Tobler at: KTobler@EXITRealtyNexus.com