From my Simplifying the Market™ Blog

Tuesday, October 4, 2016

Hey Minneapolis - Strong Buyer Demand Continues to Outpace Inventory of Homes for Sale

Strong Buyer Demand Continues to Outpace Inventory of Homes for Sale

Strong Buyer Demand Continues to Outpace Inventory of Homes for Sale | MyKCM
The price of any item is determined by the supply of that item, as well as the market demand. The National Association of REALTORS (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for their monthly REALTORS Confidence Index.
Their latest edition sheds some light on the relationship between Seller Traffic (supply) and Buyer Traffic (demand).

Buyer Demand

The map below was created after asking the question: “How would your rate buyer traffic in your area?”
Strong Buyer Demand Continues to Outpace Inventory of Homes for Sale | MyKCM
The darker the blue, the stronger the demand for homes in that area. Only four states came in with a weak or moderate demand level.

Seller Supply

The Index also asked: “How would your rate seller traffic in your area?”
As you can see from the map below, the majority of the country has weak Seller Traffic, meaning there are far fewer homes on the market than what is needed to satisfy the buyers who are out looking for their dream homes.
Strong Buyer Demand Continues to Outpace Inventory of Homes for Sale | MyKCM

Bottom Line

Looking at the maps above, it is not hard to see why prices are appreciating in many areas of the country. Until the supply of homes for sale starts to meet the buyer demand, prices will continue to increase. If you are debating listing your home for sale, let’s get together and discuss the demand in our area.     

Thursday, September 1, 2016

Home Values: DEFINITELY NOT in Bubble Range

                    Home Values: DEFINITELY NOT in Bubble Range!! | Simplifying The Market           
There are some industry pundits claiming that residential home values have risen too quickly and that current levels are on the verge of another housing bubble. It is easy to see how this thinking has taken form if we look at a graph of home prices from 2000 to today.
The graph definitely looks like a rollercoaster ride. And, as prices begin to reach 2006 levels again, it “seems logical” that the next part of the ride would be downhill. However, this graph includes the anomaly of the price bubble and the correction (the housing crash).

What if the bubble & bust didn’t occur?

Let’s assume that instead of the rise and fall in home prices that we saw last decade, we just had normal historic appreciation from 2000 to today. According to the 100+ experts that are surveyed for the Home Price Expectation Survey, normal annual appreciation for residential single family homes from 1987 to 1999 was 3.6%.
Starting with the median home price in 2000, we added 3.6% to it each year since then. Here is that graph intermixed with the above graph.

Home Values: DEFINITELY NOT in Bubble Range!! | Simplifying The Market
What this shows us is that, had the bubble and crash not occurred and instead we just had normal annual appreciation over this period, prices would actually be greater than they are today.

Bottom Line

There is no reason for alarm as prices seem to be right in line with where they should be.



Laurie
Knudson
Realtor
GRI, SRES
TheMLSonline.com
Minneapolis - St. Paul - Outstate MN
(612) 308-8749
Laurie has over 20 years of real estate industry experience, and is one of top marketing experts in the real estate industry. Laurie brings cutting edge online concepts to help market your property. Contact Laurie for a free market analysis and to learn what marketing concepts are available for your home.
   

                   
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Tuesday, June 28, 2016

2016 Twin Cities 4th of July Guide

MINNEAPOLIS 4TH OF JULY GUIDE

Consider this the be-all end-all of everything that is, was and will be for your 4th of July in Minneapolis. We guarantee that if you read this comprehensive, expert-compiled list that you’ll have a day worthy of your name being etched into the history books next to the country’s most patriotically-awesome people. Click the options below for everything that is 4th of July in Minneapolis.  
As one of the Greenest Cities in America and one of the top 10 Ultimate Foodie Bucket List Destinations, Minneapolis is the perfect destination for your 4th of July celebration. 






1. Stone Arch Bridge: This is the absolute best place to see the skies. Watching fireworks on the Stone Arch Bridge is like watching history, as the bridge is a link to the rich past of Minneapolis. You’ll be right above the Mississippi River and right below the action. Get her early, though; as this is the best spot, it fills up quick.

2. Gold Medal Park: One of the most underrated spots in downtown Minneapolis, Gold Medal Park offers a more traditional viewing experience. Throw a blanket on the grass, throw a ball around and gaze up at the fireworks while you lie down and relax.
INSIDER TIP: “Bring bug spray.” -Scott

3. Mill City MuseumWatching fireworks from the Mill City Museum Observation Deck is as close to a VIP setting as you’ll get. Only 50 people get access, and you have to pay ($35), but the view is absolutely worth the cost. As an added bonus, you get admission into the museum beforehand.
INSIDER TIP: “If you’re reading this, then you need to stop what you’re doing and order tickets NOW! These tickets go very quickly and the view is sublime.” -Kristen


4. Guthrie Endless Bridge: A more unconventional place to watch fireworks, true, but it has that same VIP feel that the Mill City Museum Observation Deck has. You’ll be off the ground and closer to the action, and you’ll have a completely unobstructed view of the fireworks.


5. Restaurant Rooftops: A lot of people don’t generally think of restaurants as prime places to watch fireworks, but we say, “Why not?!” You’re up in the air, you’ll have a great view AND there are people that will serve you food and alcohol. Check out a map of some cool places here, or read this Top 10 Patio list we compiled.


6. Lake CalhounParks are great, and buildings are very cool places to get closer to the fireworks. But, if you want the most authentic 4th of July “I LOVE AMERICA” experience, Lake Calhoun is where you want to be. Grill out, play some volleyball, kayak/paddle on the lake and chill on the beach while you get a great view of the downtown fireworks.


7. Commons Park - Excelsior: If you are in the west metro enjoy the only public 4th of July fireworks event on the shores of Lake Minnetonka can expereinced at Commons Park in downtown Excelsior. 
*All fireworks start at 10pm.



THINGS TO DO:

-Red, White & Boom!
6:30am: TC Half Marathon, Historic Main Street TC Half Marathon REGISTER HERE>>>
6-10pm: Family Activities, Live Music and Food Vendors at Father Hennepin Bandshell and Mill Ruins Park
10pm: Fireworks, Minneapolis Riverfront District
Visit here for more info
-MN Twins vs. Athletics
1pm: The Minnesota Twins take on the Oakland Athletics at home. Millitary Discount Day.
Visit here for more info

EVENTS OUTSIDE MINNEAPOLIS:

Annandale:  

Carnival by Family Fun Show's

Provides an exciting carnival full of a variety of rides, games, and food vendors. The carnival is held on Oak Street just north of the downtown area, and views beautiful Pleasant Lake.  Fireworks (details below) are also from this area, at Pleasant Lake Beach. 

Hours for our 2016 event are as follows:

Thursday, June 30th  4:00pm - 10:00pm
Friday, July 1st  12:00pm - 10:00pm
Saturday, July 2nd  12:00pm - 10:00pm
Sunday, July 3rd  12:00pm - 10:00pm
Monday, July 4th 12:00pm - 10:00pm

Boat Parade

Boat Parade is on July 3rd, beginning at 7:00pm, there is a boat parade that navigates Pleasant Lake. It finishes near the pier at City Park at the conclusion of the band concert around 8:00pm.  All contestants pick a theme for their ship and entertain the spectators on the shore.



July 4th...Annandale will be celebrating its 127th annual parade.

Parade Begins at Monday, July 4, 2016, 10:00 am.
Parade line up at the Annandale High School at 9:00 am

7pm-10pm The Fabulous Armadillos
WhenMonday, Jul 4, 2016Annandale City Park (map)

Fireworks at Dusk
When
Monday, Jul 4, 2016
WhereAnnandale City Park (map)


(similar fireworks display from nearby St. Cloud)
Visit HERE for more info
Apple Valley: Freedom Days
8am: Freedom Days 2 and 5 Mile Run REGISTER HERE >>>
1pm: Freedom Days Parade
5pm-11pm: Amusement Carnival
5pm-11pm: Pre-Fireworks Party (Music, Dancing, Games)
10pm: Fireworks
Visit here for more info.
Blaine:  Fireworks Extravaganza

Dusk: Fireworks, National Sports Center at 10pm
Bloomington: Summer Fete
Bloomington's Summer Fete happens every year on July 3 at Normandale Lake Park. The 84th Street region will kick off with the Kids' Carnival Area at 5 p.m. featuring more inflatable attractions than ever before with a few specialty attractions! The 84th Street Kids' stage, celebrating its seventh big year, will once again feature the best in family entertainment. Top off the evening with the annual Summer Fete fireworks display.
Visit here for more info. 
Chanhassen: 4th of July Celebration
7:00am: Adult Fishing Contest
9:00am: 3 on 3 Basketball Tournament
10:00am: Classic Car Show, Taste of Chanhassen, Rotary Beer and Wine Garden, Carnival Rides
11:00am: Sand Sculpture Contest, Medallion Hunt, Kids Fishing Contest
11:45pm: Live Music featuring American Bootleg
2:30pm: Parade Downtown
6:00pm: Chanhassen Redbirds Baseball Game
10:00pm: Fireworks
(All events occur at Lake Ann and downtown Chanhassen)
Eagan: July 4th Funfest
10:00am: Stars & Stripes Parade
Noon – Festival Grounds Open
1:00pm- 5:00pm: Beyond the Yello Ribbon Car Show
1:00pm- 8th Annual Brain Freeze Contest
2:00pm- Blood Drive
4:00pm- Bingo
6:00pm - Texas Hold'em Tournament (Free Entry)
8:00pm – Stage Entertainment The Brian Kinney Band
10:00pm: Fireworks
Midnight: Funfest Closing
Visit here for more info.
Eden Prairie: 4th of July Hometown Celebration
9am: Optimists 5k Run
3pm: Kiddie Parade, Face Painting
3pm-7pm: Canoeing
4pm-7pm: BMX Demonstrations, K-9 Demonstrations, Splash Pad Grand Opening
7:30pm: AM Rotary Golf Ball Drop
10pm: Fireworks
Edina: Independence Day Parade & Fireworks
From youth groups marching to seniors dancing, the Edina 4th of July Parade offers excitement for all ages. Parade begins behind Edina City Hall, 4801 W 50th St, Edina, CA, and ends at the US Bank parking lot at 50th St and Halifax Ave. Live music at Roseland Park followed by fireworks at 10pm.
Visit here for more info.
Excelsior: Lake Minnetonka 4th of July Celebration
8:10 AM - Firecracker 1 mile run begins at Excelsior Elementary
8:30 AM - Firecracker 5K & 10K begins at Excelsior Elementary -- ends at Commons Park
9:00 AM - Sand Sculpture Contest
11:00 AM - Water Street Kids’ Parade and Popsicle Social
7:00 PM - The Wolverines Big Band performs
9:55 - The National Anthem performed by Kate Raddatz
Dusk - The Best Fireworks on Lake Minnetonka
INSIDER TIP: “Watch the fireworks out on Lake Minnetonka and you can see the fireworks from Excelsior , Wayzata, Mound and Lafayette Club from any direction.” -Ruth
Vist here for more info.
Fort Snelling: Independence Day Celebration
10am-5pm: Celebrate the nation’s independence as people did in the early 1800’s – cannon salutes, patriotic speeches, theatrical presentation put on by the fort’s soldiers, military dress parade, patriotic and military fife and drum music, historic games.
* Adults $11, seniors/ college students $9, children ages 6-17 $6, children under 5 free
Lakeville: Pan-O-Prog
Monday July 4th at 7:00pm: Join us for a spectacular aerial fireworks display and entertainment including live music by the band The Git Backs, inflatables, temporary tattoos, clowns and concessions. Lawn chairs or blankets suggested to sit on the football practice field and surrounding areas.
Visit here for more info.
Mystic Lake: Rock and Rockets
Junk FM and Chris Hawkey will perform before the night sky lights up with a musically-choreographed fireworks show. 
Fireworks at 10:00pm
INSIDER TIP: “All guests are welcome to bring lawn chairs or blankets. Coolers, picnic baskets and outside food and beverages are not permitted.” - Amanda
Visit here for more info.
Richfield: 4th of July
July 2nd: Family Night
July 3rd: Carshow at 10am
July 3rd: Street Dance at 6pm
July 4th: Parade at 1pm
July 4th: Fireworks at 10pm
Please visit here for more info.
INSIDER TIP: “Head to Veterans Park. The best place to view the parade is by walking up by the park’s hilly areas. It is cool and shady by the trees, yet you get to enjoy the nice up-close view. Lots of people don’t know about that area so there’s a nice and cool breeze that hits you.” -Hassan
St. Louis Park: July 4th Fireworks Celebration
7-9:30pm: Performance by Stevie and the Rockers, Aquila Park
10pm: Fireworks, Aquila Park 
White Bear Lake: 4th of July Fireworks, Flyover & Music at Memorial Beach
July 4th
8:00pm: Music by Shoreview Northern Lights Variety Band
8:30pm: Flyover
10:00pm: Firework display over White Bear Lake 
Visit here for more info

Article shared from:  http://www.minneapolis.org/things-to-do/seasonal-highlights/summer//minneapolis-4th-of-july-guide/

Annandale Fireworks contributed by Laurie Knudson, Realtor, TheMLSonline.com

Wednesday, June 1, 2016

Which Presidential Candidate Will Save You the Most on Housing?

Which Presidential Candidate Will Save You the Most on Housing?

Presidential candidates

The most unpredictable, most divisive, and certainly weirdest presidential race in a generation (or several) is heating up way beyond the boiling point. Candidates are debating just about everything imaginable on the 2016 campaign trail: 2,000-mile walls! Hand size! Energy levels! Email servers! Resemblance to Christian rockers! Everything, that is, except the largest and most important purchase most Americans will ever make: their homes.
In a campaign so far marked by a maddening lack of specifics on many policy issues, most candidates have been especially silent on how their ideas on taxes, interest rates, and even income redistribution would affect the home market.
So to whom should would-be home buyers or sellers turn on Election Day?
Despite the candidates’ general reluctance to lay out housing plans, we took it upon ourselves to read the tea leaves, decipher the smoke signals, and consult with our Magic 8 Ball to predict what each would-be commander in chief could mean for those actively in the home market—and their bank accounts.
So let’s hit the ballot booths!

The good news: Mortgage interest deductions are here to stay

First up: Both the Democrats and the Republicans plan to leave the mortgage tax deduction alone.
The perk helps property owners lower their taxable income by deducting their interest on loans up to $1 million. In simple English, that can translate into $2,500 in savings for many middle-class homeowners who declare $10,000 in interest.
But both Hillary Clinton and Bernie Sanders have pledged to cap the tax savings that Americans receive through all of their deductions (which would also include charitable donations and medical expenses) at 28%. Under Sanders, this would apply only to households raking in more than $250,000 a year.
There is a currently a small limit on itemized deductions depending on the filer’s tax bracket.
The takeaway: No matter who wins the race, homeowners will still be able to write off those payments. However, those deductions may not be worth quite so much if Clinton or Sanders takes office.
Got it? Now that that’s out of the way, let’s look at what each candidate could mean for those struggling to save up for a down payment on their dream homes as well as owners who rely on various property-related breaks.

Hillary Clinton

The former secretary of state is the only candidate who has released a plan on homeownership (thanks, Hil!). We’ll boil it down.
What she’ll save Americans: Clinton plans to help lower-income, aspiring homeowners move into their own homes through a $25 billion housing investment program.
The former first lady has pledged to support matching funds up to $10,000 in down payment savings for households that make less than their area’s median income. (That’s one big chunk of change!) Without going into much detail, she pledged to fund the program through increased taxes on financial firms—that’s right, the very guys who ushered in the housing collapse in the first place.
She also plans to increase the number of affordable rental properties, especially those situated in areas with good schools and employment opportunities.
And Clinton supports using more low-income housing tax credits to help renters meet their monthly payments (especially as the monthly bills continue to soar around the country) and save for a down payment to actually buy a place.
What she’ll cost Americans: Not much. Clinton doesn’t plan to change the current tax rates, except to raise them on those earning more than $5 million. (But those folks don’t exactly need a lot of help coming up with a down payment!)
The takeaway: Another Clinton in the White House could be a boon to lower- and middle-income Americans by making rentals more affordable and helping them with the down payments needed to move into their own abodes.
———

Bernie Sanders

What he’ll cost Americans: The U.S. senator from Vermont has unabashedly pledged to raise taxes of all varieties in order to fund such feel-good populist initiatives as free public college and lower-price health care.
So get ready to shell out. Yeah, that means you, whomever you may be.
The annual income tax payouts to the federal government would go up at least 2.2% across the board—more, for households raking in over $250,000. Rates would top out at more than 50% for those lucky souls earning more than $10 million a year.
Feel the Bern: Those hikes would mean Americans earning about $85,000 a year would wind up paying an additional $3,164 to Uncle Sam, according to estimates from the Institute on Taxation and Economic Policy.
Workers would also fork over an additional 0.2% of their compensation in a payroll tax (employers would kick in another 0.2%) to pay for employee family and medical leaves.
Businesses, meanwhile, would be charged a new 6.2% payroll tax to make up for the fact that, under Bernie’s plan, health insurance would now be provided by the government, not employers.
Workers “will see their salaries decline … because employers are going to pass the cost of that tax on to their employees,” warns Kyle Pomerleau, director of federal projects at the Tax Foundation, a Washington, DC–based tax education and advocacy group.
What he’ll save Americans: Despite these billfold-burning hikes, plenty of Americans could wind up doing better financially if Sanders moves into the Oval Office.
Those signature Bernie planks—free public college tuition and Medicare—could save folks tens of thousands of dollars.
For instance, undergraduate tuition and fees averaged $9,410 a year at in-state, public, four-year schools and $32,405 at private schools in the 2015–2016 school year, according to a College Board report.
Students graduated with an average of $28,950 in debt in 2014, according to an Institute for College Access & Success report. Alleviating that oft-crushing financial burden could make it easier for younger prospective home buyers to take the plunge.
The takeaway: Spend more on taxes! Save more on other stuff! Do the math.
———

Ted Cruz

What he’ll save Americans: Quite a bit. The Texas senator says he would slash federal taxes for everyone to a flat 10% rate. And he’s proposed ending the 15.3% existing payroll tax, which is split between employers and employees to pay for Social Security and Medicare. Those earning about $85,000 would save an average of $2,707 through the cuts, according to the Institute on Taxation and Economic Policy. Those earning $148,000 would pocket an additional $12,395 annually.
Ka-ching! But not so fast.
What he’ll cost Americans: Cruz would also create a business flat tax that would charge employers an extra 16% on their profits and payrolls.
Those extra charges would get passed on to both workers, whose paychecks could shrink, and consumers, who would see prices of goods and services go up, says Pomerleau of the Tax Foundation.
And it’s unclear if home sellers would be considered a business and then taxed on their proceeds under the Cruz plan, Pomerleau adds.
“That would be an absolute disaster for the real estate market,” says Jonathan Smoke,realtor.com®‘s chief economist.
Cruzin’ for a bruiser: Cruz has also promised to end local and state deductions Americans typically write off—including property taxes. This would help to fund his broader tax cuts.
The average household pays an average $2,127 a year in just state property taxes, according to WalletHub. And those taxes don’t include those leveraged by cities, counties, and even local water jurisdictions.
Residents in more expensive communities shell out more annually in the taxes and would therefore be hit particularly hard.
The takeaway: Cruz could help aspiring homeowners bulk up their savings accounts. But don’t be fooled by the big tax cuts—you’re likely to be paying more elsewhere.
———

John Kasich

The governor of Ohio hasn’t yet released a comprehensive tax plan, so we’ve consulted with our favorite psychic, Madam Tangina—and taken a close look at what Kasich has done in his home state—to try to get a clear-eyed view of how his presidency might affect America’s housing market.
And you know what? We still have no idea!
Kasich has been waving that heavy dark horse candidate banner for so long his hands have apparently gotten too tired to write out his policies. Poor John!
What he’ll save Americans: He’s pledged not to touch the mortgage interest deduction, so homeowners everywhere can breathe a sigh of relief.
What he’ll cost Americans: What we do know is the richest Americans would rejoice that Kasich has promised to cut the maximum tax rate from 39.6% (for the highest earners) to 28%. There’s no word yet on what they would be for the rest of us.
The takeaway: Flip a coin.
———

Donald Trump

The business mogul/steak salesman knows a thing or two about the real estate market—and making (and losing) lots of money.
What he’ll save Americans: Under Trump, individuals wouldn’t pay a cent on their first $25,000 in taxable income (up to $50,000 for married filers). The next $25,000 for individuals and $50,000 for married filers would be taxed at just 10%.
Rates would rise to 20% after that for the next $100,000 for individuals and $200,000 for married filers. Those making more than that would be taxed on those additional earnings at 25%.
Business owners could pay a lower rate, maxing out at 15%.
This would save those making about $85,000 an average $4,970, according to the Institute on Taxation and Economic Policy. Those bringing in about $148,000 would save roughly $7,848. Hey, thanks, big guy!
But there are no guarantees that this would have any real impact on the middle-class home market.
“Building a $40,000 nest egg [for a $200,000 home] can take a while—even if you have a $5,000 tax cut,” says Roberton Williams, a senior fellow at the Urban-Brookings Tax Policy Center, a Washington, DC–based think tank. “The bottom line is the rich are going to get big tax cuts and the middle class are going to get moderate tax cuts.”
What he’ll cost Americans: Both Trump and Cruz’s tax cuts could actually drive up interest rates, says Williams. This could make mortgages—and therefore buying a home—substantially more expensive.
This scenario would be possible if there was a budget shortfall due to the lower taxes and not enough money coming in through other revenue streams to plug it. The U.S. would be forced to borrow even more money, which could drive up interest rates.
But those higher interest rates are unlikely, says realtor.com’s Smoke. He notes that the U.S. has been borrowing quite a lot since the financial crisis and interest rates are extremely low.
Trump may also limit the deductions Americans can take off their federal taxes, but it’s not clear yet what exactly would be affected (such as property taxes) and how big those caps would be.
The takeaway: Americans would have more moola in their wallets under Trump through the federal tax cuts. But they might see higher interest rates and fewer tax deductions. They’d have one hell of a big wall, though.

article contributor:  Clare Trapasso is the senior news editor of realtor.com. She previously covered finance for a Financial Times publication and wrote for the New York Daily News. Clare also teaches journalism at a local college, loves food festivals and bike trips, and enjoys playing with her dog.