May 2017 Market Update – Twin Cities Real Estate

Twin Cities Real Estate Market Update – May 2017

Weather-wise it’s been an interesting spring – beautiful sunny days, and a number of wet ones too! It’s been no-less interesting in the Twin Cities Real Estate market and records are being broken in a few areas.

Let’s take a look at some key statistics and see what is going on.

Median Sales Price

Over the past 12 months, the Twin Cities region has seen a 5.4% increase in the median sales price of traditional homes, ending at $235,000 at the end of April 2017.

Twin Cities Real Estate Median Price - May 2017

Housing Inventory

Currently, the inventory of houses on the market is a little over a 2-month supply. This is down 21.5% year-over-year and, incidentally, the lowest it has been in more than 13 years. This has buyers often competing to purchase listings, and has resulted in shortening the time on market for homes (down 15.3% to 72),
Twin Cities Real Estate Housing Supply - May 2017

Average Sale Price

With the average sale price currently 99.2% of last list price, sellers are generally getting what they ask for when a property is priced appropriately. There are still chances to get deals, but by and large, houses are selling quickly, and VERY near (sometimes above) asking price.

Twin Cities Real Estate Average Price - May 2017

twin cities market Trends

Buyers

If you’re looking to buy a home in 2017, it helps to be ready – being pre-qualified for a mortgage shortens the time to make an offer and can greatly increase your chances of getting a home. If you find yourself in a multiple offer situation, having the advice of an experienced agent can put you in the best position of getting your home and getting it at a fair price. Stretch your buying potential with down payment assistance programs whenever possible.

Sellers

If you’re on the fence about selling in 2017, a Creek Realty agent can help you make sure you’re ready. It is still important to have a clear idea of pricing trends in your market, and making sure your home is showing-ready to impress potential buyers still matters even in a hot market.

Call Today

If you’re considering buying or selling, talk to one of our agents today for the guidance you need. You can always expect personalized service from the team at Creek Realty tailored to your specific needs.

Do It Yourself : How to Repair / Replace a Section of Drywall

As a homeowner, it can sometimes be helpful to know how to repair drywall yourself. The primary reasons for this could be damage incurred while moving furniture, replacement of a window or door, cutting current drywall for a new light fixture, etc. Then there are more pressing needs such as water damage from an adjacent room, window left open, or other less desirable reasons.

If you choose to do drywall repair or replacement yourself, rest assured it is a simple and inexpensive project – for a small area (under 8 square feet) you will likely need only about $20 in supplies, plus whatever paint you choose to finish the job with. In this blog entry we’ll talk about what you need and how to do it. All you need is a little time, patience and a little attention to detail.

Tools Needed:

Utility knife with a fresh blade
Joint and taping knives (I prefer a 6 inch and a 12 inch for most jobs)
Sand paper (120 to 150-grit or drywall paper is best)
Rag or sponge
Saw for removing damaged gypsum (this can be as basic as a “jab saw” or a power tool such as an oscillating multi-tool)

Supplies Needed

Pre-Mixed Joint Compound (1.75 pt should cover about 20 Square feet, or a 4×5 foot patch)
Joint tape (I prefer Fibal type tape)
Handi-Panel or sheetrock (gypsum) panel – You can buy these as 2×2 feet or standard 4×8 foot and cut as needed.
Wood for anchoring or drywall repair clips

Preparation and Demolition

Before starting, it’s a good idea to close off the space you will be working on and remove or cover anything you don’t want to get dusty or dirty. Cover the floor you will be working on with poly or a another covering such as a drop cloth or old sheet. In this example, the drywall being replaced is from a ceiling below a bath tub where the fixture was leaking behind the valve, so some of the drywall that came down was damp. Dust from sanding will also be an issue if not properly managed.

Drywall repair requires removing any damaged section before replacing or patching. — The section of drywall removed here was damaged due to a leaky bath tub faucet above. Notice the p-trap and copper piping; small amounts of water were able to drip from the faucet and damage this section.

Determine the section to cut and mark it out using a straight edge ruler or square.
Cut away the damaged section of drywall. I chose to do this with an oscillating multi-tool with a cutting head). Take care to cut as cleanly as possible, but don’t overthink it; you can patch small errors with ease.
Inspect the area remaining – cut as necessary to remove any damaged parts (especially water damage)
If your cut is close to a stud or nailer, but does not expose it, consider cutting a little further so you have a good surface to fasten the new panel to.
Measure the thickness or depth of the existing gypsum board as well as the size of your newly formed hole.
Gypsum comes in four thicknesses in most homes:
– 1/4″ – generally used in curved applications, it is not common but may exist in some homes and is available but hard to find at most stores.
– 3/8″ – more common in older homes and widely available at most home supply stores.
– 1/2″ – This would be considered the most standard thickness and is widely available.
– 5/8″ – Usually found in ceilings, and often of a fire resistant form. This is less likely to be found at a home supply store, and more likely in a drywall supply store.
Ensure that the hole either has exposed studs or nailers, or you can
With the new panel in hand, take time to re-measure the opening you need to fill. Fitting the new piece is easiest if you cut straight lines, and a tighter fit will be achieved. A gap is okay, but try to keep any gaps less than 1/4″ (less is better). Mark your cuts before hand
Using a piece of 1×3 or 1×4″ pine, create atrip to attach the new gypsum panel to.
There are two ways to affix the new panel – Here I have screwed a strip of wood on either side of the opening to secure the panel to; the other option is to use Drywall repair clips – allowing you to anchor a screw into the existing drywall without a more substantial support.
To cut the new panel, place a straight edge against your line and score it with a utility knife. With the scrap edge hanging over a flat surface just beyond your score, quickly snap the piece downward to break the gypsum. Flip over your panel and cut the backing paper to remove the excess. Do this for all sides to be cut. (Pictures below)
Check the fit and trim excess away with the utility knife or by shaving the surface with the knife perpendicular to the edge.

Mark your lines using a pencil or felt tip marker.

Cut along your marks using a sharp utility knife

When scoring, cut the paper, but not to deep into the drywall as this will dull your blade

Snap the piece downard along the score line and revers to cut free of the paper backing.
Anchor the wood strips to attach the new panel if using.
Using wood strips, anchor with a drywall screw to the existing gypsum.
Attach the new panel with drywall screws (keep in mind that fewer screws will mean less patching with mud, but too few may not be secure. Aim for one screw on each corner, plus another every foot)
The new panel is secured and attached with screws; fibal tape is applied to the edges prior to the first coat of joint compound or mud.
Apply tape to the seam and begin mudding your drywall. I cannot do better than to recommend this video as it truly is an art form.

Points to remember when mudding joints

Less is more – do not apply too much mud, or over work it.
Aim for 2-3 coats ideally.
Blend joints by extending past by 6-8 inches.
Clean your tools in between and ensure they are dry.
Use a flashlight shined along the wall’s surface to detect irregularities.

Finishing

When you are satisfied with your joints, apply a coat of primer or your first coat of paint. At this time if you discover any imperfections, dips or divots, you can still add a small amount of joint compound and sand to correct before painting. Congratulations, you’ve completed your first drywall repair!

Top Home Trends for 2017

Every few years, the tastes of homeowners and buyers shift; what was one in-style and in high demand, becomes less so. In a recent poll of Realtors done by Builder Magazine, the following trends were most reported. While it may not be cost effective to add a basement with 9-foot ceilings to your 1924 South Minneapolis home, some of these trends cost very little to do, and could help you sell your home faster and at a better price. Here are some top trends in home design and features we see currently and going into 2017.

OPEN LAYOUTS

This can be helpful to make use of smaller spaces. Where one room flows into another, it is easier to host large family gatherings, or to feel more spacious when you’re alone. On the flip side, when you drop that plate of shrimp on the kitchen floor, everyone is going to see you put them back on!

MODERN DESIGN

Modern design is one that is hard to find; it’s a small group of people who seek out a design style from another era, so we’re not talking grey walls and chrome with pops of color here a la Piet Mondrian. Currently modern design includes trends like up-cycling (think warehouse cart coffee tables and salvaged barnwood), neutral colors (see below), clean design lines.

NEUTRAL COLOR SCHEMES

Beige, khaki, cloud grey – These should probably stick around for a few years, and allow you to accent with colors of furniture or accessories. Pro-Tip – you are more than welcome to paint your room in honor of his purple-ness, but if you’re trying to sell, consider covering it up.

MULTI-GENERATIONAL FLOOR PLANS

As our parents age, many families are looking for a situation that helps them be care givers to loved ones when the time comes, but they generally enjoy each other’s company, so spaces with in-law suites, or adjoining living spaces can be a great fit for buyers.

FIRST FLOOR MASTER SUITES

For many reasons, the first floor master or even multiple bedrooms can be an attractive feature. Whether purely out of convenience or accessibility for a resident of the home that has mobility limitations, these rooms can go a long way to staying in your home longer.

NO DINING ROOMS

While this may be a trend nationally, I find it to be split pretty evenly down the middle for buyers. Some have no interest in what will be wasted space, while some others prefer a part of the house reserved for special occasions or entertaining. It is not strictly generational either. Younger buyers may like the formal dining room, or they may want to turn it into an office next to the living room.

Photo from Decoist - Mixing modern with farmhouse elements is one style buyers seek. Neutral floors and walls are important here too. — Photo from Decoist – Mixing modern with farmhouse elements is one style buyers seek. Neutral floors and walls are important here too.

WHITE KITCHENS

As an extension of the white trim trend, we’re seeing more kitchens done up mainly in white. White cabinets and frame faces, usually with contrasting stone counter top. White appliances don’t seem to have come back in vogue yet though. if you’re considering an update, you might choose to sit this one out, but older houses with original cabinets can sometimes benefit from a well-done refinishing of cabinets and some new hardware.

EXTRA LARGE GARAGES

Call it the Garage Mahal; the garage is the new man cave, except it’s everybody’s space. This is not an easy upgrade, especially on a city lot, but anything extra on a garage is generally liked. Extra depth for workshops and storage, extra overhead height (taller doors) for larger vehicles, or extra stalls are some of the options available on the market and in high demand.

Space is king in garages and anything for more room however you use it is a great selling feature. PIcture courtesy Chicago Tribune — Space is king in garages and anything for more room however you use it is a great selling feature. Picture courtesy Chicago Tribune

BIG CLOSETS

At certain price points, a walk-in close becomes expected, but if your house has a walk-in closet as part of the master or multiple rooms, this can be a great selling feature. At the higher end, closets that could be converted to a bedroom are not uncommon and can really add to the appeal

BARN-STYLE SLIDING DOORS

Barn style doors hit the scene by way of Pinterest a few years back, but they don’t seem to be going anywhere. Like the pocket doors of the 70s and 80s era, these sliding doors add a rustic charm to a space, but one of the major features is the fact that they don’t take up room with a traditional swing, so can be great for separating two adjoining spaces in style.

NO VINYL FLOORS*

While this has been reported for the article, we would place a caveat on this. In certain neighborhoods and price points, you will certainly not see any vinyl or composite floors, favoring instead exotic hardwoods as a show piece, especially in entry areas or entertaining spaces. Wood is certainly king everywhere, so if you have a wood floor covered by carpet, consider polishing up that diamond in the rough before selling. With floors of vinyl or even tile, the wood look can still show very well, but even inexperienced buyers can tell quality materials from not here, unless it was just installed last week.

OVER-SIZED MASTER BATHROOMS

Aesthetically, bathrooms range from spa-like simplicity to use of exotic materials, but everyone gets excited about luxury when it comes to homes with master bathrooms. While the spa-tub, or garden tub look is still popular, younger buyers get most excited about large showers with multiple heads, or welcoming and spacious bathrooms with lots of natural light. If you are considering a remodel and have an older whirlpool tub, consider if converting to a luxurious shower might be right for you.

FINISHED BASEMENTS WITH 9-FOOT HIGH CEILINGS

In general, if you are buying a newer home or building, this might be doable, but consider the use of a basement. For many it’s an entertainment area for the family to enjoy, so big rooms are great for rambunctious kids or adults! The takeaway here would be that it is finished. If for some reason you have the urge to lift your house up and increase lower level head space it might be a good fit for you, but not likely a good return on investment from a sales price perspective.

What is something you love to see in a house, or would like to have in your dream house? Let us know; and if you’re looking to buy or sell, call me today!

Erik Laing

Homeowner’s Fall Checklist – Get ready for winter!

Homeowner Checklist for Fall

With the weather turning cool, your thoughts may turn to all things pumpkin, football, long sleeves, apple orchards, and all sorts of other autumn things. While you’re at it, though, consider this list to make sure you and your home are ready for cooler months ahead.

Outside

Take a walk around your home and inspect the exterior – paint, patch, repair or caulk any openings that shouldn’t be there to protect your home and keep it warmer.
Clean your gutters – in climates like Minnesota’s where winter is sure to come, this prevents ice dams as well as pest infestations and those little trees that grow in some people’s gutters.
Check storm windows/doors for proper function – tighten any loose components and make sure any door closers and safety chains are working correctly and well-secured against winter winds.
Clean your windows outside and in (I make my own using this recipe): you’re going to be looking out of them more often over the next few months, and they look great if you entertain for the holidays.
Prune trees and vegetation away from siding, windows and roof to protect paint and materials, as well as prevent any limbs falling on the house in the event of an ice storm.

Window insulation kits like this one don't affect the view any and are easy to install. — Preparing now for cooler, OK, COLD months ahead means you can enjoy the winter in the comfort of your home where is is warm, rather than drafty or expensive to heat.

Inside

Have your heating system inspected and serviced.
Stock up on furnace filters and replace monthly or as recommended by furnace manufacturer.
Inspect weather stripping and repair or replace where air is able to get in such as windows, doors, pipes, wiring or vents enter and exit your home.
If you don’t have a programmable thermostat already, consider installing one. In most cases it’s an easy DIY install and the small cost can mean big savings
If you have older windows in your home, consider using window insulation kits. These easy kits just require a hair dryer and scissors to install and prevent drafts in cold temperatures.

Following this homeowner’s fall checklist is an easy way to save money and be more comfortable in your home this winter. Do you have any thing that’s part of your regular fall maintenance at home? Let us know in the comments and we may include it in future posts or updates.

Getting the Home You Want in a Competitive Market

For home buyers, especially anyone buying their first home, current interest rates are still extremely low, making now a good time to buy a home; but what if not every factor is in your favor? Specific price points, neighborhoods, or home types will be in greater demand at given times, and the current market is no exception. It’s still possible to get the home you want in a competitive market by being prepared. Today we take a little time to remind buyers what they can do to be in the best position to buy. Continue reading…

Money Saving Rebates Available for Minnesota Homeowners

Whether you’re looking to purchase a home or already a homeowner, you probably are aware that things like property taxes or other expenses related to your home can greatly affect it’s affordability. As a result, homeowners (as well as potential buyers) are wise to consider ways to save on regular expenses or modifications to your home. One way you might not be aware of to do this is through energy conservation programs like Energy Wise MN. Available to members of electrical cooperatives around the Twin Cities and out-state Minnesota, these cooperatives provide the power to thousands of residents. To promote upgrades to appliances in favor of higher efficiency units, Energy Wise MN and local energy cooperatives are offering rebates to homeowners who purchase qualifying units in several categories:

Resources for Minnesota home buyers – down payment assistance and more.

If you’re considering purchasing a home or getting the ball rolling, you have no doubt heard the importance of getting your financials in order; but what is a first time buyer with limited finances to do? If you have not already met with a loan officer, we suggest doing so before looking at houses to ensure that when you do find the right house, you’re ready to move on it.

Short of that however, the process can be confusing to anyone who hasn’t been through it before. One good resource for Minnesota home buyers is the Minnesota Housing Finance Agency (MHFA). With resources available to new buyers as well as existing homeowners in the way of loan programs, down payment assistance, and home buyer education, buyers can tap into various opportunities that can stretch your own personal funds and ease the financial burden at closing.

Loan Programs

For first-time buyers (or have not owned a home in the past three years), affordable loan programs are available to consumers. There are income qualification guidelines and complete information can be found here. As of February 2017, these include:

Interest Rates starting at 4% (Rates are constantly changing and depend on a variety of factors)
Access to down payment and closing assistance programs
up to 97% Loan-to-Value ratio
Fixed interest rate

Down Payment Assistance / Closing Cost Assistance

When you make an offer on a property, buyers provide the seller with earnest money. At closing you bring the amount needed for the down payment, minus the earnest money already given, but unless it’s part of the purchase agreement that the seller pays closing costs, buyers can expect to provide additional money for closing costs. These include things like loan origination fee, title insurance and mortgage registration tax; all of which can equal roughly 3% of the loan amount. Programs are available to buyers in the form of loans and deferred payment loans. Some highlights of these loans are:

Up to $10,000 in down payment assistance
10-year term, or deferred (loan repaid upon sale of the home)
Maximum home value is $307,300 for homes in the 11 county metro area, and $258,600 in the remainder of the state.

All of these down payment assistance programs require homebuyer education that can be taken online or in-person through the Minnesota Homeownership Center.

The Importance of Homebuyer Education

You might find that many people you talk to haven’t gone through homebuyer education, but most of them probably bought before the housing bubble burst. One report from 2013 showed a 1/3 drop in mortgage delinquency when buyers participated in homebuyer education. What’s more, these classes can give buyers a better understanding of the home buying process and make more informed consumers.

Consider some of these resources to get you started on your house hunt, and we’re happy to help find your home. Contact one of our Agents today, and get on your way to calling some place “home.”

The Best App for Home Search – Some Thoughts

What app is the best for home searches?

This is a question buyers often ask. In today’s connected world, there’s an app (application) for everything. In fact, there are often multiple apps for any given topic. For home buyers this is no less true. We’ll explain what makes one app the best app for home search in our opinion and where others fall flat.

What features should an good app have?

To be useful, an app needs to have good information that can help you as a buyer decide if a house is worth further evaluation or a showing. Consider the following:

Complete information such as number of bedrooms, bathrooms, size, etc.
Availability status – is it for sale?
Photographs of the property and structure

None of this, however is as important as one absolute. The information has to be CURRENT and ACCURATE, and this is where many applications fall flat. Many well known options in your favorite app store just don’t have information that is reliably up-to-date, and sometimes, the information can be even inaccurate. Continue reading…

Stress-Free Home Searches

Stress-Free Home Searches – How to Look for a Home the Simple Way

Your time is valuable – and buying a home (especially your first) can be an intimidating process for people. We make the process as simple as possible in order to make the most of your time. Creek Realty agents work with you from start to finish to create stress-free home searches; we think you might even find the process a fun one!

Where do we start when searching for a home?

The first step in any home search is pre-approval. The first step can be talking to a professional at your current bank, or looking for mortgage providers in your area. There are a number of organizations that provide mortgages including banks, credit unions, and specialty mortgage banks including Mid Country or Alerus . Starting with pre-approval helps you have the best understanding of what your budget is and what monthly payments look like for your situation. If you’ve already seen a house on the Creek Realty Property Search, you can use our Mortgage Calculator to get an estimate. From this meeting you will most likely receive a pre-approval letter indicating how much you will be approved for – with that in hand, we’re in the best position to help you find a home in your budget!

Questions to Ask Yourself about your Ideal home

Chances are you have some idea of where you might want to live, but if you don’t, here are some questions to consider: Continue reading…

Welcome to our new site!

For 2016, we’re excited to announce a new website, logo and a more robust property search engine than ever before. What hasn’t changed is our commitment to our clients and the quality service you’ve come to expect. Look for detailed information coming from our blog regarding buying, selling and real estate topics as well as resources for current homeowners!