Sharlene Hensrud - Blog

Listings Needed!!!

sharlene.hensrud@results.net — Fri, 20 Jan 2012 00:00:00 GMT

The number of new listings entering the market last year was the lowest it has been since the turn of the century... down from a peak of 108,033 in 2006 to only 68,875 in 2011.

That low number of sellers entering the marketplace coupled with buyers snatching them up resulted in in a supply of homes for sale that dropped off my chart... only 16,191 active listings at the end of 2011.

If you look at the laws of supply and demand, indications are this could be a good year for sellers. The months supply of inventory in December was down to 4.2 months... indicating a seller's market for the first time since 2005!

Unemployment has been holding buyers back, but the unemployment rate has now reached its lowest level in three years. The decline since August was the beggest decline over any 4-month period dating back to 1976! That, combined with continued record-low mortgage rates and rising rental rates, has bolstered demand.

Traditional sellers have been holding back during the last few turbulent years, resulting in a high percentage of short sales and foreclosures...

...which in turn have contributed to declining prices encouraging traditional traditional sellers to stay out of the market.

Overall median sale price last year was $150,000, but when you break it out by traditional, short sales and foreclosures you see that median price for traditional sales was almost double that for foreclosures.

This could be the year of the move up buyer... selling to first-time homebuyers eager to buy to escape rising rents... then buying up with not only price savings but also with the increased buying power of low interest rates.

Thinking about selling? It's time to start getting your home ready, listings are needed... !!!

Price-to-rent ratio tips towards buying rather than renting

sharlene.hensrud@results.net — Mon, 16 Jan 2012 00:00:00 GMT

As Twin Cities rents go up in in response to high demand and the lowest vacancy rates in about 10 years some renters are starting to wonder if it finally makes more sense to buy.

While there are many factors involved in such a decision, if it boils down to whether buying makes financial sense given current market conditions a good gauge is the price-to-rent ratio.

The price-to-rent ratio is the cost of the median home divided by a year's median rent. Median price of a home in the 13-county Minneapolis-St. Paul area was $150,000 at the end of 2011. Median rent is about $1,100/month or $13,200 annually, according to more than one online rental site. Dividing $150,000 by $13,200 gives a ratio of 11.36.

So what does that mean? The classic rule of thumb is that when the ratio is over 20 you should rent... 15-20 you could go either way... under 15 it makes more sense to buy. At the peak of the bubble the ratio was 21.69... long-term average from 1989 to 2003 was 13.48.

At 11.36 the price-to-rent ratio is below both the peak and the long-term average, which seems to tip the scale towards buying vs renting.

Milwaukee Avenue Historic District - Minneapolis Seward Neighborhood's unique walker's paradise

sharlene.hensrud@results.net — Sun, 08 Jan 2012 00:00:00 GMT

Only two blocks long, the Milwaukee Avenue Historic District is Seward Neighborhood's shining star. This group of small homes built between 1884 and 1890 was the first planned workers' community in Minneapolis, attracting immigrants working in the nearby railroad yards and other industries along Hiawatha Avenue. Built in similar style on quarter-sized lots with no front yards, these homes have more of a rowhouse feel.

In 1970, after decades of neglect, the City of Minneapolis planned to raze these homes along Milwaukee Avenue. Thanks to activist neighborhood residents, the area was instead rehabilitated. Houses were preserved and the street was turned into a bike and pedestrian mall creating a unique sense of community and the Milwaukee Avenue Historic District.

The Milwaukee Avenue Historic District is a shining example of a neighborhood coming together, creating a unique pocket neighborhood where the car does not dominate. Walk Score gives this area a score of 91, naming it a Walker's Paradise.

Located southeast of downtown Minneapolis bordered by I-94 on the north and the Mississippi River on the east, Seward neighborhood is a very diverse and politically liberal community characterized by college students, immigrants, aging hippies and everything in between.

Seward Neighborhood was ranked #7 in Twin Cities Metro Magazine's list of the 20 most livable neighborhoods in Minneapolis. Its diverse residents include The Playwrights' Center, Northern Clay Center, Seward Co-op, Riverside Park and off-leash dog park, Birchwood Cafe, weekly punk and rock at Memory Lanes bowling alley and vegan Seward Cafe.

As you might expect, homes along Milwaukee Avenue are rarely available but buyers looking for walkable neighborhoods frequently ask about Seward neighorhood homes for sale. Average home price is $193,956.

Holiday Lights in The Park... animated lights display and fund raiser

sharlene.hensrud@results.net — Fri, 23 Dec 2011 00:00:00 GMT

Wondering where to go to look at holiday lights this year?

Holiday Lights in the Park at Lake Phalen in St. Paul is a fun drive-through show of holiday light sculptures and animated displays that is also a great fundraiser, with all net proceeds donated to Second Harvest Heartland, Union Gospel Mission, The Saint Paul Parks Conservancy and UnderConstruction... charities focused on fundamental community needs such as food, shelter, education, and the environment.

Open nightly from 5:30 pm to 10:00 pm through January 1, 2012, at Phalen Park... approach from Johnson Parkway at Maryland. Charge is $10 per vehicle, $8 Sunday through Thursday, holidays exempt.