Twin Cities Real Estate

Neighbors

Many times we don't think a great deal about our neighbors.  We wave at them or talk to them over the fence, but many home owners do not know a great deal about their neighbors.  I think that is fine, but I have a case in point from last night that proves we should know our neighbors a little bit.

 

It was one of those nights where my husband and I were running in separate directions. I thought I had it all under control talking to Charles on my cell phone going over plans for the rest of the evening.  I put a pan of lasagna in the oven and ran to Southdale to pick-up a few things.  Charles had come home and was making a salad and getting the table ready, so we could eat the moment I walked in the door.  As I came in from the back door, I noticed our dog, Spirit, was messing around in the snow.  I went over and saw he was eating a dead pigeon.  I went inside to tell Charles.  He went out to clean it up, and I brought the dog in to clean him up.  I noticed Charles was not back, so I went out to see what he was up to.  Yes, I closed the back door tight as it was bitter cold, below zero.  He was fine, but now the two of us were locked outside in this nasty weather.  This is where know our neighbors come into play.  I went to Dave and Sheila and asked them if they had a key for our house.  They opened a draw and said, "We have lived here over 20 years and neighbors from all around us have given us keys.  Take your pick."  We found our key and got in. It took many tries without gloves to find the right key.  Our romantic dinner together went south, but hey we were inside where it was warm and we were eating.

I am getting Dave and Sheila a marked key chain for Christmas. Don’t say I am not neighborly.

Feed the Birds

In the movie, My Fair Lady, there is a song about feeding the birds.  I want that to be the theme song for this winter.  Birds have it tough as their food sources are covered by snow.  It takes a great deal of seed to feed the bird, as they burn it off flying as fast as they take it in.

 

Hardware stores, nurseries, and bird stores have many kinds of bird feeders.  I try to use the kind that limit the squirrels  from feeding  from them.  I usually feed black sun flower seeds as that attracts the birds I most like.  Make sure you store the extra feed in an aluminum, garbage can with a locking lid.  You do not want squirrels or mice to get into your stored seeds.

 

The bird feeder will help keep birds alive as we lose a high per cent age over the winter months. In return you will see some amazing sights, hear some lovely songs, and enjoy nature at work.  This is a great activity to share with children. They will learn responsibility and feel good about helping a small creature. 

 

If you are in need of getting one more gift for someone, select a bird feeder.  It will be a gift that keeps on giving.

Bright Moments in our Lives

Our days are dark as we approach the shortest day of the year.  The news seems dark.  You might ask, "Where are the bright spots these days?"  What follows is a good list:

 

1) Equity lines of credit will drop next month

2) Gas is costing less

3) Mortgage rates have dropped to a 34 year low

4) Things are costing less

5) The temp is above zero

 

Look to the sky on these clear nights and say, "Star light, star bright, first star I see tonight. I wish I may, I wish I might, have the wish I wish tonight."  Wish hard as wishes do come true.  There is not total darkness in our days.

 

 

Living in a Winter City

Let's agree on one thing, we live in a winter city.  You should not live in the Twin Cities if you want Palm Trees or temps in the 60's in January.  Our economy is based on us being a winter city.  There are real economic woes when winter does not come.

 

As a Realtor I have met home owners who have had to sell their house because one year after another we have not had a "real" winter.  A man who owned a body shop was driven into debt because we did not have ice and people did not have fender benders.  He needed those accidents to stay in business.  Towing companies need cold weather to jump start batteries or tow cars.  They need to pull us out of ditches.  Roofers need those ice dams so they can have work in the winter.  All this might sound unfair to those of us who pay dearly when these problems occur, but our economy is based on winter.  Think of what happens in St. Paul when we don't have winter for the Winter Carnival.

 

As you swear under your breath because it is cold, snowy, and icy, know someone is making money and keeping their family fed because of winter.  It is just a fact of living where we do. 

 

Now I do have an idea. What if we drew a line at Hinkley?  Everything north of Hinkley could be winter, but the land south would be mild.  It would be like living in California and driving up into the mountains to ski.  I like the idea, but I am having trouble selling the idea to Mother Nature. 

The 7" Rule

I want to share with you my 7" rule.  If a snow fall is 7" or below, I hand shovel.  If it is greater than 7", I will haul out the snow blower.  Here is the reason why.  I don't like noise  There is something peaceful about the quiet after a snowfall.  The hush the snow gives to our enjoinment is welcomed.  The snow blower is a loud machine that disturbs that stillness.

 

It is great exercise.  I have many walks and patios to shovel, so I am not saying this because I have an easy task.  Once I get going ,I often will shovel the walk of my neighbor.  Don't talk to me about the cold.  We have great winter apparel.  Plus, once you start exercising the heat comes from my body.  There is therapy to me in the rhythm of the movement of the shoveling and the song the shovel makes as it scrapes the pavement.  What a feeling of accomplishment I have when the walks are cleared.

 

Often I will have my dog out with me, and he chases the snow as I throw it in the air.  He runs around and explores the new stuff.  There must be great smells in it, as he can't get enough of it. 

 

Yes, come March I have had enough of it.  Still, I can't think of a better exercise for me.  My heart is healthy and there is no reason for me not to do the workout.  My mother-in-law is 88 and up until 2 years ago she did her own shoveling.  It worked to keep her healthy and I am betting it will do the same for me.

Next Round of Foreclosures

The first round of foreclosures could be defined as self-imposed.  These would be buyers who intentionally or unintentionally bought houses beyond their means.  They bought with mortgages that changed quickly on them and they no longer could make payments.  Many of the houses in the Twin Cities in the $150 to $250,000 price range on the market fall into this category.

 

This round for foreclosures is being caused by home owners losing their jobs, being forced to take a pay cut, or the raises they annually received are no longer being given. The budget won't stretch far enough for these people and they are now facing short sales and in the end perhaps foreclosures.  These people honestly got caught in the spiral down of our economy. 

 

I met this morning with such a family.  He is a contractor who installs windows for builders.  Guess what/  Builders are not building so their are no windows to install.  She has her own business in business consulting.  She is not being called in to help companies run their businesses better.  Two self-employed people with 4 kids trying to make costly healthy insurance payments, pay for food, pay utility bills, and make house payments.  Their funds can't make all these payments.  There are not the fallback jobs of waiting on tables or retail to help make ends meet.

 

This is what is waiting for our real estate market as we enter 2009.

Holiday Gift Wrapping

I am no Martha Stewart, but I do like to do some fun things and be creative.  I find wrapping gifts so much fun and that it just makes what is inside that much more exciting Starting with a fun shape box, selecting colorful paper, and then accenting with ribbon and bows you have a fun gift to present. Gift tags can be made special by taking a photo you have of the person you are giving the gift to, and using that on the gift tag.  It can be an action picture, posed, or one of you and the person.  It also helps non-readers hand out the presents.

 

So many people have gotten casual and throw the item in a gift bag, put some tissue paper on it, and had it to you.  It is still nice, but that extra piece of caring is missing.  There is an excitement to opening a box. 

 

Go into your closets and find unused boxes.  Some might even have historical presence with the names Power,Donaldson's, or Dayton's on the boxes.

Preparing for the Storm

Living in the metro area is different than living out in the country.  Many of the storm warnings really pertain to them, but us in the cites take it to heart.  My clients cancel appointments, open houses are not attended, video stores are over whelmed with people stocking up with movies, and the stores have people buying more peanut butter and milk than you can imagine.  Let me ask you, "When was the last time in the Twin Cities we went more than a couple of hours without being able to move around?"  It was the Halloween storm of the 80's.  So many of us drive four wheel vehicles that it is hard to put us down.

 

I think the media hypes us so we stay tuned for more information and therefore listen to their commercials.  I am all in favor of taking caution, but we can't be turtles and hide in our shells.  My other theory is that we long for a storm as an excuse. to stay home.  You don't need an excuse to stay home, give yourself permission to do so.  The greatest per cent age of our income goes to our house payment, yet for many of us a small percentage of our time is spent in the house.  Grab a good book, watch a great movie, see a sporting event, play a board game with your family, and even take a nap.  My guess is that we in the metro area will come out of this saying,"What was all the fuss about/"  Do take care no matter how you handle this storm.

2009 is Right Around the Corner

My accountant is bugging me to get him my financials for 2008.  He is closing the books on 2008 and getting me ready for 09.  Sounds good to me! I don't know if there is a business owner out there who is not anxious for this year to end.  As a Realtor, I own my own business, so I too am ready to see what the new year will bring. 

 

I do feel 2009 will be one of the most active real estate years that we have seen in this decade.  Today's rates have fallen below the 5% mark on a 30 year fixed mortgage.  The median price of homes in the Metro area have fallen to the lowest level in 6 years.  It is really cheaper to own than rent.  Prices of homes will continue to drop until the supply and demand curve levels off.  The number of newly foreclosed properties exceed the demand. We expect to see a rise in short sales. Banks realize it is cheaper and faster to negotiate a short sale than allow a property to go into foreclosure. 

 

The inauguration of President Obama and the Super Bowl are almost simultaneous. That is important to note.  Change is coming and people want it, and football is ending and that allows people to get off the couch and look at houses.  The two happening together are a positive beginning for 2009.

 

Everyone needs to give themselves permission to buy up or down and make the changes that are necessary to make their life good for themselves.  If you want to see the world come to an end, go to the movie theater.  If you want to experience life, walk out your front door.

Refinance Opportunity

  Over the past 10 days, we’ve seen mortgage rates drop well over 1%.  Right now, conventional 30 year fixed rate mortgages are sitting at 5%, in some cases 4.875%.  These rates are an unprecedented all time low.  As a general rule of thumb, a 1% drop in rate can reduce your payment over $150 per month.  Now is a great time to assess your current situation whether you have a higher fixed rate, an adjustable rate mortgage, or would like to tap into a portion of your equity.

1.      Based on current market conditions, do I have at least 5% equity in my home?

2.      Has the income I used to qualify for my home stayed the same or increased?

3.      Is my current interest rate at or above 5.75%?

If you answer yes to all three of these questions, I would suggest exploring the possibility of refinancing.