Early Signs Of Foreclosure And Short Sale Slowdown

NEWS RELEASE

FOR IMMEDIATE RELEASE
Early signs of foreclosure and short sale slowdown-

Q4 2008 Update to “Foreclosures and Short Sales” report is released with exciting new interactive data tool Minneapolis, Minnesota (January 27, 2009) – Foreclosures and short sales in the Twin Cities housing market are showing early signs of slowing, according to a new research report released by the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc (RMLS).

During the fourth quarter of 2008, there were actually 4.3 percent fewer new lender-mediated listings than there was in the third quarter. That’s the first quarter-to-quarter decrease since 2003. As a result of this reduction in new supply and continued buyer interest in these properties, the total number of lender-mediated homes for sale dropped 600 units over the course of the quarter. This is only one quarter of downward movement, so time will tell whether the trend continues. Regardless, this has to be taken as a hopeful sign.

“By no means is the hard part totally over,” said Steve Havig, 2009 President of the Minneapolis Area Association of REALTORS®. “What the economy does in 2009 is the real wildcard, but the sooner this cycle runs its course, the sooner the housing market can return to some normalcy.”

New Listings
Lender-mediated home values are dropping quickly, while traditional homes are fairing better. The median sales price of lender-mediated homes in Q4 2008 was $131,000, a drop of 19.1 percent from the same time last year. The median sales price for traditional homes was $221,000, a drop of a much quieter 2.6 percent.

Despite the fall in new supply from last quarter, 42.2 percent of new listings and 46.0 percent of closed sales during Q4 2008 were lender-mediated. This is an increase from the same quarter last year, due in part to declining activity in the traditional market.

Edina Realty Mortgage

An Important Message from Todd Johnson,President and CEO of Edina Realty Mortgage

To Our Customers,

The dramatic events taking place in the financial services industry and economy are historic in scope and proportion. You may be asking yourself, “What does this mean for me as a home buyer or home seller? When I want to obtain a mortgage, will there be funds available?” The answer is simple: at Edina Realty Mortgage, it’s business as usual. Yes, we continue to originate mortgages for home purchases and refinances. Our wide product range features FHA, VA, MHFA, Conventional, Jumbo, Relocation, Renovation, and Reverse Mortgages. We are committed to helping as many customers as possible enjoy the personal and financial benefits of homeownership. We provide competitive, fully disclosed, and responsible and fair pricing for all borrowers.

A Solid, Stable and Secure Lender

We want to assure you that we remain a solid, stable, and secure mortgage lender. We are a well-capitalized company, and we hold fast to our long-standing responsible lending principles. Edina Realty was one of the first real estate companies to offer integrated mortgage services more than twenty-five years ago. For over ten years, Edina Realty Mortgage has been a joint venture between Wells Fargo Home Mortgage (a division of Wells Fargo Bank, N.A.) and HomeServices of America, a Berkshire Hathaway Affiliate. Wells Fargo Bank, N.A., is the only bank in the United States, and one of only two banks worldwide, to have the highest credit rating from both Moody’s Investors Services “AAA,” and Standard & Poor’s Rating Services, “AAA.”

We Are Committed to Your Successful Closing

We stand by our word. Our exclusive On-time Closing Guarantee (1) ensures that you will close on time AND for the amount quoted on the Good Faith Estimate, or you will get money back. Are you already working with another lender? We will be happy to review your Good Faith Estimate and Truth-in-Lending Disclosure Statement. This no-obligation second opinion from us takes just few minutes, and we may be able to provide reductions in interest and/or closing costs.

As a responsible lending leader, we work closely with our customers to help you reach your personal and financial goals through homeownership. Our team works hard to know you, understand your needs, and listen to you. We put you at the center of everything we do.

Thank you for trusting us with your business.

Todd JohnsonPresident and CEO

1. Available on all qualified purchase transactions. Other terms and conditions apply. See a Home Mortgage Consultant for details.
2. If you have a current lock-in agreement with another lender, this is not an inducement to transfer your loan.
All first mortgage products are provided by Homeservices Lending, LLC Series A dba Edina Realty Mortgage. Edina Realty Mortgage may not be available in your area. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. ©2008 Edina Realty Mortgage. All Rights Reserved.

Homeowners Battle Rising Utility Costs

Savvy homeowners are battling all-time-high energy costs by incorporating building techniques to make their homes more energy efficient. As more people begin to struggle to meet rising utility costs, these practices are expected to grow in popularity.

Just as current owners are renovating with energy savings in mind, new home builders are seeing increased demand for green buildings and energy-efficient homes.

Here are some ideas for how you can reduce your energy consumption – and costs – by selecting building materials and appliances that promise to improve your home’s energy efficiency.

Use Highly Rated Energy-Star Appliances: This is not a new idea, but as costs rise, buyers are looking at the yellow energy-consumption tags on new appliances more seriously. Retailers know that buyers are paying more attention to the higher-rated appliances, and this could lead to more advertising and discounts for such products.

Consider How You Heat Your Water: Most homes have a traditional tank-style water heater. However, with rising heating costs, this practice may change. Other options for heating water in your home include solar heating and tankless water heaters.
Solar water heating requires a significant upfront investment, but once it is installed you no longer need to pay for heating the water. Installation includes a pump, plumbing through which the water circulates for exposure to the sun, and possibly large glass tanks for storing the hot water.
A tankless water heater has no storage tank and the water is heated as you need it. Heating water on demand is much less expensive than heating water and storing it until it is needed.

Supplement Your Electricity: Installing photovoltaic roof shingles instead of standard asphalt shingles lets you use the sun’s energy to generate supplemental electricity for your home. A wire is pulled from each shingle and connected to the home’s power grid. You might not be able to generate enough electricity to meet all your needs, but with rising costs, every bit of savings can be a huge help to homeowners.
If you are considering a new roof or you are building a home, consider using this roofing material to decrease your utility bills.

Consider Your Home’s Placement: If your home was built 50 or more years ago, it probably is already more energy efficient than most new homes. This is because central air-conditioning was not prevalent in the past. To keep homes cool in the summer, windows were located strategically for cross-drafts. Also, the largest windows were designed to receive the morning sun, thereby helping to heat the home.
As energy prices declined, many homes were built without these considerations. However, today’s builders are beginning to return to traditional building practices in order to have more energy-efficient homes.

Consider Your Window Treatments: Whether you live in a new or old home, or are building your home, you can control your window treatments. What you put on your windows can make a serious different in your home’s heating and cooling costs. Light- and heat-filtering blinds and heavy draperies may significantly reduce the need for continuous air-conditioning.

Hopefully, this information has given you some ideas for countering rising energy costs. By using one or more of these suggestions, you can make your home more energy efficient. If you decide to sell your home in the future, these updates may make your home more attractive to buyers.

This is an excellent window cleaner that costs about a quarter per bottle. Use it with newspaper for a clean you won’t believe!

Window Cleaner Recipe (Compliments of Heloise)
12 to 16 ounces water
1/2 cup white or apple cider vinegar
1/4 cup rubbing alcohol (70%)
1-2 drops blue or green food coloring, if desired1-2 drops lavender, cinnamon, clove or orange essential oil.
Combine the ingredients and pour into a labeled spray bottle.
1. Spray the newspaper.
2. Wipe down the window to avoid drips.
3. Wipe one side of the window vertically, and the other horizontally, so you will know which side a streak is on!
This bottle of nice-smelling window cleaner can cost as little as 25 cents. The solution also works well on mirrors and glass shower doors.

Fire Safety!

TAKE THE FIRE SAFETY QUIZ (answers at the bottom)!!
Fire Prevention Week Quiz
"It's Fire Prevention Week October 5 – October 11. Prevent Home Fires is the theme for 2008!"
Your home should be a safe haven. But do you regularly check for home fire hazards? If not, there is the potential for danger. Take this new Fire Prevention Week quiz and see how many questions you can answer correctly. Good luck!

1. The leading causes of home fire deaths are:
A. Cooking and heating.
B. Cooking and electrical.
C. Smoking and electrical.
D. Smoking and heating.

2. You should stay in the kitchen when you are:
A. Baking.
B. Frying.
C. Simmering.
D. Steaming.

3. Most heating fire deaths are caused by:
A. Chimneys.
B. Furnaces.
C. Space heaters.
D. Wood stoves.

4. You should never smoke in a home with:
A. Gas heat.
B. Older adults.
C. Oxygen in use.
D. Paper clutter.

5. When you leave a room in which there is a candle burning you should?
A. Blow out the candle.
B. Move the candle away from anything that can burn.
C. Take children and pets with you.
D. Check the candle frequently.

6. Smoke alarms should be replaced every?
A. 5 years.
B. 10 years.
C. 15 years.
D. 20 years.

7. Smoke alarms should be placed in?
A. Bedrooms, outside sleeping areas and kitchens.
B. Bedrooms, outside sleeping areas and on every level of the home.
C. Kitchens, outside sleeping areas and on every level of the home.
D. Outside sleeping areas and on every level of the home including the attic.

8. Space heaters should be how many feet from things that can burn?
A. 1
B. 2
C. 3
D. 4

9. To prevent electrical shocks in the bathroom you should have?
A. Arc Fault Circuit Interrupters.
B. Circuit Breakers.
C. Ground Fault Circuit Interrupters.
D. Tamper Resistant Receptacles.

10. You should call a professional electrician when?
A. Your circuit breaker trips.
B. You lose your electricity.
C. You purchase a home.
D. Your outlets are warm.

11. A home fire escape plan must show?
A. Two fire escapes from each level and an outside meeting place.
B. Two outside meeting places and the fire department phone number.
C. Two ways out of the home and an outside meeting place.
D. Two ways out of each room and an outside meeting place.

12. If there are smokers in your home, they should smoke
A. In the kitchen.
B. In the basement.
C. In the garage.
D. Outside the home.

13. Extension cords should be
A. Used only if it has the label of a recognized testing laboratory and following instructions provided.
B. Secured under furniture so it is out of the way.
C. Placed under a carpet so it doesn't get damaged.
D. All of the above.

14. Heating equipment should be inspected
A. Every year.
B. When you move into a house.
C. When it's not working properly.
D. All of the above.

15. If the oil catches fire in a pan while cooking, you should?
A. Carry the pan to the sink.
B. Put the fire out with baking soda and turn the burner off.
C. Throw water on the pan and turn the burner off.
D. Slide a lid over the pan and turn off the burner off.

ANSWERS:
1. Smoking and heating
2. Frying
3. Space heaters
4. Oxygen in use
5. Blow out the candle
6. 10 years
7. Bedrooms, outside sleeping areas and on every level of the home
8. 3
9. Ground Fault Circuit Interrupters
10. Your outlets are warm
11. Two ways out of each room and an outside meeting place
12. Outside the home
13. Used only if it has the label of a recognized testing laboratory and following instructions provided
14. All of the above
15. Slide a lid over the pan and turn off the burner off

Looking To Sell?

Here are some tips to get your home ready!

Fence:
Replace missing slats, stakes and posts.
Repair broken hinges and paint or stain the fence if necessary.

Yard:
Mow, trim and fertilize lawn.
Weed flower beds and replace dead plants and trees.
Driveway and garage:
Clean up grease or oil spots on concrete surfaces.
Make sure the garage door opens freely and the automatic door opener is working.
Provide an unobstructed view of your home from the street by not parking cars, boats or other vehicles in the driveway.

Front Entry:
Polish door handles and door knockers.
Replace worn or broken items, such as an unsightly mailbox or rusty doorbell.
Be sure porch lights are working and add welcoming features such as a new door mat and flowering plants.

Siding and Trim:
Consider painting the highlight features of your homes, such as trim work, shutters, gutters, down spouts and railings.
If necessary, add a fresh coat of exterior paint to the siding.

Roof:
Remove debris such as tree branches and leaves.
Make any necessary repairs to worn shingles or cracked surfaces.

Patio and Deck:
Flowering plants and outdoor furniture add appeal.
Remove any unnecessary items such as gardening equipment.
Tidy any visible items, such as an outdoor grill or barbeque.

Doors and Windows:
Consider adding a fresh coat of paint to your front door.
Polish brass fixtures and be sure door locks work properly.
Oil hinges to both doors and windows.
Keep stairways tidy and secure handrails.
Repair or replace bent or damaged screens and window glass.
Cut back outdoor plants that restrict natural light.
Keep windows clean and tidy with draperies firmly affixed and in proper working order.
Repair or replace missing or damaged tile, hardwood, vinyl and baseboards.
Steam-clean or shampoo carpets.
Secure loose carpeting and replace damaged areas.
Be conscious of odors caused by dampness, high-traffic areas or pets.

Closets and Storage Areas:
Ample storage space increases the desirability of the home.
Keep closets tidy.
Discard any unnecessary items and consider storing those things you do not use frequently.
Remember that less is more!
Bedrooms and Living Areas:
Keep living areas clean and inviting.
Arrange furniture to allow a spacious at atmosphere.
Make beds, arrange couch cushions, dust shelves, vacuum carpets and touch up walls with paint or spackling as necessary.
Wallpaper should be clean and adhere smoothly to walls.
Finishing touches such as flowers or candles add to the home’s appeal.
Remember that less is more!

Kitchens and Bathrooms:
Clear counters, drawers and cabinets of unnecessary items.
Clean soap dishes, mirrors, faucets, and appliances (inside and out).
Store cleaning supplies and hang freshly washed towels.
Be aware of and eliminate odors caused by dampness and hampers.
Remember that less is more!

Counters and Cabinets:
Store infrequently used counter-top items to allow a spacious look in the kitchen and bathroom.
Keep drawers and cabinets tidy and organized.

Garage and Workshop:
Items should be neatly stored in the shelving or wall units.
Allow appropriate space for the home buyer to visualize their vehicle or workbench.
Consider moving excess or over-sized items to mini storage.

First Time Home Buyer Tax Credit

The $7,500 First-Time Home Buyer Tax Credit for homes purchased April 9, 2008 - June 30, 2009.

What is the First-Time Home Buyer Tax Credit?
The Tax Credit is part of the Housing and Economic Recovery Act of 2008, signed into law on July 30, 2008. The intent of the tax credit is two fold:
• To provide a financial resource for home buyers in the year that they purchase a home
• To provide a stimulus to the housing market and the economy, helping to stabilize home prices and increase home sales.

The law provides a tax credit equal to ten percent of the qualified home purchase price. The credit is capped at $7,500.

The credit is essentially an interest-free loan. Home buyers are required to repay the credit to the government, without interest, over 15 years in equal installments or when they sell the house.

Who is Eligible?
• First-time home buyers, defined as a buyer who has not owned a principal residence in the previous three years
• U.S. citizens who file tax returns
• Eligible properties include any single family home that will be used as a principal residence (including condos and co-ops)
• To qualify, buyers must close on the sale of the home between April 9, 2008 and June 30, 2009

Income Limits
• The full $7,500 credit is available for individuals with modified adjusted gross income (per IRS definition) of no more than $75,000 ($150,000 for couples filing jointly)
• A partial credit is available for individuals with modified adjusted gross income between $75,000 and $95,000 (between $150,000 and $170,000 for couples filing jointly)

Is the Tax Credit “Refundable?
• Yes. The credit reduces the income tax liability for the year of purchase
• The credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even
all of the amount of the refundable tax credit

Payback Provisions
• Home buyers claiming a $7,500 credit would repay the credit at $500 per year via their tax returns. They do not have to begin repayments until two years after the credit was claimed
• If the home owner sells the home, the remaining credit would be due from the profit of the home sale
• If there is insufficient profit from the sale, the remaining credit payback would be forgiven

The Twin Cities is Clean....

Thanks to Renee Erickson of Bloomington, MN for the following tidbit!

Forbes ranked Mpls/St. Paul as the 9th cleanest city in America!

9: Minneapolis-St. Paul, Minn.
The Twin Cities rank first among major metros for healthy ozone levels, which counters so-so rankings for waste removal spending and water quality.