Minneapolis and St. Paul Home Builders | Twin Cities MN New Construction

Summer of New Construction in the Twin Cities

Sara — Fri, 27 Aug 2010 16:00:34 +0000

New statistics from the Builders Association of the Twin Cities indicate home construction has picked up over the summer. After bottoming out at record lows in 2008 and 2009, builders and city planners are cautiously optimistic about the wave of new home construction that has been occuring over the summer.

The Builders Associations reports that Blaine was the leader in the number of building permits issued for July with 28. Maple Grove was next with 26, followed by Woodbury with 17, Hugo had 14, and Shakopee approved 12. In July, the total number of units for each of those cities was Blaine with 28, then Maple Grove with 27, Woodbury was next with 25, Hugo produced 21, and Shakopee was the same at 12.

For the entirety of 2010 through July, Maple Grove issued 160 permits, followed by Blaine with 153, Shakopee had 126, Woodbury approved 98, and Lakeville had 85. Oakdale, Woodbury, Cottage Grove and Forest Lake have already issued more permits in the first seven months of this year than in all of 2009.

The hammers and nails have been flying in Woodbury and Hugo. Woodbury leads the Twin Cities metro area in terms of planned units for 2010, in addition to the valuation of permits issued. Through the end of July, Woodbury approved 98 permits for 373 units valued at $49.8 million. In 2009, 255 units were approved.

Though this is a documentable improvement, it is unlikely that new home construction will ever return to the boom years the Twin Cities saw during the last two decades, during which Woodbury saw more than 1,600 new units each year.

Twin Cities July Building Activity

Sara — Fri, 13 Aug 2010 15:33:58 +0000

July residential building activity in the Twin Cities was down slightly compared to the same month last year, according to the Builders Association of the Twin Cities

Twin Cities builders were granted 230 permits in July 2010, down from 238 in July 2009. The number of permitted housing units in the metro area also fell to 265, down from 269. July building activity was also down compared to June, when builders received 246 units for 341 housing units.

Blaine led the Twin Cities area in building activity in July. The city had 28 units permitted. Builders like Norton Homes Inc. are constructing brand new homes in highly-demanded developments like Legacy Creek and Blaine Haven.

Maple Grove came in second, with 27 units. Woodbury, Hugo and Savage complete the top five.

How Low Can Interest Rates Go?

Sara — Fri, 06 Aug 2010 06:24:13 +0000

It seems like every week, mortgage interest rates are pushed to a new low. Last week, interest rates of 4.54% for a 30-year fixed loan were reported, the lowest since since Freddie Mac began tracking rates in 1971. This week the trend continues.

Mortgage rates are now at probably at their lowest level in at least 60 years. Freddie Mac said Thursday that the average 30-year fixed-rate mortgage was 4.49%, offering the most attractive opportunity for those who qualify to refinance or purchase a home. 15-year fixed-rate loan average l3.9%, the lowest on record. It is the sixth time in seven weeks that interest rates have reached a new average record low.

The last time home loan rates were lower was during the 1950s, when most mortgages lasted just 20 or 25 years.

So why have sales of previously occupied homes been sinking? A variety of reasons may be keeping people from house hunting. Many home buyers already took the plunge into the housing marking when the federal government was offering $8,000 first time home buyer rebates. Some potential borrowers don’t have the income or down payment to buy. And for home owners, refinancing is difficult because so many mortgages are now under water.

Are you one of the lucky ones with a secure job and a ready down-payment? Twin Cities home builders like Norton Homes are striking great deals with would-be home owners.

July Mortgage Interest Rates Slip Further

Sara — Fri, 09 Jul 2010 01:07:45 +0000

Mortgage rates fell for the second straight week to the lowest point in 50 years. However, many people either don’t qualify for new mortgages or aren’t looking for a home because they already took advantage of low rates and a tax credit earlier this year.

Mortgage company Freddie Mac reported Thursday that the average interest rate on a 30-year fixed mortgage dropped to 4.57% this week. That’s down from the previous record low of 4.58% set last week. It’s the lowest since Freddie Mac began tracking rates in 1971. The last time rates were lower was in the 1950s.

Low rates have yet to fuel home sales. The housing market has slowed since federal tax credits for homebuyers expired on April 30th. Mortgage rates have hovered near record lows for a while, so most people who can afford to buy homes or qualify to refinance their loans have already done so.

Rates on 15-year fixed-rate mortgages increased to an average of 4.07%, up from 4.04% last week. That was the lowest on records dating to September 1991. Rates on five-year adjustable-rate mortgages averaged 3.75%, down from 3.79% a week earlier. That was also the lowest on Freddie Mac’s records, which date back only to January 2005.

Thinking of buying a new home? Though the first time home buyer credit has expired, interest rates are low and home builders like Norton Homes are making incredible deals available to potential home owners.

Good News, Bad News for Twin Cities Real Estate in May

Sara — Thu, 01 Jul 2010 23:17:04 +0000

Another series of real estate reports show that there is both good news and bad news for Twin Cities home buyers and sellers.

Good news! According to the monthly Case-Shiller survey, home prices in the metro area during April were 9.5% higher than April 2009. That’s much better than the 3.8% increase recorded for the national average. For the 20 metro areas Case-Shiller tracked, the Minneapolis market’s year-over-year gain in home prices was topped only by San Francisco, whose price index rose 18%, and San Diego, where home prices rose 11.7%.

The increases in sale prices are likely the result of a spike in home sales triggered by the federal housing tax credit, which ended in April. April results from the Minneapolis Area Association of Realtors showed the median home sale was $169,800. MAAR has since reported the Twin Cities median home sales price rose 6.1% from May 2009 to $175,000 in May 2010, with some of those sales having trickled over from when the tax credit was still available.

More good news? RealtyTrac reports that sales of foreclosure homes in the Twin Cities have gone down. Foreclosures represented about one in five home sales in the Twin Cities that month. Those homes sold for an average of about 23% less than those not in the foreclosure process. Foreclosure sales in Minnesota have actually declined 17% for the first quarter of 2010 compared with the same period a year ago. Across the U.S., foreclosure homes accounted for 31% of all residential sales in the first quarter of 2010.

Now for some bad news. A Commerce Department report shows that Americans were far less likely to buy new homes in May after the government stopped offering the homebuyer tax credit. Sales of new homes fell 33% to a seasonally adjusted annual sales pace of 300,000. That was the lowest in the 47 years records have been kept. Sales of new homes have now sunk 78% from their peak five years ago.

Possibly more bad news. Sales of existing homes dipped nationally, too. Sales of pre-existing homes fell 2.2% in May from April to a seasonally adjusted annual rate of 5.66 million, according to the National Association of Realtors. Specific statistics for the Twin Cities have not yet been released.

Because all of these reports are for May and April, it could be deceiving for June statistics. The Twin Cities real estate market has been doing better than average when compared to national figures. Additionally, interest rates that were already low have dropped further – to the lowest rates in more than 50 years! As a result of the low rates, mortgage applications increased nearly 9% this week compared to last week, according to the Mortgage Bankers Association.

With the low interest rates and the abundance of affordable real estate available, now may be a great time to buy a first home! Though sales made now no longer qualify for the federal first time home buyer credit, there are still many buyer incentives available to people seeking a home in Minneapolis, St. Paul, and the surrounding Twin Cities!

Do you have your first home and seek the next step up? Great Twin Cities Home Builders are ready to build a home in great developments like Legacy Creek and Blaine Haven.

June Interest Rates Are Still Low

Sara — Thu, 17 Jun 2010 02:53:35 +0000

A recent report shows that interest rates for mortgages are affordably low. FreeRateUpdate.com researches over 2 dozen wholesale lenders’ rate sheets on a daily basis to determine the most accurate rates available.

Conventional 30-year fixed mortgages are still available at 4.375% for well-qualified consumers. 15-year fixed mortgages remain available at 3.875%. Even 30-year fixed jumbo loans are available today at 5.375%.

FHA mortgage rates at a similar rate, with 30-year fixed FHA loans offered at a 4.375% rate. APR for FHA loans is higher, though, because of MI and other FHA fees. Still, because of its minimum down-payment of just 3.5%, FHA loans have been most popular among home-buyers.

Wells Fargo, which originates the greatest volume of new mortgages, recently advertised a 30-year fixed-rate of 4.75% with an APR of 4.939.

Thinking of buying or building a home? Even if the federal first time home buyer credit and the related credit for next-home seekers isn’t available, interest rates are low enough to make it worth your while.

Twin Cities Home Sales & Construction May 2010

Sara — Sat, 12 Jun 2010 02:22:35 +0000

Twin Cities pending home sales fell steeply in May, according to new data from the Minneapolis Area Association of Realtors. The drop was expected after the expiration of the federal home buyer tax credit.

Signed purchase agreement for pending home sales plummeted in May by nearly 25% compared to May of last year. There were 3,910 signed agreements last month, compared to 5,183 signed purchase agreements in May 2009.

Closed sales are up, but that’s because buyers who signed purchase agreements in time to qualify for the tax credits must close on the sale by June 30 in order to qualify for the $8,000 federal first time home buyer tax credit.

The Twin Cities median home price last month was $175,000. That is a 6.1% increase compared to last May. That was the fifth consecutive month of year over year gains. However, the slowing of pending sales and demand could continue, which may bring that price down.

On the other hand, potential Twin Cities home buyers should realize that interest rates are still at historic lows. And real estate prices are still down significantly compared to the top of the bubble, meaning there are some great housing deals out there.

Additionally, though the summer selling season might have slowed, 2010 is shaping up to be the best year since 2007 for homebuilders in the Twin Cities. During the first five months of the year, builders received 1,249 permits for 2,159 residential housing units in the Twin Cities metro area, according to numbers released at the end of May by the Builders Association of the Twin Cities.

Maple Grove issues 30 permits in May, Shakopee issues 26, and Blaine was next with 22 permits. Rounding out the top five communities were Prior Lake with 18 and Lakeville and Hudson, Wis. tied with 16 each.

Now is a good time for people who want to custom-built homes like the ones constructed by Norton Custom Homes. Construction costs currently are about 15% lower than two years ago. Again, interest rates are at historic lows. Need more incentives to build this year? There are various tax credits for “green” construction projects which could be included with your new home’s plans.

Blaine Community News: New Dog Park

Sara — Fri, 21 May 2010 04:25:50 +0000

Are you a dog lover considering building or buying a new home in Blaine MN?

Dog owners in Blaine can bring their dogs to Happy Acres Park for fun and exercise. A dog park and off-leash area opened there earlier this month with signs, bag dispensers, waste containers, and all.

Both the Blaine Park Board and Blaine City Council agreed to allow dogs within the three hockey rinks at Happy Acres Park. The first hockey rink to the east will be for small dogs, and the second and third hockey rinks will be for medium and large dogs.

New Hope, Crystal and Eden Prairie are successfully using hockey rinks as dog parks at a very minimal cost. The dog park and off-leash area at Happy Acres Park, located at 11900 7th Street in Blaine MN, will stay open through mid-November.

The dog park is available on a 1-year trial basis. It will be monitored, and a follow-up study will be presented to the Park Board and City Council.

Blaine Community News: Blaine Named Tree City USA for 16th Year in a Row

Sara — Fri, 07 May 2010 00:45:27 +0000

The City of Blaine has again been named a Tree City USA community by the Arbor Day Foundation. This marks the 16th consecutive year the city has earned the distinction. The Tree City USA program provides direction, assistance, public attention, and national recognition for community forestry programs in cities like Blaine.

Although Arbor Day is officially recognized in Minnesota on the last Friday in April, the City of Blaine will observe the day at its annual tree sale, which will take place on May 8 from 9 a.m. to 1 p.m. at Blaine’s Public Works facility.

To learn more about the available trees, ordering trees, and Arbor Day History, please visit the City of Blaine website.

Blaine Community News: Rain Gardens in Blaine

Sara — Fri, 30 Apr 2010 02:53:37 +0000

Jim Hafner, Blaine’s storm water manager, says too much rain goes down city storm drains. Rain and snowmelt flow off surfaces like roofs and roads, sweeping salt, sand, fertilizer and other contaminants into storm drains – which take the water to creeks, rivers and lakes.

Though the Blaine City Council is contemplating an ordinance to promote the creation of rain gardens to catch runoff, Jim Hafner has already installed one in his own yard, at 12309 Goodhue St. NE, in Blaine. The demonstration rain garden is meant to appeal to and educate neighbors and other interested people.

“Storm water is the No. 1 polluter of our surface waters. I don’t think we can be that cavalier about it. It is either naive or arrogant to think that our water resource is always going to be there for us.”

Rain gardens are depressed garden plots planted with native plants that capture runoff and get the water back into the ground where it is needed. They are becoming popular landscaping alternatives that aesthetically brighten yards and provide much needed assistance to managing stormwater.

Blaine residents who are willing to take street runoff may soon be able to get help to create rain gardens. The council is considering providing aid and materials to residents for rain gardens built in the city’s right of way between residents’ yards and the streets.

What is one of the best parts of having a rain garden? There is less need to water the lawn and garden surrounding it.

“I don’t think people think about capturing water to reduce the amount they have to put on the yard themselves,” Hafner said. “The missing link in creating a rain garden is if you catch the flow, it will look nice and also save money.”

Hafner will teach a water conservation/rain gardening classes on May 8, with a deadline to register on April 30. The cost is $5 to attend. To register, go to www.blaineparks.com, click registration and search for stormwater.