Pending sales in August were down over 30% compared to August 2009. However, that decrease was the smallest it has been in about three months. The median sales price of a home in the Twin Cities was $172,165, down 1.6% from last year. Though foreclosures and short sales drag these numbers down, traditional sellers saw a 9.2% price increase for their homes.

There are now more than 27,000 active sales listings for homes in the Twin Cities. Inventory of homes on the market grew by almost 9% during August. That is the biggest increase in inventory since February 2008.

As housing inventories increase, Brad Fisher, president of the Minneapolis Area Association of Realtors, said in a press release that the expired federal tax credit for home buyers has led to a decrease in demand for homes. The double-whammy has resulted in a drop in home prices.

“There are just more sellers than buyers and the buyers are able to negotiate, especially if you get sellers that are fairly desperate,” Pat Paulson, president-elect of the Minneapolis Area Association of Realtors said. “It’s a buyers market they have the upper hand.”

Minneapolis and Saint Paul saw fewer sales but higher prices in August compared with a year ago, according to the St. Paul Area Association of Realtors. Sales dropped 39% in St. Paul, to 241 while the median sale price rose 2% to $150,675. In Minneapolis, sales dropped 41% to 336 and the median rose 21% to $222,804.

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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.

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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.

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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.

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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.

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