HOT New Highland Park Listing

We’ve had a LOT of showings and interest on this fabulous new Highland Park listing! See the pictures and explore the virtual floorplan here.

Call us today and see it before it’s gone, or if you want to see your home for sale in this HOT sellers market!

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Just Listed! Charming In-demand Highland Park Home

Inventory is low and buyers are looking to move! We’re kicking off a great spring with a few houses coming on the market, and now is THE TIME to list your home for the most exposure and top dollar.

Today’s listing is 1836 Wordsworth, a charming home at a great price in in-demand Highland Park. Explore this great home’s interactive floorplan and photos here.

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Rents Rise while Highland Shines: Real Estate Week in Review

Residential News

The cost of residential rents has climbed 3.5% since June of last year, reports the Star Tribune (“From rents to haircuts, an unfamiliar trend is emerging for US consumers: price increases,” August 1).  It is the fifth straight month with an annual gain of that size, and at the fastest yearly pace in six years. The rising cost of rent is considered the biggest driver of inflation, and apartment vacancy rates being at the lowest levels in 25 years is the biggest driver of rising rent costs.

The Ford Motor Co. development site, provided by Google Maps
The Ford Motor Co. development site, provided by Google Maps

Business and Development News 

The City of Saint Paul has solicited proposals from consultants to assist with the development of the Ford Motor Co. site in Highland Park. According to the Minneapolis/St. Paul Business Journal, two firms have stepped up to assist: Abramson and Associates, and RTKL Associates Inc. “St. Paul hopes to create a ‘world-class connected, livable, and green’ project on the site, according to the city’s request. It also wants a ‘net zero’ energy site with green space and green connections; a mixture of uses including a robust jobs component; and a design that encourages biking, walking, and transit to reduce vehicle traffic” (Two companies respond to assist St. Paul with Ford site, August 3). Ford will select the master developer, expected this fall.

Twin Cities Home Prices Within 6.3% of Record High

Real Estate Week in Review

Average long term US mortgage rates are back down after hitting their highest levels this year (Average US rate on 30-year mortgage eases to 4 percent; 15-year rate at 3.23 percent, Star Tribune Your Money, June 18). On Wednesday, the Federal Reserve appeared ready to raise interest rates for the first time in nearly a decade, due in part to Tuesday’s government report that home construction rates remain significantly higher than a year ago. Many hold “the belief that the economy no longer needs the stimulus of near-zero rates.” Nonetheless, the housing market has been “bolstered [by] the economic improvement and stronger employment picture,” and remains strong for both buyers and sellers.

An analysis of the Twin Cities home prices provided by MAAR reports that home prices are within 6.3% of their record high seen in June 2006 (Twin Cities Home Price Analysis, Minneapolis Area Association of REALTORS, June 18).  Prices have a long term trend of increasing 5% yearly (nominal, not adjusted for inflation). “This market is not fueled by irrational, unjustified speculation and exuberance—a leading cause of bubble-itus,” MAAR reports, “rather, it is fueled by low interest rates, rising rents, job growth, a diverse and robust local economy and slowly rising incomes.”

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In area developments, the Timberwolves and Minneapolis have signed a redevelopment agreement for the $129 million renovation of the Target Center (Timberwolves, Minneapolis sign Target Center redevelopment pact, Minneapolis / St. Paul Business Journal, June 19). Detailed design work will begin, with the bulk of the project expected to start in 2016 and wrap in 2017, said the Timberwolves and the Minnesota Lynx in a statement on Thursday. The Target Center is said to be the 6th busiest building in the nation and the 17th busiest in the world, hosting 200 events and a million visitors annually.

New Developments in Home Mortgages and Highland Park Real Estate

Real Estate Week in Review

Local News

New developments are coming in Highland Park real estate, including new plans on- and off-street parking at the Ford site to encourage growth and ease congestion. Also, the city council has denied an attempt by neighbors to block the 735 Cleveland Ave building, a 4-story new construction site. No zoning changes or variances has been required (Highland Villager). Stay tuned to the Miller Grossman website for updates on these and other projects.

A new real estate venture, Stadium Partners LLC, has purchased Hubert’s Cafe and Sports Bar near the Vikings stadium, the first example of stadium fueled development (MSP Business Journal, June 5). The venture is planning cosmetic tweaks and a new name: the original Hubert’s.

Hillcrest has sold 6 northeast Minneapolis developments (Business Journal, June 4). The portfolio includes Crown Center, home to Blu Dot Furniture and Bauhaus Brew Labs; Frost Building, home to Dogwood Coffee Co.; and the renovated 1515 Central Ave, home to Sociable Cider Werks.

National News

It was announced on Thursday that the US has added 1 million new jobs since the start of the year, including 280,000 in May (CNN Money, June 5), and 3 million new jobs over the last 3 years (Associated Press, June 5). “It’s timely progress for the economy as the Federal Reserve board meets on June 17. The Fed is widely expected not to raise its main interest rate in June, but Fed Chair Janet Yellen will speak to the press and offer her outlook on the economy. If conditions continue to improve, interest rates could rise for the first time in about a decade — another healthy sign for America’s economy” (CNN Money).

“Those additional paychecks helped increase spending on housing” — through the first four months of this year, new construction home sales have gone up 23.7% compared to this time last year, illustrating a continuing demand for homes (AP).

Also in national news, the Supreme Court on Monday determined that homeowners who are underwater on their mortgage cannot void a second loan (Associated Press, June 1). This means, even if the home isn’t worth what they owe on the primary mortgage, bankrupt homeowners cannot “strip off” a second loan.

Finally, US Regulators are warning that many ads regarding reverse home mortgages are misleading, and “don’t tell the whole story.” Read more here.