Affordable_Ownership_MN

Affordable Ownership Growing Your Business While Making a Difference!

5/8/2025 Bell Bank Mortgage

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Affordable Ownership

Welcome!

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Affordable Homeownership Panel Minnesota Housing – Christina Akinola NeighborWorks Home Partners – Jason Petersen Minnesota Homeownership Center – Bill Gray Moderator – Kasey Kier; Bell Bank Mortgage

Emily Strong Affordable Products Manager Bell Bank Mortgage

Bell Bank Mortgage Affordable Programs Overview

Emily Strong Affordable Product Manager

This presentation is intended for real estate professionals only; it is not intended for distribution to consumers, clients or the general public.

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Bell Bank Mortgage - Affordable Programs Overview

Product Comparison BorrowWise

Income Limit

At or below 50% AMI

BorrowSmart®

50.01-80% AMI

FHA

None

Housing Finanance (HFA)/Bond Loans*

Typically 100% AMI+

HomeAssist

BMF Advantage

At or below 100% AMI

100% AMI in FL, KS, MN, MO, ND, NM, TN, WI

140% AMI in AZ Max LTV

First-time Buyer Requirement

97% At least one borrower must be a first-time homebuyer

97%

96.5%

97%

None

None

Varies by HFA

600

Typically 640+

620

620

Typically Required

Only if all borrowers a time buyers

Required

Community DPA programs

Community DPA programs

BMF Downpayment Loan

BMF Downpayment Loan

Credit Score Minimum

620

620

Homebuyer Education

Only if all borrowers a first-time buyers

Required

$2,500 grant included

$1,250 grant included

Community DPA programs

Community DPA programs

BMF Downpayment Loan

BMF Downpayment Loan

DPA Options

*HFA/Bond program requirements vary by state, review specific program requirements for full details.

Community DPA programs

HFA DPA programs Community DPA programs

97% At least one borrower must be a first-time homebuyer

97%

None

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Bell Bank Mortgage - Affordable Programs Overview

BorrowWise & BorrowSmart®

BorrowWise

BorrowSmart®

•

At or below 50% AMI

•

Between 50.01-80% AMI

•

HomeReady® or Home Possible® first mortgage with $2,500 grant

•

Home Possible® first mortgage with $1,250 grant

•

At least one borrower must be a firsttime buyer

•

First-time & repeat buyers

•

•

1-4 owner-occupied residences

1-2 Unit owner-occupied residences

•

•

Homebuyer Education required if all borrowers are first-time buyers.*

Greenpath homebuyer education required for every transaction. Free!

•

Very few lenders have access to BorrowSmart®

•

Offered by most lenders

* If required borrower should take CreditSmart or HomeView

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Bell Bank Mortgage - Affordable Programs Overview

HomeReady® & Home Possible®

• No LLPAs • ≤80% AMI • Better rate • Reduced MI coverage

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Bell Bank Mortgage - Affordable Programs Overview

Housing Finance Agencies (HFA)/Bond

•

Offered through State or county agency

•

First and second (DPA) mortgages

•

Have their own rates

•

Exclusive Fannie and Freddie Products

•

Reduced MI at or below 80% AMI

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Bell Bank Mortgage - Affordable Programs Overview

Bell Moving Forward Programs BMF Advantage Bell Moving Forward Advantage Bell Moving Forward Downpayment Assistance Loan

First Mortgage Program for minority borrowers.

BMF DPA Loan Bell’s exclusive downpayment program with up to 2% of the purchase price in DPA.

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Bell Bank Mortgage - Affordable Programs Overview

Bell Moving Forward Advantage

•

1st mortgage program for minority borrowers

•

Manual UW

•

100% AMI in FL, KS, MN, MO, ND, NM, TN, WI o 140% AMI in AZ

•

Lender Paid MI

•

97% LTV/105% CLTV o Pairs with BMF DPA Loan for a 1% down program

•

Exclusive to Bell Bank!

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Bell Bank Mortgage - Affordable Programs Overview

BMF Downpayment Assistance Loan

•

Loan Amount - 2% of the purchase price

•

Monthly payment, 20-year term, same rate as first mortgage

•

$200 processing fee/recording fees

•

Pairs with these first mortgage products: • • • • •

•

HomeReady® & Home Possible® BorrowWise (HomeReady® & Home Possible®) Borrow Smart (Home Possible®) Bell Moving Forward Advantage Bell HomeAssist

Income Limit – same as first mortgage product

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Bell Bank Mortgage - Affordable Programs Overview

Bell HomeAssist

•

No LLPAs qualifying income at or below 100% AMI and ONE of the following: • • •

First-time homebuyer (at least one borrower) Property in a high-needs rural tract Manufactured home

•

Requires AUS Approval

•

Owner occupied primary residence

•

Fannie Homebuyer Ed: HomeView

•

Freddie Homebuyer Ed: CreditSmart

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Bell Bank Mortgage - Affordable Programs Review

Freddie HomeOne®/Fannie97

•

First-time buyers

•

NO income limit

•

Has LLPAs

•

Min 97% LTV

•

At least one buyer must take homebuyer ed: • •

Fannie Mae – HomeView Freddie Mac - CreditSmart

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Ask the Underwriter Amy Glatte Beth Benedict Kirstin Meyer

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David Arbit Director of Research Minnesota Realtors®

Housing Market Update | Minnesota April 2025 | David Arbit

“If we don’t get housing right… …then we don’t get anything right.”

- MN Housing Commissioner Jennifer Ho

Short term drivers

Long term drivers

-Interest Rates -Business Cycle -Supply & Demand -Consumer Confidence -Seasonal trends -“Politics”

-Economic Growth -Population Growth -Household Formation -Immigration Policy -Zoning/Housing Policy -Infrastructure

4 Parts 1) Last Few Weeks 2) Market Update 3) Racial Homeownership Gap 4) Rates/Economy

Last couple months

“A growth scare” (The vibe has definitely changed)

Things have changed over last couple weeks 1) 2) 3) 4)

Disappointing data Consumer confidence declined by the most in 4 yrs Fear = flight to safety (stocks down, bond prices up, yields down) Tariffs now in effect and counter-tariffs announced (we’re in an escalating trade war (a risk to global growth))

5) Increasing inflation concerns, BUT… 6) Despite inflationary policy (tariffs, immigration, deficits), the bond market is more worried about recession and slower growth. Haphazard, unchecked policy.

7) But that means Fed may be likely to cut more and sooner, shouldn’t the market like that? (Tug of war b/w economic forces)

But what about housing?!

1) 2) 3) 4) 5) 6)

30-yr fixed down to 6.74% from 7.1% a month ago Lower rates should spur some sidelined demand But we still don’t have enough inventory Is what’s bad for the economy actually good for housing?!

Yes and no. Lower rates help, but layoffs and stagnating earnings won’t. Tug of war b/w forces.

There’s enough pent-up demand to absorb new inventory, so still unlikely to see oversupply or price declines. (FL, TX, CA are a different story)

Here’s the key thing to watch…

Does the increase in seller activity from any downturn outpace increases in sales from lower rates.

That’s the key.

In the case of “stagflation“….

Which is stagnant/slowing economic growth combined with rising inflation (bad thing) What is the Fed to do??

1) Raise rates to combat inflation and risk slowing the economy down further 2) Cut rates to spur growth and risk inflation rising even more and faster

No great options and no guarantees, BUT….

The Fed is more likely to raise rates to control inflation The Fed is less likely to cut rates to stimulate growth

This isn’t new.

This is why it’s messy.

The economy is plagued with contradictions.

We want farmers to get high prices and yet consumers to have cheap food. (gov’t subsidies)

We want childcare workers to have high wages yet have affordable childcare for families (gov’t subsidies?)

We want cities that are safe, efficient and well-planned and yet want it easier to build homes

Three quick questions though…

1) WHAT ABOUT GAS & EGG PRICES?!

2) AND WHAT ABOUT DEBT & DEFICITS? 3) AND WHY DO I SUDDENLY DISLIKE CANADA??

Market Update

0 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Twin Cities Housing Market Activity New Listings and Closed Sales (1967-2024)

New Listings Closed Sales

120,000

100,000

80,000

60,000

40,000

20,000

Source: Minnesota Realtors® (MNR) and RMLS of MN, Inc. | © 2025 MNR

The Great Mean Reversion: Average Residential Sales Price, Twin Cities Metro (unadjusted nominal dollars) $500,000

Recessions Average Sales Price 5.4% Annual Appreciation 5.8% YoY Appreciation

$450,000

Between 1960 and 2024, the average rate of appreciation in nominal terms was 5.5%.

After adjusting for inflation, the average annual rate of appreciation is 1.8%.

$450,158

$400,000 $350,000

$353,528

$300,000

$277,519 $273,089

$250,000 $200,000

$181,605 $192,010

$150,000 $98,016

$100,000 $74,069

$50,000

$15,977

$27,033

1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024

$0

© MNR & NorthstarMLS | 2025

“The fallout” Selling of bonds meant more supply and lower prices and higher yields

“Liberation Day” Flight into safety of bonds pushed prices higher and yields lower 2025 →

Daily Showing Activity MLS-Wide | Rolling Weekly Average | Trended 7,000 2019 2020-21 2022-23 2024 2025

6,000 5,000 4,000 3,000 2,000

5/4

1,000 0

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | All Right s Rese rve d | Co -developed with MAR

Showing Activity by Price Range MLS-Wide 7,000

Week Ended 4/20/24 Week Ended 4/20/25

6,101

6,000 5,344

5,000

4,000 3,500

3,000

3,373 3,017

2,876

2,724 2,305

2,000

2,322

2,286 1,984

1,891

1,854

1,663

1,637 1,594

1,000 563

-

747 537

648

-15.4%

-20.2%

-17.8%

-12.4%

-10.6%

-12.1%

-2.6%

-4.6%

-13.3%

-13.2%

$199K-

$200249K

$250299K

$300399K

$400499K

$500599K

$600799K

$800K1M

$1M+

Total ÷ 10

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | All Right s Rese rve d | Co -developed with MAR

Showing Activity by Price Range MLS-Wide 7,000 6,510

Week Ended 5/4/24 Week Ended 5/4/25

6,381

6,000

5,000

4,000

3,000

3,578 3,488

3,400

3,548

2,741

2,362

2,000

2,168

2,328 2,319 2,015

1,814

1,916

1,723

1,917

1,000

-

648

771

699

792

-13.8%

-7.1%

-2.5%

-2.0%

+4.4%

+5.6%

+11.3%

+19.0%

+13.3%

-0.4%

$199K-

$200249K

$250299K

$300399K

$400499K

$500599K

$600799K

$800K1M

$1M+

Total ÷ 10

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | All Right s Rese rve d | Co -developed with MAR

Share of Overall Showing Activity

By Price Range MLS-Wide

30%

28.0% 27.5%

Week Ended 5/4/24 Week Ended 5/4/25

25% 20% 15.4%

15%

14.6%

15.0%

15.3%

11.8%

10%

10.2%

9.3%

8.7%

7.8% 8.3%

7.40%

8.27%

5%

2.78%

3.32% 3.00% 3.42%

0%

$199K-

$200249K

$250299K

$300399K

$400499K

$500599K

$600799K

$800K1M

$1M+

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | All Right s Rese rve d | Co -developed with MAR

Change in Showings Trend With 30yr FRM (R. axis, trend) +40%

MLS-Wide | Rolling Weekly Moving Average 0.08 Change in Showings

+30% +20%

Mortgage Rates Trend

0.075

+10% 0% 0.07

-10% -20%

-30%

0.065

-40% -50%

0.06

Source : Minnesota Realtors®, RMLS of MN, Inc. and Mortgage New s Daily | © 2025 MNR | All Rights Re served | Co-developed with MAR

Minnesota Statewide | New Listings | March 16,000 14,000

+27.5% 14,765

+20.6% 14,098 -3.3% 13,631 -9.1% 12,389

12,000 10,000

8,000

11,689

-6.5% 11,583

+23.6% -1.0% 12,312 12,192 -1.9% 11,955 -28.0% -1.8% 10,635 10,440

+5.3% -9.4% 9,961 9,463

-16.5% 9,987

+17.3% 10,542 -10.0% 8,991

-8.2% 9,677 -5.7% 9,125 +9.0% -23.1% 7,652 7,018

+11.4% 8,526

6,000 4,000 2,000 0

Source: Minnesota REALTORS® (MNR) and participating MLSs | © 2025 MNR

Minnesota Statewide | New Listings | March YTD 40,000

+24.4% +0.3% 36,217 36,324 -3.0% 35,222

35,000 30,000

29,112

+13.0% 34,245 -13.9% 30,314 -23.8% -0.9% 26,094 25,872

25,000 20,000

-7.8% -3.0% 23,860 23,150

+18.8% -2.2% 27,506 26,891 -3.2% 26,023

+12.1% -10.8% 24,050 23,217 -7.6% -10.1% 21,626 -7.0% 21,452 20,115

+5.0% +20.0% 20,378 19,404 -19.6% 16,164

15,000 10,000 5,000 0

Source: Minnesota REALTORS® (MNR) and participating MLSs | © 2025 MNR

A growing share now have 5-8% and are much less “locked in” Less incentive to stay

Minnesota Statewide | Pending Sales | March 9,000

+10.0% -1.3% 8,406 8,296 +29.5% 7,641

8,000 7,000 6,000 5,000

6,974

+20.9% 6,458

-8.6% 6,375 +8.8% -19.7% 5,343 5,119 -4.0% 4,912

+2.3% +16.5% 6,380 6,238 -7.5% 5,900 -17.1% 5,355

+14.0% 8,367 -9.3% 7,528

+11.4% 7,341 -12.5% 6,590

-12.8% 7,292

+4.0% +11.1% 6,090 5,856 -27.7% 5,270

4,000 3,000 2,000

1,000 0

Source: Minnesota REALTORS® (MNR) and participating MLSs | © 2025 MNR

Minnesota Statewide | Pending Sales | March YTD 25,000

20,000

15,000

+6.2% +1.1% 18,698 +20.1% 18,501 -6.9%

19,002

-20.9% 15,034

+11.4% 14,254

-12.1% +2.2% 13,211 -5.2% 12,523 12,798

+3.4% +21.1% 16,145 15,619 -10.2%

14,502 -9.5% 12,896

17,424

17,416

+12.6% 17,983 -8.3% 15,974

+8.2% 19,462 -11.5% 17,225 +11.0% -2.0% 14,493 14,207

-24.2% 13,058

10,000

5,000

0

Source: Minnesota REALTORS® (MNR) and participating MLSs | © 2025 MNR

Minnesota Statewide | Closed Sales | March 7,000 +8.8% 6,156

6,000 5,000 4,000

-0.5% 5,516 5,489

+16.3% +1.5% 5,167 5,247 -18.9% 4,451

+9.5% 4,716 -5.8% +6.0% 4,443 -8.8% 4,306 4,061

+23.7% +0.3% 5,637 5,656

-5.9% 5,790

+5.3% +12.2% 6,128 5,820

-8.3% 5,618

-10.4% 5,186

-13.2% 4,556

+2.5% -18.6% 4,685 -2.9% 4,572 4,548

3,000 2,000 1,000 0

Source: Minnesota REALTORS® (MNR) and participating MLSs | © 2025 MNR

Minnesota Statewide | Days on Market | March 120 108 +18.8% 100

100 -22.1% -0.3% 84 84

-10.2% -3.6% 90 87

+14.7% -2.8% 99 96

80

-15.9% 81

+3.2% -0.1% 84 84 -10.5% 75 -10.8% 67

60

-14.1% 57

+6.1% -4.3% 61 58 -25.4% 43

40

+36.0% -2.1% +2.6% 51 51 50 -14.2% 37

20

0

*Fig ures r ounded to nea rest whole day b ut per cen t change based on actual unroun ded number

Source: Minnesota REALTORS® (MNR) and participating MLSs | © 2025 MNR

Minnesota Statewide | Median Sales Price | March $400,000 +9.5% -0.2% $321K $320K +9.7% $293K

$300,000

$207K

$200,000

+3.0% +4.7% $345K $335K

+2.2% $212K

-3.1% $205K -12.4% $180K +7.1% -22.2% $150K +6.2% -13.3% $138K $140K $130K

+5.7% +8.8% $196K +6.3% $185K +15.9% $170K $160K

+8.8% $213K

+8.1% $230K

+8.3% $249K

+7.2% $267K

$100,000

$0

Source: Minnesota REALTORS® (MNR) and participating MLSs | © 2025 MNR

Minnesota Statewide | Pct of Orig. List Price | March 104% +0.9% +2.7%101.5% 100.6%

102% 100% 98% 96%

+0.6% +0.9% -0.3% 98.0% +1.3%97.8%97.4% 96.9% +0.6% +1.6%95.6% 95.0%

97.7% -0.6% 97.2%

-2.1% 95.2%

94% 92% 90% 88%

+2.8%-0.2% 93.7%93.5%

+4.1% 92.6% -4.5% 90.9% -2.1% 89.0%

-3.5% +0.0%+0.2% 97.9%98.0%98.1%

+3.4% 91.2%

-4.8% 88.2%

86% Source: Minnesota REALTORS® (MNR) and participating MLSs | © 2025 MNR

Minnesota Statewide | Inventory | March 60,000 +9.7% 48,924 +3.4% +13.6% -9.8% 45,639 44,591 44,152 -9.7%

50,000

40,000

30,000

20,000

10,000

+35.8% 39,246

41,222 -15.6% 34,804

28,902

+5.0% -19.1% -0.4% 29,446 28,15828,033 -14.4% 25,206 -15.1% 21,388 -16.7% -0.7% -0.0% 17,82117,69417,687 +21.6% +4.8% 12,573 -49.2% -4.5%+14.9% 11,995 8,986 8,586 9,864

0 Source: Minnesota REALTORS® (MNR) and participating MLSs | © 2025 MNR

Minnesota Statewide | Months Supply of Inventory | March 12

+24.5% 10.6

10

+36.2% 8.5

8 6.3

6

4

2

-13.6% +8.1% 9.2 -9.1% 9.0 8.3 -27.6% 6.5 -27.2%-4.8%+2.6% 4.7 4.5 4.6 -23.8% 3.5 -17.4% 2.9 -15.7%+2.6%-5.2% 2.5 2.5 2.4

+6.6% +30.6% +46.6%2.12 2.26 -53.9%+0.5% 1.6 1.1 1.1

0

Source: Minnesota REALTORS® (MNR) and participating MLSs | © 2025 MNR

Change in New Listings by Price Range Northstar Coverage Area | March 2025 compared to March 2024

+35%

+30.2%

+30%

+26.2% +25%

+20.6% +20.8% +20% +15% +10%

+12.5% +7.4%

+7.9%

+8.5%

+9.6%

+5% 0%

<$200K $200K - $300K - $400K - $500K - $600K - $800K $300K $399K $499K $599K $800K $1M

$1M+

Total

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | All Right s Rese rve d

Change in New Listings by Price Range Northstar Coverage Area | April 2025 compared to April 2024

+35%

+32.9%

+30% +25% +20% +13.8%

+15% +10% +5%

+9.3%

+11.1%

+7.1%

+6.9% +4.1% +1.3%

0%

-5%

-1.7%

<$200K $200K - $300K - $400K - $500K - $600K - $800K $300K $399K $499K $599K $800K $1M

$1M+

Total

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | All Right s Rese rve d

Change in Pending Sales by Price Range Northstar Coverage Area | March 2025 compared to March 2024

+45%

+41.7%

+40%

+32.9%

+35% +30% +25% +20%

+13.4%

+15%

+7.9%

+10% +5% 0%

+7.5%

+5.2%

+0.8% +0.3% +1.8% <$200K $200K - $300K - $400K - $500K - $600K - $800K $300K $399K $499K $599K $800K $1M

$1M+

Total

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | All Right s Rese rve d

Change in Pending Sales by Price Range Northstar Coverage Area | April 2025 compared to April 2024

+15%

+12.8%

+11.6% +10%

+7.8%

+8.8%

+5.9% +5%

+3.4%

+3.1%

0%

-5% -7.3% -10%

-6.1%

<$200K $200K - $300K - $400K - $500K - $600K - $800K $300K $399K $499K $599K $800K $1M

$1M+

Total

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | All Right s Rese rve d

Change in Market Activity by Price Range

New Listings Pending Sales

Northstar Coverage Area | March 2025 compared to March 2024

+45% +41.7%

+40% +35%

+32.9% +30.2%

+30%

+26.2%

+25% +20.6%

+20% +15%

+10%

+20.8%

+13.4%

+7.4%

+9.6%

+8.5%

+7.9%

+12.5%

+7.9%

+7.5% +5.2%

+5% +0.8%

0%

<$200K

+0.3%

$200K $300K

+1.8%

$300K $399K

$400K $499K

$500K $599K

$600K $800K

$800K $1M

$1M+

Total

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | All Right s Rese rve d

Change in Market Activity by Price Range

New Listings Pending Sales

Northstar Coverage Area | April 2025 compared to April 2024

+35%

+32.9%

+30% +25% +20%

+15%

+13.8% +11.6%

+10%

+9.3% +7.8%

+7.1%

+12.8%

+11.1% +8.8% +6.9%

+5.9%

+5%

+4.1%

+3.4%

+3.1%

+1.3%

0% -1.7%

-5% -10%

-7.3%

<$200K

-6.1%

$200K $300K

$300K $399K

$400K $499K

$500K $599K

$600K $800K

$800K $1M

$1M+

Total

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | All Right s Rese rve d

How much of the market is upper end activity?

Percent of sales over $1M in the Twin Cities metro area 4% 3.7% 3.1%

3%

3.0%

2.2%

2%

1.7%

1.1% 1.2%

1% 0.9%

0.8%

0.7%

0.6%

1.0% 0.9%

1.3% 1.3%

1.1% 0.9%

1.0%

0.6%

0.4%

0%

Source: Minnesota REALTORS® (MNR) and participating MLSs | © 2024 MNR

Change in New Listings by Price Range Twin Cities, MN | March 2025 compared to March 2024

+25%

+20%

+20.2%

+18.8%

+15%

+12.6% +9.8%

+10%

+4.5%

+5%

+0.8% 0% -5%

-1.0%

-2.6% -6.8%

-10%

<$200K $200K - $300K - $400K - $500K - $600K - $800K $300K $399K $499K $599K $800K $1M

$1M+

Total

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | May be reproduced w ith attribution

Change in Pending Sales by Price Range Twin Cities, MN | March 2025 compared to March 2024

+20%

+16.2% +15%

+10.0%

+10%

+9.3%

+8.9%

+5%

+1.1% 0%

+1.7%

0.0%

-5% -10%

-8.5% -10.8%

-15%

<$200K $200K - $300K - $400K - $500K - $600K - $800K $300K $399K $499K $599K $800K $1M

$1M+

Total

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | May be reproduced w ith attribution

Change in Market Activity by Price Range

New Listings Pending Sales

Northstar Coverage Area | April 2025 compared to April 2024

+35%

+32.9%

+30% +25% +20%

+15%

+13.8% +11.6%

+10%

+9.3% +7.8%

+7.1%

+12.8%

+11.1% +8.8% +6.9%

+5.9%

+5%

+4.1%

+3.4%

+3.1%

+1.3%

0% -1.7%

-5% -10%

-7.3%

<$200K

-6.1%

$200K $300K

$300K $399K

$400K $499K

$500K $599K

$600K $800K

$800K $1M

$1M+

Total

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | All Right s Rese rve d

Change in Inventory by Price Range Twin Cities, MN | March 2025 compared to March 2024

+35% +30%

+30.2%

+25% +20% +15%

+11.4%

+10%

+7.4%

+9.2%

+5%

+2.5%

0% -5%

-10%

-2.7%

-1.0%

-3.4%

-7.8% <$200K $200K - $300K - $400K - $500K - $600K - $800K - $1M+ $300K $399K $499K $599K $800K $1M

Total

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | May be reproduced w ith attribution

Median Days on Market by Price Range Twin Cities, MN | March 2025 compared to March 2024

60

+27.0% 50 47 -14.3% 36

40

30

20

+38.9% 25 0.0% 15

-5.3% 18 -17.6% -6.3% -13.3% 15 14 13

0.0% 18

10

0

<$200K $200K - $300K - $400K - $500K - $600K - $800K - $1M+ $300K $399K $499K $599K $800K $1M

Total

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | May be reproduced w ith attribution

Pct of Orig. List Price Rec'd by Price Range Twin Cities, MN | March 2025 compared to March 2024

105% -0.9% 99.3%

100%

95%

+0.2% +0.1% 100.7% 100.2%

0.0% 99.9%

-0.1% 100.0%

-0.4% 99.1%

+1.5% 97.7%

-0.2% 99.7%

-1.6% 94.8%

90%

85%

80%

<$200K $200K - $300K - $400K - $500K - $600K - $800K - $1M+ $300K $399K $499K $599K $800K $1M

Total

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | May be reproduced w ith attribution

Months Supply by Price Range Twin Cities, MN | March 2025 compared to March 2024

6

-20.9% 5.3

5

4

+54.5% 3.4

3

2

+30.8% -6.3% 1.7 1.5

-4.5% 2.1

-3.7% 2.6

0.0% 3.2

-5.3% 3.6

-4.5% 2.1

1

0

<$200K $200K - $300K - $400K - $500K - $600K - $800K - $1M+ $300K $399K $499K $599K $800K $1M

Total

Source : Minnesota Realtors® and RMLS of MN, Inc. | © 20 25 MNR | May be reproduced w ith attribution

Payments & Budgets

Monthly budgets s t r e t c h e d (from payments) Monthly PITI Payment on Median Priced Home, Minnesota (Using current 30-yr FRM rates, assuming 10% down, 1.21% tax rate and 0.65% insurance )

$3,000 $2,551

$2,462

$2,500

$2,133 $2,000 $1,622

$1,543

$1,466

$1,500

$1,298

$1,217 $1,000

$500

$1,067

$984 $851

Income needed for mortgage payment not to exceed 30% Based on monthly PITI Payment on Median Priced Home, Minnesota (Using current 30-yr FRM rates, assuming 10% down, 1.21% tax rate and 0.5% insurance)

$120,000

$109,313

$100,000 $91,396 $80,000 $66,132

$69,497

$60,000

$62,713 $42,180

$40,000

$20,000

$0

$41,366

$50,444 $36,451

Monthly budgets s t r e t c h e d

(from payments)

Monthly PITI Payment on Median Priced Home, Wisconsin $2,500

(Using current 30-yr FRM rates, assuming 10% down, 1.21% tax rate and 0.65% insurance )

$2,282 $2,250

$2,113

$2,000 $1,739

$1,750 $1,500 $1,250 $1,199 $1,000 $750 $500

$1,127 $950

$876 $756

$928

$1,186

Income needed for mortgage payment not to exceed 30% Based on monthly PITI Payment on Median Priced Home, Wisconsin (Using current 30-yr FRM rates, assuming 10% down, 1.21% tax rate and 0.5% insurance )

$120,000 $97,798

$100,000

$80,000 $74,523 $60,000

$51,379

$54,914 $48,286

$40,000

$20,000

$0

$32,405

$38,269

States with more inventory than 2019 (pre covid)

How’d we get into this pickle? re: inventory

(It’s actually pretty simple)

Lender Mediated Market Share Northstar Coverage Area | R12MA 48.4% 48.1%49.1%

50%

40%

38.2%

35.1%

30% 24.8%

20% 15.3% 11.4%

10%

6.6% 4.0% 1.0% 1.5%

0%

10.3% 3.8%

2.5% 1.7%

1.1% 0.5%0.7% 1.2%

Source: Minnesota Realtors® (MNR) & participating MN MLSs | © 2025

Racial Homeownership Gap

Homeownership Rate by Race (2023) 90% 80%

MN TC Metro

76.8% 75.9%

70%

64.5% 65.0% 55.9% 57.1%

60%

46.9%

50%

39.9%

40%

32.3% 32.6%

30% 20% 10% 0%

White

Asian

Hispanic/Latino

American Indian & Alaska Native

Black/African American

Source: US Census ACS, TableID: S2502 | Produced By: MNR Research | Contact: DArbit@MNRealtor.com

Homeownership Rate by Race

2017 2018 2019 2020 2021 2022 2023

Twin Cities Metro 80%

77.2% 76.8%76.7% 76.7% 76.6% 75.9% 75.7%

70%

66.7% 65.9% 65.0%

60.6%

59.2% 58.8% 57.0%

60%

56.4% 49.6% 49.0%

50%

57.1%

50.1% 44.7% 44.1%

44.4% 43.2%

43.4% 42.6% 39.7%

40%

39.9% 37.3%

32.6% 32.2% 30.6%

30%

27.0%

25.6% 25.6%24.7%

20% 10% 0%

White

Asian

Hispanic/Latino

American Indian & Alaska Native

Source: US Census ACS, TableID: S2502 | Produced By: MNR Research | Contact: DArbit@MNRealtor.com

Black/African American

Homeownership Rate by Race

2017 2018 2019 2020 2021 2022 2023

MN Statewide 80%

77.5% 77.3% 76.8% 76.7%76.3%76.9%

70%

76.8%

66.1% 64.2% 64.5% 60.0%59.7% 57.6% 56.4%

60%

56.6%

49.5%50.3%

50%

55.9%

49.1%

45.9% 45.8%

49.5% 48.6% 48.0% 47.5%

46.9%

44.1% 40.4%

40%

32.3%

30.5% 29.3%

30%

25.3%25.4% 24.0%23.7%

20% 10% 0%

White

Asian

Hispanic/Latino

American Indian & Alaska Native

Source: US Census ACS, TableID: S2502 | Produced By: MNR Research | Contact: DArbit@MNRealtor.com

Black/African American

Racial Homeownership Gap

A 75% white homeownership rate minus a 25% black homeownership rate equals a 50% Homeownership gap

White - Black Homeownership Rate Twin Cities Metro 60%

55%

51.2%

52.1%

50%

50.1%

49.6% 45.0%

45%

46.0% 43.4%

40% 35% 30%

25% 20%

2017

2018

2019

2020

2021

Source: US Census ACS, TableID: S2502 | Produced By: MNR Research | Contact: DArbit@MNRealtor.com

2022

2023

Racial Homeownership Gap

A 75% white homeownership rate minus a 25% black homeownership rate equals a 50% homeownership gap

White - Black Homeownership Rate MN Statewide 60%

55%

52.8%

53.0%

51.1%

51.5%

50%

47.0%

48.0% 44.5%

45%

40% 35% 30%

25% 20%

2017

2018

2019

2020

2021

Source: US Census ACS, TableID: S2502 | Produced By: MNR Research | Contact: DArbit@MNRealtor.com

2022

2023

Rates + Economy

Source: KCM

Source: KCM

They say economists have predicted 17 of the last 3 recessions

Univ. Michigan Survey, 2025

1) Recession not guaranteed (nothing is these days) 2) There’s a possibility we would’ve gone into recession anyway 3) Admin pivots away from tariffs or includes more exemptions/carveouts 4) Recovering consumer confidence 5) The bond market always know more than stock market

Thank You for coming!

Presented by Bell Bank Mortgage

This presentation is intended for informational and educational purposes only. It is not reflective of Bell Bank and is not being conducted in consideration of mortgage transactions.

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