HOLMES GROUP M A G A Z I N E
ISSUE 5 - November 2017
A Lesson on Smart-Homes We look into smart-homes and the future
Holmes on Homes Joe’s 2017 Year in Review!
TH S SSUE 3-4 5-8 9-10 11-12 12-13 14-15 16
Holmes on Homes - 2017 Year in Review Our Featured Home - Home on Mississippi River Home & Style - Art Deco Homes Investing in Smart-Homes Listings Q&A Crossword & Sudoku
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2017 YEAR IN REVIEW For this issue’s Holmes on Homes I thought it would be fun to talk about 2017 (a year in review) and predictions for 2018. So, I dug up some stats and pulled out my crystal ball. Sit back with a cup of hot chocolate and enjoy:
Most of those who have talked real estate with me know that I call myself a stat geek. I really do enjoy pricing properties and looking at supply and demand ratios, absorption rates and all kinds of data. Looking at 2017 for a year in review and predicting 2018 can’t be done without looking at trends and data over the last 10 years.
Want to guess at the significance of May 2017? It was the first month that we matched an average home price of our pre-2008 crash of $280,000. Yep... that’s right… home prices are now above the average price from our peak in those days and in October of this year was at $290,000. For our Twin Cities region, that means the average home prices increased 6.7% compared to last year. Closed sales remained very steady all year long but the biggest factor to look at is the actual inventory for sale. Available inventory or the actual amount of homes for sale has been steadily dropping since 2015. In April of 2015 there were nearly 17,000 homes for sale and in October of this year only 11,678.
That’s a HUGE factor to consider. Think about this... the demand from buyers has remained the same but inventory has been reduced by 33% since 2015. Is that the cause of our 6.7% increase? It’s definitely a big portion of that. Price is largely affected by supply & demand. If demand remains stable and supply is decreased, the natural market reaction is for an increase in pricing. It makes sense that our average price has increased.
So, what’s the crystal ball say? I can say with confidence that our demand won’t be going up. There won’t be a larger buyer pool out there next year compared to
2017. Interest rates will tick upward... home prices tick upward... and it ever so slightly reduces the buyer pool. So, it would only make sense that if demand goes down so does the price. Will we see a leveling off of pricing? Will we see a decrease? The crystal ball says that we’ll see a leveling off of home prices and I feel that we’re in the middle of a market shift.
The largest factor in that will be how many homes are for sale. If that number actually levels off or goes up (instead of its downward trend), that would be the largest impact to future pricing. Imagine if we went to 2015 inventory of 17,000 homes for sale and the buyer pool actually decreased. Prices would not only level off but in some markets, start to decrease. No mistake about it... we’re in a market shift. Personally, I don’t feel that we’ll see a decrease in home pricing soon, but I don’t think we’ll see a 6.7% increase this year either. If I were going to Vegas with a bet on next year’s market, I’d say we’ll see a modest 3% increase. Now time for turkey leftovers…
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FEATURED HOME Welcome to 11433 Kingsborough Trail located on the Mississippi river in beautiful Cottage Grove! Architecturally designed & exquisite detail in this one-story masterpiece. Enjoy the private golf course setting & river views from any room. All rooms are generously sized with attention to detail. Large master suite with private deck & hot tub off the master bath, home theater, cherry wet bar with full kitchen, cellar, 6+ car garage, private next-gen quarters in LL, executive office, smart home technology, 2400 sq ft garage, extensive landscaping & outdoor spaces.
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Golf Course Living - located on the 2nd Fairway of the River Oaks Golf Course in ‘rural’ Cottage Grove Minnesota. This is the prime lot on the golf course!
The kitchen boasts gorgeous counter-tops, with a center range complete with exhaust fan. If you enjoy cooking at home, this kitchen is perfect with you, with easy access to the deck for those summer time lunches with the family.
Wine Cellar - stone façade walls with modular bottle storage and setup for wine refrigerators.
‘Next Gen’ Quarters - private bedroom / bathroom ‘lockoff’ with private access and garage for a nanny or personal caregiver.
The layout allows plenty of space to be utilized no matter what your needs are.
Home Theater - integrated into the whole house A/V system.
Wet Bar - entertain with the cherry wood & granite, fully functional bar, complete with all kitchen utilities, to include: dishwasher, garbage disposal, refrigerator, freezer with ice maker and electric cooktop. ‘Smart Home’/ Security System - web accessible access to security cameras (4), system records ‘motion’ – integrated with a whole house A/V system, includes speakers and controls in: each main floor room, both upper and lower garages, and 3 outside porches.
Call us at 651-379-1581
HOME & STYLE
ART DECO HOMES The style was partially inspired by artifacts
from the edgy Bauhaus School in Germany.
discovered in 1922 in King Tut’s tomb, and many art
The style combines the circular, trapezoidal
deco buildings include the repeating designs and
and rectangular motifs of the Machine Age
vivid color common in Egyptian artwork.
with the high-gloss finishes and glamorous
Though it draws heavily from antiquity, art deco
black-and-white color palette of the silver
was considered ultramodern at the height of its popularity, with some of the first deco designs coming
screen.
Art deco’s appeal began to fade in the 1940s.
Experimentation with interior materials - Art
However, it enjoyed a resurgence in the
deco designers used “new” materials such
1980s, when Miami’s South Beach arose from
as glass block, neon, chrome, mirrors and
the ashes of neglect to become a colorful art
opaque glass panels.
deco vacation paradise, and post-modern architecture around the world re-popularized fanciful touches on building exteriors.
Key Elements Flat roofs Smooth walls - The walls of art deco homes are often made of smooth stucco and have rounded corners. Bold exterior decorations - Buildings in the style were often decorated with zigzags, swans, lilies and sunrise motifs.
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As technology advances at exponential speeds, it’s becoming more affordable and convenient for homes. From smart light bulbs that help us sleep and save money, to bluetooth door lock systems, it makes us wonder; do these tech upgrades actually make our homes worth more? It depends on how you look at it. Some smart home devices, although expensive to buy, in the end can save you money like the Nest Learning Thermostat. This thermostat learns what the homeowner’s schedule is and adjusts the temperature automatically for when they’re home or not; thus, saving money in gas and electric bills. If safety and security is a concern, there are many home monitoring systems that stream live video feeds straight to your phone or computer, offering peace of mind. It’s hard to put a dollar amount on the safety of you and your family. So, do the tech extras add more value to the home? Realtors say these advancements put the home at an advantage over others when it’s up for sale. “I don’t necessarily see these features raising home prices, but having that technology there focuses attention of buyers to that house over others,” says Realtor Hal Feldman; “and often I’ve seen those homes sell significantly faster.” Greg Boss, a Realtor in Boise, Idaho, says “Consumers are starting to see it, appreciate it, and ask for it. It won’t deter them from buying a home they like, but in real estate, any time you can bring in another wow factor, it really helps,” he adds. “Builders who are cutting-edge are definitely on top of it. As a younger generation moves here, they’ll be asking for it.”
thermostats and lighting give homeowners the ability to balance comfort and consumption and help save money on utility bills. Smart locks allow homeowners to unlock the door for the dog walker or cleaning lady when they’re at work. So, what does the smart home revolution mean to you and your clients? Take a look at the findings from a survey conducted at the International Consumer Electronics Show:
Consumers want smart home technology • 45 percent of all Americans either own smart home technology or plan to invest in it. • Of people who do not currently have smart home technology, 27percent said they will incorporate it into their lives. • 70 percent of people with smart home technology said buying their first smart home product made them more likely to buy another one.
Consumers understand that smart home technology can help them sell their home faster • 54 percent of homeowners would purchase or install smart home products if they were selling their home and knew that doing so would make it sell faster.
However, with technology moving at such a fast pace, most home technologies become obsolete in only three to five years. Apps and services get discontinued when • Of homeowners who said they’d purchase or newer alternatives become more popular. Sometimes install smart home products, 65 percent would pay setting up these home-tech ecosystems is more trouble $1,500 or more and 40 percent would pay $3,000 or than it’s worth. It’s important for homeowners to more to make their home smart. decide where to put tech upgrades and how many • Of Millennial homeowners (ages 18 to 34) who should be added. Installing expensive-looking gadgets would purchase or install smart home products, 72 in a rather older looking home can make the rest of percent would pay $1,500 or more and 44 percent house look even more dated. would pay $3,000 or more to make their home The smart home market is expected to grow annually smart. by 17 percent and become a $58.68 billion industry by 2020. Forty-six percent of consumers believe it is Smart home technology is a great differentiator and important that their current or next home have smart can really make a home stand out and help it to sell home technology. Not only are smart home products faster. It’s important to get smart about smart home technology, as you may have to understand the ins becoming increasingly more important, they can also and outs in your search for a home. make a home more sellable and valuable. Remotely controlling how, when, and why home devices should react not only offers ease and convenience, it can also help save money. Smart security kits allow homeowners to monitor their home and make sure it’s secure while they’re away. Smart
Single Family Homes 5315 W Bald Eagle Blvd White Bear Twp, MN 55110 Enjoy the breathtaking views of Bald Eagle Lake. This home has it all - Panoramic lake views, 90 ft of lake shore, 5 car garage and additional shop, 600 sq ft deck and more. This home has history and character throughout. Enjoy the master suite with lake views & master bath, hardwood floors, fireplace, bay windows, sun room with views and more.
$699,000 4365 Lexington Ave N Arden Hills, MN 55126
Amazing home, Complete restoration, lake front, 1 acre in the city. Gorgeous setting. Fantastic kitchen, beds and baths! Too many amenities to mention! Great shopping, restaurants and freeway access close by.
$595,000 15722 Lac Lavon Drive Burnsville, MN 55306 Enjoy 78 feet of lakeshore in this gorgeous custom home on Crystal Lake. Private lot with remote gate access; open concept with vaulted ceilings; tons of natural light with amazing lake view; gourmet kitchen; 5-car garage; 5 bedrooms which include a large owners suite with balcony. Lakeville schools. Enjoy gorgeous sunsets, entertaining, and all types of seasonal activities!
$849,000 11 N Mallard Rd North Oaks, MN 55127
Exquisite home on pristine lot in North Oaks. There are too many amenities and highlights to list. This home is one of a kind and built with extensive detail and quality throughout. The open floor plan is timeless, the views are breathtaking & details are endless. The 3,185 sq ft garage is perfect for a car collector or enthusiast and is complete with a lower level shop & showroom.
$1,295,000
Joe Holmes joeholmes@kw.com www.holmesgroupmn.com Office: 651.379.1581 | Cell: 651.491.2151
Bob Adamson radamson@kw.com www.holmesgroupmn.com Office: 651.209.9856 | Cell: 651.387.6262
1004 Chatsworth Place Shoreview, MN 55126 Fantastic 2 story with an open floor plan & endless amenities. Enjoy the main floor master suite with private deck, brick-surround fireplace & master bath. The open layout is perfect for entertaining or family time & boasts vaulted ceilings, sunken living room, wet bar, informal dining & 3-season porch. New appliances, carpet, paint and other updates are complete!
$495,000 1991 Granite Ave N Oakdale, MN 55128 Fantastic end unit with lake front & lake views on a quiet street. One level living with master bedroom, walk-in closet, private master bath with separate tub & shower. This home has 2 beds / 2 baths, informal dining, oversized 2 car garage, rear patio with lake views and more. Very well maintained and cared for.
$199,000 9620 Wyoming Terrace S Bloomington, MN 55438 Beautiful 2 story home in prestigious South Bay of Bloomington. There are too many amenities & features to list & must see to appreciate! Enjoy the vaulted entry, custom lighting, formal & informal dining spaces, 3-season porch, deck, 3-car heated garage, walk out lower-level with wet bar, brick surround fireplace, new roof/windows in 2015 & more. All bedrooms have generous sizes & master suite boasts a private balcony overlooking the backyard.
$549,000 6125 Apple Rd Shorewood, MN 55331 Fantastic end unit with lake front & lake views on a quiet street. One level living with master bedroom, walk-in closet, private master bath with separate tub & shower. This home has 2 beds / 2 baths, informal dining, over-sized 2 car garage, rear patio with lake views and more. Very well maintained and cared for.
$1,395,000 14198 Mckenna Rd NW Prior Lake, MN 55372 Stunning 2 story home with endless details. This is a true example of extraordinary craftsmanship & attention to detail. See supplements for a full list of details. This home boasts an open floor plan, gourmet kitchen, 3 fireplaces, in-floor heat, wet bar with custom finishes, exercise room, heated garage, custom tile & granite and much more. Great home for family time and entertaining and must see to truly appreciate.
$645,000 Heather Pederson hlpederson@kw.com www.heatherpederson.com Office: 651.379.6315 | Cell: 612.964.2524
Jay Mangine jaymangine@kw.com http://jaymangine.kw.com Office: 651.379.6362 | Cell: 612.865.0400
Q&
Joe answers questions
he received from clients. Feel free to submit your own questions. Tweet us @HolmesGroupMN
Follow us on Twitter! https://twitter.com/HolmesGroupMN
I’m a first-time buyer, is it a good time to purchase a home? The main factor I look at to answer this is the cost to borrow money which is at an extremely low rate. People generally worry about a peaking market or a down market. It generally doesn’t matter when you jump in as your sale & purchase of your next home will be equal in that regard. Selling in a peak market is great... but buying isn’t. On the flip side... selling in
A a down market isn’t the best but buying is. So, if you’re thinking of becoming a homeowner and riding the wave of market adjustments, the buying & selling process balance that out.
Are there down payment assistance programs available and what is the minimum down payment these days? FHA requires 3.5% down and Conventional loans require 5% down. There are some
Conventional products that allow for 3% down and you should chat with your mortgage professional for more details. I suggest giving Thomas Jussila a call… Their contact info is located on the ad in the back of this magazine, and they are truly great to work with! There are local programs that do loan down payments. One we’ve worked with over the years is MHFA. You can find them at www. mnhousing.gov
line I’m a Realtor and I wanted that concept to be reflected in the advertising. I’m a normal guy that does goofy dad stuff all the time and in another role in life I’m a Realtor that kicks butt and takes names... BAM! That’s our advertising concept.
So, Thanksgiving is coming up... are you a white meat or dark meat kind of guy and are you traveling or hosting? Remember we are always here to Not much of a real estate question but I’ll take it... help in any way we can! let’s have some fun! If you’ve met me in person you’ll easily see that I don’t skip meals. That being said, I like both. White meat is great for soups and dark meat is great on the plate with stuffing and potatoes! As for traveling or hosting... we’re hosting this year. By the time you read this, Thanksgiving might be over... You’ll have to ask my family if I actually stayed awake past 8pm!
Joe Holmes 651-379-1581 joeholmes@kw.com
Why do you use your kids in advertisements? Again... not a real estate question but we’re off topic anyway. Let’s face it... real estate advertisements in general are boring and cheesy. Have you ever gotten a recipe from your Realtor or some ridiculous email as reminder to set your clock back for daylight savings? You won’t see that from us. It started with wanting to show people the real side of me... the fun side. My first role in life is that of a dad and husband... from there I’m a son, brother, uncle, friend, and so on. Somewhere down the
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3555 Willow Lake Blvd. Ste. 100 Vadnais Heights, MN 55110
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Across
33. Eagle’s nest
1. GI’s diner
34. Carrot sticks, e.g.
5. Author Murdoch
38. Chick of jazz
9. Pointed parts
39. Tests
14. Building designer
40. Draw aimlessly
16. Elroy Jetson’s dog
42. List shortener, for short
17. 1967 and 1968 Super Bowl champs
43. Window part
19. More virile
47. Tax ID
20. “My Way” singer Paul
48. Greek god of war
21. Leaning
50. Fry
22. Former Ford models
51. Soprano Moffo
23. It may be regular or premium
52. One blowing his own horn?
26. Cul-de-___ (dead end roads)
54. Famed London police headquarters
27. Finder’s cry
58. Thin soup
29. Bear witness
59. Peach relative
31. Intense
60. Tippy craft 61. Director Preminger 62. Rigel or Antares
Down
22. Certain paints
1. Molten rocks
23. Actor Richard of “Pretty Woman”
2. Printers’ mistakes
24. Sale condition
3. Picturesque
25. Sault ___ Marie
4. What she sells by the sea shore
27. King beater
5. “Let ___” (Beatles song)
28. Titanic
6. Admiral’s position?
30. ___ Aviv
7. Freezing
31. Snow fall?
8. March honoree, for short
32. Coup d’ ___
43. Woodland deities
9. Betrays, in a way
34. Down under jumpers, briefly
44. Café ___
52. Ambassador’s forte
10. “___ silly question ...”
35. Elvis Presley’s middle name
45. Breastbones
53. Aware of
11. 66, for one (abbr.)
36. Tied the knot
46. Cowboy, at times
54. Johnny Carson’s network, once
12. Shiverer’s sound
37. Pacer maker, once
49. “... his wife could ___ lean ...” 55. Notable period
13. “Help!”
38. LPs’ successors
50. Type of cracker
56. Took the gold
15. “What’s ___ for me?”
41. Cube designer Rubik
51. Regarding
57. Pig tail?
18. Time-half links
Happy Thanksgiving from Tanner & Parker!
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3555 Willow Lake Blvd Ste. 100 Vadnais Heights, MN 55110 651-379-1581 joeholmes@kw.com