Saturday, May 16, 2020


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My team was recently awarded the housing partnership award for our lending committment to 1st time home buyers using Minnesota Housing products in support of affordable housing.

Click Here for entire program Qualification Guidelines

Friday, October 7, 2011

MN Homeownship Rates Sink Lower

2010 Census Bureau figures released this week indicate the home ownership rate is facing its biggest drop since the Great Depression.

The home ownership rate has fallen to 65.1 percent (or 76 million occupied housing units owned by their residents) from 66.2 percent in 2000. The 1.1 percentage point drop is the largest since the Great Depression in 1940. During that time, home ownership rate dropped 4.2 percentage points, reaching 43.6 percent.

While the home ownership rate for 2010 of 65.1 percent still remains overall high, housing experts are concerned that the percentage drop from the last census may signal a future downward trend.

Since 1940, the home ownership rate has gradually been increasing nearly every decade. During the housing boom, the home ownership rate peaked at nearly 70 percent.

But tighter credit and a bleak job picture are all causing home ownership rates to sink lower, analysts say.

Among the Census’ findings:

Unemployed young adults are the least likely to own a home.
The home ownership rate for adults aged 35-64 are at their lowest level in decades. Many middle-aged adults may have suffered from the housing crisis of 2006, facing foreclosures or bankruptcies, the Associated Press notes.
The home ownership gap between whites and blacks is growing and is at its widest gap since 1960.

Sunday, October 2, 2011

First Time Minority Home Buyers In MN

The minority home ownership rate in MN has declined again which represents a prolonged trend of four years.

Minnesota housing officials state high minority unemployment rates are part of the cause. However the potential for home ownership rebounding because of record low home prices and lending rates.

Almost 75 percent of the state's households owning their homes making Minnesota among the highest in home ownership rates in the country.

Minority households reached peak ownership in 2003 wtih just over 47 percent which is a hopeful sign that minorities were increasing wealth and entering into home ownership as MN first time home buyers.

However new census numbers illustrate MN home ownership rate for minorities is falling, indicated by Minnesota Housing Finance Agency commissioner Mary Tingerthall.

Home ownership rates dropped from 46.5 percent to 43.3 percent and that trend continued downward in 2010 to 41 percent," she said.

Unemployment is part of the reason for declining minority home ownership rates in Minnesota. Unemployment in the general population is around 7 percent, but reaches 20 percent and higher for minorities, Tingerthall said.

"That, combined with tougher mortgage qualification standards, I think, has really landed a double whammy for communities of color."

The MN Home Ownership Center reports there have been 100,000 home foreclosures with median home values decreasing by nearly 1/3.

Median Minnesota home values have plummeted on average by nearly a third.

However one homeowner's pain is a potential home buyer's gain, and there are many single family housing bargains at a time when interest rates are at record lows.

Tingerthall says, "It's true that an average monthly mortgage payment costs more than rent." However, the rental vacancy rate in parts of Minnesota is very low, and that puts upward pressure on rents."

"Owners of rental properties will begin to see the opportunity for the first time in several years to raise their rents, so we're concerned that people will really get caught in the squeeze not being able to qualify for a mortgage, at the same time seeing their rents going up."

The Minnesota Housing Finance Agency has a program that this year will help slightly more than 2,000 MN first time home buyers. The Minnesota First Time Home Buyer Program helps with up to $8,500 down payment and closing costs and requires that they take housing classes to learn how to care for their property.

Wednesday, September 28, 2011

Foreclosures And REO In MN

The current residential shadow inventory as of July 2011 declined slightly to 1.6 million units, representing a supply of 5 months, CoreLogic reported today. This is down from 1.9 million units, a supply of 6 months, from a year ago, and follows a decline from April 2011 when shadow inventory stood at 1.7 million units. The moderate decline in shadow inventory is being driven by a pace of new delinquencies that is slower than the disposition pace of distressed assets.
Highlights from the report:
• Of the 1.6 million properties currently in the shadow inventory, 770,000 units are seriously delinquent, 430,000 are in some stage of foreclosure, and 390,000 are already in REO.
• As of July 2011 the shadow inventory is 22 percent lower than the peak in January 2010 at 2 million units, 8.4-months’ supply.

Wednesday, September 21, 2011

MN First Time Home Buyers Choosing Your Neighborhood

With home prices falling, you are looking for a neighborhood that has a greater likelihood of holding its value with future appreciation. How do you know what neighborhood is not as stable and which will appreciate over time? says judging a neighborhood’s worth over the long haul comes down to two main factors: Jobs and access to amenities.

For example, Andrew Schiller, creator of, says signs of long-term opportunities for jobs in an area would be low unemployment, high household income, large or prominent colleges and universities, and seats of federal or state government. He says the Bureau of Labor Statistics is a good resource, particularly its Local Area Unemployment Statistics map, which provides unemployment information by metro area and county, as well as its Current Employment Statistics, which tells you how many people are employed in different sectors of the economy in a certain area.

As for judging a neighborhood's amenities that can generate long-term value, Schiller cites characteristics like a neighborhood that offers a variety of nearby retail stores, low crime rates, parks, distinctive architecture, and good public schools.