North Minneapolis St Paul Twin Cities Metro Area Real Estate

Housing statistics, such as price - are often stated as either "average" or "median".  So what's the difference and what does it all mean?

The word median, is a statistical measure and it is based on a "normal" bell curve (like the one above).  By definition, it means the middle of the distribution - half of the distribution is below the median and half is above.  In a perfect bell curve, the average and the median are the same.  But in the real world, most things are not perfect.

In the case of housing prices, it is quite common to have a somewhat skewed distribution.  This causes the average and the median to be different.  The example below shows the number of homes listed for sale in each of the price ranges:


This curve is certainly not a nice clean bell curve like the previous one.  There are several price ranges that are empty - zero homes, while others have a large number of homes in them. 

The average home price in this example is $314,608 but the median is $259,900.  The median is less sensitive to the extremes - like the small number of homes in the price ranges above $550,000 and the empty ranges.  In this case, there are 61 homes in the price range between $200K and $250K which is where the peak of this curve occurs.  The median is closer to the peak than the average - it occurs in the $250,000 to $300,000 price range.

The average is skewed by the fact that there is not a nice normal distribution of homes in all of the price ranges.  The average falls in the range between $300,000 and $350,000 - in this range, there are only 30 homes.

So the median compensates for the amount of "skew" in the data.  Some people like to say that the median and a weighted average are the same thing.  Technically, that is incorrect, but the concept is similar.

Actual housing statistics were used to create the graph above.  Based on information from the REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC for the period of Aug 28, 2007 through Aug 31, 2007.

Participating member of the *National Real Estate Stimulus Program*

Buyers: Receive a CASH BONUS of 2% of the sale price up to a maximum of $10,000.00 after closing when you purchase a home with Patti Ann Kasper.

Sellers: Your home SOLD in 39 days or less GUARANTEED, or I'll pay you up to $10,000 after closing!

That's right, a tax free cashiers check is mailed after closing, upon receipt of proof of purchase, and verification of identity.  Could you or someone you know do something with that?  If you are thinking of buying or selling a home, call Patti Ann Kasper to find out how you can receive your own National Real Estate Stimulus Program CASH BONUS!

For more information about my services, guarantees, or how I can help you find your next home, sell your home, buy a business or investment property.  Just call Patti Ann Kasper today at 763-548-1418!

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Patti Ann Kasper, Your Minnesota, North Metro Twin Cities, and Blaine MN Real Estate Expert!  Associates of Science Degree in Geographic Information Systems and Cartography from Anoka Ramsey Community College in Coon Rapids, Minnesota.
© Copyright Patti Ann Kasper 2007 All Right Reserved.

There are a total of 41 Single Family homes currently listed for sale on the MLS in Centerville, Minnesota (as of August 28th, 2007).  The average list price is $358,449.00.

The city is located in southeastern Anoka County.  Centerville is an mature smaller town that has two very popular lakes - Peltier Lake and Centerville Lake.  The adjacent Rice Creek Chain of Lakes Regional Park Reserve provides many outdoor activites and is connected to the regional county trail system.

Peltier Lake is a very popular fishing lake in both summer and winter.  It is known as one of the best panfish lakes in the Twin Cities Metro Area.  Sunfish are hitting in 8 to 10 feet of water, northern pike are also a primary target for anglers.  Walleye are present, but not abundant.  Peltier Lake has a public fishing dock just off of County Road 14 on the lake's south side not far from the boat landing.

The Bald Eagle Waterski Show is just one popular attraction on Centerville Lake.  This is a non-profit group of skiiers that have been performing since 1953.  The lake is also known for crappie fishing, which is especially active near the pumphouse. 

Centerville is situatied on 1597 acres and is located about 20 minutes from downtown St. Paul.  It has a population of 3848 (2005 estimate).  The largest employers are the Waterworks Beach Club and Rehbein Inc.

Centerville has a rich French-Canadian heritage which is celebrated during the annual Fete Des Lacs Festival.  It is a historic town that was a popular rest stop for pioneers travelling between Stillwater and Anoka in the earliest days of the Minnesota Territory.  The township was first incorporated in 1857 about the same time that Minnesota became a state.  The town is completely surrounded by the city of Lino Lakes which was incorporated in the 1955.

Centerville has a wide range of housing.  Many homes are located on lakefront property.  The chart below shows the distribution of homes listed for sale by their price range.

© Copyright Patti Ann Kasper 2007



Based on information from the REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC for August 28th, 2007.

A homeowner who obtains a qualified mortgage during 2007, and whose adjusted gross income is less than $110,000 ($55,000 if married filing separately), may be able to deduct some of the mortgage insurance premiums paid during the year as an itemized deduction.*

Before Congress ended their session in the fall of 2006, they passed a bill that provides for a new tax break for middle-income taxpayers who purchase a home in 2007.  The tax break, included in with the tax omnibus bill, allows homebuyers to deduct their PMI (mortgage insurance premiums) on their 2007 tax returns.  Many home buyers make a downpayment of less than 20% on a mortgage which means they have to pay mortgage insurance.  This insurance is designed to protect lenders in the event of a foreclosure.  PMI costs are generally about one-half of 1% of the home mortgage ($75 a month for a $180,000 loan).

It is estimated that 20% of homebuyers have PMI and this deduction will save Americans between $300 and $500 on their taxes.  However, unless Congress votes to extend it, the deduction will disappear at the end of 2007.

The full deduction is restricted to families with an AGI (adjusted gross income) under $100,000.  Those with existing mortgages will not be eligible for this program - it is available for mortgages issued after Dec. 31st 2006 only.  If you refinance after Dec. 31 you may also qualify, if you do not take any equity out of your home.

Proponents believe that Congress will be compelled to renew the deduction after 2007 because it will be so popular with consumers.

Insurance companies that provide PMI have lobbied for the deduction for some time now.  They hope it will discourage homeowners who in the past have obtained riskier "piggyback mortgages," to avoid paying mortgage insurance.  A "piggyback mortgages" is when a homeowner actually gets two mortgages - one for 80% of the value of the home, a second mortgage to cover another 10%, and then pays the remaining 10% out of pocket.  With this new tax deduction, homeowners can have just one mortgage and realize the same benefits. 

* Consult your tax professional - tax information deemed reliable but not guaranteed

© Copyright Patti Ann Kasper 2007 All Right Reserved.

In an effort to address the demand for more eco-friendly homes in Minnesota, a new innovative program of certification and standards has been established.  It is the Minnesota GreenStar program - look for the this logo when touring new homes.

Did you know that new home construction consumes approximately 20% of our raw materials and primary energy?  The pollution generated by today's methods generates 1/5 of our nation's total output of climate changing pollutants.

Beginning with the design process, this system of project verification and certification assures the key components of green techniques and materials through to the final construction.  The emphasis on five key components of "green" building systems assures a whole-systems approach:

• Water Conservation
• Indoor Environmental Quality
• Energy Efficiency
• Resource Efficiency (including Durability)
• Site and Community

To find out more or download a brochure, visit the Minnesota GreenStar Certification website at:   http://www.mngreenstar.org or email them at: info@mngreenstar.org

© Copyright Patti Ann Kasper 2007 All Right Reserved.

1st Annual Bunker Prairie Festival
Saturday, September 8th

The first annual Bunker Prairie Festival will be held on Saturday, September 8th with events starting at 11:00 am at the Bunker Hills Regional Park.

This is a free event full of family fun.  The 5K Bunker Run starts at 11:00 am, the Kid's Run starts at noon, and the  Festival at the Activity Center starts at noon.

Musical entertainment will be provided by the Blue Drifters.

There are a wide range of activities including, Yoga in the Park, Wagon Rides, Archery, Apple Cidering, Bird Banding, Nature Hikes, Prairie Plantings and  many seminars.

Educational seminars include useful information on Rain Gardens, Native Plants, Gardening, Wood Duck Management, and Monarch Butterflies.

So bring the whole family and enjoy this one of a kind festival.

The Bunker Hills Regional Park Activity Center is located in Andover, just off of Bunker Lake Blvd between Hanson Blvd and Jefferson Street.

© Copyright Patti Ann Kasper 2007 All Right Reserved.

If you've been watching the news lately, no doubt you've heard the gloom and doom about the real estate market.  Does this mean it is a bad time to buy or sell a home?  That all depends on your situation and where you live.

The number of new listings in Anoka County so far this year (Jan thru July) have actually fallen by 1.7% when compared to the same time period last year.  That means fewer new listings are coming on the market.  Meanwhile, median home prices are down 2.48% in Anoka County for the same time period.  So what does this mean to you?

Median home prices in many other metro area counties have fallen by an even larger percentage.  Carver -19.05%, Goodhue -11.15%, Rice -12.56%, Scott -7.31%, Sherburne -3.81%, St. Croix -9.42%, Washington -4.64%, and Wright -7.9%.

This is good news if you are planning to move from Anoka County to a similar home in one of these counties.  If you are planning to move up to a larger or newer home, the news is even better.

As an example, let's say your current home was valued at approximately $200K in 2006 and you are planning to move up to a home in St. Croix County that was valued around $300K in 2006.  While you will see a decrease of approximately $4960 in the value of your present home over the past year, you can expect to save $28,260 on the new home you will be purchasing when compared to the price you would have paid last year.  The difference is $23,300 if your favor!

If you are a first time homebuyer, a move-up buyer, or making a lateral move to an area that is experiencing a greater amount of price depreciation, THIS IS A GREAT TIME TO MOVE!

Of course, the flip side is that if you are downsizing and moving from St. Croix County to Anoka County the numbers would not be in your favor.  It all depends on exactly what your situation is and where you are planning to move.

So what if you are planning to stay in your home-how does the market affect you?  The short answer is that it is actually good for you.  Property taxes are based on the value of your home.  If you property value goes down, you taxes go down as well (assuming you have your home re-assessed by the county).

Remember, you don't lose anything if you don't sell anything.  It's a lot like the stock market.  You want to buy low and sell high.  For example, if you purchased a home valued at $175K in Anoka County in May of 2002; your approximate home value in May of 2007 is $214.5K (based on average home prices).  Have you lost anything?  NO!  The  average value of your home has actually increased by $39.5K!

What will the future bring?  No one can tell for certain.  However, economists point to several positive nationwide economic indicators.  Our gross domestic product (GDP) is up 3.4% from the 2nd quarter of 2006, pending home sales are up 5% from the previous month (June), new home sales are up 2.8% from the previous month (July), new home starts are up 2.3% from the previous month (July), 92,000 more jobs were added to the economy over the previous month (July) and the commercial real estate market is booming.

Local statistics in this article are based on information from the REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC. for the period from May of 2002 through July of 2007.  National economic data is generated by several different sources including the US Census Bureau, US Bureau of Labor Statistics, US Bureau of Economic Analysis and the National Association of REATLORS^®.  The nationwide figures for pending homes sales, new home sales, and new home starts are  seasonally adjusted.

© Copyright Patti Ann Kasper 2007 All Right Reserved.

The Federal Reserve cut the Discount Rate by ½% on August 17 bringing it down to 5¾%.  The move was in part due to concerns about the shake-up in the mortgage industry, especially the sub-prime market.  So what does this mean to you?  Actually, not as much as you might think.

The move is being viewed primarily as a symbolic gesture to assure banks that it is OK to continue lending to credit-worthy applicants.  The Discount Rate is the rate that banks pay to loan money from the Federal Reserve and it does not directly affect mortgage rates.

However, the  Federal Funds Rate, which does affect consumers remains unchanged at 5.25%.  This rate affects credit card rates, home equity lines of credit, car loans, and other consumer loan products.

The next meeting of the Fed (aka Central Bank) is set for September 18^th and many industry insiders are betting that the Fed will cut the Funds Rate by at least ¼%.

Conversely, the COFI (aka 11^th District Cost of Funds Index) which is generally used to set adjustable mortgage rates is an index based on a weighted-average of interest rates paid by institutions in the 11^th Federal Home Loan Bank District (Arizona, California, and Nevada).  This rate generally lags market interest rates in both up and down markets.

Mortgage rates broke with tradition and defy conventional wisdom.  Fixed mortgage and treasury yields rates generally change at about the same amount and move in the same direction, but in recent days, treasury yields have fallen while fixed mortgage rates climb.  The perception of increased risk in mortgages (especially the sub-prime market) tends to drive investors into safer investments like Treasuries and this then causes their yield to drop.

 © Copyright Patti Ann Kasper 2007 All Right Reserved.

Some of the data reflects the fact that there are scattered upscale properties with abundant acreage.  The data in the chart is based on only one home in each price ranges of $1M or more.

County property tax records may not reflect the eventual annual property taxes for homes that were constructed recently.  This is the case for the home in the $1.0M to $1.1M price range.



Based on information from the REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC for August 21st, 2007.