Link to a very useful critique of the Case-Shiller home-price index. We wholeheartedly agree! The problems with Case-Shiller are a big part of the negative drumbeat on housing, and it’s high time we put it in our rear view mirror. The FHFA and NAR indexes are far more accurate and useful.
The Standard & Poor’s/Case-Shiller home-price index is “the single-most pessimistic but least accurate housing metric out there,” Cramer said during Wednesday’s “Mad Money.”
Of course, that never stops the media from jumping all over it when the latest Case-Shiller numbers hit the wire. Consider the reaction to Tuesday’s report, where the index showed a 1-percent decline in November home prices from the previous month and a 1.6-percent pullback year-over-year. “Housing Prices, Already Down, Fall Again,” said The New York Times. “Falling Home Prices Reveal Limits of Recovery,” said The Wall Street Journal. But there’s a big reason why the media—and pundits—shouldn’t be making such sweeping generalizations about housing.
The Case-Shiller index measures only 20 U.S. markets. It’s nowhere near as representative as people make it out to be.
 Credit: Ken Gutmaker Builder Magazine just released their mid-year report on healthy housing markets around the country, and the news for our neck of the woods is excellent – the Twin Cities has been ranked the healthiest market in the country.
“1: Minneapolis-St. Paul-Bloomington Minn.-Wisc.
Health Index: 91.6
2011 Population Forecast: 3,326,400
2011 Total Building Permit Forecast: 4,511
2012 Total Building Permit Forecast: 10,118
Home prices are expected to rise 8% next year, the highest rate among the 100 largest housing markets, and a big reason that Minneapolis finishes atop our healthy markets list.
A major hub for medical technology and the headquarters for many large corporations, Minneapolis appears poised for a big rebound in housing. One reason is that employment is forecasted to grow 2.5% next year.”
Story in Builder Magazine
We were pleased to read the news of a grand opening for the new athletic complex in Hugo, just a few miles down the road from two of our communities – Creek Side Villas and Fable Hill!
The Hanifl Fields Athletic Park, on 137th Street North next to the city’s public works building, is nearly complete, and a grand-opening celebration is set for 7 p.m. today. The park boasts seven soccer fields, a playground, an attractive and energy-efficient public events center and concession stand. There are two large parking lots, natural landscaping, rain barrels and a walking path.
The park is a community asset and a much-needed gathering spot, said Hanifl-Lee, who played soccer through college and is now watching her own young children take up the sport.
“We’re proud to be part of this. It’s great for the kids and for the community as a whole,” Hanifl-Lee said. “Hugo is still developing, still working on the downtown, and this is just a neat place for the community, for everybody to enjoy.”
Source: Pioneer Press
Nice to see association-maintained living getting some positive local press! We can attest that the convenience and value of this form of housing certainly works for our buyers in Waterstone, Dancing Waters, and Creek Side Villas!
“Mary Myss never has to paint her Chaska home, mow the lawn or shovel her driveway. That’s because her walkout rambler is in Pioneer Point, a subdivision of single-family homes that are maintained by a homeowners’ association.
“It’s one of the best kept secrets,” said Myss. “It’s amazing that more people don’t know about it.”
Before moving to Chaska, Myss and her children lived in a big house in Wayzata with an equally big yard that she was fine with tending — until she wasn’t.
“What put me over the edge was coming home from work in the winter after a snowfall and I couldn’t get up the driveway,” she said.
At Pioneer Point, she still has her own entrance, her own yard and her own deck, but none of the work to care for them. …
“When I’m home, I’m sitting on my deck barbecuing and playing with my grandchildren rather than dealing with maintenance issues,” she said.
This type of housing — called manor homes, villas, cottage homes or detached townhouses — is tailored to people who want the privacy of a traditional single-family home with the convenience of a condo. And although it accounts for only a tiny slice of the real estate pie, builders and developers are cautiously optimistic that this hybrid style of house will grow in popularity, partly because it’s designed for a growing population: retiring baby boomers.”
Link to the whole article on StarTribune.com here.
 The kitchen is indeed the heart of the home, and a kitchen island is an important part of making that space work as a hub for daily life and socializing. The design possibilities for customizing kitchen islands are virtually endless. Check out this fun slideshow from Builder Magazine to get some design inspiration!
 Craftsman living room showing recessed window seat, overhead beams and girders and high wainscot built with recesses to hold bits of metal or pottery. The use of lanterns hanging from the beams shows the favorite craftsman method of lighting a room. The craftsman piano exactly corresponds with the woodwork so that it seems to be a part of it. “And to what extent can we hope for finer ideals in a country that is afraid to be sincere in that most significant feature of national achievement, the home. We are a country of self supporting men and women, and we cannot expect to develop an honest significant architecture until we build homes that are simple, yet beautiful, that proclaim fine democratic standards and that are essentially appropriate to busy intelligent people.
- Gustav Stickley, 1909
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 It has been a busy spring at our two neighborhoods in Woodbury: Waterstone and High Point at Dancing Waters. Check out updated availability information here for Waterstone and here for High Point.
Enjoy your weekend, and Go Twins!
Mr. Pratt
We’ve never used this space to recommend another blog, but why not?
One of our favorite real estate blogs is the aptly named St Paul Real Estate Blog, which is run by Teresa Boardman. She’s always got a good mix of news, advice, and local color. This week has been particularly good, with posts about the river rising with great photographs, and some about historic brownstones and how they connect to local history.
Definitely worth a look!
- Mr. Pratt
 Housing prices, interest rates, financing packages… the housing market is changing all the time. The good news is that if you find a house that fits your needs, wants, and budget… you can buy it. Honest! It’s that simple. No need to be deterred by uncertainty. It might be the best time to buy in 20 years.
That’s what a study published by the National Association of Home Builders and Wells Fargo this week reports. Housing affordability is at the highest level they’ve seen over the 20 years the index has been in use. Accordingly, another study found that 9 out of 10 consumers think now is a good time to buy.
We agree! Come see us at one of our neighborhoods this weekend and see if we’ve got something for you.
What are today’s homeowners looking for in terms of home design? What sets a home apart from the rest in convenience, versatility, and livability? According to a recent survey by Better Homes & Gardens, it comes down to six top spaces:
1. Separate laundry room.
2. More storage and built-ins.
3. Home office.
4. Outdoor grilling/living area.
5. Second bedroom with a private bath.
6. Everyday eating space close to the kitchen.
A lot of those features sounded really familiar to us, so we thought it would be fun to compare that list against one of our models. Here’s how our St. Olaf model performs:
Always reassuring to see that what we’ve learned about how people live in their homes jives with what others are seeing, but what do you think? Are there spaces or features that aren’t on that list that you think should be?
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