EPHS: One of the Nation’s Best!

Eden Prarie High School is one of the best schools in the nation. We already knew this of course, but now it’s a published fact! Newsweek magazine released a list this week of the top 1500 high schools in the nation and Eden Prairie came in at 1045. Among the Minnesota schools on the list, Eden Prairie ranks at number 16. The 2008 list ranked Eden Prairie High at number 1253 nationwide.

According to Newsweek:

Public schools are ranked according to a ratio devised by Jay Mathews: the number of Advanced Placement, Intl. Baccalaureate and/or Cambridge tests taken by all students at a school in 2008 divided by the number of graduating seniors. All of the schools on the list have an index of at least 1.000; they are in the top 6 percent of public schools measured this way.

The Twin Cities area has many schools appearing on the list. This simply confirms what we have known all along. Minnesotans are a smart bunch!

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If you would like help buying or selling a home in Eden Prairie or elsewhere in the Minneapolis area, contact me, Brace Helgeson, by email or at 952-974-3466.

Begin your home search at BraceHelgeson.com.

1 Penny, 2 Pennies, 3 Pennies…4 Million!

The other day I was searching for some information about a local school and came across this blog post. It made me think about what a great community Eden Prairie is.

One Little Penny…One Big Difference
In a program that gives kids a chance to help other kids, students at Oak Point Intermediate School in Eden Prairie, MN, raised an incredible $42,858.24 through Pennies for Patients, one of The Leukemia & Lymphoma Society’s School & Youth Programs.

That is over 4 million pennies!

Oak Point Intermedia School students in Eden Prairie MN and teacher Mark Wavinak, celebrate being top fundraising school for The Leukemia & Lymphoma Society's Pennies for Patients program.

Not only is Eden Prarie a pleasant place to live, but in the midst of a deep recession, our community came together to raise this record setting amount. I am sure the students at Oak Point are thrilled with their results, but the patients who need the care these funds will provide are the biggest winners.

Overall, more than $700,000 was raised in the Minnesota, South Dakota and North Dakota areas for the Pennies for Patients program. I hope that many lives will be saved thanks to the wonderful people of this community and region who dug deep into their pockets.

Click here for a news video from WCCO about Oak Point’s successful fundraiser.

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If you would like help buying or selling a home in Eden Prairie or elsewhere in the Minneapolis area, contact me, Brace Helgeson, by email or at 952-974-3466.

Begin your home search at BraceHelgeson.com.

Are first-time home buyers fueling a housing market rally?

Buyers who are still waiting for the residential real estate market to hit bottom may have waited too long. The first week in May is signaling changes and while there will still be bargains to be had, they might become harder to find.

Housing sales were up for the second month and after five months of declines. At the end of March, there were 3.74 million existing homes on the market, taking an average of nearly ten months to sell. But foreclosures, short sales and bank-owned properties are suddenly selling briskly.

At the beginning of 2009, it was not uncommon to see foreclosed homes sit on the market for a year or more. Suddenly, starting at the end of April, real estate agents who specialize in foreclosed and bank-owned homes are reporting getting multiple offers after only a few days. Many of these homes need work. Some need a lot of work. Many of these buyers are investors, bringing in professional crews to fix and resell the homes in a couple of months. But, first-time buyers account for more than half of recent home purchases.

For those planning on living in their newly bought homes, low interest rates and the $8,000 tax credit/rebate for first-time buyers can help pay for needed repairs. Before clinching the deal, buyers need to have an eye for potential and an ability to look beyond bad paint jobs, ugly carpet and dirt. They also need to hire a professional inspector take a look at the house. It’s best to find hidden problems and be able to walk away before the final papers are signed than to discover that the ‘cosmetic only’ fixer-upper needs all new plumbing or major electrical work.

Handymen and women have an advantage, but whether new home buyers plan to do the work themselves or have experts do it for them, they need to factor in the costs of repairs. Real estate experts recommend that buyers come armed with a sharp pencil and knowledge what they can afford. If there are multiple offers, buyers should avoid getting caught up in a bidding war and paying more than the home is worth or more than they can afford. There are always more homes coming on the market from which to choose.

The price of foreclosed properties have also driven down the price of other non-foreclosed homes nearby and sometimes these homes are even better deals. They are usually in good shape and buyers have more bargaining power than with a foreclosure home, when every negotiation has to go through a bank.

The warmer weather and longer days are also a factor bringing out the buyers, especially in colder climates. Will this summer see an end to cheap homes prices? Maybe and maybe not. No one knows for sure, but what is certain is that right now is a good time – especially for first-time buyers – to buy a home.

If you are ready to take the leap into purchasing or selling your home, contact me, Brace Helgeson, at 952-974-3466 or by email.

Begin your home search at BraceHelgeson.com.

Awesome Women Talent Show in Eden Prairie

For all of you Awesome Women out there, The Talent Show is coming up on Thursday, May 21, from 5-8 pm. Hosted by the organization Awesome Women, Faith Ralston, Ph.D., CEO of Leaps of Faith, and Talent Expert will be teaching area women how to discover and embrace their talents and use them to enhance their personal and business lives.

Dr. Ralston will teach women how to talk about what they do in a “way that attracts others to your services.” Talent Show participants will have the opportunity to showcase their talents and will receive positive feedback on their most valuable assets. Then they will learn to take their talents and transfer them into career and work opportunities to help them “secure great projects and never run out of meaningful work.”

Great for both the self-employed and the employee, knowing one’s talents and how to use them will open the doorway to endless possibilities and greater appreciation.

This event will be held at the Diamond Center in Eden Prairie. For more information visit the Awesome Women website.

The Awesome Woman mission “is to develop, encourage and promote women leaders. The Awesome Women community provides education, connection, support and development for existing women leaders and emerging women leaders.”

Providing real estate services to awesome women and men is my talent and I would love to help you in selling your home and searching for your next home. Contact me, Brace Helgeson, today at 952-974-3466, or by email, bhelgeson@cbburnet.com. To search Eden Prairie home listings, visit BraceHelgeson.com.

Are You Ready for a Football Draft Party?

If you love Minnesota football, you should attend the 2009 Miller Lite Vikings Draft Party this Saturday, April 25 at the Winter Park Fieldhouse in Eden Prairie. The party will feature live NFL Draft coverage, player autograph sessions, Minnesota Vikings Cheerleaders, and fan contests. The party will last until after the Vikings first round draft pick, currently at number 22 and projected to pick around 6:30 p.m.

2009 Miller Lite Vikings Draft Party

The autograph session is one of the favorite features in the annual draft party. There is a $10 charge per autograph session, with all proceeds benefiting the Vikings Children’s Fund (VCF). There will also be a free session for children ages 12 and under. The players scheduled to appear* are Jared Allen, Aundrae Allison, John David Booty, Jeff Duggan, Ray Edwards, Heath Farwell, Charles Gordon , Tyrell Johnson, Sage Rosenfels, John Sullivan, and Pat Williams.

Doors open at 1:30 pm and pre-draft coverage begins at 2 pm. General admission tickets are $15. Tickets can be purchased through the ticket office at 612.33.VIKES or at Ticketmaster.com.

Do you want to be settled in your new home before football season arrives? Contact me for expert advice on buying or selling real estate in or near Eden Prairie.

* Session times and players are subject to change without prior notice.

Lewis: Some myths about banks

Nationalization would undermine confidence in the financial system.

By Kenneth D. Lewis

March 9,2009

The Wall Street Journal

(Copyright (c) 2009, Dow Jones & Company, Inc.)
The story of our economic crisis mirrors every great market bubble in history. Clearly, banks were key participants, but they were not alone. Mortgage lenders, borrowers, regulators, policy makers, appraisers, rating agencies, investors and investment bankers all played a role in pushing economic excesses forward. The institutions that gave in completely to the frenzy are no longer with us. Those that balanced the need to compete with the need to lend prudently survive today and are helping to stabilize the system.
Amid the turmoil, it has become clear that banks need to make changes in the way they run their business, from risk management to expense control to compensation practices. Most banks are making these changes in a good-faith effort to adjust to new economic realities.
And what role should government play in this? Speculation is rife about whether banks need more capital assistance from the government or whether they need to be nationalized. Unfortunately, our current debate has been riddled with misinformation that will not help us understand our current reality, or help us decide on a sensible path forward.
I would like to provide some clarity on a few key claims that have been repeated so often they are now taken to be fact. They are not.

• The banks aren’t lending. This claim is simply not true. Yes, banks have tightened lending standards after a period in which standards were too lax. But, according to Federal Reserve data, bank credit has actually increased over the course of this recession, and business lending is trending up modestly so far in 2009. Also, mortgage finance volume is booming as a result of low interest rates. What’s gone from the system is the easy credit that got us into this mess, as unregulated nonbank lenders have disappeared, and the market for many asset-backed securities has all but dried up. Most banks are making as many loans as we responsibly can, given the recessionary environment.

• The banks are insolvent. In the past 18 months, we’ve seen fewer than 50 bank failures. That compares to about 2,000 failures or closings of commercial banks or savings institutions between 1986 and 1991. There may be more to come, but the vast majority of banks will weather this economic storm.

• The Troubled Asset Relief Program (TARP) hasn’t worked. Not true. Last October, when the TARP was enacted, systemic risk threatened our entire financial system and economy. The point of the program was to stabilize surviving banks, prevent a total meltdown, and enable banks to lend more. The TARP and other government programs have worked, and banks are making more loans as a result.

• Taxpayers have given the banks billions and won’t get their money back. TARP funds are not charity. Banks that received TARP funds will make about $13 billion in dividend payments to the U.S. Treasury this year. TARP funds are loans yielding anywhere from 5% to 8% interest. This is a win-win: Banks are getting the capital they need, and taxpayers are getting a strong return on their investment.

• The banks that caused this mess must be held accountable. In fact, while all banks participated in the bubble economy to some degree, the companies that did the most to cause this mess are gone. The managers and shareholders of those institutions have been held accountable by the toughest, most unforgiving master of all: the free market.

• The only way to fix the banks is to nationalize them. This is a misguided premise. The announcement of nationalization would undermine confidence in the financial system and send shudders through the investment community. Politicizing lending decisions and the credit allocation process would be destructive for the economy. Nationalization also would give the false impression that all banks are insolvent. We agree with Federal Reserve Chairman Ben Bernanke’s statement that nationalization of banks is not necessary to stabilize the banking system.

Getting our facts straight as we debate the important issues will help us rebuild a healthy financial services sector that can better support economic growth. I have two thoughts to help us get started.
First, our industry must continue to work in partnership with the government to solve our toughest problems. Congress and the administration have already taken several very positive steps. The Fed is providing sufficient liquidity and has helped lower mortgage rates. The $787 billion stimulus package will help boost economic activity. The Term Asset-Backed Securities Loan Facility (TALF) will help liquefy the credit markets. And the administration’s housing and foreclosure relief plan will be very helpful to both homeowners and banks as we work to stabilize housing markets across the country.
Second, one of our greatest challenges is balancing the need to extend credit with the need of households to pay down excessive debt. In an economy that became too dependent on debt-driven consumption to create growth, the prospect of household deleveraging is sobering. The answer, in my view, is to let competitive forces lead us back to responsible lending practices, not the type of indiscriminate lending that has created so many problems.

An Opportunity of a Lifetime

Warren Buffet says, “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.” While Mr. Buffet was writing about buying stocks, the same can be said for housing today.

Housing issues have permeated the economy both locally and nationally. This week, one index that tracks housing prices, S&P/Case-Shiller Home Price Indices, indicated home values fell the most since 1968, declining 18.5% in December from the year before.

Looked at from a different perspective, this means home prices have fallen to levels not seen in six to twelve years, depending on individual markets. Following the Case-Schiller report was the report from the National Association of Realtors (NAR) recently. The NAR reported that home prices for the month of January fell by 14.8%.

The bright spot though in contrast was that the number of homes sold in December increased. Home buyers from coast-to-coast have been buying distressed properties at the rate of 45% of total sales.

Recognizing that now is the time to buy, everyone – from those looking to purchase their first home to seasoned real estate investors – is buying homes today. Bruce Norris, the head of an investment group in Southern California, expects to buy at least 100 homes this year as, “This is the buying opportunity of our lifetime.”

Fundamentals Point to Strength
The basic fundamentals of the housing market point to higher prices ahead. Almost half of the properties being sold today are existing homes that are either owned by banks or homes on which banks are accepting short sales, allowing them to be sold for less than what is owed.

New homes or homes under construction are near all-time lows. The country’s demographics point to more potential buyers coming into the housing market than projected inventory in coming years. This all points to higher prices on the horizon as demand will be greater than supply. This is supported by the fact that the inventory of unsold homes fell 2.7% in January.

Why Buy Now?
Three very important reasons to buy now are:

• Interest rates are near all time lows;
• Home prices have declined to levels not seen in years; and
• Qualified first-time home buyers are now eligible for up to an $8,000 tax credit.

Lower Prices Don’t Always Equate to Lower Payments
One final point to consider. Even if you believe that home prices will continue to decline, it’s very difficult to believe that interest rates will remain at these low levels.

Did you know that even if home prices were to decline 10% but also during that time, interest rates available for home loans were to increase by 1.00%, your monthly principal and interest payment would actually be higher? It’s true. So, if you are thinking of buying or the end of your lease is near, get busy and get in the game. To quote Mr. Buffet again, “If you wait for the robins, spring will be over.”

Call me and we can discuss the best options for you today.

Discovering Opportunity Amidst the Chaos

I recently attended a very intense and enlightening President’s Club meeting in November 2008 of the top brokers and agents in Minnesota. The news, although not all negative, was a bit sobering. The market is projected to go down a minimum of 12.5 percent in 2009 in the Twin Cities. In order to avoid chasing the price curve and rather get in front if it, we need to be aggressive on pricing now. There is a 10-15 year supply of improved lots in the Twin Cities. Foreclosures are anticipated by Fannie Mae & Freddie Mac to multiply six fold in volume in 2009 over 2008 numbers, which were 1,300. That would put the Twin Cities foreclosures at nearly 8,000 in 2009. It’s going to be a price war for Eden Prairie Real Estate as 2009 grinds on.

Builders and developers have cut production and housing starts have declined to the lowest rate since 1982. Normally, there are 1,300-1,500 homes entered into the Builder’s Spring Preview. This February, there will only be 300 homes entered. However, loan applications are up as potential buyers are looking to buy now that rates are down. The housing affordability has also improved, making it more attractive to first time home buyers.

We can choose to look at the market’s decline as negative; however, I choose to remain positive. Homes are more affordable than they have been in years, rates are lower (now in the mid 4’s, which is a 40 year low) and first time home buyers also have a Federal Housing Tax Credit that expires June 30, 2009. For more information, contact me at 952-974-3466 or bhelgeson@cbburnet.com.