The Chanhassen Real Estate Blog

2012 Advice – Buyers: Buy Now. Sellers: Wait to List

Kevin Sharkey — Thu, 08 Dec 2011 01:23:56 +0000

It’s getting pretty close to the end of the year so it’s about time I try to figure out what happened in 2011 and what’s gonna happen in 2012. At least in real estate, I have no idea about anything else, just ask my wife.

Let’s start with the big picture, the Greater Twin Cities Area. The trend all year has been toward fewer new listings entering the market and more closed sales. Generally speaking, this should cause prices to rise, but just the opposite is happening.

There are 16% fewer listings active listings on the market right now than a year ago. And there are 7% more sales in the same period of time yet the average price is down nearly 8% and the median down 9.9%. Go figure.

But here is the interesting part of the story. Foreclosures and short sales are making up a smaller percentage of sales. Yes, they are still affecting prices, but not like they had been in the past. Eighteen months ago S&F sales accounted for 35% of sales at my company, Independent Brokers Realty. This year they constitute about 28%.

The last few months are really showing some dramatic improvement along the same lines. Sales are up 32% from a year ago at this time and there are 16% fewer listings. Inventory has dropped from 8.7 months to 6.2 months. Sooner or later this will affect prices in an upward direction.

That’s why I tell my buyers to buy now. Prices are stabilizing, especially in traditional sales. Rates are historically phenomenol and there are still deals to be had.

Sellers need to hold off until the Spring market or longer before they list. These improvements are slight and will take time to take hold. Real growth isn’t on the horizon yet and sellers still won’t get what their house used to be worth.

But I think the Chanhassen real estate market is poised for a better year than other markets. There were 24% more sales in 2011 than the previous year and the month’s supply of inventory dropped 27% in November. The days on market before a sale dropped 33% so we are ahead of many other markets and I expect this trend to continue.

Sorry for the lengthy, dry post, but it makes a good point. Buyers need to buy now and sellers need to wait until Spring before they list their homes with me.

45723 Hickory Street, Isle, MN

Kevin Sharkey — Tue, 19 Apr 2011 21:06:09 +0000

The problem with listing lake homes in the early spring is that they don’t look so pretty on the outside. There’s still snow on the ground, the trees are bare, the ice isn’t out on the lake and it’s hard to really show them off. And it’s equally difficult to show the sugar sand beach and boulder retaining wall. Or the fact that it’s possible to walk into the lake for 100 feet or so before the water is over your head. Or the sunsets. This lake cabin faces nearly due west so the sunsets are spectacular and every last ray of sun is captured before building the evening’s campfire.

Fortunately for this Lake Mille Lacs cabin, it looks as good on the inside as it does once summer is in full bloom on the outside. From the split fieldstone fireplace to the knotty pine walls, this 2 bedroom, 1 bath lake cabin is filled with charm and creature comforts. It’s as warm and inviting in the winter as it is in the rest of the seasons. The 1108 square feet are used efficiently and there is little or no wasted space.

This Mille Lacs county lake home features a wonderful, open floor plan saturated with sunlight from the many windows. The kitchen has tons of counter space and storage and has plenty of room for a large dining table. I can speak from personal experience that there is more than enough room to party hearty with owners Gary and Kim in pretty much every room.

The living room nook is a great place to curl up with a book, and the family room with its wall of windows is perfect for watching the fishing boats come and go. Mille Lacs Lake is one of the best fishing lakes in Minnesota, so there are plenty of opportunities to watch the boats, or better yet, be in one of the boats. There’s a hidden storm cellar in case of a storm and full laundry facilities on site. There’s even city natural gas for the heating system and an air conditioner for those sticky summer evenings. The two bedrooms are decent sized and this cabin easily sleeps six adults comfortably (more personal experience). The deck outside is where much of the long summer hours are spent. From a cup of coffee in the morning, to an evening cocktail, this 16′ x 28′ space is a little slice of heaven.

Priced at just $299,900 this year-round cabin is waiting for its next owners to step forward and start to enjoy lake living on one of the premier lakes in Minnesota. So give me a call and I’ll be happy to introduce you to one of the unique experiences in lake country: goin’ to the cabin.
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Party Like It’s 2009

Kevin Sharkey — Wed, 15 Dec 2010 20:57:25 +0000

You may think I’m crazy to make a statement like that since real estate was swirlin’ down the toilet in 2009. But it was better than 2010, which may have been the ugliest year in real estate history.

I believe the upcoming year will resemble 2009 as far as number of sales (an increase of 17%) and amount of time on the market before a sale. I also predict the average sale price will increase, as will the median price. Demand for higher priced homes will increase and overall inventory will decrease. Party on, Garth.

On the surface this sounds better than it actually is. Even though the general market is slowly recovering, sellers will still not see much change in the price of their home. I don’t see much of a decline, but I also don’t see much of an increase either. The average sale price is going up because there are really good values in the upper brackets.

Homes that are selling for $350k – $500k used to sell for a whole lot more. These homes are affordable because of historically low interest rates and a slowly recovering economy. In fact, the Minneapolis area is one of the areas that is showing a strong recovery when compared with other areas.

This is what is driving the average sale price upward. Buyers are getting great deals on more expensive homes. The biggest price range increase was in the $1,000,000 and over. The number of sales increased 26.2% over the previous year. Other price ranges has also shown a better average price for the same reasons.

Bargain Hunter Alert! There is nearly 7 months of housing inventory below $150,000. A year ago it stood at 2.8 months. And the total number of sales is down nearly 25% from the previous year. This is a great market for first time homebuyers, so give us a call, you’ll be blown away by how much home we can get for you.

Chanhassen real estate had a pretty tame ride overall in 2010. The number of listings were up from 679 t0 690, about 2% increase, but the number of sales dropped 14% from 310 to 266. This means homeowners have about a 40% chance of selling their home. Pricing will continue to be the most critical element toward a successful sale. Even though I believe sales will be up in the Chan area, sellers will still be faced with downward pressure on price. I also predict buyers will continue to be a pain in the butt.

But the trend is toward a more “normal” market. 2011 will mirror 2009 and to me that is a reason to party.

4275 Creek Road, Chaska, MN. $449,900

Kevin Sharkey — Tue, 10 Aug 2010 22:37:55 +0000

I’ve never seen a better hobby farm this close to Chaska. I timed it and was in downtown Chaska in a little over five minutes after I left the circular drive. This is clearly a classic case of having the best of both worlds, or maybe even having your cake and eating it, too. The point I’m laboring over is that this home offers the leisurely pace of country living without being far from the amenities of city life.

The home is a 1933-built classic farm house that has been extensively remodeled. It has a little more than 2,200 square feet of gracious living space on three floors. The four bedrooms are all upstairs and all are good sized. There are bathrooms on each level as well. Trust me when I say that this is a rarity in farm house style homes.

The inside has been beautifully restored and remodeled: from the hardwood floors, to the built-in pantry, to the oversized trim, this home sparkles. Lots of windows flood the home with sunshine and bring those warm summer breezes inside. This little piece of Chaska real estate is just waiting for new owners to care for it as much as the current owners have. You can feel the love and care put into this home.

The main floor features an updated kitchen, formal dining room, sitting room, laundry/office area and my favorite room in any farm house, the porch. To me, porches scream, ” It’s the weekend, come join me as you read the paper over a cup of Linda’s famous coffee and take an occasional nap.” Trained to follow directives from an early age, I am forced to comply, especially the part about the nap.

But this exceptional home is also about possibilities. Granted, it would be easy for someone to buy this home and live here forever, but what if they wanted to use the numerous outbuildings for something other than raising farm cats? What if they had a landscape company or other construction-related business? Or maybe they wanted to have a horse or Llama operation? Or maybe an animal rescue and adoption service company? And they wanted to have it close to the rest of the world. Then this is the perfect place for all those things and more. Take a moment and count the number of buildings in the top photo and see how many uses you could come up with for this outstanding property.

After you are completed with that brain-draining task, you need to take a break. How about grabbing a big glass of lemonade and takin’ a few minutes to rest along side your own personal stream and waterfall. You mean you don’t have a personal stream and waterfall? I think I can help you with that. Just give me a call.

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665 Adam Ct, Carver, MN. $248,500

Kevin Sharkey — Wed, 28 Jul 2010 18:40:50 +0000

This classic 2 story saltbox style home is not a foreclosure or short sale (Yay) and is anxiously waiting for new owners to make it their home. It was a rental home for the past four years but all the walls have been freshly painted and new carpet has been installed. Built in 2003, this 4 bedroom, 3 bath ( yes, there is one in the master bedroom) has a little over 2100 square feet finished on the main two floors. All the bedrooms are located on the upper level so there is no escaping the kids/roommates/pets/pesky teenagers or whatever else is lurking in your home.

The entrance is especially large and inviting. The oversized windows fill the foyer with sunlight, even on cloudy days. You can’t see it in this photo (hey, I’m a good photographer but my camera doesn’t shoot through walls) but there is a main floor laundry across the hall from the garage service door. The right side of the main level has the kitchen and dinette that opens to the family room. The left side is the formal dining and living room. It’s a sweet set up because they are combined and could easily accommodate a thirty foot table for large gatherings. I’m not sure if I would actually want that many of my relatives (especially Cousin Robbie) over at one time, but it could be done in this home.

I admit to spending wayyy too much time in the kitchen, so this home really works for me. With plenty of counters to mess up and tons of cabinets to hide dirty utensils, this chef wannabe could do some real damage here. There’s plenty of elbow room and views of the sunset, so you should think about checking this one out.

And this is the view you’ll get while baking cookies or makin’ that bag lunch. It would probably look better with a table and chairs, but that’s where you come in. Or imagine a deck just sittin’ out there waiting for you to come home and open a cold one. Or even a warm one for that matter. I really don’t care what you drink, as long as you’re drinking it in your new home.

The family room is just a half wall away from the kitchen and has some great views of the pond. I don’t know about you, but I like to have others close by when I’m destroying a meal. Fire extinguishers are optional for my guests, but most everyone has one. This is a unique set up for most other two stories because the dinette is part of the kitchen instead of being a transitional area between the kitchen and family room.

But one of the best features of this home is that the walkout lower level is unfinished. There’s about 900 more square feet available for someone with vision, a skill saw and a couple of nails. Or ask my Dad to come over and help. He claims he could build an airplane out of chicken wire and duct tape, so I’m sure he could do wonders on a basement. Either way, it’s a great way to build additional equity in this wonderful home.

MLS# 3949005

5951 Covington Terrace, Minnetonka. $324,900

Kevin Sharkey — Mon, 12 Jul 2010 20:30:34 +0000

C’mon in! The water’s fine! And the rest of this Minnetonka home isn’t too bad either. But I’m a deck sittin’, poolside sippin’ kind of guy, so this home fits me just fine. The pool, the hot tub, the private views of Purgatory creek all add up to one fun house.

With six bedrooms and three baths, this spacious split-level can easily handle crowds of kids, pets, people and maybe even a couple of those pesky teenagers. It has nearly 2,800 square feet on two levels and has a great flowing, open floor plan. The back yard is entirely fenced in and wonderfully private. You can skinny dip with confidence and little fear of scaring the neighbors.

The kitchen has lots of counters and storage and is accessed directly from the garage. Most split entries aren’t designed this way, so this is a huge plus. Trust me, I’ve lived in homes that don’t have this access and it’s a pain, especially in winter. Also, this kitchen has a huge area for informal dining so it’s not necessary to mess up the dining room for family eating.

This spacious formal dining area is a step up (literally) from the rest of the home. The raised platform defines the space from the rest of the sunlight drenched living room and is conveniently located next to the kitchen. Just slide the patio doors open for warm summer breezes or eat outside on the huge deck system.

And the fun continues downstairs. There are three more bedrooms and a bath here, but it’s the huge family room that really makes this level worth seeing. Check out the floor to ceiling brick fireplace for winter time warmth, or slip outside to the hot tub and really crank up the heat. I suppose it would be possible to leave water in the pool and use it for a skating rink during the winter. That last statement just goes to show how Minnesotan winters can affect your sanity.

I don’t want to give anyone the wrong impression, but this part of the home may just be my favorite. Put a couple of big screen TVs down here and I wouldn’t need to even think about using the pool as a hockey rink. Winter therapy for Minnesotans?

Put it all together and you’ve got an incredible home. Lots of room, lots of light, lots of fun. This home was built to be enjoyed, so give me a call for a tour. And bring your swim suit or hockey stick, depending on the time of year. It’s fun here all year long.

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Chanhassen Real Estate Statistics and Analysis

Kevin Sharkey — Thu, 01 Jul 2010 21:20:56 +0000

Hangover? What hangover?

Many “people in the know” predicted that the end of the tax credit extension would result in a massive meltdown of home sales and would further cripple the real estate industry. They called it a hangover. I’ve had hangovers before (sorry, Mom) and this isn’t one of them.

At least not as far as the Chanhassen real estate market is concerned. Yes, there was a negative effect, but not as bad as some other parts of the metro which experienced a 45% drop in pending sales after April 30th. Much of this is due to Chanhassen not being a first time home buyer market. The average sale price of a single family home is still over $350,000, considerably more than the first time home buyer generally spends.

I expected to see town home sales drop, especially in the lower end, and they did. This is not good news for sellers, but is great for buyers. Inventory continues to climb, pending sales are down and sellers are accepting lower offers. I expect this trend to continue through fall and winter ( yes, I used the “W” word) so the market will continue to be a buyer’s market for town homes.

But single family homes weathered the party pretty well. The average sale price in the past month was 12% over the same time period in 2009, up to $365,000 from $325,000. The number of sales leaped 18% from 25 to 32 but the total for the year was down nearly 9%. This overall decline clearly indicates we are far from being out of the woods yet, but that Chanhassen home values continue to hold their own.

Another indicator that puts a smile on this Realtor’s face is the amount of time it takes to sell a home in Chanhassen. Granted, if your home is currently listed, the 131 days before a sale happens is an eternity, but that number is nearly 9% better than it was last year at this time.

The downside, though, is that while new listings are down by 17%, the overall inventory of single family homes is up 6.5% from a year ago. This may be the most important statistic of all. It tells me that sellers may want to not try to sell their Chanhassen home unless it can be priced competitively and marketed aggressively (that’s where we come in). This is still a tough market and only a few homes a month will sell.

The bottom line is while this is not a full blown hangover, it may still require a couple of aspirin. (Grin)

Read more on Chanhassen real estate and neighborhood reviews at www.ChanhassenRealEstateBlog.com.

620 Bighorn Drive, Chanhassen, MN – $299,900

Kevin Sharkey — Mon, 28 Jun 2010 20:58:50 +0000

Enjoy this classic Chanhassen four level home featuring 4 bedrooms, 3 baths, 3-car garage and nearly 2,200 finished square feet. Set on a heavily wooded walkout lot, this charming home is within walking distance of downtown Chanhassen.

The entry is open and drenched with sunlight from the wonderful southern exposure. The formal living room and step up formal dining room are found on the main level, as is the conveniently-located kitchen. Oversized windows help bring nature inside, giving a wonderfully tranquil feel to the home.

With four levels of gracious living to choose from, there’s plenty of space for everyone. Three of the four bedrooms are on the upper level, including the master bedroom and its full bath and walk-in closet. Another full bath is shared by the other bedrooms.

The kitchen is a little slice of heaven. Oak cabinets, lots of counter space, and plenty of room for informal dining live here, but the heavily wooded views are what really make this an exceptional use of space. It’s like living in the tree tops!

The combination living room and dining room offer plenty of room for the formal side of living, but are not so formal as to become space that never gets used. Every inch of this home is meant to be lived in and enjoyed.

The third level is a walkout to the back yard and features another bedroom and bath as well as a very large family room. A beautiful brick fireplace helps keep the chill out of those Minnesota winters. This is also a great area to keep pesky teenagers away from the rest of the family, if need be.

It’s bonus time! The fourth level is a huge unfinished walkout area, just waiting to be finished. Talk about an opportunity for instant equity building. The space is just waiting for inspiration and a little sheetrock.

What more needs to be said about views like this except they can be yours if you take advantage of this offering. You may also want to check out www.620Bighorn.com for more photos and information.

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6900 Rolling Acres, Victoria – $1,299,000

Kevin Sharkey — Fri, 21 May 2010 16:27:39 +0000

This stunning walkout rambler may just be sitting on the prettiest piece of land in Victoria. The 3 acres are wonderfully diverse, with an orchard area, a football sized grassy field, gorgeous gardens and of course, the lake.

The home was originally built in 1969 for Dr. Leon Schneider, the founder of the Minnesota Landscape Arboretum. A series of massive remodelings were initiated in 2000, making this essentially a new home.
The interior features an open floor plan, lots of windows and natural cherry woodwork. The cabinets and trim are one-of-a kind and give an understated elegance to this home. The kitchen is truly designed with the chef in mind. A pot filler, warming drawer, double oven and floor-to-ceiling pantry make entertaining easy, and the bowed snack bar allows guests to be part of the joy of cooking.

The 3 main floor bedrooms are as spacious as they are convenient. All have extensive storage and big windows and the master closet measures 10′x14′.

The master bedroom has a gas-burning fireplace and media center and has direct access to the west-facing deck system and sunken hot tub. It even has its own laundry, exercise room and over-sized shower in the tiled bath area.

The lower level also features walls of windows in the rumpus and family rooms with beautiful views of the gardens and lake. The potting room is a must for the gardener and the wine cellar is a must for just about everyone else.

The three decks all overlook the gardens and lake and make for an idyllic setting for entertaining. The under deck patio has a water diversion system to keep it dry during heavy rains and the circular patio is nestled in the gardens for when it’s not raining. All in all, this home is beautiful, flexible and just plain old fun. The current owners raised their family there but are now empty nesters and moving on.

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Chanhassen Lake Homes

Kevin Sharkey — Wed, 19 May 2010 15:55:18 +0000

We Minnesotans love our lakes. We fish em’, swim in them, boat on them and just plain old look at them. It’s part of the culture and heritage. We have more boats per capita and buy more fishing licenses than any other state. We talk about going to the lake or to the cabin, as if there is only one cabin or just one lake. But we all know what we mean. Lake living = good living.

Chanhassen is blessed with a multitude of lakes and lakeshore homes. From Lake Riley and Lotus to Lake Minnewashta, Susan, Ann, Bavaria and more, we boast some of the best lakeshore homes in Minnesota. Some are mansions and others are cute-as-heck cottages. But no matter what the size, Chanhassen lake homes are welcome retreats and take us to the good life.

Lake homes in Chanhassen date back as far as the 1930′s. Chanhassen was remote and difficult to get to, so coming here from Minneapolis was “goin’ to the cabin,” much as it is today. In fact, some of the early lake cabins can still be found in the Carver Beach neighborhoods on Lotus Lake. They’ve been updated and remodeled, but are still small and very cute. Lake Minnewashta also has a pocket or two of early lake homes, although most have been altered over the years. One of the only lakes without many homes on it is Lake Ann. A good part of the lake is Lake Ann Park, and most of the other available Lake Ann shoreline is owned by the musician Prince. He is still the largest individual land owner in Chanhassen and never returns my calls.

But we’re not here to talk about rock stars. This is the Chanhassen Real Estate Blog and we’re here to talk about houses. Lots and lots of houses, especially lake houses. So here we go: This is a great time to buy a lake home in Chanhassen. Like most other areas in the country, home values are at their lowest point in many years. Even though Chanhassen home values have not taken a hit like Florida or Detroit, they are still a bargain, especially when you consider the potential upside. There’s only so much lakeshore and we can’t make more, so home values may tend to rise.

As of today there are 17 lake homes on the market in Chanhassen. The lowest price is $525,00 and the highest is $1.9 million. The average lake home has an asking price a little over a million, has 4200 square feet (about $252 per square foot) and has been on the market 117 days. This is not bad considering that the average market time for all of Chanhassen is 140 days.

There are two pending sales in the past couple of weeks, one listed at $790,000 on a short sale and another listed at $1,595,000. The average square footage was 5500 sf with an average market time of 11 days. Summer is here and people want to get on the lake. Speaking of being on the lake, I have my home on the market and would love to sell it to one of my readers. Or maybe both of you. Anyway, check it out at www.6900RollingAcres.com and contact me if you would like to take a spin around the lake.

As always, it is the sold listings that tell the true story. There were 9 lake homes that sold on Chanhassen lakes in the past year. The lowest priced home sold for $375,000 and the highest priced lake home went for $1,430,000. The average price was $821,000 with a selling time of 71 days. Size wise, these homes averaged 3800 sf, have 4 bedrooms and 4 baths.

So there you have it, Chanhassen lake home values and prices for the past year. I still believe this is a good time to buy a lake home in this area, especially if you are planning on staying put for a while. So give me a call, I’d be glad to help you find the perfect little (or big) piece of paradise.