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Mounds View EDA February 13, 2012 Regular Meeting Page 2 Economic Development Specialist Steinmetz stated Richard Tucker was before the Council this evening to present information to the EDA on the trends regarding Mounds View real estate. Richard Tucker, President of the St. Paul Area Association of Realtors, thanked the EDA for their time this evening. He reviewed what realtors are seeing in the market at this time with regard to sales, inventory and median sales price. Past housing sales numbers for the entire metro area were reviewed in detail. Mr. Tucker commented the key to a recovery would be to reduce the inventory or number of houses for sale. The metro area median home prices were reviewed. He explained Mounds View had 92 closed home sales in 2009, 77 in 2010, and 98 in 2011. The housing inventory for the City has been reduced throughout the City, which will improve the overall housing market. Mr. Tucker then reviewed the price range of the homes that sold over the past three years. Mr. Tucker indicated short sales and foreclosures were a reality of home sales in Mounds View in the last three years. The foreclosure allowed for the property to be removed from the housing inventory and that an investment was being made back into the community. President Flaherty commented very few homes were foreclosed over the $220,000 price range. Mr. Tucker stated in this market there was only one home foreclosed over the $220,000 price range. He commented the bulk of the foreclosures were in the lower price range for a variety of reasons. Mr. Tucker stated the median home price was reduced in the City of Mounds View from $162,000 to $135,000, which is where the majority of the sales activity has been for the past two years. However, unit sales were increasing while the inventory was decreasing. These were both very positive steps. He noted home values will begin to increase as demand puts pressure on a scarce supply of homes. Consumer confidence will continue to be critical with regard to home sales and home values. Vice President Stigney indicated he was aware of a home in foreclosure and questioned why this process was taking almost two years. Mr. Tucker explained each bank had different policies. He stated many banks were not interested in taking on additional inventory at this time as they had too many properties to manage. Vice President Stigney requested the definition of a “short sale”. Mr. Tucker indicated short sales allowed homeowners to sell a home at market value, often times for less than the loan value. The loan was then paid off at market value and not the full value of the loan. While the banks are taking a loss, they benefited from the fact that the homeowner did not enter the foreclosure process.