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HomeMy WebLinkAbout02-13-2012 PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting February 13, 2012 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 6:02 P.M. 1. CALL MEETING TO ORDER 2. ROLL CALL: President Flaherty, Vice President Stigney, Commissioner Hull, Commissioner Mueller, Commissioner Gunn, and Executive Director Ericson. NOT PRESENT: None. 3. APPROVAL OF AGENDA MOTION/SECOND: Gunn/Mueller. To Approve the February 13, 2012, Agenda as presented. Ayes – 5 Nays – 0 Motion carried. 4. PUBLIC INPUT None. 5. APPROVAL OF MINUTES A. January 9, 2012, EDA Minutes. MOTION/SECOND: Mueller/Hull. To Approve the January 9, 2012, Minutes as presented. Ayes – 5 Nays – 0 Motion carried. 6. CONSENT AGENDA None. 7. EDA BUSINESS A. Presentation from the St. Paul Area Association of Realtors Regarding Housing Trends in Mounds View – Speaker: Richard Tucker, Association President 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. Mounds View EDA February 13, 2012 Regular Meeting Page 3 Executive Director Ericson asked if the reduction in home inventory was reducing the time of homes on the market. Mr. Tucker stated there was a correlation depending on the set price and condition of the home. He indicated the metro area was seeing a reduction in the days on the market for homes. Commissioner Mueller commented one-third of the City’s homes were built before 1975. She questioned how residents could best prepare their home for a successful sale, given the state of the housing market. Mr. Tucker explained there was a fair amount of competition in this area and first impressions were crucial. He encouraged homeowners to review mechanicals and apply fresh paint. The home needs to show well and be priced appropriately. Commissioner Mueller questioned the qualifications for first time homebuyers. Mr. Tucker stated there were a number of programs available, even one through the City of Mounds View. He encouraged first time homebuyers to speak with a reputable qualified lender and find an agent that knows the market. President Flaherty questioned how pending assessments get missed at home closings. Mr. Tucker stated realtors may miss these if the liens are not properly recorded. However, when closings are completed at a title company, this should not occur. He explained that gap coverage should address this concern and a resident could speak with the title company if there was a discrepancy. President Flaherty encouraged new homebuyers to speak with City Hall if interested in a property to address pending assessment issues. Mr. Tucker agreed this was a great step stating a great deal of information was available on the internet as well. President Flaherty was pleased with the numbers and how they were trending for the City of Mounds View. Economic Development Specialist Steinmetz questioned the percentage of realtors that were familiar with the Mounds View housing market. Mr. Tucker stated out of the 1,500 members approximately 300-500 realtors would be familiar with the City of Mounds View. Commissioner Mueller questioned how real estate sales have changed over the past 20 years. Mr. Tucker indicated there have been tremendous changes. He stated he has been in real estate since 1978. The pace of change has accelerated as information was more readily available to homebuyers. The realtors no longer controlled all of the information. Realtors now assisted homebuyers navigate the entire home buying process. Mr. Tucker stated the success of the school district greatly impacted housing sales. He encouraged the City to continue to improve its schools and classrooms. He understood that Mounds View had a great school system. Mounds View EDA February 13, 2012 Regular Meeting Page 4 President Flaherty thanked Mr. Tucker for the information presented this evening. He indicated the City was extremely concerned with protecting its housing stock while welcoming new residents to the community. 8. REPORTS None. 9. NEXT EDA MEETING: Monday, February 27, 2012, at 6:30 p.m. 10. ADJOURNMENT President Flaherty adjourned the meeting at 6:43 p.m. Respectfully submitted, Recorded and transcribed by: Heidi Guenther TimeSaver Off Site Secretarial, Inc.