Derek Lanz, Realtor, National Realty Guild

07/08/2024

I just completed my 2000th Broker Price Opinion within the last hour. In celebration of this fact, I decided to donate 50 cents from each report to 2 different causes I care deeply about.

I'll be sending $500 each to Lightshine Canine: A Rez Dog rescue https://lightshinerezdogs.org/ and The Marissa Angell Brain Cancer Research Memorial Fund https://fundraise.childrenscancer.org/index.cfm?fuseaction=donorDrive.personalCampaign&participantID=1221

If you care to donate as well, they'd welcome it with open arms.

There are thousands of unowned strays on the reservation. If you have ever wondered if we are seeing a visible difference on Pine Ridge and Rosebud. If you ever wondered why it's not under control yet, and want to learn more about Rez Dogs and what we do, read on...

06/27/2024

I'm getting very, very close to completing my 2000th Broker Price Opinion and I'm looking for celebration ideas. (A Broker Price Opinion is similar to an appraisal, but less invasive, and provides a general price opinion, normally to a bank, on the value of their asset. They are also used in refinance and removal of PMI valuations frequently.)
What ideas do you have for me?

03/18/2024

Summary of the NAR settlement from Fabian Hoffner, Attorney

A recent settlement between the National Association of Realtors (NAR) and a group of home sellers could significantly alter the traditional landscape of buying and selling homes in the United States. Historically, real estate transactions have involved commissions of 5 to 6 percent of the sale price, paid by the seller and split between the agents representing both the buyer and seller.

This practice, however, has faced criticism for keeping commissions artificially high compared to much lower rates seen in other countries. Under the new settlement, which requires court approval, NAR has agreed to pay $418 million in damages and to amend its rules, potentially enabling more negotiation on agent fees and ending the advertisement of commission rates to buyers’ agents on listing databases.

The settlement addresses long-standing practices that stifled competition and maintained high commission rates, such as requiring seller agents to clearly advertise compensation to buyers'
agents. This often led to "steering," where buyer agents would direct clients to homes offering higher commissions. With the upcoming changes, agents will no longer be able to advertise these rates, opening the door for greater negotiation flexibility. This shift is anticipated to foster a more competitive environment, possibly driving down commission costs for consumers.

Furthermore, the proposed changes include the "decoupling" of commissions, meaning buyers and sellers would be responsible for paying their own agents, potentially impacting buyers who struggle to afford down payments. However, the adjustments are expected to lower overall
commission rates, as competition among agents increases, without necessarily affecting home
prices. This move towards greater transparency and fairness could benefit consumers by reducing the transaction costs associated with one of life's most significant purchases.

The controversy and scrutiny surrounding NAR's practices, including allegations of sexual harassment and the sudden resignation of key leaders, highlight the broader challenges facing the real estate industry. This settlement represents a pivotal moment, promising more transparency in agent commissions and potentially leading to a more equitable real estate market. It not only changes how commissions are negotiated and paid but also signals a shift towards more consumer-friendly practices, as buyers and sellers gain more control over the costs of transactions

02/17/2024

Your January Minnesota housing report. An early thaw in the weather seems to have started a market warm up as well. If you're in the market, or will be soon, and want to work together, please let me know how I can be of assistance.

The housing market started heating up as we kicked off 2024. Closed Sales increased year over year for the first time since June 2021—ending a two-and-a-half-year drought. Along with closed sales, new listings spiked, and home prices rose modestly.

January Year-Over-Year Summary of Key Market Indicators:

Closed sales: 3,260 (up 7.9%)

Median sales price: $315,000 (up 3.0%)

Average sales price: $366,732 (up 0.4%)

New listings: 5,138 (up 17.9%)

Pending sales: 3,915 (up 7.7%)

Days on the market: 52 (no change)

Homes for sale: 10,068 (up 7.0%)

01/16/2024

Here is your year end market update. Seems the market is beginning to somewhat thaw, but it remains a seller's market.

The 2023 housing market closed the year on a high note as mortgage rates fell from over 7% to just above 6.5%. Falling rates sparked modest market activity, as new listings and pending sales rose in December across Minnesota.



While buyers welcome falling rates, high home prices and undersupply continue to be stubborn obstacles. The months’ supply of homes improved 18.8% over last year, but December still had just 1.9 months’ worth of available inventory statewide—a sign that we’re still in a seller’s market.



“While market activity typically slows with the onset of winter in Minnesota, falling interest rates are attracting both sellers and buyers back into the market,” said Geri Theis, 2024 MNR president. “It’s likely that the 2024 spring market will be competitive, especially if mortgage rates continue to fall.”

12/15/2023

Interesting information in the November housing report:

In November, the dip in mortgage rates offered relief for buyers, but affordability challenges persisted. Sales activity began to flatten, while new listings increased. And home prices rose as homes sold faster compared to last year.


Mortgage rates dropped close to 7%, and as of today, are below 7% for the first time in months. This was a “welcome sight for buyers,” said MNR President Emily Green. She cautioned that “...other factors like increasing property taxes and home insurance premiums are keeping homeownership out of reach for far too many.” These affordability woes impact first-time buyers the most.

However, agents across Minnesota report that activity is picking up now, largely thanks to cooling rates. Even though inventory ticked up overall, the housing shortage is impacting every corner of the state.



November Year-Over-Year Summary of Key Market Indicators:

Closed sales: 4,881 (down 6.6%)

Median sales price: $327,200 (up 5.5%)

Average sales price: $379,320 (up 3.0%)

New listings: 5,089 (up 6.7%)

Pending sales: 4,132 (down 0.1%)

Days on the market: 39 (down 2.5%)

Homes for sale: 12,674 (up 1.8%)

11/13/2023

Congratulations to Jacob and Bethany Muinch on the successful building and closing of their new home, as well as the closing of their former town home. It's been a pleasure working with you both over the past year throughout the process! Thank you for trusting me to help guide you both from start to finish.

04/28/2023

Purchasing a home can put you on the right path to wealth with one simple step.

Most owners have earned more than $100,000 in equity over the last decade, but discrepancies among racial groups persists, according to new NAR data.

01/11/2023

Your December market update:
Year Ends with Marked Declines in Closed Sales

In December, closed sales fell almost 39% across the state compared to a year ago, marking 12 straight months of declines. New listings were 17% fewer than last year with 3,031 new properties coming on the market in December. With buyer demand slipping, homes were staying on the market longer, up 24.3% to 46 days. Sellers were accepting offers that averaged about 96% of the home’s original asking price.

The overall number of homes for sale was up 15.3% compared to last year rising to 9,204 properties and putting a month and half of inventory in the pipeline, which is a 50% increase over December 2021. Despite decreased buyer activity, the median sales price notched up 1.7% to $305,000.

12/13/2022

November housing report update.
Don't let this scare you, it's still a good time to both buy or sell, the approach just changes a bit in a slower time of year.

The cooling trend in Minnesota’s housing market continued in November as closed sales fell 35.3% statewide compared to a year ago. New listings were down 17% below last year with 4,735 properties coming on the market. The median sales price was up nearly 2% to $310,000. As seen in recent months, sellers were receiving a little under their asking price, down 2.5% over November 2021.

Homes sat on the market longer, an average of 40 days, marking a 21.2% increase. Because sales were moving slower, the total number of homes for sale across the state increased over 13% to 11,595. Overall, there was nearly two months’ supply of available housing inventory, a 38.5% increase over last November.

11/10/2022

Your monthly market update. If you're looking to buy, sell or flip a home, please reach out.

As the selling season slowed in October, closed sales slipped almost 31% compared to a year ago. New listings also decreased, falling 19% below last year with 6,883 properties coming on the market. The median sales price was up nearly 4% to $320,000, although sellers were receiving slightly less than their asking price on average, down about 2% from October 2021.

Homes were sitting on the market longer, up 20% to 36 days on average. Slower moving inventory pushed the number of homes for sale up 5.5% to over 13,000 properties across the state. Overall, there was two months’ supply of available housing inventory in October, up 25% over last year, marking the second straight month where inventory hit levels not seen since 2020.

07/15/2022

Closed sales AND new listings slipped in June. Is this the beginning of a long term trend? Or a short term correction?

In June, closed sales of homes declined by nearly 14% compared to a year ago, with a total of 9,208 properties sold across the state. New listings were down 6.4% year-over-year even as the total number of homes for sale increased 8.2% to 12,298 properties.

Overall housing inventory increased significantly, up 21.4% over last June to 1.7 months’ supply of homes on the market. Despite softening activity relative to last year, consumer demand drove the median sales price up 6.2% to $345,000, and the average price increased 9% to $401,319. Sellers were still receiving an average of 102.5% of their asking price, although this marks a slight 0.7% decline compared to June of last year.