Seven out of 10 people responding to our survey said it’s a very good time to buy a home. They see that home prices have declined, mortgages are cheap, and lots of bargains are available. But many people don’t have the money, the credit, or the inclination to go out and participate in what could be the housing market of a lifetime.

This rings true. We’re encountering very little doubt among those who visit our developments that it is an attractive time to buy a home, the complications come from personal circumstances. Fortunately, we’re finding that those complications can often be mitigated.

Americans have a conflicted view toward housing today, to be sure. The survey findings show that a full 72 percent of the country still believes that owning a home is an important part of their family’s dream and the American economy. And in our focus groups most people concurred that achieving homeownership says something about a family’s success and stability.

With the world moving faster and faster, it’s no surprise that people want a sense of permanence where they can attain it. The conclusion I draw from the article is that the “new normal” isn’t very different from the “old normal” or “normal normal”, in that people want to own a home, and many would prefer a new home, but reaching that goal can be harder.

Builders really have their work cut out for them today, considering that more people prefer existing homes over new homes, and that those existing homes are perceived to be much less expensive. Even so, 29 percent of current homeowners would prefer to buy a new home, if they bought another. What do people like best about new homes? “Everything is new” was the top response, cited by 82 percent of current homeowners.

New homes have some practical advantages as well. Our survey shows that the next hottest buttons are low-maintenance and energy-efficiency. People are drawn by the opportunity to save precious time spent on home repairs, and they understand that a more efficient home will have a better chance to retain its value due to lower operating costs. It’s significant that these attributes finished higher than traditional drivers of new-home purchases—fresh floor plans and the ability to customize the home, though those finish high on the list, too.

If you are in the market for a new home, whether it would take some troubleshooting to do so or not, it would be our pleasure to assist you. We’re all in this together!

We are pleased to have customers of ours featured in the 2012 Parade of Homes Spring Preview! The article below, written by Katy Ervin, will appear in the Spring Guidebook.

“Pratt Homes finds a loyal partner in John and Linda, building three custom homes for their family.”

“John and Linda set their home buying experience in motion when Len Pratt of Pratt Homes equipped them with a pair of golden shovels and let them dig the first shovel of dirt from their lot to officially begin the build process. For the couple, this was a unique and fun way to begin the four-to-five month journey of creating a built-from-scratch home, a feat that some people would find daunting. The Stricklands, however, are unlike most homeowners choosing to build because this wasn’t a first. The couple, who are now retired, have built four homes throughout their married life, and the last three with the same builder, Pratt Homes.

Linda explained that when they first set out to build new, “We were not familiar with Pratt Homes at all.” In 1987, the couple saw an advertisement for a Pratt Homes development in New Brighton and, living close by, thought that they should take a look. They immediately became interested in building. “Then we did our research on the builder,” explained John. The couple visited other Pratt Homes models in the White Bear Lake area, spoke with past clients and were truly impressed by the quality of craftsmanship, customer retention, and unique style of Pratt Homes. The couple built their first Pratt Home in 1987, their second in 1998 and, since May 2011, are now living in their third Pratt Home.

“The interesting thing about working with Pratt throughout the years,” John explained is “that the neighborhoods have really maintained their original look, freshness, and feel.” The couple described Pratt Homes’ building style as “timeless – not necessarily traditional or trendy,” a classic look that sustains itself over the years. That, coupled, with high standards of quality and workmanship, give each home and the neighborhood a feeling of timelessness. “Today, Seminary Estates in New Brighton looks as inviting as it did when we first visited it in 1987.”

After building three homes with Pratt, John and Linda have formed a unique bond with the Pratt team. Many of the same people who worked on their current home, both contractors and Pratt employees alike, worked on their previous homes as well. “We thoroughly enjoyed the daily interactions we had with all of them during the build process and the level of professionalism they all displayed. Sustainability is a big challenge in a depressed housing market. Being able to maintain the value of your brand, consistently deliver a great product, and maintain the loyalty of employees and contractors reflects well of a company you can trust,” John said. “Pratt Homes is like our extended family,” Linda joked. “The only reason we kept coming back was because of that. We trust Pratt and we knew that we were going to have a beautiful product in the end.”

With a wealth of building experience behind them, the couple knew what they wanted and built a home that aligns perfectly with their current lifestyle. The home is cozy, warm, and a touch of rustic by design, with extensive use of natural materials, colors and emphasis on wood and stone. The openness of the main floor from the kitchen and dining area, through the great room and into the den, coupled with lots of windows and natural lighting gives the home a great look and feel, and with the high elevation the sunsets are spectacular.

Unlike John’s dad who lived in the same home for over 64 years, John and Linda enjoy change. “We like to move around a bit, experience new areas, and make new friends,” John explained. “It’s about creating new life experiences and reaching out and stretching yourself by trying new things. That’s been behind a lot of our moves. We have been incredibly fortunate to do this.” For Linda, “Life is just to short” not to.

For now, the couple plans to stay put. “You learn a lot over the course of building a home,” John explained. “We did a lot of things that we didn’t do in the other houses here.” While each of the Strickland’s homes has reflected different times with their family, this home is a true reflection of the couple’s personality and lifestyle today.

Still open to the possibility of a fourth Pratt-built home, however, John joked “I won’t call it the end of the journey…” Smiling, he added, “but we built this home to stay here for a long while.”

The Standard & Poor’s/Case-Shiller home-price index is “the single-most pessimistic but least accurate housing metric out there,” Cramer said during Wednesday’s “Mad Money.”

Of course, that never stops the media from jumping all over it when the latest Case-Shiller numbers hit the wire. Consider the reaction to Tuesday’s report, where the index showed a 1-percent decline in November home prices from the previous month and a 1.6-percent pullback year-over-year. “Housing Prices, Already Down, Fall Again,” said The New York Times. “Falling Home Prices Reveal Limits of Recovery,” said The Wall Street Journal. But there’s a big reason why the media—and pundits—shouldn’t be making such sweeping generalizations about housing.

The Case-Shiller index measures only 20 U.S. markets. It’s nowhere near as representative as people make it out to be.

Credit: Ken Gutmaker

Builder Magazine just released their mid-year report on healthy housing markets around the country, and the news for our neck of the woods is excellent – the Twin Cities has been ranked the healthiest market in the country.

“1: Minneapolis-St. Paul-Bloomington Minn.-Wisc.

Health Index: 91.6

2011 Population Forecast: 3,326,400

2011 Total Building Permit Forecast: 4,511

2012 Total Building Permit Forecast: 10,118

Home prices are expected to rise 8% next year, the highest rate among the 100 largest housing markets, and a big reason that Minneapolis finishes atop our healthy markets list.

A major hub for medical technology and the headquarters for many large corporations, Minneapolis appears poised for a big rebound in housing. One reason is that employment is forecasted to grow 2.5% next year.”

Story in Builder Magazine

We were pleased to read the news of a grand opening for the new athletic complex in Hugo, just a few miles down the road from two of our communities – Creek Side Villas and Fable Hill!

The Hanifl Fields Athletic Park, on 137th Street North next to the city’s public works building, is nearly complete, and a grand-opening celebration is set for 7 p.m. today. The park boasts seven soccer fields, a playground, an attractive and energy-efficient public events center and concession stand. There are two large parking lots, natural landscaping, rain barrels and a walking path.

The park is a community asset and a much-needed gathering spot, said Hanifl-Lee, who played soccer through college and is now watching her own young children take up the sport.

“We’re proud to be part of this. It’s great for the kids and for the community as a whole,” Hanifl-Lee said. “Hugo is still developing, still working on the downtown, and this is just a neat place for the community, for everybody to enjoy.”

Source: Pioneer Press

Nice to see association-maintained living getting some positive local press! We can attest that the convenience and value of this form of housing certainly works for our buyers in Waterstone, Dancing Waters, and Creek Side Villas!

“Mary Myss never has to paint her Chaska home, mow the lawn or shovel her driveway. That’s because her walkout rambler is in Pioneer Point, a subdivision of single-family homes that are maintained by a homeowners’ association.

“It’s one of the best kept secrets,” said Myss. “It’s amazing that more people don’t know about it.”

Before moving to Chaska, Myss and her children lived in a big house in Wayzata with an equally big yard that she was fine with tending — until she wasn’t.

“What put me over the edge was coming home from work in the winter after a snowfall and I couldn’t get up the driveway,” she said.

At Pioneer Point, she still has her own entrance, her own yard and her own deck, but none of the work to care for them. …

“When I’m home, I’m sitting on my deck barbecuing and playing with my grandchildren rather than dealing with maintenance issues,” she said.

This type of housing — called manor homes, villas, cottage homes or detached townhouses — is tailored to people who want the privacy of a traditional single-family home with the convenience of a condo. And although it accounts for only a tiny slice of the real estate pie, builders and developers are cautiously optimistic that this hybrid style of house will grow in popularity, partly because it’s designed for a growing population: retiring baby boomers.”

Link to the whole article on StarTribune.com here.

Craftsman living room showing recessed window seat, overhead beams and girders and high wainscot built with recesses to hold bits of metal or pottery. The use of lanterns hanging from the beams shows the favorite craftsman method of lighting a room. The craftsman piano exactly corresponds with the woodwork so that it seems to be a part of it.

“And to what extent can we hope for finer ideals in a country that is afraid to be sincere in that most significant feature of national achievement, the home. We are a country of self supporting men and women, and we cannot expect to develop an honest significant architecture until we build homes that are simple, yet beautiful, that proclaim fine democratic standards and that are essentially appropriate to busy intelligent people.

- Gustav Stickley, 1909

[link]

Enjoy your weekend, and Go Twins!

Mr. Pratt

One of our favorite real estate blogs is the aptly named St Paul Real Estate Blog, which is run by Teresa Boardman. She’s always got a good mix of news, advice, and local color. This week has been particularly good, with posts about the river rising with great photographs, and some about historic brownstones and how they connect to local history.

Definitely worth a look!

- Mr. Pratt