Real Estate Blog for the North & East Twin Cities

In this north Washington County community, just north of White Bear Lake, closed home sales were remained flat in again in 2011 as they were in 2010. This follows a year where they were up by nearly 43% in 2009. That shows continued stability especially since new listings are down significantly for the second year in a row with a 21% decrease. Unfortunately, the average sales price did continue to decline by another 6% from just over $192K to $180,950. The amount sellers are receiving on sales is down a bit compared to asking price but not dramatically. Unfortunately the average price per square footage dropped significantly in 2011 from $98/sq ft in 2010 to $90/sq ft at the end of the year. This is still in line with most other north and eastern communities. Time on the market to sell a Hugo home, did jump up a bit in 2011 but with homes selling in roughly 5 months this Washington County community is making good progress toward stabilization.

For additional details on the inventory levels in Hugo MN at the end of 2011, Click HERE.

Sandwiched between the cities of White Bear Lake and Forest Lake along Hwy 61 is the community of Hugo, Minnesota. While many people cannot forget the recent tornadoes that devastated the area a few years ago, that event does not define the community. Hugo is a vibrant and growing area with a deep history. The town has had a few names, first Oneka, then Centerville Station before finally adopting Hugo just after the turn ot the century in 1906. The name Oneka is still present in the community as it is the name of the city’s largest lake, Lake Oneka. According to Wikipedia, the name is derived from a Dakota/Native American word, onakan, a word meaning to hit rice into a canoe. However the origin of the Hugo name is a bit trickier to pinpoint. Per Wikipedia, “The Washington County Historical Society suggests it was for French author Victor Hugo, or more likely named after Trevanion William Hugo, who was chief engineer of the Consolidated Elevator Company in Duluth and former Duluth mayor, who likely had ties to the railroad.” Hugo was a big station stop on the way to Duluth back in the railroad heyday so this does make sense.

In any event, today the Hugo community is a vibrant area that is continually growing into a well defined community in the north and east Twin Cities suburbs. While Oneka is the large lake in Hugo, there is also Egg, Horseshoe and Rice as well as acres of wetland and ponds throughout this Washington County community. Hugo residents are served primarily by the White Bear Lake School District #624 although several homes to the north a part of the Forest Lake School District #831. Real estate opportunities include both historic homes and more recently constructed residences. First time buyers, executive home buyers, retiring downsizers and luxury lakeshore buyers have a wide variety of options if the choose to call Hugo home.

In 2010 there were 273 homes sold in the community of Hugo. Sold prices ranged from $52.000 to $799,000 with an average sales price of $191,466. The cumulative days on the market for homes in Hugo during 2010 was 153.

2010 Average Sales Price of all homes sold in Hugo:

• All Homes $191,466
• Single Family Homes $273,448
• Townhomes/Condos $138,622

2010 Average Cumulative Days on Market in Hugo:

• All Homes 153
• Single Family Homes 172
• Townhomes/Condos 140

Year End Hugo residential real estate statistics for single family homes:

Under $200,000~ 8 Active Listings, 5 Pending Listings, 23 Sold Listings, 129 CDOM

$200,000-$300,000~29 Active Listings, 4 Pending Listings, 48 Sold Listings, 149 CDOM

$300,000-$400,000 ~ 7 Active Listings, 2 Pending Listings, 28 Sold Listings, 204 CDOM

$400,000-$500,000 ~ 6 Active Listings, 0 Pending Listings, 3 Sold Listings, 434 CDOM

$500,000 and Up~ 6 Active Listings, 0 Pending Listings, 5 Sold Listings, 326 CDOM

Year End Hugo residential real estate statistics for townhomes and condos:

Under $200,000~ 77 Active Listings, 11 Pending Listings, 153 Sold Listings, 136CDOM

$200,000-$300,000~ 6 Active Listings, 1 Pending Listings, 11 Sold Listings, 190 CDOM

$300,000-$500,000 ~ 2 Active Listings, 0 Pending Listings, 2 Sold Listings, 269 CDOM

For additional information on any current Hugo real estate listing or for additional information on buying a home in Blaine contact Teri Eckholm directly at 651-336-7073.

**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 1/1/10 through 12/31/10.

Articles on Real Estate, Lakeshore and Minnesota that might be of interest:

• Resolve to Save for a First Home in 2011!
• Dreaming of Life on MN Acreage?--What YOU Need to Know Before YOUR Move!
• Inspection, Pre-Inspection, Truth-In-Housing and Disclosures? What Does a Seller Need to Sell a Home?
• Does "Minnesota Nice" Affect the Real Estate Market? "Yah, You Betcha!"
• Foreclosure Priced BARGAINS on Minnesota Lakeshore Homes

In this northern Ramsey and Washington County community, just north of White Bear Lake, closed home sales were up an average of by nearly 43%. Unfortunately, the average sales price did continue to decline again during 2009; down nearly 17% to under $200,000! This is no doubt a reflection of the significant amount of first time home buyers in the market. With only a handful of additional new listings in the area, inventory is down considerably. Sellers are already starting to see sales prices come in closer to asking price. Time on the market to sell a home, has remained flat at just over four months. It appears that the Hugo market is starting to become more balanced which is great news for homeowners in this Washington County suburb.

"Hi! We are looking for a REALTOR® who works in Hugo. Can you help us?"

"Absolutely! What can I do for you?"

"We are relocating from St. Cloud and want to be in a home before school starts, is that going to be a problem?"

"Are you a first time buyer or do you have a home to sell?"

"We are first time buyers and are currently renting month-to-month."

"There should be no problem. Have you talked to a loan officer?"

"Not since last year."

"The first step is getting preapproved and then we can start looking at homes."

So began my relationship with a new first time buying couple early in July. They were on a tight time schedule and were a bit of a distance from Hugo so planning was key. I wish I could say everything turned out perfectly for them but it didn't. Chasing wild geese is a fun activity for dogs not for serious homebuyers. Here's what happened:

I set up Christy and Mike in my Listingbook system so they could view new listings as soon as they hit the internet. Their price point put them in tight competition with many other first time buyers as there are few nice single family homes under $160,000 with three bedrooms on one level in move in condition in Hugo.

Christy selected a dozen homes to see on their first trip out. Of the homes selected, only four were still available. From the preliminary discussion with the loan officer, they were qualified to purchase FHA. That meant that a home would need to pass an FHA inspection. Unfortunately neither of the two single family homes we saw would pass as the were both foreclosures in very questionable condition but the two townhomes were a match. Christy and Matt loved the townhomes, BUT...

"We really need a yard for the kids to play."

Not a problem...Maybe we should expand the search area. Are you okay with White Bear Lake? It is the same school district as Hugo? What about Forest Lake, Lino Lakes or Blaine?

The search was expanded to include Chisago City as the young couple was interested in the zero down USDA financing in Chisago County.

Another trip down and another dozen...down to half dozen...showings scheduled. Two of the homes were a perfect fit. Huge yard. Well priced. Move-in perfect. BUT...

"The thirty mile commute to downtown St. Paul is too long after all."

Not a problem. Christy and Mike decided to expand the search to include Blaine, Spring Lake Park and Coon Rapids. These areas were closer to work for Mike and in school districts that were appealing to the young family.

A third trip down. Third time's the charm right? It was! They found a perfect home with a 20 minute commute in Spring Lake Park. BUT...

"We don't think they will accept our offer."

"Why don't we write up an offer and find out if it works for the sellers?"

"Maybe...we will think about it."

Now with the Listingbook system I can see the homes my clients view. Christy and Mike didn't call over the weekend to write an offer but starting to search in some pretty out of the way areas while skipping over many closer in and better options. They wanted a newer home with all the bells and whistles for $150K or less. This can be done in a suburb of St. Cloud but not a suburb of St. Paul.

Christy and Mike began a hunt for an elusive wild goose. No matter how hard I tried to explain the situation and point them back toward their goal, they just kept heading off in unusual directions.
I saw the couple had now started to search for homes in Otsego about an hour northwest of St. Paul and Farmington, another long commute to downtown to the south of the cities. Sure, in these communities a person can find a newer home at a lower price, just like in Chisago City, but they said no to a long commute a few weeks earlier on a home that fit all their criteria AND that had a zero down financing option available. A short commute time was one of their top "must haves in a home." These communities are both well beyond the commute to Chisago City that was vetoed earlier.

Another day of searching was set this time in Blaine. They decided an end unit quad home would have more yard to play for their children and again found a perfect place. They were ready to write again BUT...

"The association fees are too high."

Now we are into the last week of July and their timeframe is next to nil if they want to get in to a new home before school and the new job starts. I remind them of their timeframe and the several homes that were still available that they loved but didn't write an offer on. BUT...

"We decided we want to see some homes in Otsego."

"Sorry. I don't think I am going to be able to help you buy a home after all."

I don't know if Christy and Mike ever found a home or ever will find one as I decided I wasn't the right agent for them. I did hear through their loan officer that they found a "perfect" home in Otsego but something went wrong and they never wrote an offer. Last I heard they had started searching in Farmington.

What went wrong? Being focused is essential to buying a home!
Sometimes a client's criteria will need to be adjusted to fit what is currently available on the market. The first time buyer's $8000 tax credit has created a big demand for Twin Cities starter homes. This couple's inability to make a decision on what they were looking for and inability to accept the market conditions had them running in too many different directions-Chasing a wild goose!

It is not often that I have to say "goodbye" to a client that hasn't walked away with a good buy on a house! I have successfully assisted numerous first time homebuyers find their way home. In this case, we found several "Good Buys" but in the end, Christy and Mike ended up without a house.

In my homebuyer's success guide, I outline how important it is for buyers to stay focused on what they really want in a home. As a REALTOR® it is my job to help my clients stay on track throughout the home buying process; from the first showing of a property to the handing over of the keys at the closing table. Too many options can cause confusion. Combined this with an inability to regroup and make a decision, buyers can let good homes to be sold out from under them. Changes will come up and if as a team we can refocus and start again, the unending wild goose chase is avoided.

Done Chasing Wild Geese? Let me keep you focused and find that Good Buy! If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet, Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Buying a Home? Check out my new HOME BUYER'S BLOG!

Copyright 2009 Teri Eckholm http://www.terieckholm.com/

******************************************************************************************************

LIKE MY BLOG? Subscribe and let me email you an update!

Subscribe to Teri's Notes & Anecdotes on Twin Cities Real Estate by Email

While the number of new listings, closed sales and average sales price for homes in Hugo, Minnesota dropped between 10-14% in 2008 compared to the previous year, the biggest change was in time on the market. In this northern Ramsey and Washington County community, just north of White Bear Lake, home sales were an average of 40 days longer than in 2007; up statically by nearly 47%! Gas prices and a devastating tornado may have played a role. With the lower average sales price of a home in Hugo at $236,517, down just over 13%, a first time homebuyer can consider this community an affordable option once again.

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet or Homebuyers Success Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Buying a Home? Check out my new HOME BUYER'S BLOG!

Copyright 2009 Teri Eckholm  http://www.terieckholm.com/

******************************************************************************************************

Subscribe to Teri's Notes & Anecdotes on Twin Cities Real Estate by Email