PCSR INFORMATION 12-28-2004 -- INFORMATION
WASH. COUNTY DAKOTA COUNTY Twin Cities town home sales ANOKA COUNTY RAMSEY COUNTY
;•y t2� .y1 y ', Sales
un have climbed 2000 00 to 20 4.A in some aJ� .„ r
1443 /J J Ii !!!�J counties have from 2000 to 2004.A glance: J dB
increase in increase in increase in increase in
town.hrime sales town home sales Cr town home sales town home sales
4:942 units sold 2004: 2,110 units sold `dui §,v WWI,r twin RI 2004:992 units sold 2004:635 units sold
2000: 515 units 2000: 1,236 units 3s,Ji j'; " 'Us C31S i, I ,,2000: 586 units '2000: 529 units
ON PAGE 14A A GRAPHIC ON TOWN HOME SALES IN WASHINGTON, DAKOTA, ANOKA AND RAMSEY COUNTIES
Town homes go through roof
Twin Cities demand is booming housing is contributing to a boom in town home Washington counties,according to an analysis of
f01' a��OPda��e compact housing construction and sales in the Twin Cities area. January-October data from the St. Paul Area
t g Town homes are hot among retirees, baby Association of Realtors. Dakota County is show-
boomers wanting to downsize and first-time buy- ing the most activity in the east metro in terms of
BY OITA SI'1•ARAMIAII ers trying to fmd affordable housing.In fact,town volume,with more than 2,100 units sold through
Pioneer Press homes now make up almost half of all new homes October this year—a 71 percent jump since 2000.
being built in the area. . Town homes made up 49.1 percent of all
Retired schoolteacher Sue Swanson and 29- Consider: housing starts in the seven-county 'twin Cities
year-old salesman George Schiltz may be from .Sales of town homes jumped 63 percent from
different generations, but their preference in 2000 to this year in Anoka, Dakota, Ramsey and TOWN HOMES,14A
14A M THURSDAY, DECEMBER 16, 2004 ST. PAUL PIONEER PRESS WWW.TWINCITIES.COM
CONTINUED FROM PAGE lA
Town er."But the transition we're see-
ing,d <" a�`a", , ing is from a seller's market into
cs.r1r" Ty ` r, w 4'� ' a balanced market"
p
hOml�s l +t 7tt JO I' a,y AT , q.4i +''',e;', Town homes are holding
2+d$"t�M`t t+tt u' x tell, ,"4a ?x k rtI,. ', t" �, els cost uch because n new sin-
(continued) .1 a , , {� «f s r y t i, i ,•' gle-family homes in the same
':01 r ' ' s h'Ir r a Ib Y :.. jl .r areas.
metro area in 2003,according to ,g.'' s?, r,2 :�&fdt dtn.BSitt" t t't` '' h `t''= George Schiltz purchased a
Residential Research Services January-October town home sales town tome in Woodbury a few
Co., a Coon Rapids company years ago after trying to fmd a
that studies and sells reports County 2004 2000 0.4 Change starter home.
about real estate. That trend Anoka - "I started looking at a lot of
continues this year,according to Median sales price 174,000 121,985 43% the houses available in my price
building permits. Total units sold 992 586 69% range, but I couldn't fmd some-
.The median selling price of Average days on market 40.8 30.6 33% thing that met my quality stan-
$179,500 for town homes in the (lard," he said. "With a town
tour-county area this year is up Dakota house you could buy a brand-
40 percent from 2000. Median sales price 176,000 127,900 38% new one and have that quality
This is no fad, real estate Total units sold 2,110 1,236 71% At the same time,you have com-
observers say. Average days on market 40.5 29.9 35% plete freedom.You don't have to
"I think town houses are do the yardwork."
here to stay,"said Betty Hardie, Ramsey As the price of single-family
president of Residential Median sales price 191,500 138,000 39% homes has skyrocketed,
Research Services. "They're Total units sold 635 529 20% builders have turned to town
going to be a significant part of Average days on market 37 33,9 9% homes for high-density con-
the housing mix for a long time, struction that they can sell in
partly because the baby Washington high volume. Builders also like
boomers are in that state of life Median sales price 176,500 125,900 40% town homes because they can
where they want to get rid of Total units sold 942 515 83% he put near freeways and com-
big yard and big houses and Average days on market 41.7 33.5 24% mercial zones or on land not
_t that stuff." suitable for single-family lots
Source. Housing Paul statistics Area Association arei base of Realtors figures and the Regional Muting Listing
The other key demographic Service.Housing statis6cz are based on sold flgwes for new and existing town requiring yards. Developers
is the first-time buyer,who may homes and do not include condominiums,co-ops or twin homes.Figures reported then can charge less for town
not be able to afford the typical are subject to change. PIONEER PRESS homes because the high price of
single-family starter home. land is spread out over more
"Town homes are really the in the town home market is that 30 to 34 days in 2000. But units.
new affordable housing," said it's taking slightly longer to sell observers blame that on the fact National Association of
John Lockner, president of the them,according to the Realtors' that the housing market is slow- Home Builders economist Gopal
board of the St.Paul Area Asso- data. The average number of ing across the hoard. Ahluwalia said that town homes
ejation of Realtors. days on market has risen to 37 "They're slowing with the make up a small share-15 per-
About the only thing slowing to 42 this year, compared with rest of the market," said Lockn- cent— of the overall U.S. con-
struction market but that
they're much more prevalent in
metro areas where land costs
are high, a trend builders point
to here.
"The driving thing is the cost
of land,"he said.
So far, real estate observers
think town homes will continue
to appreciate the same way sin-
gle-family homes would.
TOWN HOMES,15A
ST. PAUL PIONEER PRESS WWW.TWINC171fS C.OM D4F 1ON
•
CONTINUED FROM PAGE 14A
Town sNAtiskot
homes WHO 8U E
V111 rJ . TOWN HOMES?
'*. ,::, . .First-time buyers
(continued) yp ,, iE= .Empty nesters
"In many areas, town homes r 7„ k s s tr -- .Retirees
have been appreciating at a 1s,� f 4144, .Twc-income (busy)
greater rate that] single-family I eV. households
Manes,” Lockner said, citing fan ?T"`
i eysC is Single professionals
4yuodbuy, Oakdale and Hud- ,
son,Wis. rfk'+ + r
Sehiltz found that to be True 2" ta, �. v'
Ile put his Woodbury town $:/;41;7,1M14't „ such incentives as reduced
home up for sale in August to f ; � putts, free or reduced closing
I ellr to to Milwaukee, where '` :.i ,+. , ;,, , ' st costs ora year's worth ofasso-
lie s shopping (or another one rr:
A # ' .. cy e r ciabun fees.
Ills place took two months to a s `�
..� fl' 'Up here,we're building a lot
sell, a little longer than expect -74 44.4)` - ' t itx, t}r ' F'
,� b�t, ,. ,. pa: tC„H „ of homes on speculation,and we
ed. lu the end, he was pleased 1 : t,.s� .
r � } _ ��.�; , need to keel) turning these
will)the 3(1 percent appreciation ' "'` r °.; homes,” said Paul of D.R. flor-
in pi iCe. .. ton. —
"I got my asking price;" he L .t Scott Sim vice president of
said In this day and age,that's _ 41, , 4-4' e-4 sales for Pulte Homes Mtnneso-
great -- especially ally with the ,a?'t•., '� ." La division,�. � � n, s ud the Michigan
of mdmtin" "' , ,S�, x '°#' ex r . based company has goals to I
av . y 'sy�* r` `v, ` ';' sfi , - meet. "From our perspective,
.,,LITER-RING PHEN0MS ‘,11,{4# .4xti 4, 0°t �* 4-;.'.4'.'2`.::.
r 'kv "'a `a we're a publicly traded compa
`ii,¢ ", ' w�� *a 7 9,a, c. ivy, so there's always n interest
1 mew t
�]�ghat are the east metro hot ,' in •lotto our unnther s;'he said.
V V its for town home con A ,r i 'w ;�.� i. "We offer (incentives) totally
sti ucbon? ,,; s r. s s"� ax s out of a response to market con-
Blaine.Apple Valley and For- ,�,r i t
� �. ,:,,,!,:,..,,,,4,,.. ddtons ' said Bob Swanick,
est Lake ranked among the top ' �<W,1 .r iff' regional vice president of Mori
t0 cites in town hone penmds h 'i t,.. •
da based Or1ui Thompson
between 2000 and 20(13, accord t' ' ( x homes. "We're accustomed to a
tug t o t he Mclropohtan Council. 1. - higher number of sales. When
Olhei s ill I.he top In were in :74-,.17,64,144,-,.....a we don't meet our objectives,we
the west metro area Mean "t . " a offer Incentives. '
VI Rosemount, Cottage ",4' Despite the current incen-
GI ove, fl ustings, Lakeville, Still- C'` tives, experts say the predicted
water and Woodbury ranked in CHRIS POLYDOROEF,PIONEER PRESS population increase in the area
the top 20 for town home Sue and Ron Swanson moved into their Cottage Grove town will continue to create demand
per mils. home last month after a foot injury made living in their old five- for town homes.
In Apple Valley,75 percent of level home impossible for Sue.
new construction consists of (hut SitaraIIiatl curb be reached
town homes, apaftments and In Apple Valley, her husband,Ron,were starling at flsitaromdulreirpiorreer
condos, said Rick Kelley, coin- to consider retirement and press.corr or G51-228 5472.
mainly development director. 75 percent decided the time was right for a
The demand for attached town home.
housing is high because Apple Ot tie\v construction They had no trouble finding —
Valley still has a relatively large one. Their new Pine Arbor
pet cent age of single-family consists of address in Cottage Grove is only
homes, Kelley said. "It's a con- half a mile from their home of 30
bitiatinn of lifestyle choice and tOW'ii [tomes, years.
cost,"he said. "I like the idea of living on
tuilders think that the lower ■ parilllcnts ah(a CO11(105. one level. I can move from one
xxis of entry-level (( mil room to the next, and cleaning
homes will keep drawing first- sized at Town&Country's latest is a lot easier,"she said.
Inuebnyetswellintothefuture. development, called Heritage
"More people can get into Square, under construction in ADDED INCENTIVES
their first home this way," said Maplewood, Nelson said.
Stephen Paul, vice president of "'They're laid out with a lot '[tor those interested in buying
the p1innesota division of Texas- more storage than most town 1� a town home, now could be
based 1).R. Morton, a leading homes." she said. They have the time, because some leading
builder of town homes in the the feel of a home:' builders didn't anticipate slow- _
state. "Instead of paying rent, Whatever the look, those ing home sales in recent months
Hwy)e building equity. and that who live in town homes can and are offering deals in sub-
will enable them to buy their attest to the convenience. tabs including Maplewood,
nexthnnw.' After Sue Swanson hurt her Hastings, Lakeville, Farmington
foot 18 months ago,she realized and Woodbury.
STYLES DIFFER she could no longer walk up and Cold weather and the boll-
down the stairs of her five-story days also see fewer sales. 'Po
r to please baby boomers, Collage Grove home. She and entice buyers, builders offer
1 retirees and younger first-
time buyers, the styles of townm — - - -
homes are evolving with more
variety, said 'Tanury Nelson, a
spokeswoman tot- Illinois-based
Tow n&Country homes.
Storage space will lie empha-