Lakes Sotheby's International Realty SHIPMAN + KOLKMAN PARTNERS

­­­WAYZATA, Minn. - June 18, 2008 - Effective Monday, June 23, SKY Sotheby's International Realty will move into the company's new office, at 130 Lake Street West, to better accommodate and serve its customers and agents.

Following a 10-month search for a location, the firm selected the downtown Wayzata workplace near Lake Minnetonka, a more fitting office space for their client base and sales associates. The firm's Minnesota headquarters will remain at 4388 France Avenue South in Edna.

"Convenience for our clients and agents was an important factor in our decision, but it was also essential to select space that appropriately reflects our success," said Jacob Smith, Sales Manager, SKY Sotheby's International Realty. "The new space accomplishes all of these factors."

Since SKY Sotheby's International Realty's 2006 entrance into the Minnesota market, the company has been committed to bringing the Minneapolis/St. Paul area unprecedented platinum-level service, marketing expertise and individual attention.

"We remain committed to our objectives and plan to grow our agent base, who will be strategically located throughout the Twin Cities and northern Wisconsin, to a total of 300, delivering sales in excess of $2 billion annually," said Chad Roffers, President of SKY Sotheby's International Realty. "We followed a comparable growth strategy in our Florida operation and the market dynamics in the Twin Cities present a similar opportunity."

Currently, SKY Sotheby's International Realty has 25 top-tier sales associates with extensive experience in the Minnesota market and is actively adding high-quality team members. With availability for 10 additional agents in the third quarter of 2008, SKY Sotheby's International Realty welcomes those agents who embrace the company's competitive difference. The company's full-time agents focus intently on their customers and are committed to handling every transaction as if it were their own.

About SKY Sotheby's International Realty

As Minnesota's leading luxury real estate brokerage and exclusive Sotheby's affiliate, SKY Sotheby's International Realty represents the area's most distinctive properties and people. Combining the impeccable customer service of a boutique firm with the global resources and 260-year-old reputation of the Sotheby's brand, the company offers a unique and highly personalized approach to the luxury real estate market. Since its formation in 2006, the employee-owned company has enjoyed unprecedented momentum and unusual success driven by a strong focus on the customer. Connecting qualified buyers and sellers from around the world, SKY Sotheby's International Realty has Florida offices in Sarasota, Lakewood Ranch, Longboat Key and Osprey, as well as Minnesota, and is part of the Sotheby's global network of 9,000 affiliates in more associates in more than 470 offices in the U.S. and 29 other countries and territories. Experience the SKY Sotheby's difference at www.skysothebysrealty.com.

About Sotheby's International Realty Affiliates, Inc.

Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby's International Realty^® network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world. In February 2004, Cendant Corporation (NYSE: CD), the world's leading real estate brokerage franchisor, entered into a long-term strategic alliance with Sotheby's Holdings, Inc. (NYSE: BID; LSE: STBA). The agreement provided for the licensing of the Sotheby's International Realty^® name and the development of a full franchise system by Sotheby's International Realty Affiliates, Inc., a Cendant subsidiary. The agreement also included the acquisition of the company-owned real estate brokerage offices by NRT Incorporated, a Cendant subsidiary that owns and operates those offices today as Sotheby's International Realty, Inc. Affiliations in the system are granted only to brokerages and individuals meeting strict qualifications. Sotheby's International Realty Affiliates, Inc. supports its affiliates with a host of operational, marketing, recruiting, educational and business development resources. Franchise affiliates also benefit from an association with the venerable, 260-year-old Sotheby's auction house. For more information, visit www.sothebysrealty.com.

I remember when Uptown was scary. When it felt dangerous. When "punk" kids hung out in front of Calhoun Square with safety pins in their eyebrows, and their faces painted white.

It's a lot less scary now. Maybe it's because and Victoria's Secret and Northface moved in, or because I've grown up. Maybe it's the high end Condo developments like the Edgewater, and Mozaic. In any event Upton is now the place to be for everyone, from empty nesters, to Gen Y'er (or whatever generation we're on now).

Still "cool" enough (thanks to Ivy, Mac, and Chino Latino) to play host to the up and coming "who's who" crowd, desperate to be seen as "making it". Uptown is also safe, fancy, and desirable enough to host those of us who have already made it.

Now that the market is in turmoil my question is what's going on with Uptown Condos???

There are always condos in the $100-300k price range uptown. The real test for Uptown is to break the ceiling and emerge as an "elite" condo location, with higher end price points.

Looking at sales over the past year (past 365 days) there are plenty of examples of high end condo sales. Take this 2 bed condo for example; it sold for $820k. Or this 3 bed for $1.37 million. These are impressive sales, but maybe more impressive is that there were ten sales in the $375-575k range.

All sales over $300k in the past 365 days.

The best deal on the market in my opinion is this 2 bed 2 bath unit, at 3200 W. Calhoun Parkway. It's views of the lake are unbeatable, and the layout is open and spacious. Now there are newer buildings, and more contemporary designs in the market, but I believe this "classic" feel will hold value in the long run far better. I can already hear buyers walking into condo's in 2020 and saying, "oh no, this is so 2000". In full disclosure, SKY Sotheby's is representing this condo, but you can't argue with the fact that a similar unit just sold for $35k more!

During this period of market correction, media pundits talk of falling values, and lenders refer to "declining markets" but we all know, real estate is intensely local. Average market conditions rarely tell the real story of what is happening in any given neighborhood.

In this multi part series, close examination of specific price ranges and neighborhoods reveals the "real" real estate market behind the headlines.

In this part, "The Best of The Best" Minneapolis homes over $2 million.

There aren't many homes sold over the $2 million mark. In the past year* there were just 17 sold, (7 of there were in Edina). I'm specifically looking at home inside the 494/694 beltway.

The most expensive home sold went for $3,550,000 in Edina, and was a stunning 9,500 sq. ft. new construction, 6 bed, 8 bath, home sitting on nearly 2 acres including a private pond. O...M...G... it is every bit as amazing as you might think.

This market is characterized by the neighborhood in Edina and the Kenwood area of "the city" (Mpls). 11 of the 17 homes were new construction built since 2000. The other 7 were all pre-war construction, the oldest dating back to 1892 a remodeled piece of the cities' Mary Tyler Moore history with 9,800 sq. ft. 8 beds and 9 baths.

The average 2 million plus home is far less impress (but far from un-impressive) averaging 5 beds, and 5 baths with 6,700 finished square feet. Here are all the homes sold in past year for over $2 million.

With 46 homes in the area for sale over $2 million, 17 sold and 2 pending, there is currently a 29 month supply of inventory available or, to put it another way there are 29 homes for every buyer in this market.

In Edina there are just 14 for sale, while 7 sold, an even 2 years worth of inventory. Meanwhile in Minneapolis, there are 28 for sale and 10 sold, making for a more intense buyer's market, with almost 3 years worth of inventory on the market.

These are all very unique properties, and the owners are often "international". Sometimes these are one of a few residences owned; sometimes the owner is coming or going from another part of the world. In any event the "story" behind the sale of these homes is an important part of the package. With so many properties for buyers to choose from, it's possible for buyers to look until they find a home that "feels" right in all aspects of their lives.

* 365 days preceding June 18^th, 2008

NAR: Resale home price may fall 6.4% this year

The National Association of Realtors is now predicting that the median resale home price, nationally, will be 6.4% lower than it was last year. But reality is usually very different.

These national average numbers are an important metric for economists. It’s also important in so much as it influences the expectations buyers and sellers come to the table with. But they mean nothing when you’re trying to price a home.

The context that home is in, and the trends in that segment of the market are what matters, and that varies wildly! Here are a few examples of how important context is:

LOCATION, LOCATION, LOCATION

The Wall Street Journal recently ran one of the best articles I’ve read. Their point was that prices may be rising, falling, or flat lined depended on the zip code your in.

Example1: in the San Francisco market, zip code 95070 is down 7%, while 94025 is up 18%, both have a median sale price of about $1.5 million.

Example2: in the Augusta, GA market, zip code 30909 is down 6%, while 29841 is up 18%, both have a median sale price of about $130,000.

Example3: in the Richmond, VA market, zip code 23229 is down 13%, while 23225 is up 17%, both have a median sale price of about $235,000.

MORE THAN JUST LOCATION

Even in the same location there are many micro markets in play. Rising foreclosure rates have heavily influenced real estate markets across the country. And it’s skewing the statistics.

According to the Minneapolis Area Association of Realtors lender mediated (foreclosure/short sale) sales made up 27.6% of the total sales in first quarter 2008, by comparison in Q1 ’07 it was 9.3%, and in Q1 ’06 it was 3.5%. The median sale price of these lender mediated sales is down 15.9% while individual sellers (not banks) have only seen a decline of 3.5%. The median sale price of all homes averaged together is down 8% year to date.

THE POINT

Drawing conclusions about home values based on the wrong numbers/trends is fool hardy. You have to understand your market to know what a good deal is. People are smart and take real estate seriously, missing the mark on price will result in failure. Before buying or selling, be sure you (or your Realtor) really understand what is going on in the specific area, price range, and property type that is your market!

I've been singing the praises of our Twin Cities Real Estate Market for the past month now. Sign of improvement are all around. Many areas are still depressed, and others are shining, but the trends are finally headed in the right direct.

The Downtown condo market is really showing signs of improvement, and while it's too early still to say for sure, it could be just the news everyone's been hoping for.

I love downtown Minneapolis! Nothing against St. Paul, I've lived in Summit Hill, and still own a condo in Crocus Hill - St. Paul is great - but the single riskiest, and potentially beneficial, development in our real estate market over the past 7 years has been the condo boom in downtown Minneapolis. People are flocking to Minneapolis (for reasons I can't fully understand, given our winters and our taxes, but that's another story). With energy costs on the rise, and a vibrant residential community, it's no wonder downtown has increased in popularity. The population downtown is sky rocketing, and the number of new condo developments is staggering. Enter the "Credit Crunch", "Buyer's Market" and "Possible Recession" - the big question now: How will the downtown condo market handle this new economy?

Apparently quite well! Spring has come late in Minneapolis (has it even hit 80 degrees yet?) but with a few solid months of action under our belts, it clear that downtown market is strong. The number of new listings this year is down 16.9% from this point last year. So the supply of new properties to the market has slowed down. Sales volume, however, is up a whopping 59.3% year-to-date (and I don't say "whopping" often). The resulting supply and demand ratio is vastly improved. There are 20% fewer condos/townhomes for sale today than at this time last year. There are many factors to consider when analyzing these numbers, but suffice it to say, the market dynamics are better now than at any time in past year.

The average sale price in April '08 ($341,500) was 14.3% higher, than in April '07 ($298,762). Sellers are also receiving an impressive 97.4% of their list price, while the Twin Cities average is just 91.2%.

Have a home downtown you'd like to sell? You might consider giving a shot this summer. I hope and believe the market will continue to improve, but no one knows if it will be better or worse next year. If you're thinking about selling a home downtown, I say; talk to a Realtor, and give it a shot!