Lynn Johnson, Owatonna, MN Real Estate

We currently have 210 homes on the market in Owatonna, MN. The average list price for those homes is $191,614 and they have been on the market for an average length of 176 days. Year to date 26 homes have sold and those have an average sale price of $174,545 and have taken an average of 143 days to sell.

View of Dartts Park - What a great scene!

Interest rates are down from this time last year. We have a terrific selection of homes. Employment remains steady and the economic outlook for Owatonna and our region looks very positive. We're so fortunate to have a variety of employers who cross into diverse industries.

Winter is hanging on - but it's been a beautiful one. The walking trails are cleared throughout the season, and many people enjoy cross country skiing, snowshoeing, sledding, skating, and hiking through Kaplan's Woods. It's great to be able to enjoy four distinct seasons, with plenty to do year round.

I my area of Owatonna, Minnesota we have homes on sale! Prices are down 10 -20% from the more robust real estate market of 2005. If every item in the store at Target and Wal Mart went on sale for 10-20% off the most recent price don't you think they'd see sales increase? I doubt people would say, "No thanks, I'd rather wait and buy when prices go up.

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Just like Warren Buffet pointed out "When Wall Street has a sale (prices down 10-20%) no one shows up."

It's too bad that home buyers are inundated with negative news that hold them back from buying while homes are on sale. I don't think they really want to wait until prices go up, but that's the wisdom that the media is passing along to them. As many other agents have stated, it's time to change the perception that buyers have. Don't wait until everyone else is buying and prices go up. Buy now - it's on sale!

Well, we're off to a good start in 2008. We noticed a nice trend in showing activity during January - there were more buyers out looking. That's a good sign, especially for as cold as it's been.

As of 2/12/08, YTD there have been 23 closings on properties in Owatonna. The average sale price of those properties was $169,506. The days on market for the sold properties were 180 days on average. As of 2/12/08 there are 5 properties pending sale. The average list price for those homes is $151,940 with the average days on market at 200.

There are currently 211 homes for sale in Owatonna, which is down nearly 100 homes from the high mark about 6 months ago.

We still have a terrific inventory of well-priced homes for buyers to choose from.

We also have a great selection of lots for buyers to choose from. Keep in mind the North Country Addition off of east Rose (by Turtle Creek Nursery). The lots start at $38,500 and offer daylight window and walk out possibilities. Building your dream home is a wonderful option for buyers.

There are so many fun things to do around Owatonna. On February 16th you can "Do A Grouch a Favor", and February 22nd is "Be Humble Day".

I've really been enjoying the parks' walking trails and Kaplan's Woods this winter. The walking paths are always cleared, and the trails in Kaplan's Woods are groomed. You can rent skates at the Morehouse Chalet, as well as snowshoes and cross country skis. What a great way to spend time in Owatonna.

In our recent office newsletter we devoted a full page on the gap we're finding in taxable market values as determined by the county assessor versus actual market value. I recently worked with a buyer who was contacted by our local assessor's office about his home purchase. They were questioning the purchase price because it was $17,000 less (9%) than the taxable value.

He was really caught off guard by their questions and he called me right away to find out why they had contacted him. After a conversation with the county assessor's office I was able to explain to him why they were asking the questions they did, and his concerns were relaxed.

Unfortunately, I think the county valuations are continuing an upward trend, whereas our values are flat or decreasing. Historically, the tax basis market values were typically 5-10% lower than the actual home value. That's definitely changed and we're finding that the taxable value is now exceeding the actual home sale value by the same margin (or higher).

In our newsletter we provided, what I hope will be helpful info for homeowners who may want to argue the county's tax valuation. We received the information from the Minnesota Association of Realtors. It's a step-by-step process that tax payers can use to dispute the value as determined by the county.

Last year I was contacted by three clients who wanted my help in determining a realistic current market valuation of their home just so they could go to the county with comparables to challenge their tax valuations. I suspect that number will at least triple this year as the market has continued its trend.

Are these trends common in your market? Have homeowners been successful in challenging the tax valuation? It'll be interesting to see how this unfolds, as more sellers are selling short, or under distressed circumstances.