Nonetheless, we believe that positive job creation is getting ready to occur as most of the leading indicators point to solid growth ahead, and recent job loss figures have been only slightly negative. Job creation is going to be driven by big companies who have downsized significantly, as well as small businesses who will slowly return to growth mode.

Since the length of unemployment in the labor force is still hovering near 30 weeks, (the record high since the Bureau of Labor Statistics began tracking the statistic in 1948), we also believe that job-growth-focused government stimulus will continue.

Methodology

1. We collect a complete history on 70-plus variables and forecast the important ones by forecasting each metropolitan statistical area (MSA) and rolling it up.

2. In this monthly e-mail, we publish the current stats along with the historical minimums, maximums and averages as a service to the industry.

3. Each indicator is graded based on a bell curve where an “A” is its historical best, a “C” is its historical average, and an “F” is its historical worst. The grades are designed to provide a simple tool for decision-makers to scan the data.

4. Each of the eight categories has a grade that is nothing more than the average of the grades under it.

Economic Growth: D+

Overall economic growth was about the same this month compared to last, and the results for our economic growth metrics were mixed. The revised fourth-quarter gross domestic product growth rate increased to 5.9 percent from the preliminary estimate of 5.7 percent. Much of the growth was still the result of recent government stimulus and an increase in inventories.

The pace of job losses also eased this month, although in the last 12 months the United States has lost 3.24 million jobs, which is equal to a decline of 2.5 percent of the total payroll workforce.

The unemployment rate remained flat this month at 9.7 percent, while the broader measure of unemployment, the U-6, increased to 16.8 percent. (According to the bureau, the U-6 includes two groups that the U-3, which is the typical unemployment rate, does not: “marginally attached” — i.e., discouraged — workers and those employed part time for economic reasons.)

The length of unemployment in the labor force declined slightly to just under 30 weeks this month, yet remains the second-highest month on record since the BLS began tracking the statistic in 1948. Personal income improved in January and has returned to positive year-over-year growth for the first time since December 2008, increasing by 1.1 percent.

The Consumer Price Index (all items) decreased to 2.6 percent from one year ago, while the Core CPI (minus food and energy) also dropped to 1.6 percent.

Leading Indicators: C

Overall leading indicators held relatively steady this month, but several individual metrics actually improved. The Leading Economic Index six-month growth rate declined in January to 9.8 percent from 12.2 percent last month, and remains very high compared to history

In our part of the country, the appraisers are the ones who are giving low value to properties, even in cases where the buyers and sellers have agreed on the price. I thought that was what a free market was about.

Our local Realtors are more familiar with the local market than the appraisers, who often come into our market from a different area.

The North Carolina Real Estate Commission does limit licensed real estate agents when doing BPOs. BPOs must only be done when the Realtor is attempting to secure the business of the principal seller, whether it is a builder or a lender.

We acknowledge that we are not appraisers and a complete appraisal must be done by a licensed appraiser.

Thank you for keeping us updated

In a statement, the Federal Open Market Committee said its target for the federal funds overnight rate will remain in the range of zero to 0.25 percent, as inflation is likely to remain “subdued for some time.”

Although household spending is expanding at a moderate rate, the committee said it remains constrained by high unemployment, modest income growth, lower housing wealth and tight credit.

The Fed’s purchases of mortgage-backed securities (MBS) guaranteed by Fannie Mae and Freddie Mac have helped keep interest rates near historic lows in the last year.

Although the committee said the Fed will wind up its MBS purchases at the end of the month as planned, it has no immediate plans to sell off the bonds it’s purchased, which would put additional pressure on mortgage rates (see story).

In a forecast published Monday, economists with the Mortgage Bankers Association predicted that mortgage rates will rise gradually for the remainder of this year, and stay on an upward trajectory in 2011 and 2012.

The MBA forecasts that rates on 30-year fixed-rate mortgages will rise to an average of 5.4 percent during the second quarter and reach 5.8 percent in the final three months of the year. MBA economists expect the 30-year fixed-rate loan will average 6.2 percent in 2011 and 6.4 percent in 2012.

When mortgage rates reach 6 percent, that will “significantly slow refinance activity,” MBA economists said in commentary accompanying their forecast, “but should not slow the modest housing market recovery we are forecasting.”

The MBA predicts sales of existing homes will climb by nearly 4 percent this year from 2009, to 5.34 million, and reach 5.72 million in 2011. Sales of new homes are expected to bounce back from a record low of 372,000 in 2009 to 398,000 this year and 528,000 in 2011.

The LPS February 2010 Mortgage Monitor report, which is based on data extrapolated from the company’s servicing database, showed that the pace of delinquencies was slowing, but that the U.S. delinquency rate remains at an all-time high of 10.2 percent.

All told, 13.5 percent of active loans were delinquent or in foreclosure, LPS said. The states with the greatest number of non-current loans were Florida, Nevada, Mississippi, Arizona, Georgia, California, Indiana, Michigan and Ohio.

Loan servicers modified the terms of 2 million loans in 2009, including Home Affordable Modification Program (HAMP) trial modifications, LPS said. But an even greater number of loans — 2.5 million — that were current at the beginning of 2009 are now more than 60 days delinquent or in foreclosure, the report said.

The report also showed that loan servicers are waiting longer to foreclose on delinquent loans.

Nearly 23 percent of loans delinquent for 12 months have not been moved to foreclosure status, compared with 9 percent in 2008. More than 31 percent of loans that have been delinquent for six months are not yet in foreclosure, either, the report said.

The average loan age of newly delinquent loans is now 46 months, as compared to an average newly delinquent loan age of 27 months in January 2007. During January 2010, 346,000 borrowers became delinquent for the first time, representing approximately 40 percent of all newly delinquent loans for the month.

The safest way to dispose of yard waste is to recycle or compost it. However, homeowners who choose to burn yard waste should try to accomplish this while snow still blankets the area.

Three inches or more of continuous snow cover drastically reduces the chance a fire will escape and burn unintended areas. A DNR burning permit is not required under snow-covered conditions, but local city and municipalities may require a permit at all times of the year.

Spring fire restrictions will soon take effect and will severely limit open burning. The restrictions are weather dependent, but normally last from four to six weeks until summer green-up.

Most wildfires happen during April and May and more than 95 percent of these fires are caused by human error. Past experience has shown thatspring fire restrictions dramatically decrease both the numbers and sizes of these “escaped” fires. If the DNR or a fire department is called on to put out an escaped fire out, the homeowner is responsible for the costs.

At the time of enactment of Section 118 (a) in 1954, corporations were the predominant form of business entity. Since then, the uses of partnerships and LLCs have increased dramatically. Modifying Section 118 (a) will extend a tax exemption to LLCs or partnerships provided to corporations when entering into local development contracts such as tax increment financing (TIFs).

Davis stated, “I am hopeful that the passage of this bill will encourage more development and redevelop of blight areas that would otherwise be unfeasible. As the economy begins to recover, there will be many opportunities to develop underserved markets nationwide. I am also encouraged that with this change, we can pioneer a new era of real estate development that will change many poorer inner city areas and many underserved communities.”

After 15 years of continuous market growth, RE/MAX clinched the top spot despite being outnumbered in agent count by Edina and Coldwell Banker, which both saw drastic declines in their sales volumes and had several office closings in the past year. According to RE/MAX North Central, about 1,200 agents in 45 offices closed transactions in 2009 in the 13-county Twin Cities region. That’s compared to Edina’s more than 2,000 agents and Coldwell Banker’s 1,700-plus agents.

RE/MAX Associates in the Twin Cities also had the highest number of closed transaction sides per agent with 14.83 sides. Edina’s agents had just 10.04 with Coldwell Banker Burnet trailing even further behind with 8.73.

“Not only have we achieved No. 1 market share, but our Sales Associates also have the highest productivity of any major Twin Cities real estate organization,” says David Linger, RE/MAX North Central Regional Director and Executive Vice President. “We’re proud of this accomplishment; the RE/MAX brand is stronger than ever and has the best Broker/Owners and Sales Associates in the business.”

A good portion of the network’s success in the Twin Cities can be credited to how RE/MAX has responded to distressed properties.

“RE/MAX agents and Broker/Owners have adapted to the market changes faster and more effectively than our competition,” says Greg Cecchettini, Director of Franchise Development for RE/MAX North Central. “The fact that RE/MAX agents make up over 60 percent of all the Certified Distressed Properties Experts in the U.S. is a testament to that.”

Several area Broker/Owners and Sales Associates agree. Pat Von Mosch, Co-Broker/Owner of RE/MAX Associates Plus, says her agents didn’t waste any time diving into the changing market and tackling Short Sales and REOs head-on. The result: More closed transactions and higher consumer confidence in the RE/MAX brand, she says.

“Other companies in our area – such as Keller Williams – focus on recruiting a lot of agents,” Von Mosch says. “But at RE/MAX, we focus on agent quality over quantity. Our Associates sell more because they’re more experienced and established, and they understood that they needed to adapt to our market to stay in business.”

The rise to the top provides even more ammunition for Sales Associates when they go on listing presentations and meet with buyers, says Team Leader Ryan O’Neill, whose team led the state and ranked No. 3 in the U.S. last year. A big part of the reason RE/MAX has been so prolific in the region is due to how well everyone – from the regional staff down to licensed assistants – has adapted and responded to the changed market, O’Neill says.

“The biggest lesson the market taught all of us was to diversify and learn different aspects of the business by getting education, such as the Certified Distressed Property Expert, and being more creative with our marketing to speak to homeowners in distress,” says the Hall of Fame and Chairman’s Club member with RE/MAX Advantage Plus in Lakeville.

“Being No. 1 in market share validates RE/MAX with even more consumers. We’re including this in our weekly radio show, listing presentations, buyer packages and just about anywhere we can reach consumers. We want clients to know that RE/MAX has a brand and agents they can trust, and the firepower to help them buy or sell.”

With the network’s education focus, support for teams, RE/MAX should widen its market share in the Twin Cities, says Jason Stockwell, who leads a top-producing team with RE/MAX Results in Edina.

“The work ethic and perseverance of RE/MAX agents set us apart,” Stockwell says. “You can’t stick your head in the sand and hope things blow over. A RE/MAX agent goes to work and doesn’t buy into the doom and gloom. There’s business out there, so there’s no time to complain.”

© 2010 RE/MAX International, Inc. RE/MAX Affiliates may share this article, provided they do not charge for it and this notice is included. All other rights reserved.

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It had everything he and his wife, Kathryn, had been looking for — a big yard, a great kitchen. And the new carpet and freshly painted walls were more than they’d hoped to find in a foreclosed house.

But the Blaine house also had a grisly past, one they discovered just days after they moved in, when a neighbor told them that the previous owner was murdered there by her husband.

The Fajris have since filed a lawsuit in Anoka County District Court against Edina Realty Inc., arguing that the real estate company knew about the murder and should have told them about it.

In the suit, the Fajris contend that murder is a material fact relating to the sale of the house.

“They think they bought a lemon. They feel they were duped,” said Martin Melang, the couple’s attorney.

Maria Verven, a spokeswoman for Edina Realty, said Friday that the company had no comment on the pending litigation.

TCF National Bank, which owned the foreclosed home, was originally named as a co-defendant in the lawsuit but has since been dismissed.

The case raises questions about what real estate agents and sellers have to reveal about a home’s past.

In general, real estate agents and sellers should disclose to prospective buyers if a murder has taken place on the property, experts say.

“There are some exemptions, but murder isn’t one of them,” said Chris Galler, chief operating officer for Minnesota Association of Realtors. “If a licensee is aware of a murder and the seller is aware, they both have an obligation.”

Minnesota law requires licensed agents to disclose anything that they know of that could affect an ordinary person’s use or enjoyment of the property.

Among the exemptions listed are if the place was the site of: a suicide, a natural death, an accidental death or perceived paranormal activity.

At a time when home sales are down nationwide, it’s hard to measure what effect a past crime may have on a home’s marketability. But Galler says there is no proof that a house’s history — even one that contains a murder — has a lingering effect on the home’s value.

A 2001 study published in the Journal of Real Estate Practice and Education surveyed 102 real estate agents in Ohio and found that homes with grisly histories, such as murders, sold for 3 percent less on average, but sat on the market 45 percent longer.

The murder of Helen Tomassoni, 45, stunned the neighborhood when it happened on July 21, 2007.

Her husband, Gary Tomassoni, had amassed a crippling gambling debt and also owed large amounts to family and friends. His wife had a $500,000 life insurance policy, naming him as the beneficiary.

He shot his wife twice in the head with a pistol in the couple’s bedroom, according to court records. The couple’s then-14-year-old son was in the house at the time and called 911.

Gary Tomassoni told police that an intruder had shot Helen, who was found face-down in her bed.

Police blocked off the neighborhood, using dogs and helicopters to search the area for the supposed intruder.

Blood was found in numerous spots around the house, including on clothes that had been put in the washing machine.

Last August, a jury convicted Gary Tomassoni of first-degree murder. He was sentenced to life in prison without parole one month before the Fajris closed on their first house, the one where the Tomassonis had lived for 10 years.

The Fajris paid about $200,000 for it, a price they say they don’t expect to recoup if they sell, now that they know about the murder.

Before the couple filed the suit, they asked Edina Realty to take the house back, but they were turned down, they say.

Although they’ve been living there, they say they can’t enjoy it because they’re constantly reminded of the house’s recent ghastly past.

Sometimes they say they hear noises in the home and they feel like they have to keep the lights on all the time.

“I think about it every day,” Abdelhafid Fajri said in court records. “Every time I lay in bed, I think about it. Every time I hear something, I think about it.”

According to the lawsuit, they’re seeking damages in excess of $100,000 for the difference in market value plus “severe emotional distress” caused, they say, by discovery of the murder. They’re also asking the court to rescind the contract they made to purchase the house.

“They just want something that will make them whole again and put them in the place they would have been before,” Melang said.

Allie Shah • 612-673-4488

Record snowstorms in January and February had many Americans shoveling sidewalks and driveways instead of combing through listings for open houses. Partly as a result, an index that tracks sales agreements fell 7.6 percent from December to a seasonally adjusted January reading of 90.4, the National Association of Realtors said Thursday.

It was the lowest reading since last April and a disappointment to economists, who had expected it would rise to 97.6.

The weakness, however, was not confined to the wintry Northeast. The biggest month-to-month drop was in the West, where sales fell 13 percent. Sales fell almost 9 percent in the Northeast and Midwest and 2 percent in the South.

The weather isn’t the only culprit, wrote Jennifer Lee, an economist with BMO Capital Markets. “The impact of government incentives … appears to be running out of steam, which is, frankly, a scary thought,” she wrote.

The index is considered a barometer for future sales because typically there is a one- to two-month lag between a signed sales contract and a completed deal. A reading of 100 is equal to the average level of sales activity in 2001, when the index started.

The index has declined for two out of the past three months because home shoppers feel less rushed after a deadline for a homebuyer tax credit was extended from Nov. 30 to April 30.

In addition, the Federal Reserve is on track to complete $1.25 trillion in purchases of mortgage-backed securities this month. That has kept interest rates low. The average rate on a 30-year fixed rate loan fell this week to 4.97 percent from 5.05 percent a week earlier, Freddie Mac said Thursday.

Despite lower rates, millions of homeowners are still facing foreclosure and government efforts to help them have largely failed. Droves of people who want to sell or refinance are stuck because their homes are worth less than they paid. Job losses also have led many homeowners to fall behind on their mortgages.

On Thursday, the government said new claims for jobless benefits fell last week in a sign that layoffs may be easing as the economy slowly recovers. The Labor Department said that initial claims for unemployment insurance fell by 29,000 to a seasonally adjusted 469,000.

Still, any improvement in the job market is likely to be slow, as companies are reluctant to add workers. Last week’s drop only partly reverses a sharp rise in claims in the previous two weeks.

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AP Economics Writer Christopher S. Rugaber contributed to this report.

The average listing price for Eden Prairie homes for sale on Trulia was $438,846 for the week ending Feb 24, which represents a decline of 0.2%, or $1,045, compared to the prior week and a decline of 5.2%, or $24,190, compared to the week ending Feb 03. Average price per square foot for Eden Prairie MN was $176, a decrease of 2.8% compared to the same period last year.