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CHALLENGES AND OPPORTUNITIES <br />Although the low unemployment rate is positive, if the unemployment rate continues to de- <br />cline it could be difficult for Ramsey businesses to find enough labor to fill job openings. <br />Like many suburban communities on the fringe of the Metro Area, Ramsey householders <br />are commuting outside the city for employment. Only 8% of Ramsey's householders are <br />also working in Ramsey; meaning over 90% of Ramsey householders commute for employ- <br />ment outside of Ramsey. Additional job creation in Ramsey will result in household growth <br />that could exceed projections and accelerate housing demand. <br />• Land Supply. New construction activity in Ramsey has been strong the past two years and <br />is approaching production levels between 2002 and 2004 before the housing market slow- <br />down. Based on the current supply of vacant developed lots, the current lot supply is esti- <br />mated to be about three years should lots continue to absorb at the same pace for the next <br />few years. Because new lot product tends to take a few years before homes are shovel <br />ready; new lot production should be occurring now to ensure adequate land supply in the <br />short-term. If new lots are not developed soon, upward pressure on land costs will result <br />driving up the cost of housing. <br />• Lender -mediated Properties. Lender -mediated properties in Ramsey have declined sub- <br />stantially since the housing downturn and Great Recession of last decade. Lender mediated <br />properties (i.e. foreclosures and short sales) accounted for about two-thirds of transactions <br />between 2009 and 2011 declining annually since and comprising about 3.2% of transactions <br />in 2016. Ramsey, like other further out suburban communities, experienced far more fore- <br />closures than many communities in the Metro Area. The continued decline in lender -medi- <br />ated properties will enhance the overall real estate market and pricing will continue to gain <br />from all the losses of last decade. As most homeowners have regained lost equity, the Ram- <br />sey housing market should continue to experience stronger velocity as existing homeown- <br />ers who were unable to move now may have the equity to pursue a trade -up home. <br />MAXFIELD RESEARCH AND CONSULTING 155 <br />