There has been a lot of data released lately, as 2008 summary statistics are compiled. See Average 2006-2008 Minneapolis-St. Paul Sale Price and Percent Foreclosures by MLS Area for some interesting information and a link to the 2008 Residential Real Estate Activity Report compiled by the Minneapolis Area Association of Realtors.
The total number of homes for sale has been hanging below the previous year since it crossed over in May of last year. This January total inventory is virtually the same as January 2007…and this January closed sales are virtually the same as last January. What is different is that a staggering 59.9% of this January's closed sales were foreclosures and short sales!
(click on charts to enlarge)
One of the results of this high percentage of lender-mediated sales is a dramatic drop in median sales price to $155,000…24.4% below last January. We continue to have a tale of two markets, however. Prices for traditional properties with no lender involvement dropped only 4.3% over last year, while prices for lender-mediated properties were down 21.4 % for the same period.
Looking at closed sale statistics doesn't really tell what is happening right now, however, because the actual 'sale' takes place weeks or months prior to closing, when a purchase agreement is accepted. Pending sales continue to grow, with every month starting with June 2008 showing an increase over the previous year.
Housing affordability continues its dramatic climb, setting another record this month at 202, up 35.6% from last year. This means that the current median family income is about twice (202%) what is necessary to qualify for the median-priced home.
The figures above are for the combined 13-county Twin Cities metropolitan area. Click here for links to the full January combined report as well as local reports for 125 metro communities.
Sharlene Hensrud, Realtor – Twin Cities Homes for Sale – Email
