Closed sales took a plunge in July… no surprise because it closely mirrors the pending sales plunge in May following the end of the homebuyer tax credit. Pending sales usually become closed sales in a couple months.

0710-closedsales 

Pending sales have still been dropping, but at more modest levels as the market struggles to find normal again after the tax credit caused a shift in buyer patterns.

0710-pendingsales
New listings also saw shifts due to the tax credit and now also seem to be settling into a more normal pattern.

0710-newlistings 
The net effect of the drop in sales and increase in new listings is growth in the total number of homes for sale, which gives buyers more options.

0710-ttlhomes 
After marching up every month through June this year, median price took a slight drop back in July to $175,000… the same as it was in May.

0710-medianprice1
Condo sales continue to lag behind house and town house sales, which have been mirroring each other the last three months. We are now officially back to a buyer's market in all three categories. The market is considered balanced between buyer and seller when there is a 5-6 month supply of homes available for sale. 

0710-monthssupply
When broken out by price range, inventory in the lower price ranges is growing again, while all price ranges above $250,000 now have fewer homes for sale than they did last year. Sales increased over the last 12 months in the $120K-$190K and $350K-$500K categories.0710-pricerange 
You may have seen the article in yesterday's Star Tribune that talked about how sellers in Minneapolis are offering price reductions more often than in any other U.S. city, cutting prices at least once on 42 percent of all active for-sale listings, with an average markdown of 9 percent.

This makes sense when you look at the change in the number of property showings in our company this year compared to last year. The drop is pretty dramatic, demonstrating how many fewer buyers we have looking at homes this year after last year's buying frenzy.

MAR-JUL-09-10-Showings

Don't let the end of the tax credit 'sale' make you think it's no longer a good time to buy. This is a wonderful time to be a buyer! Interest rates continue to be at record lows meaning you can buy more house for the same monthly payment… prices are good… and inventory is growing again giving buyers great choices.

The figures above are based on statistics for the combined 13-county Twin Cities metropolitan area released by the Minneapolis Area Association of Realtors. Click here for links to local reports for 125 metro area communities.

Sharlene Hensrud, RE/MAX Results - EmailMinneapolis – St. Paul Real Estate Market Information

RELATED POSTS

About Sharlene Hensrud

I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

Related Posts

If I sell my home, will I be able to find another one to buy?

With historically low inventories homes have been selling so quickly and are in such short supply that many sellers who are planning to buy another home after they sell are getting nervous… what if you can't find anything you want to buy? Becoming homeless when you sold a nice home can be a very real concern..

Read More

July 2015 Real Estate Update… days on market at record lows

If it seems like SOLD signs go up almost as soon as the FOR SALE sign goes up you aren't far from the truth. Days On Market are at record lows, but the average is still 63 days from listing to pending. Buyers will likely tell you it seems more like one or two days….

Read More

Months supply of inventory continues to drop

Months supply of inventory has been dropped slowly but steadily since March, now down to 3.4 months metrowide according November data released this week by the Minneapolis Area Association of Realtors. When broken out by type, the shortage is strongest in the townhouse market, which is down to a 2.6 month supply. Condos have seen.

Read More
Sort by:   newest | oldest | most voted
Puma Clyde
Guest

The house is the place for you people! With it we are free from sun and wind! You speak very good! It enjoys popular support! Now we all need a house! Thank you for your willingness to share with us

wpDiscuz