The change in non-current mortgage loans is down 36% in the last 12 months in Minnesota in spite of a 4% increase in Minnesota foreclosure starts from the 3rd to 4th quarter 2010, according to the National Association of Realtors (NAR). Last year 42% of Minnesota sales were distressed properties. NAR estimates that Minnesota currently has a 10-month supply of shadow inventory.
In NAR’s definition, shadow inventory consists of bank Real Estate Owned (REO) properties not currently listed for sale, along with properties that are either in foreclosure or near foreclosure (those in default 90 days or more). Not counted are delinquent properties whose owners are trying to modify their mortgage or delinquent properties already on the market as short sales or foreclosure sales.
This means that there are still opportunities for buyers in Minnesota looking for distressed properties, while also indicating that the situation appears to be slowly improving.
Sharlene Hensrud, RE/MAX Results - Email – Minneapolis – St. Paul Real Estate Market Information
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