According to data recently released by the Minneapolis Area Association of Realtors, the number of foreclosure and short sale properties on the market made another signficant increase last quarter, resulting in growth of 64.6% so far this year. In contrast, inventory of traditional homes has dropped, resulting in a year-to-date decline of 22.9% of market share.
With winter months soon upon us, traditional sellers usually pull back. Lender-mediated homes stay listed, however, likely resulting in an even higher market share of lender-mediated properties for sale in the coming months. Not surprisingly, the largest share of these properties is in the lower price ranges.
Median sales price slipped again in the third quarter, with the continued trend of prices for lender-mediated properties decidedly lower than for traditional properties. The one-year price change was down 9.1% for lender-mediated properties and down 4.6% for traditional properties. (Click on chart above to enlarge.) At least foreclosure and short sale properties are selling at about the same rate as they are coming on the market…34.1% new listings and 34.5% closed sales for the third quarter.
The percentage of lender-mediated properties varies greatly from area to area. Below are 3rd Quarter "Top 25" lists for MLS areas with the highest and lowest percentage of foreclosure/short sale homes listed for sale. Click here for the lists for 2nd Quarter 2008.
Click here for the full report compiled by the Minneapolis Area Association of Realtors. It includes data for both traditional and lender-mediated homes by property type, price range, MLS area and city.
HIGHEST PERCENTAGE OF SHORT SALE/FORECLOSURE INVENTORY BY MLS AREA – 3rd Quarter 2008
- Minneapolis North – 69.0%
- Brooklyn Center – 63.7%
- St. Paul Central – 63.1%
- Minneapolis Camden – 63.0%
- St. Paul Phalen – 60.1%
- Spring Lake Park – 59.5%
- St. Paul Hillcrest/Hazel Park/Dayton’s Bluff – 57.2%
- Minneapolis Powderhorn – 51.8%
- Brooklyn Park – 50.3%
- St. Paul Riverview/Cherokee – 47.9%
- Minneapolis Phillips – 46.6%
- Hilltop/Columbia Heights – 45.6%
- St. Paul Home Croft/West 7th – 45.3%
- Cambridge – 44.9%
- Big Lake Township – 44.5%
- TIE – Minneapolis University & Newport/St. Paul Park/Cottage Grove – 43.2%
- Anoka – 43.0%
- Coon Rapids – 42.7%
- Elk River – 42.3%
- St. Paul Southeast St. Paul – 42.1%
- Lexington/Circle Pines – 41.9%
- South St. Paul – 41.6%
- Isanti County – 40.8%
- Crystal – 40.3%
- Fridley – 39.8%
LOWEST PERCENTAGE OF SHORT SALE/FORECLOSURE INVENTORY BY MLS AREA – 3rd Quarter 2008
- Eastern Dakota County – 0.0%
- TIE – St. Paul Mac/Groveland/River Road & Edina – 5.8%
- Minneapolis Central – 6.7%
- Northfield – 7.4%
- Mendota Heights/Lilydale/Mendota Heights – 7.9%
- St. Paul Downtown St. Paul/Capital Heights – 8.0%
- Hutchinson – 8.3%
- Minneapolis Calhoun/Isles – 9.2%
- Lake Minnetonka – 10.8%
- Sunfish Lake – 11.1%
- TIE – Stillwater/Bayport & Plymouth – 11.4%
- Hennepin Northeast – 11.9%
- Goodhue County – 12.0%
- TIE – Victoria & Carver County – 12.5%
- TIE – Chanhassen & Minneapolis Southwest – 13.6%
- TIE – North Central Suburban & St. Louis Park – 13.8%
- Bloomington West – 15.0%
- Minnetonka – 15.2%
- Eden Prairie – 15.7%
- TIE – Falcon Heights/Lauderdale/Roseville & Golden Valley – 15.8%
- Rice County – 16.2%
- Le Sueur County – 16.7%
- St. Paul Crocus Hill – 17.7%
- St. Paul Highland Area – 18.6%
- Arden Hills/Shoreview – 18.7%
