What is perhaps most telling of what has been happening in the Twin Cities foreclosure and short sale market 
so far this year is this chart published last week by the Minneapolis Area Association of Realtors. It clearly show how, after a fairly steady climb in supply since January 2005 the number of lender-mediated homes for sale is showing a notable decline, back down to only 9.4% over this time last year.
Only homes priced under $150K and over $500K showed an increase over last year, while the supply of mid-priced foreclosure and short sale properties is decreasing. The property type showing the great increase in lender-mediated inventory was townhomes.
Although lender-mediated inventory is still up slightly compared to this time last year, the supply of traditional homes for sale (those that are NOT bank-mediated) is down 24.5%. Sellers in the mid-range prices from $150K to $500K are in a particularly good position, with the supply down in both lender-mediated and traditional listings.
The chart below shows what has been happening with the market share of forclosure-short sale new listings and closed sales since the beginning of last year.
You can see how new listings and closed sales were closely following each other last year, keeping the supply of foreclosure-short sale inventory pretty steady. This year has shown both an increase in lender-mediated sales (now more than half of all sales!) and a drop in new listings. This spread has resulted in a dramatic drop in the number of foreclosure-short sale homes for sale.
Click here to see the full report compiled by the Minneapolis Area Association of Realtors…and click here to see interactive, sortable data by localized area.
Sharlene Hensrud, RE/MAX Results – Email – Minneapolis-St. Paul Realtor
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