This week's Twin Cities market activity report for the week ending February 12, 2011 marks the first time we have had more than 700 weekly pending sales since May 2010, near the end of the homebuyer tax credit. January's total closed sales were up 7.8% compared to 2010. We would expect these next three months to be below last year, when we were on the final stretch of the homebuyer tax credit… but we can always hope that this is a sign we will at least break out of the holding pattern we were in for much of 2010.
Traditional sales volume looks like a ski slope down since January 2006, when traditional sellers started holding back, first waiting for the market to turn around and then waiting for the foreclosure surge to pass. Traditional sales increased again as foreclosure inventory sold off and buyers moved toward traditional sales to take advantage of the tax credit the last part of 2009 and beginning of 2010… before another drop as buyers took a break at the end of the tax credit last year. It will be interesting to see what the rest of this year brings… I know I am seeing lots of sellers tired of waiting and ready to move forward!
from THE THING, current interactive data from the Minneapois Area Association of REALTORS
As median sale price has been dropping, the housing affordability index has been rising… a good indicator of what a good time this is for buyers. With financing getting more expensive due to changes coming for both FHA and Fannie Mae mortgages… and mortgage rates at a 10-month high (although still historically very low!)… affordability is likely to start dropping again (that means this is the right time to buy if you are ready!). January's index of 241 means that the median household income was 241% of what is necessary to qualify for the median priced home under prevailing interest rates.
Breaking out median sales price by traditional, foreclosure and short sales is more encouraging. For a rolling month through February 10, median price for traditional sales was 75% above median price for foreclosures. Both traditional and foreclosure sales showed slight median price increases compared to last year at this same time.
from THE THING, current interactive data from the Minneapois Area Association of REALTORS
Weather often plays a significant role in market activity at this time of year… it will be interesting to see what the rest of February brings.
Sharlene Hensrud, RE/MAX Results - Email – Minneapolis – St. Paul Real Estate Market Information
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