February Market Update - buyers, your time is now! | HomesMSP

Pending sales increased a bit in February compared to January…

…and new listings dropped a bit… resulting in about the same number of homes available for sale. Last year at this time we were getting into big surges in both listings and sales as buyers and sellers rushed to take advantage of the end of the federal tax credit.

Coming out of the depths of a long, cold, snowy winter it isn't surprising that days on the market have continued to grow…
…and median sale price has continued to decline as properties linger on the market and prices drop.

This corresponding ascent and descent started at the end of the federal tax credit last year. As other parts of the economy show improvement, I am sensing a feeling of optimism in buyers and sellers that as temperatures rise and snow recedes we will also see a positive impact on the real estate market.

This is a great time to be a buyer! Even though interest rates have gone up a bit, they are still lower than they were last year at this time… something we won't likely be able to say next year. And prices will likely be higher next year at this time as well.

In looking at median prices, traditional sellers should be encouraged that the slope down in prices has been much more pronounced for foreclosures and short sales. In fact, median sales price was up a little for traditional sales compared to the same time last year.

If you would like to check out the market in your neighborhood go to THE THING, very cool interactive current market data presented by the Minneapolis Area Association of REALTORS.

The bottom line is we are still waiting for the spring uptick in the real estate market. Spring officially starts this Sunday… hopefully the thaw won't be far behind.

Buyers… now is your time! Housing affordability as measured relative to prices, interest rates and income ticked down a bit in February after months of climbing… it could be we have hit the proverbial 'bottom'.

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 local reports on 200 metro area communities.