Twin Cities Home Sales: Are we out of the woods?
Yes. No. Kinda. Maybe. Which is it? The numbers for home sales Twin Cities are a mixed bag and they are sending mixed messages. New listings entering the active mls market are down, which bodes well for home sellers. Prices are down, but is that number distorted by lender-mediated property listings?
Here’s a YouTube from the Minneapolis Area Association of REALTORS:
Here are a few highlights, in case you don’t want to watch the video:
- April 2009 home sales were up 24% from April 2008. The increase is attributed to low interest rates and the high affordability index for Minneapolis homes.
- The Twin Cities housing affordability index is at a record high of 219, constituting a 45% increase since April 2008. This means that the median consumer income is 219% of what is necessary to qualify for a median-priced home.
- The number of active listings is down 18% from last April,which bodes well for area home sellers. This time of year is normally the seasonal time for an increase of available homes. The market has been oversupplied with MLS inventory for a number of years. The numbers indicate that this may be changing. The rate of new listings hitting the market is decreasing, while increasing home sales bring inventory supplies down.
- About 46% of April 2009 sales were lender mediated. Lender mediated listings sell at significantly lower prices, skewing home price stats downward. Median home prices are down 25% from last year, but this number is misleading.
- It’s a great time to buy. The Twin Cities home sales are fueled by lender mediated listings, low rates, and the $8000 tax credit. None of these will last, but the economy is predicted to recover gradually.
Is the Minneapolis MN real estate market out of the woods? Maybe.