The third quarter of 2008 market activity for Minneapolis real estate saw an increase of foreclosure and short sale (lender-mediated) Minneapolis home sales. As you can see in this chart, this is a significant increase over 2007 and 2006. There was an exceptionally sharp increase in Minneapolis short sales and foreclosures this September compared to last year.
A recent report released by the Minneapolis Area Association of REALTORS discovered the following:
- Inventory of non-lender mediated homes has declined by 22.9%
- Lender mediated home inventory has increased by 64.6%
- 28.1% of Twin Cities homes currently for sale are lender mediated
- Home prices in general have declined, but less so for traditional or non-lender mediated homes. Prices on Minneapolis real estate listings that are lender-mediated homes are dropping quickly as banks are now eager to unload them.
- Traditional home sellers will frequently pull their homes off the market for winter, but foreclosure and short sale homes remain listed. This means that the inventory of non-traditional homes will be higher during the winter.