Minneapolis real estate update video from the Minneapolis Area Association of Realtors. Statistics are extracted from the Northstar Regional MLS.
Numbers are helpful, but they don’t mean anything if you don’t look at the context and ALL of the other numbers. For example, we have some exciting numbers to share with you about the Minneapolis real estate market; September 2008 pending sales for the Twin Cities this year skyrocketed to 4036 homes, comprising a 42.2% increase over sales from September of last year.
Sounds pretty good? Well, maybe. Don’t forget that September 2007 sales were historically low. Maybe that will throw a little cold water on some of your excitement. Also, the end of zero down federal loan programs made a sort of “last call” for zero down homebuyers this summer. As the sun started to set on these homebuyers, they jumped on the bandwagon at the last minute.
It is also important to note that 41% of September 2008 pending sales were lender-mediated foreclosures or short sales. As a result, prices for Twin Cities real estate dropped 11% compared to last September.
However, there are some strong, mitigating positive factors. All of those lender-mediated sales helped purge a market that was flooded with cheap inventory. Investors will probably continue to scoop up properties. Also rates are very low, and make excellent opportunities for move-up and first-time home buyers. People will continue to take advantage of the low prices, and will work creatively to come up with down payment. The affordability index for the Minneapolis real estate market remains high, and bodes well for future sales.
My own theory is that there is a lot of pent-up buyer demand among folks who are worried about the presidential election. When the new president is inaugurated, people will see that the new president won’t make the sky fall down, and buyers will show more consumer confidence.
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