Real Estate Weekly Update
July 18, 2011
Home sales in the Twin Cities housing market continue to show strong year-over-year growth, but we must continue to point out that this is mostly due to how extraordinarily quiet last year was at this time following the expiration of the federal home buyer tax credit.
For the week ending July 9, there were 788 pending sales, an increase of 40.2 percent from a year ago. The amount of signed purchase agreements seen in recent weeks is similar to the activity for the same weeks in the summer of 2008.
The good news is that fewer homes are being listed, which is helping to dampen any potential for an oversupply problem. Over the last three months, there have been roughly 1,400 fewer new listings than during the same period in 2010, and the inventory of available homes for sale is down 16.1 percent from this time last year.
As always, balance between buyers and sellers plus a healthy, sustainable market is the ultimate goal.
When looking at where the market may be heading, local data offers a more accurate and reliable picture than national headlines. For the 12-month period spanning July 2010 through June 2011, Pending Sales in the Twin Cities region were down 14.6 percent from the same period a year prior. However, the largest gain occurred in the $1,000,001 and above range, where they increased 12.2 percent to 286 units. The overall Median Sales Price was down 6.0 percent to $159,800.
However, the property type with the smallest price decline was the Single-Family segment, where prices decreased 5.4 percent to $175,000. The price range that tended to sell the quickest was the $120,000 and under range at 135 days; the price range that tended to sell the slowest was the $1,000,001 and above range at 241 days.
Market-wide, inventory levels were down 15.9 percent. The property type that lost the least inventory was the Single-Family segment, where it decreased 14.1 percent. The price range in which supply grew the most relative to demand was the $190,001 to $250,000 range, where months supply increased 9.1 percent to 8.4 months.
Contact us for additional charts and information on the market.
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Statistics provided by the Minneapolis Area Association of Realtors.
Kate Walsh, REALTOR
Ellen Walsh, REALTOR