Minneapolis—St. Paul Real Estate Market Update

Real Estate Weekly Update
October 12, 2010

We’re used to seeing housing activity slow down at this time of year. Trouble is,
this seasonal slowdown is amplified when compared to a front-loaded 2010
selling season and a comparably strong tax-credit-driven 4th quarter 2009
selling season. The net effect is that year-over-year changes are comparing an
incentive period to a non-incentive period. Keep that in mind in the coming
weeks when looking over the latest housing market figures.

For the week ending October 2, sellers placed 5.3 percent fewer homes on the
market. In sum, 1,541 new properties came online during the week. By
comparison, over the past three months, the average decline between this and
last year’s activity is 9.1 percent.

The 630 pending sales during the week were 39.6 percent fewer than the same
week last year. Since the second week of June, the percentage decline in
buyer activity from the same week last year has ranged between 48 and 34
percent. That’s not a pretty picture for the most recent four-month period.
Inventory continued along its growth path, checking in at 27,033 as of October
12. This was an 11.0 percent increase over last year at this time, which is the
largest increase since the final week of January 2008. Market times and
negotiations are starting to reflect this trend.

As reported by the Minneapolis Area Association of Realtors