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Minneapolis housing market activity for week 05/26/2009

Zeb Haney — Thu, 28 May 2009 12:05:13 +0000

As of May 26th, the Minneapolis metro housing market (12-county) inventory is down (to 23,855) from this point last year (27,358), pending sales up are (12,750) up from this point last year (10,296), with the Minneapolis housing market overall average of days on market until a sale down from this point last year, from 154, to 150. Also, the percent of list price received at sale is down 1.7% from this point last year, from 31.7%, to 90.0%.

In general, these are good signs for the Minneapolis housing market. However, with the very quick, recent spike in interest rates, we could be slowing our momentum in a very fragile housing recovery. More to be revealed…

Southwest Minneapolis and Edina Housing Market Recap W.E. 05/17/2009

Zeb Haney — Mon, 18 May 2009 12:14:02 +0000

While looking through the sales stats for the Southwest Minneapolis and Edina housing market, I find a few bits of encouraging news. Some of this news is for the Minneapolis/St. Paul housing market in general, but I will break it down.

Edina: New listings are down. Inventory is down, mortgage rates are again down. Also, housing prices (recent sales only) are down in April ’09, compared with April ’08. At first glance, one might think that the prices in Edina are falling. In most cases, this is not true. True, higher-priced homes in Edina have taken a hit (sluggish upper-bracket sales), but the average home in decent shape still sells for a premium, and usually fairly quickly. Also, there has been a rush to purchase the lower-end homes in Edina, primarily due to the very low interest rates, and the government-backed first-time home buyer incentives. This has skewed the averages across the entire metro market. Average days on market before a sale on a home in Edina is currently about 144.

Southwest Minneapolis: Pretty much the same situation as Edina, with the average days on market time before a sale being about 113. This is pretty dang good, considering the entire Minneapolis metro housing market has an average of 7.5 (about 245 days) months of supply. At the higher-end of the market ($1 Million-plus) the current supply/inventory is about 28 months.

What these stats do show, is that Southwest Minneapolis and Edina are still the 2 best places to buy a home in the entire Minneapolis/St. Paul housing market.

Minneapolis Real Estate Market is Hot under $300K

Zeb Haney — Wed, 13 May 2009 15:49:26 +0000

With an increase of 23% in pending (sold, but not yet closed) sales at this point of 2009, versus 2008, the Minneapolis real estate market has indeed been heating up. However as always, there is a further reality behind the statistics. Our current increase in sales is being driven by the price-point of $300,000 and lower. The farther above that price you get, the exponentially slower the sales get. In any normal market this is the case, but now it is much more so than usual.

The micro-market at $300K and lower is hot right now and we are currently burning through our stock in the Minneapolis real estate market. Many agents are noticing (and commenting, as I am) that the good home inventory is very rare now. We have a large amount of mediocre and lower stock. We are also seeing the return of very frequent multiple offers at the $300K and lower micro-market. It will be interesting to see how this plays out.

One thing to expect though: By the end of this year, Fannie, Freddie and Indy should be releasing a whole new, second wave of short sales and foreclosure properties, with another deluge to the Minneapolis area real estate market. The question is: Will the low interest rates continue, and the will the fed extend the $8,000 first-time home-buyer tax credit, in order to create the massive drive to purchase this second wave? While I do not like the fed manipulating interest rates in the first place, currently, the toothpaste is out of the tube, and for the time being, I certainly hope the low interest rates and the tax credit are both extended to meet the upcoming increase in supply.