Market update in the Twin Cities

Twin Cities Housing Update:


Per the Minneapolis Area Association of Realtors for the week of November 3, 2008



"The big let down in home sales that many of us have expected following the recent drops in consumer confidence has yet to materialize in the Twin Cities housing market. For the week ending October 25, there were 602 pending sales, up 17.1 percent over the same week last year. Despite the uncertainties swirling in the general economy, home sales continue to post year-over-year increases every week. Lender-mediated sales continue to grow market share, as 51.1 percent of pending sales for the most recent reporting week were foreclosures or short sales, which should mean continued declines in median sales prices."

"New listings for the same week were down 2.0 percent from the same week in 2007, and the total number of active homes for sale is down by 9.2 percent year-over-year."



This is a clear sign that the market is improving and continuing to correct. The real estate market needs to clear out the foreclosure inventory and this is happening with the over 50% of all sales bank-owned or lender mediated.



I often get the question, "when will we hit bottom in the real estate market?" I wish I could look into a crystal ball and give you an answer, but I will try the next best thing. What experts are saying is this, "One year from now, we will not be seeing any appreciating values. Best case scenario, we will maintain current property values. Some will say that we have hit the bottom already, or are very close. Some feel we have another 6-12 months beofre we see the bottom. The truth is we wont know when we hit the "bottom" until it has already happened (or probably 6 months later). There is no way to time the market- similar to the stock market. Real Estate is and has always been a Long Term investment. With all the positive things going on in the market - great Buying opportunities for First Time Homebuyers and move up buyers, low interest rates, good inventory, the time has never been better to invest.