What is currently happening in the real estate market?

Who says homes aren't selling? I am currently working with buyers who put an offer on a home yesterday that has 3 other offers on it. Here is the interesting part, the home was brand new to the market yesterday!

I thought I would share with you the latest YouTube video update on the Twin Cities market courtesy of the Minneapolis Area Association of Realtors.

Have a great weekend!

Home sales hot streak continues into spring heat

I haven't given an update on the market recently so I thought I would share with you some great information that came out from the Minneapolis Area Association of REALTORS:

Minneapolis, Minnesota (May 12, 2009) – April home sales in the Twin Cities were even stronger than March's upswing, according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.

There were 5,211 pending sales in April, up 23.8 percent from last April. This is the highest showing of signed purchase agreements in April since 2005 and the tenth consecutive month of year-over-year increases.

"Low rates and excellent affordability are what this is all about," said Steve Havig, MAAR President. "Buyers can see for themselves that opportunities are available and the time for action is now."

Of the month's pending sales, 46.0 percent were lender-mediated foreclosures and short sales—down from the last few months as more traditional properties are sold during the spring selling season but up from last year at this time.

The supply of homes for sale continues to experience sluggish growth this spring. There are currently 26,410 homes for sale in the Twin Cities, up 416 units from last month and down 18.4 percent from this time last year. The number of houses for sale for each buyer, as measured by our Supply-Demand Ratio, sits at 5.23 for May—down 28.6 percent from this time last year.

The median sales price for all properties in April of $153,000 is down 25.2 percent from a year ago. While this figure is mathematically correct, it is conceptually flawed. Since a higher share of sales this April were lender-mediated than last April, the number is skewed downward. The median April sales price of traditional homes was $205,000, down 8.5 percent from a year ago. Lender-mediated homes posted an April figure of $120,000, down 21.5 percent from a year ago.

"The overall median price in this market is misleading," said MAAR President-Elect, Brad Fisher. "The traditional and lender-mediated markets don't exist in separate vacuums, but they do include very different kinds of sellers and buyers. It is important to note the distinction."

Have a great Memorial Day Weekend!

What is happening in that crazy real estate market of ours?

I have recently had several people ask me about this crazy real estate market we are experiencing. Is it a good time to buy? Is it a good time to sell? What is happening out there?

Unfortunately the answer is not a simple one but hopefully with help from the Minneapolis Area Association of Realtors (MAAR), I can give it a little more clarity. I have attached a link to September's "The Skinny" brought to you by MAAR. Take a few minutes to watch this video clip as I think it provides a lot of clarity to what we are facing.

In short, inventory is decreasing (good for sellers), buyer demand is increasing (also good for sellers), however prices seem to still be decreasing slightly (good for buyers). Talk about something hard to get a handle on!

The biggest factor in all of this appears to be lender mediated properties (foreclosures and short sales) which I can explain a little more in depth in a different posting. Even though demand is up and inventory is slowly decreasing, lender mediated properties are causing prices across the market to decline slightly. You will see in the video that median sale prices of lender mediated properties went down in August by 9.6% while owner occupied home prices only declined by about 4.3%.

So what is the answer? It is a good time to buy or sell? Buyers still have a fantastic inventory to choose from, interest rates have recently declined to under 6%, and as long as homes are priced well and properly staged, homes are selling allowing sellers to move on to make a great buy of their own!

Take a minute to watch "The Skinny". I would love to have your feedback and questions. Call or email me anytime!