Data Supplied by the Regional Multiple Listing Service Inc.

June was a busy month for SPAAR President and Snyder Team leader Jennifer Snyder. “In addition to it being ‘that time of year’ when families want to get moved and settled before the new school year, buyers feel that we have finally hit the bottom in terms of affordability,” she said.

Snyder’s sentiments are reflected in statistics released last week for the 13-county Twin Cities metropolitan area. While new listings are down, pending sales are up—nearly one-and-a-half times what they were over last June’s post-tax credit slump.

“Properties that are priced appropriately for the market are moving,” said Snyder. “Listings at all different price points are selling—and in a couple of cases it’s even getting tricky to find the right inventory for a specific buyer—a good problem I haven’t experienced in a while,” she said.

When combined with record affordability, the 5.5% decline in new listings and a 15.9% decrease in inventory add an element of urgency buyers haven’t experienced in some time.

The flow of financially distressed properties onto the market appears to be slowing, and those on the market are selling. Foreclosures and short sales accounted for 38.2% of all sales, the lowest level since June 2010. 

For more details, look at these June statistics: THE 200+ I HOUSING SUPPLY OVERVIEW

Monthly Skinny Video February 2011

The video is also offered in Spanish for our relocation friends!

Monthly Skinny Video February 2011 ~ Spanish

Home Sales were up in January 10.4 percent from a year ago and were the highest January total in the Twin Cities since 2007. “We’ve had back-to-back months where sales have outpaced our expectations,” said Jennifer Snyder, our team member and president of the St. Paul Area Association of REALTORS®.

In January in the Twin Cities, there were 2,209 sales compared to 2,001 sales a year ago, an increase of 10.39 percent. January and February are traditionally the slowest months of the year for home sales in the Twin Cities. “We have seen an uptick in sales activity and activity in the market in the last two months,” Snyder said.

Median prices were down 10.8 percent from last year to $140,000, from $157,000 last January. “We saw sales down last year, but prices increased slightly. We may be seeing a shift of increased sales activity tied to prices adjusting,” Snyder said. “Especially in the winter months, there are buyers looking for bargains, and the price decrease likely reflects an increase in sales of foreclosed properties and other distressed properties.”

The median is the mid-point. Half the homes sold for more, half for less. Numbers reflect the 13-county metro area and include single-family, condominiums and townhouses.

~SPAAR Press Release February 11, 2011~

Monthly Skinny January 2011

According to a National Association of REALTORS® survey released in January 2011, home owners and renters agree that home ownership benefits individuals and families, strengthens our communities, and is integral to our nation’s economy.

The American Attitudes About Homeownership survey found:

• 95% of homeowners and 72% of renters believe that over a period of years it makes sense to own a home.
• Despite the downturn in the economy, 93% of homeowners would buy a home again.
• More than half of owners (56%) are “very” or “extremely” satisfied with the overall quality of their family life, only 36% of renters report the same levels of satisfaction.
• 63% of renters say they will purchase a home sometime in the future.
• 18-24 year olds have the strongest desire for home ownership.

Even during this rough economic cycle, homeownership is still desired by most people.  The benefits of owning a home just outweigh any negatives.  This survey shows there will also be people looking to own a home.

~Information from the National Association of REALTORS®~

Washington County also saw an increase in year over year median sales prices.  From December 2008 through November 2009 it was $190,000.  December 2009 through November 2010 saw the median sales price increase 2.6% to $195,000.

While every city and neighborhood is different, this shows home values are increasing through Washington County.  This helps homeowners who want to refinance and sellers who are ready sell.  This also shows homeowners with no intention of selling their investment is growing.

Monthly Skinny Video December 2010

The video is also offered in Spanish.  Click here to see that version of the Monthly Skinny.

A report released today by RealtyTrac showed homes in foreclosure sold for 32% less than homes not in foreclosure during the third quarter.   This is the largest reported disparity since 2005.  Why are foreclosure homes selling for so much less? 

One reason is motivation.  Homeowners just want to get out before the bank takes the home back.  Some banks just want to get homes out of inventory as fast as possible.  Desperation often leads to premature price reductions or extremely low starting points. 

Buyer options also play a roll in pricing.  Buyers have a lot of homes to choose from right now.  Prices on foreclosures are frequently low to simply generate interest.  The more buyers you can get through a home increases the chances for an offer.

The main reason that foreclosure sell for less than non-foreclosures is condition.  These homes often need extensive repair work or updating.  Many of these homes do not qualify for FHA or DVA financing due to the condition.  Prices must be low to attract the right buyers while accounting for the work needed.   Homes not move-in ready are harder to sell, unless the price point is too low to pass up.

It is important to note that just because a home is a foreclosure doesn’t mean it’s a “steal.”  A well-maintained home with lots of appeal doesn’t create the desperation for extreme pricing, even if it is a foreclosure.  Every neighborhood and market is different as well.  It is in the best interest of a buyer to look at all homes that match the search criteria.  A knowledgeable Realtor will help you determine if a foreclosure is right for you. 

November Monthly Skinny Video