MARKET BRIMMING WITH GOOD NEWS

You may have already read about it in The Wall Street Journal, but we wanted to share with you the increasing amount of good news concerning real estate market conditions here in the Greater Minneapolis area.

Today, we had a chance to sit down with analyst Jeff Allen of the Minneapolis Area Association of Realtors (MAAR). Listed below are some of the key trends that Jeff pointed-out, which we want to share with you concerning the Twin Cities:

1.) The number of new listings is down considerably from this time last year and down 15% this year over two years ago. This is an important statistic because the first sign of a market recovery is a shrinking market pool.

2.) The number of pended sales (signed agreements that are moving to a closing date) is no longer dropping. April was the first month in quite a long time that this number has flattened out which indicates that buyers are recognizing the opportunity to buy is now.

3.) The number of properties on the market is actually less than this time last year. This is the first time that has happened in quite awhile.

4.) Affordability indicators have all strengthened which is continued good news for buyers. Prices for sellers may continue to be soft for awhile.

5.) The inventory of condo and townhome properties continues to decline and is down about 6%. And the price drops that we have seen in the condo/townhome prices appears to have flattened. It appears that the condo market suffered price dips earlier than the single family market and has reached a period of recovery faster.

Overall, tightening credit will continue to make for tough sledding among some potential buyers. And we will continue to have two distinct markets for while – the "short sale and/or foreclosed property" and the "traditional" (retail).

Please share this news with friends, family, or colleagues who are considering listing their home or making a purchase. And remember: our business rests on referrals.

All the best,

-L&M


http://TeamStrand.com
Mike & Lindsay Strand
REALTORS, ABR e-Pro
(952) 945-3151
TheStrands@EdinaRealty.com