The data has been compiled by the Minneapolis Area Association of Realtors for 2011. This is their year end report. To keep things simple, I am going to post this in a series of posts rather than trying to explain the entire report at once.
The “Quick Facts” are that New Listings have been trending down since 2007 while Pending Sales are not showing much of a trend, they are up from Last Year however.
I don’t think the “Top 5” really tell us anything – let’s look at Excelsior for example:
Excelsior had a 15.6% Increase in New Listings and a 141.7% Increase in Pending Sales. What does that really mean? With only the percentages, it tells us really nothing to draw any conclusions from – except to give us the ‘heads up’ to take a closer look at those areas.
Below shows the Closed Sales increased by 8.2% in 2011 and Inventory dropped substantially by 28.7%. This is a nice steady decline of inventory over time.
We had experienced the news throughout 2011 on the median and average price drops including how the Twin Cities lead in some of the largest price drops in the nation. I still believe this is part of the market correction, and we are actually getting to the bottom of the market quicker and will therefore recover quicker. The Home Buyer Tax credit just prolonged the market correction, now that it was removed – 2011 allowed us to finish the correction. 2012 may be the year we begin to see the prices increase, other say it may not be until 2014 – 2015. Right now it looks like with inventory levels that prices should stabilize this year, possibly seeing price increase in certain areas within the Twin Cities.
Below shows us the Days on Market and % of List Price Received. 2011 was a year of Distressed Sales, 50% of the market to be exact up 13% from 2010. Obviously, distressed sales brought in lower sale prices…
- Twin Cities Real Estate Market Update, 4.6 Month Supply of Homes. (craigkamman.com)
- 2011: Twin Cities home sales up, prices down (startribune.com)