June’s figures are published in this weeks report from Minneapolis Area Association of Realtors. The month supply of homes for sale has dipped down to 4.4months. With the low supply of homes for sale and continued demand the median price continues to rise. now at $179,000.
We are seeing continued improvement in the local housing market. This Fall will be interesting to see how the supply/demand plays out locally here. If demand continues we will likely see continued price increases, perhaps regaining some of the values lost. Once the supply of discounted foreclosures disappears, primarily buildable Lots – we will see pricing come back to replacement costs. I am basing this on the Cost to supply a new Lot and build a new home. The obstacle that stands in the way of recovering the values is going to be the Dodd Frank regulations on Appraisers.
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