June 2010 Twin Cities Market Update
Date Posted:
Friday, July 16 2010 10:47 AM
Sixty days post tax credit and the Twin Cities real estate market continues to post new records.
As most suspected, May gave us a sharp decline in pending sales numbers. In fact May gave us the lowest number on record and June was even worse. June pending sales declined 40% as compared to June 2009 and 11% as compared to the record setting May.
On a positive note, average prices did jump 9.2% to $223,359. Number of closed sales remained relatively the same to last year and the number of new listings for the month is down 12.4% to 7,278.
Closed transactions in June were down only 0.5%. Year to date the market has seen a 6.5% increase in closed sales from 2009 and an 80% increase from 2008 to 20,244 closed transactions in 2010.
As of June, total active listings are at 26,665 on the Minnesota MLS as compared to 26,204 last year.
The 30 year fixed mortgage rate in the Twin Cities region as of July 1st stood at 4.9% as compared to 5.8% in July 2009. The five year average is 6.2%.
While the job market shows no signs of improvement and an estimated one million foreclosures in the US this year I think we will see home prices to remain flat or even decline a little yet into 2011. Buyers should expect to see mortgage rates to remain low for the remainder of 2010.
