Q1 2009 Market Update
Date Posted:
Friday, April 17 2009 5:29 PM
The Minneapolis Area Association of Realtors (MAAR) reported yesterday foreclosure inventory is down by about 1,200 units to 7,674 units for sale on the Minnesota MLS. MAAR points out there has been heavy buyer activity brought on by low rates, the $8,000 tax credit for first time home buyers and the increasing affordability of homes. All this, along with fewer foreclosure filings continues to decrease the inventory.
We have seen 10 consecutive months of increased pending sales and the first quarter of this year was up 13.7%. There are 5.57 houses per buyer, days on market are declining and most listings are seeing a higher percentage to list price. All are very, very positive signs for the Twin Cities market.
Keep in mind the foreclosure moratorium that was in place was lifted and J.P. Morgan Chase & Co., Wells Fargo & Co., Fannie Mae and Freddie Mac have all increased their foreclosure activity and more foreclosure listings are on the way. The coming inventory may continue to put downward pressure on overall prices. The buyer activity needs to sustain to keep the market moving and the powers to be are not making this easy. The DPA programs are gone as of late last year and now the Minnesota House is cutting their down payment assistance by 66% and in affect may take away 200 first time home buyers from the market. For more on this topic, check out The Mortgage Scoop.
Want to see how lender mediated transactions are affecting your neighborhood click here. Q1 2009 Update
