September 2010 Twin Cities Market Update
Date Posted:
Wednesday, October 27 2010 1:57 PM
The housing market sucks! Yep, I said it. I will say it again. The housing market sucks. But does it? I think all sellers would agree with that statement, but if you’re a buyer you should be dancing in the streets! While the tax credit is long gone and winter is coming, interest rates are at an all time low. In fact, the 30 year fixed mortgage rate in the Twin Cities region as of October 1st stood at 4.6% as compared to 5.4% in October 2009. The five year average is 6.0%. This winter may be the last chance, or one can at least hope for the sake of the economy and housing, to take advantage of rock bottom pricing and low rates. In other words, if you are a ready, willing and able buyer then get out shopping!
Pending sales numbers were down 37.8% and closed sales were down 33.5% compared to last September.
Overall year to date the Twin Cities has closed 29,406 transactions through September. This is a drop of 11.7% compared to last year. The five year average for year to date sales numbers is 32,446.
As of the end of September, total active listings are at 28,129 on the Minnesota MLS as compared to 24,687 last year.
The housing supply has crept up to 8.6 months; this is up from 6.6 months a year ago.
Sellers, on a positive note, the average sale price in the Twin Cities in September was up 6.3% from 2009 to $217,723. Homes that are priced right and in top showing condition along with a solid marketing effort continue to sell in this market.
Keep in mind buyer activity was superficially strong last year at this time with the tax credit so the sharp decreases we see year over year may not be a true comparison. Nonetheless, I think we will continue to see this downward trend in sales numbers as long as there is no new job growth in the market, unemployment remains high and consumer confidence remains low.
Comments
Posted by St Paul CondoNov 3, 2010 12:00 AM CDT
It is definitely a buyers market with the low rates, low prices and huge selection of homes out there!