Minneapolis Real Estate Update

We are slowly but surely starting to get more good news for the Minneapolis and St Paul real estate markets! This week’s “weekly market activity report” just came out and it does indeed have good news. When looking at the last 20 weeks alone, pending sales in 2008 have been higher than the same week in 2007. Common sense tells us, more pending sales is surely a great sign indeed for our local real estate market.

There were 1,315 new listings that went onto the MLS here last week. This was a 9% decline compared to last year at this exact same time.  Pending sales did in fact rise significantly, with 649 properties receiving an accepted purchase agreement this week. This is an increase of 19.1% compared to last year at this exact same time. The overall inventory of homes for sale here in the Minneapolis real estate market is down 9%, with 29,365 properties currently for sale on MLS.

The average market time for a property here in the Twin Cities is at 141 days, and the percent of original list price received at the time of sale is down to 91.3%. This is down 1.9% compared to 2007 at the exact same time.

Lastly, there are currently 10.72 houses on the market per one buyer. This too is down 13.9% compared to last year.

Overall, if you are a home buyer here in the Minneapolis and St Paul markets, realize that the supply of homes for sale is surely decreasing. It is still a very strong buyer’s market here, but these numbers are in fact showing that we may have “hit the bottom.”  With more pending sales each week, the overall supply of homes shrinking, and less new listings coming onto the market, we are moving back in the direction of a balanced marketplace.

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