Thursday, July 05, 2007

End of the 1st half real estate update for the Twin Cities Minneapolis St. Paul

Here is the latest data from the Minneapolis Area Association of Realtors. While the news may seem bleak, we are also in the midst of the mid summer market which is typically a slower time during the year due to consumer vacations and the corporate transfer season. The good news is that we have 71.2% of the 2005 market buying levels (which was a record year for real estate sales) in the Twin Cities.

~Week by week and month by month, we have been saying the same thing for well over a year now. The Twin Cities housing market is in a state of post-boom correction and recalibration; both buyer and seller activity are down from 2006. It's also important to note that the 2006 market was down from 2005, making our current activity levels seem even slower in comparison. Newly signed purchase agreements (pending sales) for the week ending June 23 were behind last year by 9.3 percent and behind 2005 by 33.8 percent. Seller activity is also on the decline, but to a much lesser degree than buyer activity. New listings for the same week were 2.2 percent behind 2006 and 0.8 percent ahead of 2005.

As of the morning of Monday, July 2, there are 34,630 single-family housing units for sale in the Twin Cities region, up 12.2 percent from last year and 60.2 percent from two years ago. Inventory growth has been less dramatic this year due to a relative drop-off in new construction activity. One year ago, new construction housing units for sale accounted for 19.4 percent of total inventory; new units account for just 15.2 percent of inventory today.

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