Wednesday, January 19, 2011

The Ups and Downs of the Twin Cities Real Estate Market

January 19, 2011

Minneapolis/St. Paul Minnesota

Twin Cities home buyers and sellers both showed week-over-week increases coupled with year-over-year declines. The 1,490 New Listings were up over 120.0 percent from the previous week but down 10.7 percent from the previous year. The 475 Pending Sales were up over 70.0 percent from the previous week but down 8.7 percent from the previous year.

Moral of the story? The market has embarked on its typical new year's ascent as we begin our long drive toward spring. We likely won't match 2010 levels until the summer months – when we're finally comparing two nonincentive markets on a level playing field.

Inventory was the metric to watch for the week, as the number of active listings for sale snuck in only 7.2 percent above year-ago levels. That's the smallest inventory increase since the first full week in August 2010. As of January 18, there were 21,687 homes available for purchase. While that's plenty of product for buyers to sift through, sellers will have to ensure that their properties show well and are priced aggressively.

There are many pedestrian buyers out shopping for a new home. The "good deals" are plentiful along with some legendary deals in the past. Many are saying the bottom is here as it appears to be clearly in site as we look back at 2009. While we may remain around the bottom of the market for a period of time with some small ups and downs, it is this author's opinion that the big correction has occurred.

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