Tuesday, May 01, 2007

Real Estate Market Moves With Caution

The key word in explaining the current state of the Twin Cities housing market is caution. There is a renewed sense of caution in the lending industry following the subprime mortgage market fallout, with lenders tightening restrictions on loan qualification. And buyers are showing continued restraint despite a market with improving affordability and a wealth of housing stock to choose from, possibly wary from the slew of anxiety-invoking media pieces on the housing market.

The effects of this caution can be seen in our spring activity, which is growing at a slower pace in 2007 than it did in 2006. Newly signed purchase agreements were 15.6 percent behind the same week last year and new listings were 7.1 percent behind for the same time comparison. Growth should remain gradual and measured in the coming months as we enter the summer selling season.

Want to find a snapshot of what homes are selling for in your area? Go to www.thebasilgroup.com and click our new tab on the front page: How much is your home worth?