In July 2011, foreclosures and short sales accounted for 45.4% of home sales in the Twin Cities. In July 2013, these same market segments made up only 26% of home sales. As far as new listings, in July 2011, distressed properties made up 41.2% of the market, but in July 2013, only 17.9%.
Traditional sellers are coming back into the market. All new listings were up 24.6%, but the traditional homes on the market were up 55.7%, the highest increase in almost ten years. Inventory is still low, down about 13% from July 2012 which is making this a seller’s market. The average days on market time is now 72 days and sellers are receiving an average of 97.5% of asking price which is the highest ratio in about seven years.
Double click graph to enlarge.
In Minneapolis in February 2013, there were 2,736 closed home sales, down 4.7% from a year earlier. The number of homes for sale dropped 31.6% to 12,202 active listings. This represents the lowest number since January 2003.
Listings of traditional sales is up and distressed properties is down which is great for the market. Traditional sales jumped 21.5% year-over-year, while foreclosures and short sales dropped 23.5% and 28.5%, respectively.
Buyers are out in force this spring and they are motivated, now we just need the sellers to get their homes on the market so there is something for these buyers to purchase!
Compared to last year, foreclosures in Minnesota fell to levels far below last October. On the down side, filings were up slightly from September. According to Realty Trac numbers 1 in 1119 homes in Minnesota were in foreclosure compared to the nationwide average of 1 in 706. For the Twin Cities this is a 31% decrease from levels in October 2011 but a 24% increase from September. The most likely reason for the increase is the different rates of processing foreclosures since the height of the foreclosure process in 2010 and the backlog of foreclosures that needs to be put on the market. HousingLink just released their 2012 third quarter Minnesota Foreclosure Update, showing sheriff sales are down 10% from the third quarter in 2011 and down 38% from the third quarter in 2010! Overall the decline of foreclosures in the market is helping to stabilize home and is sending the market back to traditional home sales rather than distressed properties.
Join me and the Realife Cooperative of Burnsville on Wednesday, March 21 at 11:30 for a 2012 Housing Market Update Seminar. Get information on what has been selling, what effect short sales and foreclosures are having on the market, how to get the most for your home and much more. Space is limited so call early to reserve your spot! Click here for all the details and I hope to see you there!