Friday, December 11, 2009

Twin Cities Real Estate: On the Road to Recovery


StarTribune -- Twin Cities home prices declined in November by the smallest amount in more than two years as the inventory of homes for sale returned to more-normal levels. Those are the latest glimmers of a market on the mend found in the monthly housing numbers released Thursday by the Minneapolis Area Association of Realtors (MAAR).

"We are bottomed out. We are on the road to recovery," said MAAR president Steve Havig.

A surge in sales helped the cause, with a hand from the government. Closed sales jumped nearly 70% from a year ago to 4,304 (see chart above), thanks in part to the bump from buyers rushing to take advantage of the $8,000 first-time home buyers tax credit which was originally slated to end in late November.

MP: The "supply-demand ratio" (SDR) measures the ratio of the number of active Minneapolis area home listings for each buyer, and the SDR fell to 9.28 in November, down from 12.06 last November and 14.38 in November 2007. 

2 Comments:

At 12/11/2009 4:07 PM, Blogger OA said...

One crazy thing forced upon us by legislators is the new appraisal standards, where appraisers are drawn from a pool without regard to qualifications.

So in Southern California where the market has ticked up a bit, many appraisals are coming in too low. It's such a problem that I've lost several houses to all cash investors who bid lower. The sellers just didn't want to take a chance on an appraisal not getting near a higher price. So the new regulation is actually preventing an increase in prices and letting investors rule the market.

On the one appraisal I had, the appraiser adjusted downward for comps with a higher square footage but did not adjust upward for comps having much lower square footage. One of his comps wasn't even a sale, it was a quit claim deed to a relative. That deal fell apart for other reasons, but the appraisal should have been a lot higher even using older sales.

 
At 12/11/2009 6:31 PM, Blogger juandos said...

I'm perusing the Zillow site for information on Minnesota in general...

Now I have NO idea of Zillow is at all accurate or timely but: MN Foreclosed Homes For Sale - 8500+ of them

In the Twin Cities area according to Zillow there are 8114 foreclosed homes for sale if I'm reading this right...

 

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