Saturday, April 11, 2009

"Ridiculous Affordability" Driving Mpls. Home Sales

FINANCE AND COMMERCE -- Buoyed by historically low interest rates and bargain hunters snapping up foreclosed properties, Twin Cities’ pending home sales rose 21.3% in March compared with the same month last year, the Minneapolis Area Association of Realtors reported Friday (see chart above).

The association’s news, based on data from the Regional Multiple Listing Service of Minnesota, marked the 10th straight month of year-over-year increases in pending sales and was the biggest gainer since December, another month when mortgage rates dropped precipitously.In March, there were 4,407 pending homes sales in the Twin Cities, up from 3,632 pending sales the same month in 2008. Meanwhile, first-quarter pending home sales rose 13.7% from the same period a year ago.

The median sales price for all properties of $154,125 in March is down 22.9 percent from a year ago ($199,902, see chart above), skewed heavily downward by the increased prevalence of foreclosures and short sales, the association said.

"Low rates and ridiculous affordability are driving this deal,” Steve Havig, president of the Minneapolis Area Association of Realtors, said in a statement. “The $8,000 federal tax credit for first-time home buyers adds fuel to the fire.”

Many of the fundamentals to support a recovery are improving. For example, the average number of days homes remain on the market is down, the number of available homes per buyer is lower and many homes for sale are garnering multiple buyer offers.


At 4/13/2009 10:00 AM, Blogger bix1951 said...

I met a young couple yesterday with two small children. They had just moved into a newly bought three bedroom house in Temecula, California. The parents are only 22 years old. The economy is serving them well.


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