Twin Cities area Real Estate Statistics for January
Well the stats are in for the month of January 2007 and it looks like we are still in a state of stagnation. No one is really listing and no one is really buying. There are currently 25,259 housing units on the market, where as 7 months ago there was 31,500 units for sale. Yes, homes have sold over the last few months, but more sellers have taken their homes off the market either because their price was too high, or they want to wait it out a little and see where the market goes. Look at pending sales and you will find they are currently 14% behind where they were a year ago. Other things to consider are that buyers are facing stricter lending guidelines and not everyone can qualify like they could a few years ago. Many banks fear the rise of foreclosures so are holding back. It also doesn’t help the government is getting involved and crying “foul”, wanting to probe into bank practices over the last five years.
The Minneapolis Area Association of Realtors is optimistic though and says we are laying a foundation right now for future sales and growth. Think of it as Newton’s Law of Gravity, what goes up, must come down. And so has the local real estate market. I am sure it will go up again, but just don’t expect it to for another year or so.
Other useful Statistics:
Average Days on the Market single family residential : 87
12 month Housing Supply residential: 5.9 months (total amount of months it will take to asorb)