The Real Market InformationMuch like the second quarter, the third quarter of 2009 housing trends continued in the right direction. Over the summer months, sales activity was up in most markets, new and active listings were declining or stabilizing, time on market decreased, and we continued to work through much of the foreclosure inventory, many times with multiple offers. Short sales became more prevalent in the third quarter as well, and many of you have had to get up to speed on a complicated process rarely seen in the past. Short sales have proven to be more time consuming and many times more frustrating for buyers working on a deadline. Short sale closings have also presented more challenges, particularly when multiple lenders are involved.
The big story in October will be the Nov. 30 expiration of the $8,000 tax credit for eligible first time homebuyers. Since most transactions take 30 – 45 days to close after an offer is made, most buyers will need to sign a purchase agreement by the end of October* in order to close their loan by the Nov. 30 deadline. And keep in mind that buyers hoping to capitalize on the $8,000 tax credit should concentrate on making offers on properties that don’t require bank approval. Nobody knows whether an extension on the tax credit will take place – or what that opportunity might look like - so tell your buyers not to delay; they might be gambling away $8,000. Additionally, we are in a rare period of low interest rates and low prices together with down payment assistance programs – there’s no better time to buy.
Edina Realty in the Marketplace
YTD Sept. 2009, homes priced under $250,000 comprised 76 percent of our total pending sales compared with 68.8 percent in 2008.
Homes priced from $250,000 - $500,000 made up 20.2 percent of our total pending sales.
Homes priced at $500,000 and above made up just 3.8 percent of our total pending sales.
YTD Sept. 2009, bank-owned properties accounted for 26.3 percent of our business compared to 17.4 percent this same time last year. In January 2009, bank-owned properties made up 38.7 percent of our business.
The median sales price of Edina Realty’s pending sales is $171,000 compared with $199,900 in Sept. of 2008.
Edina Realty continues to lead the market with 19.8 percent market share in closed transactions; our closest competitor has 14.5 percent market share according to the Regional Multiple Listing Service of Minnesota (RMLS) for the previous 12-month period.
Edina Realty agents held 15.7 percent more open houses in Q3 2009 than our closest competitor.
Edinarealty.com saw 17.4 percent more visits in Q3 2009 than it did the same time last year and attracted 13.8 percent more unique visitors.
Customer service inquiries were up 3 percent, Web leads were up 5 percent, and closed Web lead sales were up an impressive 70 percent over Q3 2008. Due to increased sales activity, the customer service department has been experiencing a high volume of leads on properties that have already gone pending. Through Edina Realty’s Lead Generation Program, they’ve been actively matching those prospective clients with Edina Realty agents who can help them find similar properties in comparable price ranges.
Q3 Media Coverage Highlights
Total clips: 113
26 articles quoting Edina Realty agents, managers, or executives as real estate content experts
15 articles about Edina Realty Foundation grants
11 articles in the Pioneer Press and four articles in the Star Tribune
The Marketplace
13-County MetroAccording to the Minneapolis Area Association of REALTORS® (MAAR):
The median sales price in the 13-county metro area in September was $170,000 - down 10.5 percent from 2008. Distressed properties continue to affect overall median sales prices.
Sept. 2009 traditional median home price: $200,712 (-5.3 percent from one year ago)
Sept. 2009 median sales price for lender-mediated: $127,000 (-12.4 percent from one year ago)
YTD 2009, 43.8 percent of closed sales were lender-mediated.
Q3 2009 closed sales were up 16.6 percent over Q3 2008.
Q3 2009 active listings were down 20.5 percent from Q3 2008.
Q3 2009 new listings were down 7 percent from Q3 2008.
Average days on market were at 129 compared with 145 this same time last year.
Based on information from the Minneapolis Area Association of REALTORS®, Inc. Data collected from the REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC. for residential properties in the 13-county region exclusively.
When we cycle back to a growing market, which we will, there will be abundant opportunities. Eighty million Baby Boomers will be moving to smaller residences or warmer climates, and the Millennias who outnumber them, will be in their prime home buying years. There will be good equity positions for those who purchased during the correction, which will allow for an assumable mortgage for the first-time homebuyer, and those who lost their homes to foreclosures will re-enter the market. Most importantly, proven lending practices will help sustain a healthy market.
We expect loans like assumable rate mortgages and reverse mortgages to gain in popularity in the coming months and years, and we intend to offer education and training on these programs to ensure you are able to provide your clients with the best service possible. We will also offer tips and techniques for leveraging new marketing strategies, including social media, and we look forward to acquiring a larger share of REO business in 2010. To see all of the training offerings available in Q4, click here.
In what has been one of the most difficult real estate markets in many years, you have demonstrated your commitment to your clients and your knowledge of the business. The tenacity with which Edina Realty agents and employees approach our business every day is an inspiration. Thank you – your hard work is truly appreciated.
*This guideline is not intended to imply that all purchase agreements must to be signed by Oct. 31 in order to qualify for the $8,000 tax credit by Nov. 30.
Bob Peltier
President and CEO
Edina Realty Home Services
Barb Jandric
General Sales Manager
Edina Realty
# posted by
Tara O'Brien @ 1:19 PM
