July saw two positive indicators in the market: higher pending sales and lower inventory. We may be coming into a more balanced market in the Twin Cities, say market experts.
Edina, Minn. – Aug. 15, 2011 – The Twin Cities metro area is showing signs of coming into a balanced market, as homebuyers work through the inventory of homes for sale in Edina and the 13-county metro area at an accelerated pace.
Overall, the Twin Cities area saw a 43 percent increase in pending sales last month. For every sale in the Twin Cities, only six properties remain on the market.
According to the Minneapolis Area Association of Realtors (MAAR), new listings in the Twin Cities were down by 16.1 percent – a trend true for six of the past seven months. Overall, the inventory of homes for sale has decreased 18.8 percent. In Edina, active listings were down by 8 percent, and new listings were up by 9 percent. The median sales price of a home in Edina is down 14 percent from last year, and is now at $371,500.
Absorption rates improved in the Twin Cities as the months’ supply of inventory came down to 7.6 months, meaning it would take 7.6 months for all of the properties currently on the market to sell at the current rate of sales. A supply of around five to six months is considered a balanced market.
“In real estate, we are always operating in one of three market types: a buyer’s market, a seller’s market, or a balanced market,” said Bob Peltier, president and CEO of Edina Realty Home Services. “We’ve been in a buyer’s market for the past six years, when sellers tend to make more concessions, cut prices, and so on. We finally appear to be trending toward a more balanced market where buyers and sellers will find themselves on a more level playing field.
“While it’s hard to make predictions about the market, this could very well be the year that people look to as the low point, and the best time to buy.”
MinneapolisCondosTaraOBrien
Edina Realty, a subsidiary of HomeServices of America, is one of the nation’s largest real estate companies with approximately 60 real estate offices throughout Minnesota, North Dakota and Western Wisconsin and 2,100 REALTORS®. Edina Realty’s family of companies includes Edina Realty, Edina Realty Title and Edina Realty Mortgage. Edina Realty handled nearly 25,000 transactions and $5.3 billion in sales volume in 2010.
Labels: Edina Housing Market, Good Real Estate News
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Tara O'Brien @ 8:53 AM
