Selling a home in Minneapolis, St. Paul or surrounding suburbs is starting to look like an almost impossible mission. With homeowners in over their heads, there is little help for them when their rate adjusts and mortgage payments become un-affordable.
Tuesday October 2nd, 2007, WCCO News reported that 6.5% of the homes on the market were pending sale, compared to 21.5% just a year ago. Quite a significant drop but no surprise considering that mortgage lenders have tightened their guide lines and are turning anything less then excellent credit down.
One home owner reported that her property has been on the market for 500 days and have dropped the sales price $100,000 since it has been listed. The home owners say they are just waiting for the right buyer.
Last year the average length a home was on the market for was 3.5 months, this year 4.5 months. This shows that we have not hit rock bottom yet, and that rock bottom may be another couple of years as we are heading into the winter season.
According to the National Association of Realtors®, home values in its Midwest division fell by 1.3%, from $212,000 down to $205,400. This trend will continue until home buyers feel that home values in the Twin Cities are favorable to them.
The key to selling homes in a sluggish real estate market is to make sure that you fully understand the market you are in and price your home accordingly. We are in a very slow market and most home owners can not afford to sell their house for less than what they purchased it for a short time ago, throwing a twist for some home owners looking to sell.
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