Here is this weeks update from the Minneapolis Association of Realtors below. Its hard to add to their summary. It does a good job explaining the current market and the signs that say the market is turning around. I have used this info for the last couple months to explain that prices will be slightly up for most areas in the Spring.
I have been explaining to buyers we are going have multiple offers on the best priced homes that come on the market. I will keep stating that so buyers aren't as surprised come offer time!
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Last week, the Mortgage Bankers Association reported that mortgage applications
increased more than 23.0 percent from the week prior. The fine print stated that most
of the increase was driven by refinancing activity, given record low rates. Residential
construction data also provided glimmers of hope. By now, many have surely noticed
that the supply-demand balance is changing. What some may not realize is that this is
a leading indicator, while home prices are a lagging indicator. Price appreciation is the
final phase of recovery. Excess supply is down–in some areas, it's way down.
Purchase demand in most areas strengthened throughout the second half of 2011. For
sellers, it's less scary out there. For buyers, it's still a once-in-a-lifetime opportunity.
In the Twin Cities region, for the week ending January 14:
• New Listings decreased 5.2% to 1,216
• Pending Sales increased 28.4% to 728
• Inventory decreased 23.8% to 17,690
For the month of December:
• Median Sales Price decreased 6.5% to $145,000
• Days on Market decreased 2.5% to 140
• Percent of Original List Price Received increased 1.7% to 90.6%
• Months Supply of Inventory decreased 35.6% to 4.
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