I just wanted to give you a snapshot view of the market in Owatonna. Most of you know firsthand the challenges associated with selling a home during this current economic trend. People all around us have been making changes in their spending habits as they try to weather this downturn in the economy. We're hoping for a bit of a rebound during the retail season this year - perhaps a sign that consumers are ready to loosen their purse strings a little. We'd sure like to see some positive changes in the housing market in 2011. Those changes will come slowly. The interest rates continue to hold steady at amazingly low rates (around 4%) - which will hopefully attract some buyers - it should.
I did some digging to find out how 2010 compares to previous years - we know it's not favorable - but just how challenging has it been?
Through 11/22 of each year 2010 2009 2008 2007
Sold Properties 237 295 275 363
Days on market 116 119 134 123
Average sale price $131k $142k $160k $171k
And to think that we thought 2007 was a bad year, which it was in comparison to the boom years of 2005 and 2006 - little did we know.
I'll continue to keep you updated on our market - it will improve. People still need to move for jobs, family changes, and financial reasons - they're just doing less of it and making due. Many sellers have chosen to rent their homes until the market swings in a positive direction, and while that may help ease the cash flow crunch, but doesn't get them where they ultimately would like to be. Things should be better four to six months from now. I'll keep you updated on the direction and changes in our market. Have a wonderful Thanksgiving.
Lynn Johnson, Broker/Owner
Owatonna Real Estate Pros
Coldwell Banker Home Connection