What's the Real Estate Buzz in Owatonna?
2010 was a down year in our local Owatonna Real Estate market. We faced some challenges, and yet, I like to think that we are cautiously optimistic for 2011. As I've mentioned all year the changes in our market will come as consumers find increased confidence with job security and employment opportunities.
We predicted that first time home buyers would be the mainstay of the 2010 market and it appears that it has panned out that way. One of my lending experts, Brenda Bednar (through Advisor's Mortgage) noted that she is taking applications from those buyers, in particular. Property issues are becoming more of a challenge with the increase in foreclosed properties, many of which have deferred maintenance issues to contend with. If you have any financing questions you can contact Brenda at 507-455-1858. Her expertise will get you moving in the right direction.
According to the Southeast Minnesota Association of Realtors MLS our 2010 activity shows 266 closed residential listings in Owatonna. The average sale price of the sold properties is $129,343 which is down from 2009 when the average sale price for the year was $143,560. I believe this trend is due to an increase in bank owned properties and the influx of first time buyers. Our average market time was 118 days which is very similar to 2009. The market has declined steadily since 2005, and we're hoping for stabilization and perhaps a slight increase for 2011.
As of January 1, 2011, we have 150 homes for sale at an average price of $173,520 and they've been on the market for an average of 185 days. At the start of 2010 we had 198 active residential listings with an average list price of $176,880. They had been on the market for an average of 185 days (exactly the same).
Interest rates continue to hover near their lows, providing wonderful values and affordability for buyers.
Market cycles affecting housing come and go, just like all segments of the economy. Right now may seem like a challenging market, but it's also a market of opportunity. Investors and first time home buyers will be the obvious winners, but existing homeowners can profit, too. If you're looking to move up into a larger home - it's a great time to make that move. The inventory and prices of move up homes have never been more plentiful and attractive. Call or e-mail me today to learn about how this market can be beneficial for you. It's time to get moving.
Contributed by Lynn Johnson, Owatonna Real Estate Pros
Broker/Owner, Coldwell Banker Home Connection