Home sales in the Twin Cities metro are holding steady as the spring market approaches but will not match 2010's meteoric rise in sales brought about by the federal home-buyer tax credit. For the week ending February 5, there were 639 signed purchase agreements, a drop of 18.1 percent from the same week last year. The 3-month average for Pending Sales shows a 6.5 decrease compared to a year ago, dropping from 7,081 to 6,619.
The number of New Listings coming on the market is also behind last year's increased pace. The 1,343 new properties listed during the same reporting week represent a decline of 27.3 percent from a year ago.
Less listing activity is understandable given the challenging conditions awaiting home sellers. The Average Days on Market Until Sale metric is growing, while Percent of Original Price Received is shrinking-both signs of buyer negotiating power.