Minnesota Realtors in agreement for 2011
As MN Realtors specializing in the Minneapolis Real Esate market, we have made our weekly networking calls and discussed the marketplace so far this year with some of the Top Realtors in Minnesota. We are fortunate to have friends and colleagues who are Top Agents with CBB, Edina and Remax that experience the market front and center on a daily basis from various perspectives. Some of the points below are items the everyone seems to agree on:
Short Sales are here to stay
In MN, homes that are selling short of whats owed on the mortgage can make up as much as 1/2 the sales on any given month. The agents in Minnesota we have spoken with feel this number will remain high and even grow over the next couple of years. Even though the market seems to be better in most respects, the massive loss of equity will not be restored for years to come. Thus forcing homeowners to negotiate with their lenders and do Short Sales.
Upper Bracket Prices will decline
The upper end in Mn and across the country has seen something call "strategic default" take the market by storm. Sellers who feel its a better business decision are walking away from homes in record numbers. As defaults in this price range grow, it means more downward pressure on pricing.
Housing demand is coming back
Although slowly, demand is coming back for homes. Traffic is up across the board with buyers that are either sick of renting or simply want in before prices go up. The demand is not in all price ranges equally, but it is present more now that in the previous 2 years. Even though prices are far from rebounding, people realize that homes are something that's needed in this country. People are not going to start colonizing in tent cities like a few crazy people predicted in the dark months of 2008. The population is growing without question which means the need for more housing units in the coming years
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