I read some positive news about the Minnesota Real Estate Market for May. The notable number was that PENDING sales were over 26% over last year. Last year in May there was a drop off probably due to the tax credit rush that happened before the end of April. I know I had a great first 4 months last year and the rest of the year was not as exciting. Anyway that is part of the reason last May was down, but to be up 26% this May is a good sign.
Not as positive but not surprising is that the median sales price dropped 9.2% to $139,000. I can attest to the fact that a lot of the sales I am seeing are lower price bank owned homes to first time buyers and investors and many of those are at or below $100,000. Of course over all there are enough higher price home sales to bring that median number up to $139,000 but still that is a low number and much lower then a lot of home owners probably believe if you are someone who owned your home for a few years or more.
However, the lower price is another positive for home affordability levels. The prices and the interest rates make owning a home a very true possibility if your renting and even if you don't have a big income. In many areas there are homes that payments are equal to or lower to the rental prices. Which is a good thing for many many potential buyers.
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