Minneapolis Real Estate Market Update, March 2007

Thanks for the question. Currently homes price between $150,000-250,000 are selling the fastest. They have the lowest Housing Supply Ratio of all other price ranges, currently 6.2. This means it will take six months to sell the current supply. If you were to break this number down further, to just single family homes, your price range really is selling the quickest at 5 months. Of the 30,000 units for sale in the Twin Cities areas, 5000 are between $200,000-250,000 or 16% of the inventory.

Now the average days on the market is between 80-90 days, but that doesn't mean a home can not sell in a matter of days from listing if it is priced right and in great shape. I am currently looking for my own home to buy and have seen some great homes that have been listed for 10 months because they refuse to come down in price. Guess what, everything around them is selling except their home. This is a very good sign for buyers as it means there is wiggle room and great deals to be had.

One thing to remember, the area you are looking to buy in could differ from another community in price, amenities, yard size, etc. If you would like more information about a specific area, I can get you some better statistics for Days on Market and price reductions. Just let me know!

Morgan- the market is doing very well in your price range for buyers. Many analysts were forecasting that the market would start recovering this summer, but the market is telling us it just isn't time yet.

If you are looking to buy in the next year, here is my opinion. I feel it is best to buy in the winter. It is not only a slower season for sellers, but not alot of buyers buy during that time frame either. You can easily get a better deal in December than you could in April or May when buyers start the hunt. If your lease ends in January, then you should start the search in November, as it typically takes 30 days to close. If you decide to wait until your lease ends in June, then start searching in April, but understand that is when everyone else will be looking for homes as well,so more competition

Let me know the specific area(s) you are thinking about purchasing in. I will look at the market stats for that area and give you some ideas for days on the market and how much sellers are listing their homes for versus what they are actually selling for. Let me know what your current rent is and I can give you an estimate on what your monthly mortgage payment will be, plus taxes, and insurance.

Thanks for contacting me and I look forward to hearing from you.