We have a few Real Estate highlights for the week…
Swing Buyer, Swing!
Spring training, the season opener for our Twins, is still a flip of the wall calendar. But, the spring housing market is in full swing. Here is a quick update on today’s real estate market.
Supply of Homes For Sale: The overall supply of homes for sale is down 32% in the Minneapolis metro area from last year. The St. Cloud area market is down 18.5% in homes for sale. A falling supply of homes has led to ten consecutive months of rising sales prices. Closings for 2012 finished at a six year high, up 17% over last year.
Demand for Homes: Pending sales, DOM (days on market), and the current number of sales reflect the high demand for homes. Pending sales were up 13% in 2012. Days on market had a slight decrease. And the number of sales in 2012 was up 16%.
Current Interest Rates: Rates are holding at an all-time-low. Low and outside of the “normal” mortgage interest rates.
Bank-Owned Homes: In the St. Cloud area the number of lender-owned homes (bank foreclosures) was down 16%. Sold foreclosed homes were down 17% in 2012; this accounted for 21% of the St. Cloud area market sales.
Market Direction: Based upon the current Absorption Rate, (the number of homes available per buyer) the housing market has clearly positioned itself in favor of the seller. A balanced market has five or six homes available per potential buyer. The Minneapolis area is offering three homes per buyer, clearly a seller positioned market. The St. Cloud area market is currently experiencing five homes per buyer. Using the Minneapolis market as our future trend, we are headed into a very strong sellers’ market.
There it is: today’s market. I have to meet a young couple to view a new listing today. They are looking for their first home. The property we are viewing just came on the market, and the young couple should be the first buyers to see the property. If the home is a fit for them, they will have to step up to the plate, take their best swing, and hopefully hit a homer. Believe me, if they don’t move fast, there is another buyer on deck, ready to “swing buyer, swing”.