The Housing Market Trend Lines are LOOKING STRONG.
1) For August of 2012, 63% of all contracts were traditional sales. In the St. Cloud area distressed sales made up 16% of the market activity. This gives St. Cloud home sellers an eleven point advantage over state-wide traditional sales. More purchase agreements were written during this month of August than any August since 2005.
2) More good seller news. Homes For Sale inventory is down 30.5%. The housing market is at a nine year low, lowest since December of 2003. In the St. Cloud area ‘new’ listings are down 5% from last year at this time and ‘new’ foreclosed listings are down 17%.
3) Metro-wide (including Central MN), the median sales price is up to $179,000. This is a 15.5% increase. Most buyers are struggling to find well presented and move-in ready properties.
4) Supply has become a seller’s best friend. Down 43% from last year, the housing market has turned to a ‘seller’s market’ with only four homes per buyer available. Economists define a ‘balanced’ market at five to six homes per buyer and a ‘buyer’s’ market at seven or more homes per buyer.
5) The economy report card has improved with the state and local housing markets: In August, nationally job creation is up and housing loan rates remain under 4%.