Thursday, March 15, 2007

Twin Cities Market Affordability is Improving--March 2007 Update

According to a press release this week from the St. Paul Area Association of Realtors (SPAAR), real estate is becoming more affordable in the 13 county Twin Cities metro area. This is due to predicted market correction which is a cause of concern to some homeowners who hoped property values would continue to rise indefinitely. Reality has hit with the slowest start in home sales in the past eight years. For the 7th month in a row, the Twin Cities has seen the median price of homes closed drop in comparison to the previous month.

Properties are staying on the market for longer periods of time and the housing inventory levels remain high with over 27,400 active homes on the market as of March 1. This is up 9.27 percent in just one month. But compared to last year's numbers, the statistics are relatively unchanged. 
The National Association of Realtors (NAR) released news of its own yesterday, predicting that a recovery of the housing market is likely but the timing is hard to predict. Recent problems in the sub-prime lending market and unusual weather patterns are pointed to as some of the reasons for the inability to forecast an upswing. A 1.2% projected rise to the median existing home price is bringing the median value to $224,500 this year and even stronger gains are predicted for 2008. 

It's not all gloom and doom on the horizon for the housing market. In a buyers market, prices are being adjusted by sellers to intice buyers. After years of exploding house values a little market dip or flatline should not be too concerning to the average homeowner.

If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007