Thursday, December 13, 2007

A Snapshot of Real Estate Across the Twin Cities and the US

This week I took part in a real estate experiment of sorts. Actually it was more of a survey of days on the market (DOM) for homes sold across the US. Several of my colleagues and I are tired of the gloom and doom numbers being touted by the national media. While things are slower in certain areas of the nation, the overall numbers are not as bad as the talking heads on the nightly news suggest.

See, real estate is local. Remember the real estate mantra…Location. Location. Location? We have to consider the location to get a true picture of the real estate market place.

Based on this theory,
Ashley Drake Gephart, Keller Williams Realtor in Albuquerque, New Mexico compiled current information from Realtors throughout the US for her post, US Real Estate Agents Weigh In. Ashley wanted honest numbers from communities across the nation from actual agents. So as she puts it, “without any fluff or twisting of numbers, here they are…”

Looking at these numbers without the added analysis from someone working the market, you might be concerned about a 248 DOM for November. But what I pointed out to Ashley is that Ham Lake is a very specific area in the north end of the Twin Cities. Only dozen or so properties sell each month. During November, three high-end properties were sold. These homes list priced at $475,000-$750,000 take a significantly longer time to sell as I have indicated in previous
Ham Lake market posts. The fact that three high end properties sold in one month, though skewing the DOM, is actually a good sign for the Ham Lake market.

Here is a picture of how the Ham Lake DOM stacks up against the county DOM for the north and northeast Twin Cities metro:

**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 9/1/07 through 11/30/07.

DOM numbers are cumulative meaning that if a home was re-listed several times with the same or a different Realtor, ALL of the days on the market counted. It also includes every residential property whether in foreclosure or new construction; townhome or single family. When unique situations or designs are broken out, the numbers can change dramatically. Townhomes are taking longer to sell as are homes in foreclosure. New construction homes can be on the market for one day when a buyer sees a model but selects a different lot not currently MLS listed.

Note the other anomaly in Chisago County in October with a 229 DOM. Out of the 39 homes sold, one had a 1083 DOM. Yes, that is nearly 3 years! Some homes for whatever reason, can take that long to sell but it does not present a true picture of the market. Notice that in November, the Chisago County DOM was back to 130 days.

In my market, I tell people considering selling their home that the average time on the market in the north and northeast metro is approximately 4 months. The further from the Twin Cities and the higher your price, the longer it will take to sell your home. If your home is not in the optimal condition, it will take longer.

I also tell buyers looking to buy that first home or move into something bigger, it is a great time to buy! Just look at all of the options you have with so many great homes on the market AND low interest rates. A great combination for home buyers!

Bottomline here is this: If you want a true picture of the real estate market call an experienced Realtor who works in that community and ask. It’s not gloom and doom all over.

Need more information on the Albuquerque market or any of the other markets listed? Here are the links to the agents that provided the information for Ashley’s article.

FEATURED Listings in Ham Lake and Forest Lake Minnesota:

If you are buying, selling or relocating to Minnesota and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 Teri Eckholm