Market Report: Sales Activity Showing Signs of Life
By Greg Sax on Tuesday, August 12th, 2008
Signed purchase agreements in the Twin Cities housing market during July was higher than one year ago, posting a mark of 4,462 in July, an increase of 6.2 percent from July 2007. To put this in perspective, there has not been a year-over-year increase in pending sales in 30 months and no increase this large in 41 months.
Despite the increased buyer activity, home values remain soft due to a chunk of lender-mediated foreclosures and short sales, accounting for close to 31 percent of pending sales in July. The overall July median sales price of $208,000 fell from last year by 10.7 percent. Silver lining: The median price has been increasing each month this spring in line with seasonal norms.
Lender-mediated homes posted a July median sales price of $151,000, a decrease of 8.4 percent from last year. Traditional properties had a July median sales price of $229,900, a smaller decrease of 3.8 percent.
Supply continues to ratchet down. There were 8.2 percent fewer new listings in July 2008 than in July 2007, 4.9 percent fewer homes for sale, and 4.2 percent fewer homes available per buyer. That said, there are still 5.2% more active listings than in July 2006 and 30.5% more homes available per buyer. This kind of detail and more is readily available in our current set of Monthly Indicator charts.
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