Current Conditions Blog by Mike Chance
June 12, 2009 - Forclosures Continue to Dwindle
Local area foreclosures continue to trend downward as represented in the lower number of foreclosed homes available through Freddie Mac and HUD. Freddic Mac numbers are down approximately 30 percent from recent highs, and the number of HUD foreclosures is down drastically in the north Metro. Where there used to be over 100 HUD-sponsored listings, there are now less than half of that available for purchase currently. Many realtor-assisted foreclosure sales are also seeing multiple bids for purchase. The new problem developing seems to be higher interest rates. With an increase of over 100 basis points from the low just a few months ago, some first-time homebuyers are getting pinched as their payments have start to get outside their comfort zones at these higher rates. April 10, 2009 - Housing Sales Spring Back in the Twin Cities
Closed home sales in March were up 14.25 percent from one year ago. Compared to one month ago, closed home sales increased 48.3 percent. Closed home sales were up 7.23 percent in the 13 county metro during the first quarter of 09 compared to the first quarter of 08. Pending sales increased 21.34 percent in March year over year. Astonishingly, pending sales in March were up 32.98 percent from February 09. In the first quarter of 09, pending sales increased by 13.65 percent from one year ago. The months-supply-of-inventory has been reduced to 6.3 from 8.7 one month ago. One year ago the MSI was at 11. The months-supply-of-inventory is defined as the number of months it would take to sell through the current listing inventory at the current sales rate. Another good sign in this spring market is the decline in the number of new listings added to the overall inventory during March 09. There was a 7.66 percent decline in new listings added in this month compared to March 08,. In the first quarter of 09 there was a decline of 14.19 percent in new listings recorded compared to one year ago. Median sales price in the Twin Cites metro continues to search for its low point. The median sales price for a single-family, residential property in March 09 recorded a 22.94 percent decline from one year ago. The median sales price one year ago was $200,000. However, as inventory decreases and as buyers get motivated by low interest rates and tax credit programs, the median sales price could be close to reaching its floor. For the first time since July of last year, the median sales price increased on a month-over-month basis by 2.75 percent. April 6, 2009 - Number of New Foreclosures is Shrinking
The number of foreclosures showing up in the local announcements continues to drop. I monitor foreclosure announcements in Chisago County, for HUD listings(FHA), and for Homesteps (Freddie Mac). In Chisago County, foreclosure announcements peaked several months ago. Local HUD listings available for sale are drastically reduced, and new foreclosure listings in the Metro for loans sponsored by Freddie Mac have leveled off. While it may be too early to say that the end is at hand, these indicators are positive signs that the worst of the declines in the real estate market could be coming to an end. |