Twin Cities Realtors

Minneapolis, Minnesota (May 11, 2011) – Pending sales in the 13-county Twin Cities metropolitan area were down 25.8 percent to 4,289 from April 2010′s incentive market high of 5,781. The overall median sales price dropped 14.6 percent to $145,000. Sellers introduced 7,279 new properties to the market, 25.3 percent fewer than last April, and inventory levels were a welcome 16.1 percent lower at 24,380 units—the lowest April inventory count since 2005.

Since activity was disproportionately strong during April 2010, the Aprils of 2009 and 2008 can provide more reliable comparisons. Pending sales were down 17.7 percent versus 2009 but up 1.9 percent against 2008; the median sales price was down 5.2 percent compared to 2009; and new listings were down 10.3 percent compared to 2009. Comparing non-incentive markets to similar non-incentive markets provides a different picture – one of stabilization.

Although overall purchase activity was down, overall pending sales for the month were the highest they’ve been since last April and the number of foreclosure pending sales increased by 31.0 percent. Traditional (non-distressed) sales were down 39.0 percent while short sales were down 11.4 percent. Traditional sales prices were down 3.0 percent to $193,000; foreclosure prices were down 18.9 percent to $103,000; and short sale prices were down 9.9 percent to $132,400.

“Distressed properties are the only sales segment to post year-over-year gains.” said Brad Fisher, President of the Minneapolis Area Association of REALTORS®. “Even so, it’s reassuring to see that they made up the smallest share of all pending sales so far this year and even going back into 2010. The dynamic is improving.”

Foreclosures and short sales comprised 46.1 percent of all pending home sales during the month—the lowest level since November 2010 and down from 55.6 percent in January. Also, distressed homes represented 30.5 percent of all new listings—the lowest level since April 2010. “The fact that comparatively more homes in financial distress are selling off the market than are entering the market is a positive sign,” said Fisher.

The average days on market was up to 152 days, the percent of list price received at sale declined to 90.1, months supply of inventory was up to 8.2 months and pending sales gained only at price points above $500,000.

“Consumer confidence often serves as an indicator of future housing demand,” said Cari Linn, President-Elect of the Minneapolis Area Association of REALTORS®. “There is a growing feeling on the street and in the numbers that things may finally be improving.”

All information is according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc. MAAR is the leading regional advocate and provider of information services and research on the real estate industry for brokers, real estate professionals and the public. MAAR serves the Twin Cities 13-county metro area and western Wisconsin.