The Minneapolis Area Association of REALTORS’® (MAAR) most recent market activity report (week of Jan. 5, 2009) features an updated supply-demand ratio (measures the number of houses for sale for each buyer) that illustrates significant changes from a year ago. This January’s number of 8.36 shows a decline of 19.7 percent from last January’s 10.41. That means for every buyer, there are about eight homes for sale compared with 10 for every buyer last year. The reduced supply can be attributed to fewer listings coming on the market, plunging mortgage rates and incredible home affordability levels – all of which are good signs for improving market conditions overall.
All housing activity in the Twin Cities market was slow during the week of the Christmas holiday as expected. Backing up a week, home sales for the week ending December 20 were 20.0 percent ahead of the same time last year thanks to a downward trend in mortgage rates to the lowest level in decades according to MAAR. In measuring the three week period following the rate cut, the increase in pending sales was 27.5 percent – 368 more pending sales than during the same period in 2007. During this same time, 57.6 percent of sales were lender mediated foreclosures and short sales and 45.8 percent were below $150,000, illustrating that buyers are capitalizing on great deals.
