The 2009 tax credit was a success and had a remarkable impact on our local housing market. There were twice as many homes sold this November as there were in November 2008. My personal "fav-four" indicators are the real proof that the housing market has stabilized and is moving toward a more favorable position.
- Inventory: There are 11% fewer homes on the market today than in 2008. November 2009 experienced 30% fewer new listings entering the market than November 2008. Fewer homes to compete with is good news for home sellers.
- Average Sales Price: Although the average sales price is still on the decline, -2% in November, the foreclosure market is 13 percentage points lower than the overall market.
- Number of Units Sold: The total number of units sold in 2009 is up 2% over 2008. The tax credit helped this year’s November sales exceed turkey time in 2008 by 100%.
- Absorption Rate: The benchmark of all market statistics indicates the true health of the market. Absorption rate is the number of homes available per buyer.
Currently we have seven homes per buyer in Central MN. A balanced housing market would offer between five and six homes to every active buyer. In a balanced position, neither buyer nor seller has the upper hand in negotiations and there is a good selection of homes to compete with and to select from.
With two of the indicators in the plus column and the other two moving in a favorable direction, we can presume the bottom has passed and now is the time to prepare for a very vibrant spring housing market. We expect a robust level of buyer activity fueled by the new buyer tax credit. There is strong evidence of pent-up desire to sell by many home owners, motivated by a desire for more space, one-level living, job relocation or a simple lifestyle change. Again, the extra push for home owners is the new seller tax credit. Now is the time to buy, sell or sell and buy!
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Tami DeLand and Steve HansenSaint Cloud and Central Minnesota REALTORS
Coldwell Banker Burnet
(320) 258-6675
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St. Cloud Real Estate, Condos, Homes for SaleCentral Minnesota Real Estate---
