HOW IS THE HOUSING MARKET?
June 2010 Market Update
If I am recognized as a local Realtor at the gas pump, while attending a graduation gathering or while standing in line at the grocery store, I am frequently asked one common question by many people. It is not about the price of gas, Hallmark cards or milk and eggs. The focus of the question is on OUR housing market. And the question is very simple: "How is the market?" I am in the practice of always having a prepared two minute response that addresses five key elements of the housing market. I thought you might be interested in my response for the month of May.
The housing market is forever changing. The central Minnesota housing market is still in a slow transition from an extreme buyer's market to a mild seller's market. (This remains good news for sellers.) As we all know, home buyers have held the upper position over home sellers for sixty plus months. The following data represents the first five months of 2009 compared to the first five months of 2010. The data shows a change from extreme buyer advantage to a slight seller opportunity.
The number of homes for sale is down 5%. Remember last month it was down 6%. The significance of this five percent is magnified by understanding that we remain at a five year low in homes for sale.
The average sales price is positive and up 1% from 2009. What is more significant is that we have experienced five consecutive months of appreciation. Last month the average sales price was up 2%.
The total number of homes sold is up 35% from the prior year. This is an increase of 10% from the month of April. The combination of increased sales and fewer homes on the market leads to a relative scarcity of homes available to buyers.
The number of days a home is on the market prior to selling is still on the decrease. Days on market has decreased by a month compared to 2009. This is a change in direction for the first time in years from an increase in days on market to decreasing days.
The final factor is in the percent of foreclosures making up the market. Currently, foreclosed homes for sale make up only 5% of the total market. Remember, we survived the months of 20 to 25% of the market being foreclosed homes for sale.
This is a changing market and all of the above data is good news for sellers and current home owners. I continue to maintain that every agent who actually sells homes will tell you that now is the time for patience and perseverance. Patience by the home sellers as their agents persevere with the exposure, marketing and promotion of their homes. Again, a second truth to keep in mind is the impact of price adjustments. Lower prices always bring an increase in interest. Of course in a stable or changing market, this strategy has to match the seller's personal motivation to sell.
As a Realtor for over a decade, my attitude remains optimistic.
Steve Hansen, Realtor, Fair Housing and Equal Opportunity
Coldwell Banker Burnet
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Tami DeLand and Steve HansenSaint Cloud and Central Minnesota REALTORSColdwell Banker Burnet(320) 258-6675---
St. Cloud Real Estate, Condos, Homes for SaleCentral Minnesota Real Estate---
Labels: HOW IS THE HOUSING MARKET, JUNE 2010 MARKET UPDATE
