Twin Cities Housing Market: September
Posted by Matt Barker on Tuesday, October 13, 2009 at 11:10 PM
By Matt Barker / October 13, 2009
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The Twin Cities real estate market was very active throughout the month of September. Low mortgage rates and the $8,000 federal tax credit has first-time home buyers out looking for good deals.
Pending home sales rose 23.5% over September of last year. According to the Minneapolis Area Association of Realtors, there were 4,986 signed purchase agreements in September. It is the 15th consecutive month of increases in year-over-year pending home sales. There were 75.6% more pending home sales than in September 2007. Closed sales in September were flat year-over-year.
Devised to help jump-start the housing market, the first-time home buyer credit is set to expire November 30. Buyers must close on their home on or before that date to qualify. Time is running out, as buyers should allow at least 45 days between finding a home and closing!
While median sales prices have increased from the $150,000 to $155,000, prices over the summer and fall have been in the $170,000 to $175,000 range. Last month's median sales price of $170,000 is a 2.9% decrease from August to September and a 10.5% drop year-over-year. There haven't been median sales prices as low as $170,000 since the second half of 2001.
Sales activity and increasing demand for homes is helping sellers out. There is now a 6.6-month supply on the Twin Cities real estate market, compared to 9.5 months at this time last year. The National Association of Realtors says optimal housing inventory is six to seven months. There is less than five months' supply in the under-$190,000 price range, which tends to be closer to the prices range of first-time buyers.
Now there is concern that the housing market will slow down after the credit expires. The housing industry is lobbying Congress to extend it into 2010.
Pending home sales rose 23.5% over September of last year. According to the Minneapolis Area Association of Realtors, there were 4,986 signed purchase agreements in September. It is the 15th consecutive month of increases in year-over-year pending home sales. There were 75.6% more pending home sales than in September 2007. Closed sales in September were flat year-over-year.
Devised to help jump-start the housing market, the first-time home buyer credit is set to expire November 30. Buyers must close on their home on or before that date to qualify. Time is running out, as buyers should allow at least 45 days between finding a home and closing!
While median sales prices have increased from the $150,000 to $155,000, prices over the summer and fall have been in the $170,000 to $175,000 range. Last month's median sales price of $170,000 is a 2.9% decrease from August to September and a 10.5% drop year-over-year. There haven't been median sales prices as low as $170,000 since the second half of 2001.
Sales activity and increasing demand for homes is helping sellers out. There is now a 6.6-month supply on the Twin Cities real estate market, compared to 9.5 months at this time last year. The National Association of Realtors says optimal housing inventory is six to seven months. There is less than five months' supply in the under-$190,000 price range, which tends to be closer to the prices range of first-time buyers.
Now there is concern that the housing market will slow down after the credit expires. The housing industry is lobbying Congress to extend it into 2010.
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