Steve Jecha

The Twin Cities housing market still continues to see some continued pressure. Latest statistics are still tough...but there is some good news regarding home buyers in the Twin Cities area. I'll get to that in a minute, but first, here are some of the statistics:

Average Days on Market: February 2008 - 165 Days (2/07 was 147 days)

Pending Sales: February 2008 - 680 (2/07 was 715)

New Listings: February 2008 - 2014 (2/07 was 1936)

Active Listings for Sale: February 2008 - 30,112 (2/07 was 26,348)

Percent of Original List Price Received: 91.1%

All of these items above paint an unfavorable picture for the homeseller...but wait...here is where things get a little rosier for everyone involved. Interest rates remain at an all time low. Home prices have adjusted downward due to the slump over the last three years. When you combine these two items, it creates the 'perfect storm' for savvy buyers. Here is the statistic that jumps out:

Housing Affordability Index: 157 (2/07 this was 135, 2/06 this was 135, and 2/05 this was 142)

What does this mean? By a long shot...housing is the most affordable it has been over the last four years. If you are a buyer its time to contact a Realtor because in the world of 'buy low, sell high', the market has become very favorable for home buyers.

Now, you with your home out there...you are saying 'What good is this for me?' Well, provided you plan on buying another home you will have to take a 'haircut' on your expectations when you sell your home. But, you can make it up on the buy by being savvy and negotiating a strong deal. Regardless, real estate in the Minneapolis area will only turn around when buyers find housing affordable and step back in to the game. That time appears to be near.