St. Paul and Minneapolis Real Estate Market Summary

The St. Paul Area Association of REALTORS® published a press release last week.  The release summarized the St. Paul and Minneapolis area real estate market based on figures from the Regional Multiple Listing Service which covers the 13 county metro area.  The summary (remember this is for the 13 county metro area) includes the following figures:

• Pending sales of existing single family homes (houses and condos/townhomes that have accepted purchase agreements but have not yet closed) for May increased 5% over April this year.
• Pending sales of existing single family homes for May of this year decreased 7.59% compared with May of 2007.
• The number of single family homes listed this May as compared to May of 2007 decreased by 5.7%.
• The absorption rate (the number of months it would take to sell all listed single family homes at the rate they sold that month) was 8.3 in April 2008 and 7.9 in May 2008.  This is a decline from 14 in December 2007.  A lower rate is a sign of the market recovering, according to Greg Bauman, president of the St. Paul Area Association of REALTORS®.
• New listings have also decreased by 16.21% when May of this year is compared with May, 2007.
• New listings for the first five months of 2008 have declined by 11.04% compared to the first five months of 2007.
• Closed home sales for May, 2008, increased over April, 2008, by 18.96%.
• Closed home sales for May, 2008, compared to May, 2007, declined by 13.45%.
• The median sales price for the 13 county area for May, 2008, fell 9.89% from that of May, 2007.  This year's median sales price for May is $205,000 compared to last year at $227,495.

A decrease in the number of active listings, the number of new listings, and the number of month's supply (absorption rate) on the market is a good sign for the St. Paul and Minneapolis area real estate market.  It's not terribly significant that home sales increased in May as compared to April because sales always increase in the spring and early summer months.  The decrease in median price is significant to home buyers as well as home sellers, but from opposite views.  Buyers, once again can afford a house, whereas sellers may look at the decrease in price as a loss.  Although we can't consider these stats amazingly great, they are somewhat encouraging.  A slow recovery seems on its way.  The full press release can be viewed here.

Comments

[riathareja]

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