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Tuesday, July 06, 2010

Twin Cities’ housing slide continues

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Anonymous Finance and Commerce said...

July 2, 2010 4:35 PM CDT
Twin Cities’ housing slide continues
by Scott Carlson Staff Writer

The big weekly tumble continues.

Pending home sales in the Twin Cities area are down 44.2 percent compared with the same period a year ago, according to the Minneapolis Area Association of Realtors (MAAR) in its latest market-activity report.

The association said there were 645pending home sales for the week of June 19 following the slight gains seen the prior week to 674 pending sales.

Nevertheless, the latest weekly sales number is “anemic compared to last year at this time, when the market posted 1,156 signed contracts,” the association noted. That marked the sixth consecutive week of year-over-year declines exceeding 30 percent, the trade group noted.

MAAR also noted that new home listings are also down from a year ago, falling 8.4 percent from a year ago to 1,712 for the most recent reporting week.

Any sort of "return to normalcy" is going to take some time, the association said.

“The Twin Cities housing market continues to adjust to a world without a fancy tax credit,” the association said. It was referring to the federal tax incentive program for first time and repeat home buyers that ended April 30.

While the median home price for the Twin Cities metro area rose 6.1percent in May to $175,000, the fifth straight monthly year-over-year increase, pending sales were down nearly 25 percent for the same time period.

Given the recent weekly trend, “June’s (housing) numbers will probably be lower than last year’s.” predicted Aaron Dickinson, a broker associate at Edina Realty. “The big question is how long will it (the sales slump) last? It is hard to know whether or not if this is what we should expect for the rest of the year or if this is a blip on the radar.”

Dickinson said realtors will have a better idea of where the housing industry is headed by the end of the summer, typically the busiest selling season of the year.

11:28 PM  
Anonymous Anonymous said...

Too much code enforcement. Why buy a house to have a target on your back?

11:40 PM  
Anonymous Incontinentia Buttocks said...

The slump probably has something to do with the end of the tax breaks.

Which were a stupid idea to begin with; all that subsidy programs do it compress whatever demand there is into the term of the subsidy. Stupid, stupid Obama.

But of those 645 signed contracts, how many involve the THOUSANDS of vacant houses in Saint Paul that can't get certificates of occupancy because of Kathy Lantry's stupid code ordinance? The one that says that Cat2 vacant houses need to be brought up to current code?

This city will not recover until this city has a functioning two-party system,and until our Code Enforcement department is fired and preferably jailed.

I'm so glad I left Saint Paul to all you DFL scumbags.

7:19 AM  
Anonymous Anonymous said...

This city will not function until the two party systym is abolished !!!!!!!!!!!!!!!!!

11:01 AM  
Blogger Bob said...

I left my comment at Finance and Commerce.

12:57 PM  
Anonymous Anonymous said...

I am certain that the foreclosure crisis has something to do with this. Because most people are upside down on their mortgages (they owe more than the home is worth), now is not a good time to sell. In addition to that, they would have to price their home too low, because they would be competing with homeowners that have agreed to a short sale, rather than let the investor foreclose on their home.

In addition to that, the banks are finally getting it together in terms of the process and turn times for homeowners that have applied for a mortgage modification.

As more mortgages are modified, the amount of listings will go down, as fewer people will have to do a short sale. When we get past the foreclosure crisis, the market will gradually return.

7:49 PM  

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