What's driving home purchases nowadays? Record low mortgage rates, affordable prices and plenty of options to choose from can't hurt.
For the 12-month period spanning November 2010 through October 2011, Pending Sales in the Twin Cities region were up 8.5 percent overall. The price range with the largest gain in sales was the $120,000 and under range, where they increased 50.0 percent. The overall Median Sales Price was down 8.9 percent to $154,900.
The property type with the smallest price decline was the Single-Family segment, where prices decreased 8.1 percent to $170,000. The price range that tended to sell the quickest was the $190,001 to $250,000 range at 138 days; the price range that tended to sell the slowest was the $1,000,001 and above range at 253 days.
Market-wide, inventory levels were down 22.4 percent. The property type that lost the least inventory was the Single-Family segment, where it decreased 19.5 percent. That amounts to 6.3 months supply for Single-Family homes and 5.2 months supply for Townhomes and Twinhomes.
It’s true that low prices and interest rates drive home sales higher. I think with the competition these days, this condition is likely to become more stable. As the law of demand says, “consumers buy more when prices are lower.” This demand keeps on getting higher, that’s why real estate companies should provide more houses and condo units to cope with the rising demand. There should be balance, and not surplus nor deficit.
Posted by: Rebecca Stratton | 07/06/2012 at 02:19 PM