West Savage Real Estate Blog

Lighter Foreclosure and Short Sale Load Continues to Help the Market

(For a more legible copy of these graphs please contact us at [email protected].)

Minneapolis, Minnesota (December 11, 2013) –The 13-county Minneapolis-St. Paul metropolitan area housing market continued to settle itself in November. While some measures of housing demand may suggest a slowdown, most deceleration is the result of a healing lender-mediated (foreclosures and short sales) segment, which made up a smaller share of the residential pie compared to last year.

For the first time in seven months, new listings were lower year over year, declining 5.3 percent to 3,900, but traditional new listings rose 11.1 percent over the same time comparison. Buyers closed on 3,760 homes, a 5.9 percent decrease from last November, even though traditional sales were up 13.6 percent. Twin Citizens have 14,126 properties to choose from – or 5.8 percent fewer than last November.

The market-wide median sales price held steady at $195,000 for a third straight month and up 13.4 percent compared to November 2012. Last year, foreclosures and short sales comprised 35.6 percent of all closed sales. In November 2013, these segments made up only 22.1 percent of all sales.

"We are seeing exactly what we want to be seeing," said Andy Fazendin, President of the Minneapolis Area Association of REALTORS® (MAAR). "Lender-mediated activity once commanded heavy market share, and residential real estate is going to be stronger with fewer foreclosure and short sale properties in the system."

Traditional new listings rose 11.1 percent, but foreclosure and short sale new listings fell 36.2 and 42.1 percent, respectively. Traditional closed sales rose 13.6 percent; foreclosure and short sale closings fell 34.7 and 57.6 percent. Traditional homes are selling at a median price of $217,000; foreclosures for $133,851; short sales for $150,000.

On average, homes are spending 75 days on the market – quite brisk relative to the past several years. Sellers are receiving an average of 95.4 percent of their original list price – the highest November ratio since 2005. The Twin Cities metro now has 3.2 months' supply of inventory, which suggests sellers have regained their leverage.

"Some might claim that the recovery is stalling, but the reality is that job growth is gaining momentum and there are fewer distressed properties being listed and sold than at any point in the past five years." said Emily Green, MAAR President-Elect. "We could stand to see this trend continue into 2014."

West Savage Update - December 2013

The market is quiet as we approach Christmas, but even so, homes in West Savage are continuing to receive offers.   9309 134^th Street in the Oak Hills neighborhood has received an offer and is sold subject to third party approval, and there are three new pending sales in the area.  One of the pending sales is the (red) bank-owned home at the “T” of Boone Avenue and McColl. 

Three homes sold and closed recently, including 14030 Kings Court, a property that was owned by the FDIC and was vacant for around 3 years.  We are continuing to negotiate Move-In Early Agreements and Rentbacks on some transactions, when it works to the benefit of both parties for the sake of financing the home.  

January 2014 marks the implementation of the new radon disclosure requirements that will go into effect for sellers, per the Minnesota Department of Health.  Sellers will need to disclose in writing to the buyer any knowledge the seller has of radon concentrations in the dwelling. The disclosure shall include details including whether tests have been conducted, test readings, and a “radon warning statement,” among other things.  Sellers are also required to provide buyers with a radon publication.  We are actively preparing for these changes to we can help clients navigate the new law. 

This month, single family inventory in Savage has decreased, townhome inventory has increased, and both single family and townhome inventory in Scott County (as a whole) has declined.   Our West Savage absorption rate is 2.57.   That means if zero new homes come on the market, it will take 2.57 months to sell our existing inventory. 

Weekly Market Activity Update - for the Week Ending November 30

The calendar can sometimes have just as profound an effect on housing data as supply and demand. The 2013 Thanksgiving holiday was a week later than in 2012, causing some peculiar shifts in activity. This serves as a good reminder to watch for calendar oddities just as much as you do economic indicators. Even so, aside from family time and tryptophan, buyers and sellers had a lot to be grateful for this Thanksgiving. Buyers still live in a time of great affordability, and sellers should be thankful for shorter market times, higher prices and less competition.

In the Twin Cities region, for the week ending November 30:

• New Listings decreased 47.0% to 540

• Pending Sales decreased 38.5% to 579

• Inventory decreased 4.5% to 14,582

For the month of November:

• Median Sales Price increased 13.4% to $195,000

• Days on Market decreased 26.5% to 75

• Percent of Original List Price Received increased 1.3% to 95.4%

• Months Supply of Inventory decreased 11.1% to 3.2

Weekly Market Activity Update

As the end of the year approaches, market futurists will either put on their overly cheery, poinsettia-colored glasses or turn into a bunch of dreary Nostradamus Nellys. The wise analyst will tune out extremes and embrace seasonally appropriate slowdowns as a sign of normal market activity while looking with anticipation to what will likely be continued moderate recovery in 2014.  Watch for light gains in inventory, quieter pending sales activity and more sedate market times.

In the Twin Cities region, for the week ending November 23:

• New Listings increased 46.6% to 893

• Pending Sales increased 42.8% to 841

• Inventory decreased 3.6% to 15,008

For the month of October:

• Median Sales Price increased 11.4% to $194,900

• Days on Market decreased 27.2% to 75

• Percent of Original List Price Received increased 1.4% to 95.8%

• Months Supply of Inventory decreased 10.0% to 3.6

JUST SOLD! 3442 Cromwell Trail

JUST SOLD!    

3442 Cromwell Trail

This former Wensmann model in the Evermoor neighborhood features 3BR, 3BA and maintenance-free living.   The home features a stunning cherry kitchen with solid surfaces and stainless steel appliances, solid 3-panel cherry doors, cherry built-ins, and cherry cabinetry.  

Two fireplaces, floor-to-ceiling windows, wood blinds, wrought iron railings, and a wooded park-setting are additional amenities.  

A main floor master suite and a finished basement make this a perfect community for a carefree lifestyle!

Offered at $372,900    SOLD AT $350,000