“Market Shift” Continues In Twin Cities
Inman News reports on the Twin Cities. “Home sales in the Twin Cities, Minn., market dropped for the ninth straight month in December while prices kept pace with their year-ago levels, according to reports from four Twin Cities-area Realtor associations. There were 2,950 sales of existing single-family homes, condos and townhomes last month, down 18.9 percent from 3,638 sales in December 2005.”
“The median home price in the 13-county region last month registered $229,000, down just 0.4 percent from the same month in 2005. For 2006, the median sales price was $230,000, an increase of 0.5 percent compared to 2005.”
“‘Since 1998, price growth has been extraordinarily high, between 6 (percent) and 12 percent each year,’ said Kay McDonough, 2007 president of the Southern Twin Cities Association of Realtors. ‘The calm in appreciation was expected, and is a natural byproduct of the market shift.’”
“Inventory remained high in December, with 22,834 homes available for sale, up 19.6 percent from 19,098 in December 2005.”
The St Paul Pioneer Press. “Home prices flattened around the Twin Cities last year, but on the whole didn’t slide backwards, new year-end data out Wednesday show. That’s a nugget of good news in a housing market that, despite the cheerleading of resolutely optimistic real estate agents, looks as dreary as last month’s Christmas tree.”
“Sales dropped 16 percent for 2006 as inventory, and foreclosures, hit local records.” “Sure, some suburbs saw big gains. But others saw the opposite. In Inver Grove Heights, the median dropped 7 percent from $221,000 to $205,450.”
“Minneapolis Mayor R.T. Rybak and Nancy Homans, St. Paul Mayor Chris Coleman’s policy director, called for action to address rising foreclosures that Rybak described as a crisis that is ‘robbing citizens of the American dream.’”
“Local Realtors attending said that they suspect the worst of the nation’s housing correction has already passed the Twin Cities, conforming to the National Association of Realtors assessment that the nation’s housing market hit bottom in September. As for foreclosures, they spell great opportunities for first-time families seeking affordable housing.”
“‘The last year has been a pause, and that’s OK,’ said veteran Realtor Steve Hyland, new president of the St. Paul Area Association of Realtors. Hyland said he thinks the metro area’s housing market hit bottom months ago, but acknowledged there’s little hard data to prove it.”
“Realtors Wednesday appeared leery of projecting where prices are headed. That may be because last year’s forecast of around 5 percent, near the area’s historical average, didn’t pan out. Mark Allen, chief executive of the Minneapolis Area Association of Realtors, said he predicts home prices will grow about 1 percent in 2007.”
“Others aim higher. ‘If we didn’t see 2 to 5 percent, depending on the area, I’d be surprised,’ said Hyland. ‘Shame on me if we’re way off.’”
steps in, looks around…
“hello, anybody in here?”
{silence}
“Heeellloooo?”
exits to another thread
Steve Hyland says,” Last year was a bit of a pause!
Just a pause, sales down 16% National builders writing down billions in Real Estate and options on Real Estate. Housing prices down 9 straight months in Minn. Etc.
Boy I would hate to see what he calls a real downturn!
That’s a nugget of good news in a housing market that, despite the cheerleading of resolutely optimistic real estate agents, looks as dreary as last month’s Christmas tree.
Hey … that’s a new moniker !
“In Inver Grove Heights, the median dropped 7 percent from $221,000 to $205,450.”
Ben, it’s so nice to have you back. I missed you so much!
Stories like this continue to make me sad. How about all of you? The last time I was in Inver Grove Heights I couldn’t believe what I saw. Development has gone wild. It’s out of control. The city has become the pure definition of “Suburban Hell”. The amount of townhouses, and high-priced townhouses, boggled my mind. The prices were way beyond what the average buyer would be able to afford in that area.
It is sad to see the consequences of this bull$hit. Places that 10 years ago were fantastic places to live are now just congested pieces of crap. Inver Grove Heights, Rosemount, Apple Valley, Bloomington, and the list continues. Drive on 35 between Mendota Heights and St. Paul and just be awestruck by the amount of developments. Overlooking the river are townhouses they want $1 million for. $1 million for a townhouse outside of St. Paul? I remember the simpler days when you could hang out in St. Paul bars and run into Norm Coleman picking up dinner for his family. Now that everybody is a real estate gazillionaire, are those days gone? Say it ain’t so!
Development just to develop is a tool of the devil. Nobody can convince me otherwise. Inver Grove Heights??????? God help us.
“‘Since 1998, price growth has been extraordinarily high, between 6 (percent) and 12 percent each year,’ said Kay McDonough, 2007 president of the Southern Twin Cities Association of Realtors. ‘The calm in appreciation was expected, and is a natural byproduct of the market shift.’”
No bubble there — everyone wants to live in Minnesota (even Garrison!).
http://www.firstamres.com/pressrelease?page=detail&id=77
“The states with the highest percentage of risky properties, where fewer borrowers have significant equity and face greater likelihood of experiencing reset sensitivity include Tennessee, Colorado, Minnesota, Alabama and Arkansas.”
It seems there’s been plenty of risky lending in MN….
“As for foreclosures, they spell great opportunities for first-time families seeking affordable housing.”
Translation…
“first time families” = pregnant meth addicts
“seeking affordable housing”= Look for vacant house, break the locks, and demand homestead protection.
stats for MPLS region.
http://www.mplsrealtor.com/Segments/Realtors/WMAR_2007_01-16.pdf
I love page 4. After hitting record inventory in 2006, the expected “slump” in December exceeds the peak of 2005!
can you say glut?
> The median home price in the 13-county region last month registered $229,000, down just 0.4 percent from the same month in 2005. For 2006, the median sales price was $230,000, an increase of 0.5 percent compared to 2005.
When monthly YoY prices turned negative, the realtors looked around for any number that is still positive, found the median of the whole year, and made it into the headline. We’ll see how long they talk about this number when it turns negative, too. Will they instead use the comparison to two years ago, as some have suspected here?
> Since 1998, price growth has been extraordinarily high, between 6 (percent) and 12 percent each year,’ said Kay McDonough,
No, they seem to regress even further into their glorious past than just the last two years: Real estate is a good investment, because it was in the good old days.
>Inventory remained high in December, with 22,834 homes available for sale, up 19.6 percent from 19,098 in December 2005.
And how does this translate exactly into a forecast of higher appreciation in 2007?