Article of the Day

Real Estate Transactions Continue to Climb Across Minnesota

by Minnesota Association of REALTORS on Thursday, October 20, 2011 at 9:06am

October 20, 2011 (Edina) – Consumers across Minnesota continue to take advantage of historically low interest rates and lower prices by purchasing homes and showing more confidence in the housing market. The September 2011 Housing Report from the Minnesota Association of REALTORS® shows pending sales are up more than 40 percent compared to September 2010. This is the fifth consecutive monthly increase in pending sales.

“Purchase agreements for Minnesota residential home sales that are not yet closed were up significantly,” said June Wiener, President of the Minnesota Association of REALTORS®.  “Housing affordability, low interest rates and an improving employment sector all contributed to the strong results.”

Closed transactions are another positive indicator of a stronger housing market. In September 2011, closings were up 24 percent from the same time in 2010. Homebuyers have closed on more homes year-to-date than in the previous year as well.

“An increase in closed sales is important because it indicates that buyers are interested in moving forward with homeownership,” said Wiener. “Low interest rates, a very affordable housing inventory and strengthening confidence in Minnesota’s employment sector are all contributing to the rebound.”

Many Minnesota homeowners are concerned about the value of their property and in September the year-to-date numbers still looked disappointing.  Statewide, median sales prices were down 6.6 percent compared to values in 2010.  The median is the midpoint, indicating as many transactions above as below the stated price.  In August the median home price was $140,000.

“This is not an uncommon situation when the market is stabilizing,” said Wiener. “Individual monthly prices can fluctuate as housing consumers look for bargains and sellers price their properties competitively with others on the market.” 

In September, housing inventories fell 13 percent. Homes were on the market an average of 130 days.

The Minnesota Association of REALTORS® is the largest professional trade association in the state with almost 18,000 members who are active in all aspects of the real estate industry.