Low Home Inventory in St. Michael-Albertville!

While the housing market is not “back”, and many people are still fighting lower home values than when they purchased the home, the homes that are on the market are going fast! 

Based on information from the Minneapolis Area Association of REALTORS, Inc., the 13 county metro area is seeing some interesting trends.  The amount of active listings from April 2011 to April 2012 is down 29% while cumulative days on market has also gone down 15% from 159 days on market last April to 135 days on market this April (The 885 school district is right in there at 134 average days on market).  Average showings are up by 38% and pending sales are also up by 26%.  To get a little more specific with our area, according to Mplsrealtor.com the median sales price in the 885 school district (St. Michael-Albertville) was $155,000 in April 2012, which is down a small percentage from the previous April when it was $158,000.

How can inventory be low, aren’t there a lot of foreclosures on the market?  I have heard many people comment about how many foreclosures are still on the market…As of 5/18/2012, district 885 (St. Michael-Albertville)  has 47 homes that fall under the distressed category (either bank owned or short sales) and only 15 of those are actually Bank Owned.  That is not to say that some of the short sales currently listed won’t become lender owned at some point in the future, but for now, there really aren’t all that many out there that are active on the market!  (Just to put it into perspective, there are currently 97 homes listed as active on the MLS).  There is also a shortage of homes priced above $200,000 in our area.  Roughly 70% of those listed as active are under $200,000.   

One of the reasons that there are fewer bank owned properties on the market is that the banks are getting smart and doing some basic repairs as well as replacing carpeting and putting a fresh coat of paint on the walls before putting them on the market, allowing buyers with FHA financing and less cash to bring into the purchase to buy.  Many of the banks are also putting the houses for sale with very competitive pricing, which is bringing in multiple offers on homes that are “move-in” ready and upping the bidding over asking price. 

What does all of this mean?  Houses are selling!

This does not mean that we are no longer in a distressed housing market or that everyone should start selling their homes.  There are many people in a situation where they cannot sell their homes because they have none or negative equity.  There are still those who will have to put their homes on the market for less than they owe on it (short sales) and unfortunately, we will still be seeing people lose their homes due to foreclosure.  This is likely part of the reason that we are feeling as if inventory is low.   If you have been wanting to sell, however, and you think you may be in a position where you can do so, call your REALTOR and ask for a market evaluation on your home. 

 Information gathered from the following sources:

http://thething.mplsrealtor.com/interactive

Based on information from the Minneapolis Area Association of REALTORS®, Inc. Data collected from the REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC., for properties in the 13-county region exclusively.

DISCLAIMER:  This blog is written by Stacy Zachman, a REALTOR licensed in Minnesota with Edina Realty. Views expressed are the views of Stacy Zachman and not of Edina Realty or any other organizations that Stacy is affiliated with.