New report shows silver linings in Metro housing market

1:29 PM, Nov 30, 2012   |    comments
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MINNEAPOLIS - For the better part of the last few years, the housing market's ups and downs rival those of any estranged celebrity couple.

But fear not, a report out of St. Thomas suggests even the bad real estate news has some silver linings.

The report points out the issue at hand, inventory of housing in the 13-county Metro is at an 8-year low.

"There are more buyers in the market with less supply so it is much less of a buyer's market than it had been before," co-author of the study Herb Tousley said.

A big reason for that is a combination of consumer confidence and interest rates that continue to reach new lows.

A 30-year-fixed rate sits at 3.375 percent.

So buyers are lining up for homes that are often in the first time sweet spot, and those are going, sometimes in just hours after they are put on the market.

If you are in that buying category a bit of advice for you.

"Get pre-approved and have that information ready when you look at a home so you can be ready to make the offer on a moment's notice," Real Estate agent J.J. Korman said.

Some good news; however, about this low inventory, is that it is pushing the median price for a home up.

The median price in the Twin Cities area is up 10 percent compared to this time last year.

"As prices go up everybody's equity gets a little bit better, so people that were underwater so to speak won't find they have that negative equity as much," Tousley said.

Closed sales and pending sales are also up over last year.

Tousley says he expects this tight inventory trend to last through the winter, but could lessen in the spring if sideline sellers see that it is their time to go ahead and put a house on the market.

(Copyright 2012 by KARE. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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