While the report doesn't cover all markets, it will be a "trend indicator" that can give you valuable insight into the residential market in general. Just know that the information for Minneapolis encompasses a wide area. Real estate can be broken down into local neighborhoods, in which you can get a better idea of home trends for that area. For instance, it is no surprise to local residents of Minneapolis that homes near Lake of the Isles fetch more than homes in Southwest Minneapolis.
A couple interesting statistics to point out:
- Minneapolis ranks second with the largest percentage of homes currently listed that show a at least one price reduction. Over 50% of the homes on the market have been reduced.
- While Miami experienced the longest time-on-market span with an average days-on-market of 137 in November, Minneapolis had the second highest average days-on-market at 125.
- Maybe we should be thankful that our market isn't as bad as Detroit's. Detroit currently has the most inventory in the nation, approximately 70,000 homes for sale. Compared to them, Minneapolis comes in at a mere 22,000.
While inventory levels declined in most markets, Stephen Bedikian, partner and research director for Real IQ said, "We expect time-on-market will continue to lengthen and apply pressure on homeowner pricing decisions until buyers regain confidence and demand levels off. So far that point is not in sight." I would have to say that in the Twin Cities, I am starting to see some areas where the market is beginning to lever out. Prices have stopped declining to a point where buyers will buy the homes. Location is a key factor when buying across the Twin Cities.