January: Brutal Month for Twin Cities Home Sales

by Alex Stenback on February 13, 2008

Click Image to Biggify

Yes, it’s that time of the month again.  The local realtor orgs have printed the data from January, and it is ugly stuff.  Some details from the MAAR, comparing January 08 to January 07:

  • Closed sales down 21.3%
  • Median Sales Price down 8.9%
  • Average Sales Price down 8.6%
  • When they do sell, Sellers are receiving just 90% of list price
  • Supply-Demand Ratio up 36%: 10 homes for sale for every pending sale
  • Months of Supply: 8.9mos, up 36.9% (5 months is considered balanced)

Is it us, or is this good bad-news?  The quicker and sharper the contraction, the sooner we can have a return to a normal, balanced real estate market.

When might that happen?

We are watching the supply numbers (see graphic above) which typically peak in the late 3rd or 4th quarter.  Until these inventory levels decline significantly (and don’t forget, we’ve got record numbers of foreclsoures that will be washing ashore each month) housing prices will continue their downward grind.
MAAR: Monthly Market Indicators 2008 [MAAR]

{ 2 comments… read them below or add one }

Nate February 13, 2008 at 9:54 am

So if home prices are down 9 percent and homes are recieving 90 percent of their list price, it seems that most people are still listing at “last years” price. They just aren’t getting it any more.

Teresa Boardman February 20, 2008 at 5:21 am

Alex – I did a count in St. Paul and found that 36% of all listings in St. Paul are in some stage of foreclosure. Frightening because banks are involved and they can’t sell real estate.

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