Residential Real Estate Sales Increasing in Central MN?
With the end of the first quarter fast approaching, I am a little curious to find out how the numbers are going to stack up for real estate sales in '08 vs. '07. I've heard that the number crunchers nationally and statewide are seeing a 2% increase in residential sales over the same time frame last year.
My hunch is that we will see an increase in the total number of homes sold but a decrease in the average and median prices in the St Cloud market. My reasoning for this is the broken chain in home purchases that is caused by the increased number of foreclosed properties available on the St Cloud MLS.
As a region in whole, we are selling through the foreclosure inventory at a very good pace. The problem is that these distressed sales are generally of homes that are not in "Grade A" condition. Therefore, these home price averages will reflect these smaller values.
The positive turn on this topic is that in selling these foreclosures at a good pace, the end of this lull in the real estate market comes closer into view. I wouldn't be surprised if by early next year we don't see some appreciation in the real estate market once again (around Central Minnesota). It won't be anything like what we saw in the past five years, but 1-1.5% isn't out of the question (*Hint, if you are waiting for the bottom, it's probably coming if it isn't already here).
Be sure to keep an eye out for the Tangen Report which will come out in the St Cloud Area Chamber of Commerce's Chamber Pack in early May and will also be posted here by mid April. Every quarter I break down the sales statistics for each local region on the St Cloud MLS (West St Cloud, North St Cloud, East St Cloud, South St Cloud, Waite Park, Sartell, and Sauk Rapids). If you would like to see the past reports, click on the Tangen Report link on this website.
Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud
www.StCloudEdina.com - Home of the e-Market Analysis (Free Home Value Estimator)
www.StCloudEdina.com/blog - REAL ANSWERS for REAL ESTATE in St Cloud MN
