Twin Cities Market Update

This Week in the Minneapolis, St Paul Real Estate Market – July 9th, 2008

I have received a coupled emails this past week from those who listen to our weekly radio show who wanted to know the most recent market “numbers.” Lo and behold, here they are! Looking at new listings that were processed and put onto the market and MLS, there were 2,119 new actives. This is up only a modest 0.3% compared to last year at this exact same time. There were 856 newly signed purchase agreements this past week, down 4.8% compared to last year. And the total inventory level is at 33,083 active listings for sale. This is down (thankfully) 4.1% compared to last year at this same time.

Over the last three months, the Twin Cities has seen 13.6% fewer listings put onto the MLS than last year. The updated Supply – Demand Ratio also came out this past week. This ratio fell to 8.11 for July of 2008. This number means that there are approximately 8.11 houses on the market for each buyer. This number (8.11) is 1.6% lower than July of 2007. Here’s the good news: this is the first time that the supply demand ratio has fallen since these numbers have been counted by the Minneapolis Area Association of Realtors in 2004.

What does the mean? This means that the buyer’s market is still here of course, but the tide may slowly be starting to turn. Finally, we are seeing supply decrease a bit in relation to demand. Overall, this is great news for really our entire market.

For the second half of this entry, I wanted to talk a little bit about life as a real estate agent here in the Twin Cities. Over the last few years, there has been a mass exodus of real estate agents who have got out of the business. Five to six years ago, anyone could “throw a home on MLS” and sell it. In my opinion, the services, knowledge, and expertise that a good realtor provides to his or her client was diminished. It was almost like the general public felt that they did not need a realtor to buy or sell their home.

As time has passed, with more and more supply and less demand for homes, the realtor is once again seen as having some “value” in the real estate marketing process. With so many agents who have exited the business, truly the serious ones have survived. And of course, there are a number of outstanding real estate agents here in the Twin Cities. I am partial to RE/MAX agents (being one myself), but there are top agents at many companies here in the Twin Cities.

When in doubt, if you are looking to buy or sell, I always encourage clients to work with a Realtor. The real estate transaction can be extremely complex with many twists and turns along the way. A good agent will guide you along each step of the process. And in addition, if he or she has survived the last few years in the business here in the Twin Cities, you can know that he or she is more than likely full time, serious, and committed to a career as a real estate agent.