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Foreclosures and short sales
in the Twin Cities Housing
 
Market
Q2 2009 Update
 
A Special Research Report from the Minneapolis Area Association of REALTORS
®
www.mplsrealtor.com
he number of foreclosures and short salesavailable for sale in the Twin Cities housing marketcontinued its dramatic fall in the second quarterof 2009. From February 1st to July 1st the supply of these homes available has dropped over 2,100 unitsto 6,685
(Figure 1
).New data available indicates that the supply picturefor bank-owned foreclosures excluding short saleslooks even more extreme. There were only 1.84bank-owned foreclosure homes available for eachsale in June—compared to 5.10 homes ownedby a traditional seller and 10.22 homes in a shortsale situation
(Figure 2)
, according to our analysis
of two new data elds in the Regional Multiple
Listing Service. In sum, the supply of bank-ownedforeclosures is dwindling quickly.
Because these elds are only a few months
old these numbers are not perfectly reliable.Nonetheless, they offer a relatively clear picture of the differences between the bank-owned foreclosuremarket and the short sale market that must berecognized by consumers.
Foreclosures are properties in which the nancial
institution has repossessed the home from theowner due to nonpayment of mortgage obligations.Short sales are unique arrangements where the
nancial institution and in-default homeowner work
together in an attempt to sell the home before it isforeclosed upon.
Want to see how foreclosures and short sales areaffecting various neighborhoods and cities withinthe Twin Cities metro area?Click hereto access aninteractive data board and in-depth neighborhoodreports and commentary.
T
Published on July 20, 2009Jeff Allen
MAAR Research Manager
www.mplsrealtor.com
Aaron Dickinson
 
REALTOR
®
 www.twincitiesrealestateblog.com
Figure 1
 
|
 
Inventory of Lender-Mediated Homes for Sale Dropping Quickly
Figure 2
 
|
 
Houses Available Per Buyer: June 2009
©2009 Minneapolis Area Association of REALTORS
®
| Sponsored by Royal Credit Union www.rcu.org
 
Inventory of Homes for Sale
7-20087-2009Change7-20087-2009Change7-20087-2009Change
All Properties
8,1636,685- 18.1%26,12419,837- 24.1%34,28726,522- 22.6%
Single-Family Detached
6,3084,757- 24.6%17,66913,682- 22.6%23,97718,439- 23.1%
Townhomes*
1,4511,498+ 3.2%5,5523,813- 31.3%7,0035,311- 24.2%
Condominiums
404430+ 6.4%2,9032,342- 19.3%3,3072,772- 16.2%
*Includes twinhomes
7-20087-2009Change7-20087-2009Change7-20087-2009Change
Under $120,000
2,6812,258- 15.8%1,4651,294- 11.7%4,1463,552- 14.3%
$120,001 to $150,000
1,4811,195- 19.3%2,1151,668- 21.1%3,5962,863- 20.4%
$150,001 to $190,000
1,5491,228- 20.7%4,5113,112- 31.0%6,0604,340- 28.4%
$190,001 to $250,000
1,152896- 22.2%5,8403,943- 32.5%6,9924,839- 30.8%
$250,001 to $350,000
712575- 19.2%5,1753,837- 25.9%5,8874,412- 25.1%
$350,001 to $500,000
360291- 19.2%3,4442,687- 22.0%3,8042,978- 21.7%
$500,001 to $1,000,001
204202- 1.0%2,7712,445- 11.8%2,9752,647- 11.0%
$1,000,001 and above
2540+ 60.0%804851+ 5.8%829891+ 7.5%
All Prices
8,1646,685- 18.1%26,12519,837- 24.1%34,28926,522- 22.7%Share of Total InventoryThat Is Lender-Mediated7-20087-2009
Lender-MediatedTraditional
23.8%
26.3%
Total
20.7%12.2%
25.2%
25.8%28.2%15.5%64.7%63.6%
Lender-MediatedTraditional
Share of Total InventoryThat Is Lender-Mediated7-20087-2009
Total
41.2%41.7%25.6%28.3%16.5%18.5%12.1%13.0%
Property TypePrice Range
23.8%25.2%
3.0%4.5%9.5%9.8%6.9%7.6%
Lender-Mediated Inventory of Homes for Sale
23.8%26.3%20.7%12.2%25.2%25.8%28.2%15.5%
All PropertiesSingle-Family DetachedTownhomes*Condominiums7-20087-2009
Share of Inventory That Is Lender-Mediated
64.7%41.2%25.6%16.5%12.1%9.5%6.9%3.0%63.6%41.7%28.3%18.5%13.0%9.8%7.6%4.5%
Under $120,000$120,001 to$150,000$150,001 to$190,000$190,001 to$250,000$250,001 to$350,000$350,001 to$500,000$500,001 to$1,000,001$1,000,001 andabove
7-20087-2009
There are now almost1,500 fewer lender-mediated homes for salethan there was a year ago.Townhomes andcondominiums still haveroughly the same amountof lender-mediatedinventory, while the singlefamily detached markethas seen a huge drop.Lender-mediated inventory isdown in every price categoryexcept above $1 million,where it has increased 60.0percent in the last year. Bear in mind: that’s still only 4.5percent of the inventory inthat price range.
© 2009 Minneapolis Area Association of REALTORS®, Inc. | Sponsored by Royal Credit Union www.rcu.org
 
Median Prices
Q22007Q22008Q220091-Yr ChangeQ22007Q22008Q220091-Yr ChangeQ22007Q22008Q220091-Yr Change
All Properties
$170,000$150,000$120,000- 20.0%$235,000$225,000$209,000- 7.1%$228,900$207,000$167,500- 19.1%
Single-Family Detached
$179,000$157,000$126,500- 19.4%$255,000$240,000$222,700- 7.2%$248,000$220,000$180,000- 18.2%
Townhomes*
$153,500$139,000$109,900- 20.9%$190,000$179,995$162,000- 10.0%$186,050$170,000$139,874- 17.7%
Condominiums
$93,000$102,500$83,750- 18.3%$172,250$177,976$155,000- 12.9%$169,900$169,900$130,000- 23.5%
*Includes twinhomes
Lender-MediatedTraditionalTotalQ1 Median Sales Prices
$228,900$170,000$235,000$207,000$150,000$225,000$167,500$120,000$209,000
TotalLender-MediatedTraditionalQ22007Q22008Q22009
- 20.0%For all property types, homeprices in the traditionalmarket haven’t declined asprecipitously as the lender-mediated market.The overall median salesprice for all properties isskewed downward by theincreased market share of foreclosures and shortsales.- 7.1%- 19.1%- 9.6%- 11.8%- 4.3%
Historical Median Sales Prices
$100,000$120,000$140,000$160,000$180,000$200,000$220,000$240,000$260,000
Q1-2005Q2-2005Q3-2005Q4-2005Q1-2006Q2-2006Q3-2006Q4-2006Q1-2007Q2-2007Q3-2007Q4-2007Q1-2008Q2-2008Q3-2008Q4-2008Q1-2009Q2-2009
TraditionalLender-Mediated
© 2009 Minneapolis Area Association of REALTORS®, Inc. | Sponsored by Royal Credit Union www.rcu.org
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