Record low mortgage interest rates and deep seller discounts seem to have done little to boost home sales in the Twin Cities metro. During August closed sales were down 34.2 percent compared with last year, according to the monthly report released this morning by the Minneapolis Area Association of Realtors, pushing the median sale price of deals that closed that month to fall 1.6 percent - the first decline in the median sale price in seven months.
Though the report offers sobering news to home sellers, there's some speculation that the declines have begun to stabilze a bit. A 30.7 percent decline in pending sales last month was the smallest decline in three months. And so far this year sales are down only 8.6 percent compared with last year, but they're up 3.8 percent compared with 2008.
Those August stats, especially a 9.2 percent increase in the median sale price of traditional deals (sale prices of foreclosures dropped 2.5 percent) suggest that prices have stabilized. Given those numbers, does anyone think the market has hit bottom?
To see the complete report, including data for communities throughout the metro area, go to www.mplsrealtor.com/the100.aspx