Early Signs Of Foreclosure And Short Sale Slowdown

NEWS RELEASE

FOR IMMEDIATE RELEASE
Early signs of foreclosure and short sale slowdown-

Q4 2008 Update to “Foreclosures and Short Sales” report is released with exciting new interactive data tool Minneapolis, Minnesota (January 27, 2009) – Foreclosures and short sales in the Twin Cities housing market are showing early signs of slowing, according to a new research report released by the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc (RMLS).

During the fourth quarter of 2008, there were actually 4.3 percent fewer new lender-mediated listings than there was in the third quarter. That’s the first quarter-to-quarter decrease since 2003. As a result of this reduction in new supply and continued buyer interest in these properties, the total number of lender-mediated homes for sale dropped 600 units over the course of the quarter. This is only one quarter of downward movement, so time will tell whether the trend continues. Regardless, this has to be taken as a hopeful sign.

“By no means is the hard part totally over,” said Steve Havig, 2009 President of the Minneapolis Area Association of REALTORS®. “What the economy does in 2009 is the real wildcard, but the sooner this cycle runs its course, the sooner the housing market can return to some normalcy.”

New Listings
Lender-mediated home values are dropping quickly, while traditional homes are fairing better. The median sales price of lender-mediated homes in Q4 2008 was $131,000, a drop of 19.1 percent from the same time last year. The median sales price for traditional homes was $221,000, a drop of a much quieter 2.6 percent.

Despite the fall in new supply from last quarter, 42.2 percent of new listings and 46.0 percent of closed sales during Q4 2008 were lender-mediated. This is an increase from the same quarter last year, due in part to declining activity in the traditional market.