The Twin Cities metro area housing market continues to run lukewarm, according to new figures from the St. Paul Area Association of Realtors, which assessed the real estate market in the 13-county metro area. The organization says there’s excess inventory on the housing market. But by many accounts, the situation is not devastating for the local real estate market or the local economy.
St. Paul, Minn. — In the first six months of this year, sales of existing homes, including condominiums and town homes, dropped by about 16 percent from the same period last year, when there were about 23,800 home sales. And the median price of homes has declined about two percent from $230,000 to $225,000 over that same period. It’s not what realtors or home sellers like to hear, but some are taking it in stride.
Real estate experts agree that as the housing supply dwindles, demand will catch up, and the overall situation will rectify itself. The National Association of Realtors forecasts that home sales will hit a 5-year low this year, but then will strengthen in 2008, along with home values.
In the meantime, real estate experts say the current situation will improve if more sellers think realistically about how to price their homes so they won’t languish on the market. Twin Cities resident Al Heebsh recently learned that lesson. His family recently put their north Minneapolis home on the market. After a month of no showings, they lowered the home’s price by $10,000.
by Annie Baxter, Minnesota Public Radio
