Eden Prairie REO & Short Sales

What’s happening with foreclosures and short sales in Eden Prairie? Are they increasing or decreasing and how does this compare to last year? Let’s take a look at the recent statistics published by the Minneapolis Area Association of Realtors (MAAR).

According to the report, as of July 1, 2009, Eden Prairie had 566 total listings for sale. Of these, 103 or 18.2% were foreclosures and short sales. This is 21.2% higher then July 1, 2008 when there were 85 such listings. From July 2008 through June 2009, Eden Prairie had 333 new foreclosure and short sale listings compared to 210 for the previous year. That’s an increase of 58.6%. During this same period there were 180 closed sales that were foreclosures and short sales compared to 76 for the previous year. The overall share of closed sales that were foreclosures and short sales was 24.7% which is up 136.8% from the previous year.

Looking at the 13-county metro area as of July 1, 2009, 25.2% of all active listings and 44.2% of all closed sales were foreclosures and short sales. While the low interest rates continue to keep the affordability level high and help to reduce inventory, the continued rise in the unemployment rate will undoubtedly impact the number of foreclosures and short sales going forward.

— John MacKany

Twin Cities Housing Market

The Minneapolis Area Association of Realtors (MAAR) just released their Q2 2009 update on Foreclosures and Short Sales in the Twin Cities Housing Market. The report looks at four areas: Inventory, Prices, New Listings and Closed Sales. Here’s a closer look at the numbers…

First, let’s begin with the inventory of homes for sale or active listings. Looking at a year-over-year comparison, the number of lender-mediated active listings (foreclosures and short sales) went from 8,163 on July 1, 2008 to 6,685 on July 1, 2009. That’s a decrease of 18.1%. During this same time period, the number of traditional active listings fell from 26,124 to 19,837 for a decrease of 24.1%. The overall market share of lender-mediated active listings remains fairly constant at 25.2% compared to 23.8% one year ago.

Next, let’s take a look at the median sales prices. From Q2 2008 to Q2 2009, the median sales price of all lender-mediated properties in the Twin Cities had fallen from $150,000 to $120,000 for a decrease of 20.0%. Now compare this to the traditional market where the median sales price went from $225,000 to $209,000 during the same period for a decrease of 7.1%. Looking at all properties, the overall median sales price in the Twin Cities has decreased from $207,000 in Q2 2008 to $167,500 in Q2 2009 or 19.1%.

Continuing, let’s now look at the new listings; those listings that are new to the market during the quarter. Here we see an upward trend. From Q2 2008 to Q2 2009 the number of lender-mediated new listings went from 6,740 to 7,369 for an increase of 9.3%. During that same period traditional new listings dropped from 21,105 to 17,229 for a decrease of 18.4%. This resulted in the overall market share of lender-mediated new listings rising from 24.2% in Q2 2008 to 30.0% in Q2 2009.

Last, let’s look at closed sales. The number of lender-mediated closed sales more then doubled from 2,716 in Q2 2008 to 5,538 in Q2 2009. That’s an increase of 103.9%. Traditional closed sales during the same period dropped from 8,447 to 6,997 for a 17.2% decrease. The overall market share of lender-mediated closed sales has increased from 24.3% in Q2 2008 to 44.2% in Q2 2009.

TwinCitiesHomeForeclosures.com continues to be a leading resource for all of the latest statistics and analysis regarding foreclosures and short sales in the Twin Cities housing market. If you have a specific question or would like further information, please don’t hesitate to give us a call.

— John MacKany

Twin Cities Home Foreclosures

The Minneapolis Area Association of Realtors (MAAR) will soon be releasing their Foreclosures and Short Sales in the Twin Cities Housing Market Q2 Update. I thought it might be interesting to highlight two articles that caught my eye over the past couple of weeks that may give some insight into the future of foreclosures.

The first article was written by Jeff Allen of MAAR and is entitled New Numbers: Twin Cities Pre-Foreclosures Rising, More Foreclosures Coming. In the article Jeff summarizes a blog post from the Minnesota Home Ownership Center. The center has published the number of pre-foreclosure notices that their network agencies have received for the 7-County metro area. According to the data, pre-foreclosure notices have increased from 2,814 in January 2009 to 4,368 in May of 2009.

The second article was written by Jennifer Niemela from the Minneapolis St. Paul Business Journal and is entitled Foreclosure filings triple in the metro area. The article indicates that during the past 12 months, the number of foreclosure filings has averaged 106.7 per day compared to 30.8 per day for the same period last year. She goes on to say that from June 2008 to May 2009, there were 38,952 foreclosure filings in the Twin Cities compared to 11,253 for the same period one year earlier.

While the percentage of closed sales that were lender-mediated (foreclosures & short sales) in the Twin Cities has decreased from 59.7 percent in January 2009 to 40.7 Percent in June of 2009, it appears we may be seeing some increases in inventory going forward. You can always count on TwinCitiesHomeForeclosures.com to have the latest housing market statistics and easy to use links that connect you directly to the resources for a more detailed analysis.

— John MacKany