Minnesota Real Estate Market Update

s some good news on the horizon in regards tonational median price for a house was over
the real estate market. It looks like the incentives$170,000. In the Midwest, the average price was
to buy homes from the government, i.e. theunder that at around $139,000. However, this is
homebuyer tax credit has been paying off.an increase from last year.
According to the National Association of RealtorsUnemployment rate has had a huge factor in the
(NAR), home sales (including condos, co-ops,housing market. The national unemployment rate
residential house, etc) have been gaininghovering over 9% is at higher than the normal
momentum.rate of around 5%. However, Minnesota has a
Real estate sales have risen close to 7 percentlower unemployment rate of 7.4%, which is lower
from February of 2010. Compared to March ofthan the national rate. This is one of the reasons
2009, the home sales have increased over 16why Minnesota has one of the lower foreclosure
percent. This is a tremendous improvementrates in the nation. In fact, according to
considering the economy we are in.RealtyTrac, the number of foreclosures in
Total houses available for sales also rose a littleMinnesota is down 13% from
over 1.5 percent. Unfortunately, a lot of theseFebruary of 2007 while foreclosures in a lot of
houses for sale are due to the inventoriesstates are going up.
available from foreclosures. According to NAR,Coupled with low foreclosure rates and lower than
foreclosed and distressed homes were sold foraverage unemployment rate, Minnesota has one
discounts of about 15 percent. These homesof the better housing markets in the nation.
accounted for around 35 percent of all homesLawrence Yun, NAR’s chief economist said
sold in March.that, “With home values stabilizing, a revival in
Another great indicator that the homebuyer taxhome buying confidence will likely help the housing
credit is working is that first time home buyersmarket get back on its feet even as the tax
made up over 44% of the March buyers. This iscredit impact disappears”.
up from 42% that was seen in February. The