Following a holiday weekend recess, new listing activity in the Twin Cities housing market bounced back dramatically with exactly 2,700 new residential units placed on the market for the week ending April 14. This is a 20.2 percent increase over the same time in 2006. Buyer activity, however, did not see a parallel rise following the holiday. Just under 1,000 homes received purchase agreements (pending sales), a 21.3 percent decrease from this time last year.
While important market conditions have improved for home buyers during the last two years—including a dramatic increase in choice and affordability—buyers remain on the sidelines for now. This pause is exacerbated by recent shifts in the mortgage industry towards tighter lending standards following the subprime market fallout. For now, the uncertainty surrounding this shift is prolonging the post-boom correction in the regional real estate market.
No comments:
Post a Comment