A Buyers' Market to Behold

Back from Vacation...Did you miss me?!?

A couple of interesting bits today...

Here's what the National Association of Realtor's new number cruncher Lawrence Yun has to say about the current market:

Buyers now have an overwhelming advantage given the wide selection of homes available in many markets, according to NAR's latest forecast. "But with profit margins coming under pressure, homebuilders will limit new construction well into 2008. This should help the overall inventory level to move steadily into a more balanced state," said NAR's Senior Forecast Economist Lawrence Yun. Existing-home sales are expected to total 6.11 million this year and 6.37 million in 2008, down from 6.48 million last year. Prices are likely to rise 1.8 percent next year after a 1.4 percent drop this year

Meanwhile today's STrib ran an editorial about just how bad (for Sellers) and great (for Buyers) the current market is:

These aren't the best of times for selling a home. Sales in the metropolitan area were down nearly 16 percent during the first half of this year, and the median sale price dipped 2.2 percent as sellers began to absorb the reality that their biggest investments may actually be losing value.

Unencumbered buyers, on the other hand, are having a field day with lots of houses to look at. Inventories stand at nearly twice the usual level, and interest rates remain favorable.

Given all of that, real estate experts have not dodged the obvious conclusion: that from a sales and production perspective, the local market has slipped into recession.

That's not as gloomy as it sounds. The public should factor in the unprecedented runup in home values that preceded the slump. Homes are still selling at prices higher than two summers ago. What's happening is a needed correction to irrational prices, excessive speculation and a sea of foreclosures against thousands of people tricked into buying homes they couldn't afford.

More HERE.

How does the Twin Cities stack up against other cities? Well, not so good at the moment...

WHERE HOMES ARE RETAINING VALUE

Percent change in median sales price of existing single-family homes from the first quarter of 2006 to the first quarter of 2007:

Seattle $380,000 +12.3

Portland $290,000 +8.9

San Jose $788,000 +4.4

Des Moines $146,000 +3.5

Chicago $267,000 +1.4

Omaha $134,000 +0.5

Atlanta $171,000 +1.2

Dallas $146,000 -0.6

Boston $387,000 -1.0

San Diego $595,000 -2.0

Denver $239,000 -2.0

Phoenix $263,000 -2.2

Kansas City $146,000 -2.9

Twin Cities $223,000 -5.2

Milwaukee $202,000 -5.8

Source: National Assoc. of Realtors

These things are cyclical. I have no doubt market will rebound and provide better footing for the Sellers but in the meantime, Buyers are WISE to take advantage of this lull to pounce on a great deal!

Now I better get unpacked...