May Sales are Down

As predicted, housing sales have slowed since first time homebuyer tax credits have been discontinued. According to the Minneapolis Area Association of Realtors…

Pending sales in the Twin Cities metro area took a sharp turn in May — from
5,183 signed purchase agreements in May 2009 to 3,910 signed agreements last
month.

The numbers were also down from previous months this year. While prices of homes was 6 percent higher – that increase has been attributed to a bump in prices of foreclosed houses. The median price of traditional homes declines, from $210,000 to $198,000.

According to a recent article in the Minneapolis Star Tribune

Mark Vitner, a senior economist at Wells Fargo Securities, is among the camp who believe that we haven’t seen the last price decline. In a recent housing research report, he said he expects prices to decline “a little further” through 2010 with a bottom being reached either at the end of this year or early next year. Once the prices reach their low, however, homeowners should only expect prices to rise “modestly,” he wrote.

It’s not great news for sellers or for the overall economy – but for buyers it indicates that it’s still a buyers market. To make the most of that advantage, buyers will want to consider an exclusive buyer agents when they are looking for homes.

Submitted by Minnesota Realtor, Mary Rugani.

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