Twin Cities Forclosures

Foreclosure rates are up this quarter, but down from last year. The Minneapolis Star Tribune reports that 8,739 households in the Twin Cities received a foreclosure notice during the third quarter. That’s one foreclosure for every 154 homes. It’s bad but apparently not as bad as other regions in the US – the highest rates were in California, Florida, Nevada or Arizona.

Here is the assessment from the Star Tribune

Distress sales are an important indication of the health of the broader market. A high percentage of them can be a drag on area house prices because they create competition for traditional listings and are often eyesores that can reduce the value of nearby houses. During September the median sale price of bank-owned sales fell 3.3 percent to $114,900 and short sales fell 4.7 percent, to $143,000, according to the Realtors group. Sale prices for traditional listings that month rose 7.6 percent, and at $215,250, were nearly double those of distress sales.

“While the numbers are still very high, the inventory of foreclosed homes for sale in the Twin Cities is still down nearly 40 percent from where it was two years ago at this time,” Dickinson said. “A moderate bump in new foreclosures for sale shouldn’t have a large impact in our market in the short term.”

Submitted by Minnesota Realtor Mary Rugani.

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