Home sales improving
Sales up, inventory down,
Realtor tells council
Sales are up and inventory is down — good signs for the housing market in Burnsville and across the metro area, according to Richard Tucker, president of the St. Paul Area Association of Realtors.
“Sales are up, and people are out buying. … We had a very, very strong March in Burnsville,” Tucker told the City Council at an April 10 work session.
Burnsville is one of a number of cities where Tucker has gone to discuss the post-crash housing market.
Burnsville homes that are in good condition and appropriately priced are likely to attract multiple offers and move fairly quickly, Tucker said.
“Buyers are ready, and that’s a positive,” Tucker said. “Interest rates are fabulous.”
Eventually, demand will begin to push home prices up again, Tucker said.
“Prices will be the last thing you see recover,” he said.
Closed sales in Burnsville totaled 783 from April 2011 through March 2012, a 26.5 percent year-over-year increase for the period, according to the St. Paul Area Association of Realtors.
There were 619 closed sales from April 2010 through March 2011 and 697 from April 2009 through March 2010. 2009 sales were boosted by the first-time homebuyer credit in the federal stimulus package, Tucker said.
Lower inventories are helping to stabilize the market, according to Tucker.
Burnsville had 1,039 new listings from April 2011 through March 2012, a 19.1 percent year-over-year drop. Listings totaled 1,284 in the previous period, and 1,352 in the period before that.
The number of Burnsville homes for sale dropped from 448 from April 2010 through March 2011 to 331 from April 2011 through March 2012 — a 26 percent decrease.
Less expensive housing makes up the bulk of Burnsville’s recent market activity. April 2011 through March 2012 saw 130 homes for sale priced at $139,899 and below, 85 priced from $139,900 to $194,899, 65 priced from $194,900 to $254,899, and 52 priced at $255,000 or higher.
The number of closed sales in the recent period was dominated by homes in the lowest range. A total of 376 homes sold for $139,899 or less, followed by 187, 140 and 80 in the respective price ranges.
The less expensive homes comprised the greatest number of traditional closed sales among the four price categories.
That trend was accentuated among foreclosures and short sales, with sales of the cheaper homes towering over sales in the other price categories.
Condominiums were the housing type most likely to be sold through foreclosure from April 2011 to March 2012. There were 45 foreclosures and 19 short sales during the period, compared with 37 traditional sales.
Townhomes also saw a large number of foreclosures and short sales, 121 and 44 respectively, compared with 124 traditional sales.
Closed sales of single-family homes included 187 traditional sales, 140 foreclosures and 48 short sales.
The median sales price for the period among single-family homes sold through traditional sales was $220,000, down from $239,250 during the April 2009 to March 2010 period.
The median foreclosure price for the recent period was $166,000, and the median short sale price was $170,500.
Across the Twin Cities metro area, home sales rose from 38,283 in 2010 to 41,429 in 2011. The number of homes for sale dropped from 22,723 to 16,223.
The median sales price regionwide fell from $169,900 to $150,000.
John Gessner can be reached at firstname.lastname@example.org or facebook.com/sunthisweek.