Getting a deal

With all the buzz these days about foreclosures and the current buyer's market thoughts often turn to the deals that can be made.

It's a great time to be buying, but don't expect to buy for a price way below list price. In any market, list price is an indication of what a seller is willing to accept at that point in time... current market conditions have likely already been taken into account, and the current price may have already been reduced from original list price.

In any market, some properties are overpriced and some properties are priced below actual value. Before making an offer, do a comparative market assesment to get a sense of the property's current value... it could be that you're getting a good deal even at full list price!

Year-to-date average sale price in the 13-county Twin Cities metro area is 95.4% of list price. This means the metrowide average sale price for a home listed at $225,000 is about $215,000.

Keep in mind this is the metrowide average, and market conditions can vary significantly from community to community. Click here to find out current market conditions for 125 Twin Cities communities.

Moderating Buyer's Market

The weekly market activity report from the Minneapolis Area Association of Realtors came out last night. While the supply of homes for sale in relation to buyers (Supply-Demand Ratio) is higher than it was last year at this time, it's lower than it has been since last August.

And "while sales are slower than last year at this time, they are behind at a lower rate than the market has seen in recent months, indicating a settling in the decline of buyer activity... The year-to-year inventory comparison reached a peak of 40-plus percent growth in the summer of 2006 and has been steadily declining ever since."

The updated Supply-Demand Ratio (SDR) of 7.54 means that in the month of February there will be 7.54 homes available for purchase for every expected new purchase agreement.

Click here to view the full 18-page report.