I probably get asked how the market is doing more than any other question. This year I can honestly say it is doing well... without effects of temporary external forces.
I started collecting weekly stats directly from the MLS over a year ago so I now have some comparative data. Sales are usually strongest in the spring and this year was no exception. The real test of the health of the real estate market is what happens once spring is over.
Both closed sales and pending sales, which predict future closed sales, are up when comparing the totals of weekly sales stats from the MLS for the months of June and July. I know I see it when working with both buyers and sellers... I recently had two new listings get good offers in less than a week on the market... and schedule showings for buyers only to find some properties they want to see are already sold.
Of course the historically low interest rate is helping, but it sounds like it will continue to be with us for awhile and when rates do rise they will likely increase slowly so I don't expect wild market fluctuations because of that.
The decline in home values could actually be helping the market at this time, as underwater home owners who can't afford to take a loss on the sale price of their homes are staying put rather than selling. This is keeping inventory levels low, which in turn in is lifting prices due to the laws of supply and demand.
Sharlene Hensrud, RE/MAX Results - Email - Minneapolis - St. Paul Real Estate Market
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