http://www.youtube.com/watch?v=2HKGhBqzHwM

 

 NOVEMBER TWIN CITIES MARKETPLACE UPDATE

STEVE:  Hi, this is Steve Westmark.  Thanks again for watching my weekly blog.  Today, I’m going to update you about what’s going on in the real estate marketplace.  The statistics have just come in for the months through the end of October, and I thought I’d just share with you the overall things that have happened by a few simple graphs.  The first graph I’m going to show you is will show what is going on in the months available property inventory.  What you’ll notice on this chart is that in 2008 at this point in time there were nine months.  Last year, we had shrunk to six months.  But this year, our inventory has increased back to eight months.

The next chart that I want to show you is in the area of affordability.  And what’s so exciting about that chart is it shows that housing is becoming more and more affordable in the state of Minnesota.  In 2008, we had 161 unit.  Then it increased to 202, and currently, we’re at a 217, which as the higher it goes it means that housing is more and more affordable and it has to do with two items.  The first item has to do with the sale price.  And what you’ll see from this graph is that in 2008 our median sale price was 108.  In 2009, the median sale price was 169.  And you’ll see that we are seeing a slight increase in our median sale price in 2010 to 170.

But what really helps our increase in affordability in housing is this next graph.  The next graph shows what has happened to the interest rates.  In 2008, we had 6% interest rates for a 30-year fixed.  In 2009, we were about at 5.5%, and currently, we’re at a 4.5% interest rate.  So what this means to you Mr. Homebuyer and Ms. Homebuyer is that it’s a great time to be out in the marketplace.  Interest rates are great.  Prices are at some of their best in the last decade.  And it’s a good time to be out looking in the marketplace.  Thanks for joining us again on my market update, and we look forward to having a great 2011.