HOUSING AFFORDABILITY JUMPS

Posted by Admin Admin on Wednesday, August 10th, 2011 at 10:48am.

The housing affordability rates have jumped in Otter Tail County this year 24.3% which is above the rest of Minnesota's increase of 15.2%.  That's good news for Otter Tail County buyers.  The rate measures median income, median pricing and interest rate. In addition, positive signs of the long awaited housing recovery may be on the horizon according to  the May Minnesota Housing Report released by the Minnesota Association of REALTORS. 

Many experts and those involved in the industry were optimistic about the numbers, especially the pending sales figure which was up 26.2% when compared to transactions in May 2010.  Pending Sales - contracts written but not closed - for Minnesota were up significantly in May, 2011.  However, many of the other indicators still show the effects from last year's Homebuyer Tax Credit and lower consumer confidence.  Many Minnesota homeowners are concerned about the value of their property and in May the year to date comparable numbers still looked dismal.  Statewide, median sale prices were down 9.2% compared to values in 2010.  The median is the midpoint, indicating as many transactions above as below the stated price. 

This is not an uncommon situation when the market is stabilizing.  Individual monthly prices can fluctuate as housing consumers look for bargains as more sellers place properties on the market.  In May, housing inventories grew 11% and days on the market grew 139 days.  My advice for buyers and sellers entering the market....use a professional full time real estate agent that knows not only the past comparables but one who knows the present ones and the trends. 

by Alan Olson, Broker

Alan Olson, Broker/Owner

Century 21 Vista, Inc.

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