True North

The Twin Cities real estate market continues to be flooded with "lender-mediated" sales. Here's the report. Lowlights from the press release:

• Over the past year, the inventory of lender-mediated properties for sale has almost doubled, while traditional inventory has declined by 16 percent.


• Of all current active properties for sale, 21.7 percent are foreclosures or short sales.


• Traditional homes continue to hold their value better than foreclosures and short sales. The Q2 median sales price of foreclosures and short sales has fallen by 11.7 percent in the last two years while traditional homes has declined by only 3.4 percent.

The mix of traditional and lender-mediated has changed so much that the net price decline overall has fallen 11.9% over the last two years. Over that same period, traditional home sales have fallen more than 43%, while foreclosures and short sales have risen by a factor of more than five.

Data on the right (from Calculated Risk) shows that the overbuilding of 2004-06 has yet to be worked out nationally. The same appears to be true for the Twin Cities.

Cross-posted at SCSU Scholars. Comments welcome.

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