With the 2008 year at a half way point it’s a great time to look at the local housing market and see where we are. Even if you’re not selling or looking to buy Real Estate now, it’s still a good idea to keep educated and understand where your equity position is at.
The two counties to the west of Minneapolis are Wright County and Hennepin County. Let’s take a closer look at these areas compared to last year to see what the real story is. The news, “overall”, includes so many areas, demographics and various populations it may not be relevant to our area.
Wright County employment increased by 475 jobs in January and February. However, the number of job seekers also increased. The combined effect of these two trends was an increase of the average monthly unemployment rate from 4.9% for the first quarter to 6.6% in the first two months of the second quarter. The solid job growth of February provided strong home sales, while historically low mortgage rates should continue to produce sales.
Fourth quarter for 2007 as compared to first quarter 2008 overall home sales are down but only 6% and expected to rise second half. Homes in Wright County are selling 4% faster which is lending to the promising signs of a more stable market. On average in the entire Wright County area homes are selling for 96% of asking price.
Looking at the first quarter of 2007 vs. the first quarter 2008 for Wright County homes here is the following statistics for new listings in Wright County;
2005 – 1,085
2006 – 1,378
2007 – 1,323
2008 – 1,195
For homes Pended in Wright County (sold & under contract):
2005 – 561
2006 – 544
2007 – 419
2008 – 432
Hennepin County employment declined by 16,342 in jobs during January and February. The job losses brought about an increase in the average unemployment rate from 4% in the first quarter to 4.1% for the first two months of the second quarter. Despite the job losses, the job situation still remains strong in Hennepin County. Along with the low mortgage rates the outlook is strong for Hennepin County real estate sales.
Overall home sales in Hennepin County may be down first quarter about 18% the average sales price vs. asking price remains decent at an average of 94%.
Looking at the first quarter of 2007 vs. the first quarter 2008 for Hennepin County homes here is the following statistics for new Listings in Hennepin County;
2005 – 7,505
2006 – 9,725
2007 – 9,711
2008 – 8,896
For homes Pended in Hennepin County (sold & under contract);
2005 – 4,961
2006 – 4,537
2007 – 4,044
2008 – 3,359
Keep in mind January 2008 was down in sales by about 30%however the next 2 months were up to the normal range for both 2006 and 2007.
The real estate market for Minneapolis, Wright County and Hennepin County is fairing well to many areas of the world, homes are still selling and buyers are still buying. Most forecast that we are near the lower end of where we will hit and some areas show statistics we have been to the bottom and are stabilizing and rising in some areas as well.
If you have any specific questions or know someone that does about today’s market including the two counties of Hennepin and Wright we looked at above just let us know and we would be happy to help.
We can also be reached at 612-282-7653.
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