“The supply of for-sale listings continues to dry up, driven in part by potential sellers trapped in negative equity and homeowners that won’t sell out of fear they won’t be able to find a suitable home to buy later.” ~ Zillow
Minneapolis, Minnesota (PRWEB) March 08, 2013
Stable home values and household balance sheets are improving, the Federal Reserve said yesterday in Washington, which should help potential home sellers trapped underwater in negative equity situations. Fewer homes are listed as for sale across most of the U.S.; listings are lower 16.6% year-over-year in February, according to Zillow.com. Zillow also shows Minneapolis is experiencing significant drops in available housing inventory based on shadow inventory being absorbed.
"The rise in home property values should free some homeowners from negative home equity. Also called an "underwater mortgage", if a homeowner can upright their equity, they will find it easier to list their homes for sale should they wish to. This would contribute to an easing of the Minneapolis housing inventory crunch. Today's real estate buyers vying for what little inventory is available will benefit by a broader selection of homes to buy," says Jenna Thuening, owner of Home Destination.
Today’s report of the Flow of Funds Summary Statistics for the fourth quarter of 2012 shows that household net worth has increased an encouraging $1.1 trillion over the prior quarter to about $66.0 trillion at the end of the fourth quarter of 2012. The report showed that the value of real estate owned rose by $480 billion in the quarter. The real U.S. household net worth figures increased from $64.8981 trillion in the third quarter up to $66.0717 trillion in the fourth quarter. The rise in real estate values should transfer into helping potential home sellers get above water and be empowered to sell their homes as needed.
Additionally, According to RealtyTrac's January reportings on negative equity and foreclosures by state, in Minnesota 1 in every 1,244 housing units received a Minnesota foreclosure filing in January 2013. Hennepin County was the highest at 746, Dakota County fell mid-rage at 84 foreclosure filings and Carver the lowest with 29. In the last quarter, Minnesota had a total of 19,289 foreclosure homes with $175,921 for the average foreclosure sales price.
"Former home owners tend to remain in the homes until the closing of the sale and therefore keep the homes in better condition. Short sales have also become a more popular alternative to foreclosure," said Daren Blomquist, vice president at RealtyTrac. Some cash home buyers are planning to spend just about as much to renovate a foreclosed house to bring it back owner-occupied.
At the same time, in all Twin Cities housing markets reported home prices are up, according to the latest Case-Schiller Index. For example, In Wayzata, MN, the average Wayzata home for sale is $539,161, up 24.58 % in the last quarter. Ely, Minnesota came in the highest home value increase with the average home price increasing 48.89 %. Cambridge, Minnesota came in second in state during the same last quarter of housing market reports with home prices increasing an average of 29.24 %. "Housing is clearly recovering," David M. Blitzer, chairman of the Case-Shiller index, who noted that prices are rising for both new and previously occupied homes.
Today’s Federal Reserve report of the Flow of Funds Summary Statistics for the fourth quarter of 2012 shows that household net worth has increased an encouraging $1.1 trillion over the prior quarter to about $66.0 trillion at the end of the fourth quarter of 2012. The real U.S. household net worth figures increased from $64.8981 trillion in the third quarter up to $66.0717 trillion in the fourth quarter. "The rise in real estate values should transfer into helping potential home sellers get above water and be empowered to sell their homes as needed," states Thuening.
"While the Twin Cities is tipping toward a home sellers market, some potential home sellers are still feeling trapped underwater", continues Thuening. The Minneapolis housing market is experiencing e a change in unlisted foreclosures, indicating there will likely be a rebound in available inventory in the coming months as those foreclosure properties are listed as short sales or bank-owned homes for sale. Home Destination finds that The Twin Cities real estate market has largely shifted from a buyer's market to a seller's. An increase in the buyer pool per house on the market creates a seller's market. The Twin Cites high affordability index still favors a Minneapolis home buyer's market."
Minneapolis area homeowners who want to sell their homes but feel trapped underwater can reach Home Destination for help with seller resources by calling 612-396-7832.