The Twin Cities appears to have been hit hard in some neighborhoods by the foreclosure market. With the new numbers out last week for homes that closed in January.  We are really seeing two markets working.  59% of the homes sold last month in the Twin Cities were lender mediated properties.  Although this is good from an inventory standpoint it really shows the struggles home owners are experiencing with the competition from these properties.  The average price of owner occupied homes was $215,000 but the average price of lender mediated properties was only $122,000.  As you can see with 59% of the homes sold being foreclosures and the average price being as low as it is.  This is continuing to have a negative affect on home values in general.

Unfortunately for a seller, appraisers usually do not look to the average price of homes sold based on the circumstances of the sale.  They look at the market as a whole.  The other phenomenon that seems to play with the market is lenders tend to put large blocks of these foreclosed properties on the market at a time and make it difficult to acurately price a home.  It is especially difficult when you are looking to sell your home because the price can vary relatively quickly depending on the sale prices of homes near you.  In the coming months the Twin Cities is expected to experience another onslaught of bank owned properties this is good news for buyers looking to purchase but it continues a difficult situation of today‚Äôs home sellers.

If you would like more information on the state of the Twin Cities real estate market of other real estate questions.  Please visit my website at www.watersrealtymn.com or email me at cherikuhn@watersrealtymn.com