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  • Mar 24, 2008 5:52 pm US/Central
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Home Sales Rise Locally, Nationally

Reporting
Terri Gruca
(WCCO) There is good economic news on the housing front. Nationally, home sales rose 2.9 percent from January to February, and in Minnesota, they rose 2 percent. It's the first real sign real estate may be on the rebound.

 That uptick in sales is just what sellers like Molly Evans want to hear.

 "I think that's a really positive thing especially with spring coming and the snow melting people are out looking," said Evans.

 She had her Lakeville home on the market for a while but took it off recently. She then put it back on after dropping the price by $25,000. Her realtor also created a personalized Web site for her home. Since then showings for her three bedroom, two bath home have skyrocketed.

 "I think that I've had one almost every other day in the last couple weeks," she said.

 Greg Bauman, president of the St. Paul Area Association of Realtors, said people selling homes in the Twin Cities have a lot to celebrate.

 "Our numbers are actually higher on the rebound when you look nationally right now. Pendings are up three to four percent nationally, compared to the Twin Cities which are up 20 percent. That's a significant change or difference from the total nation," said Bauman.

 The reason is that low mortgage rates are now joined by low home prices. That means someone can buy Molly's $225,000 home and pay less than $1,500 a month for a 30-year mortgage. The catch is most buyers will have to put at least 3 percent down, whereas this time last year there were still plenty of zero down mortgages to be found.

 Right now across the Twin Cities homes south of the river seem to be selling the fastest. As do homes with updated kitchens and neutral paint. Most homes are selling for 5 to 10 percent less than what they would have sold for last year.

 Real estate experts say it's hard to know if all the positive news means the bottoming out of the housing bubble is nearing an end. Still Evans is hopeful she'll be able to move closer to work so she can spend more time with her daughter and less time on the road.

 "My hope is to sell by the beginning of summer," she said.

 Lower end homes in the $100,000 to $150,000 dollar range are hot right now especially in Minneapolis. So is anything a first time homebuyer might consider.

 The news is not all rosy. Home sales year to year are down 24 percent nationally, but only down 10 percent in 13-county Twin Cities metro area. The homes people are having the most difficulty selling are the higher end $700,000 to $800,000 dollar homes.

 It's the same with townhomes and condos. There's an oversupply of them across the Twin Cities and the zero money down deals attached to them are gone.

In addition, Homeowner Associations limit how many units can be rented.

 Realtors say the condos that sell are priced right, sometimes with incentives like association dues paid for a year.

 

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)

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