Minnesota Market Trending Towards Higher End Homes in 2011

If you are one of the lucky few to own a Frank Lloyd Wright built home, then you will never have to worry about the twists and turns of the housing market.  Wright is considered America’s best architect and the homes he built are highly coveted; to own a Frank Lloyd Wright home is to own a piece of our national treasure and you should never sell it!  If, however, you are in the 99.9% of Americans, who do not own a Wright home, then you need to be concerned with the highs and lows of the market: here are a couple market trends to look for in 2011.

#1 – In 2011, It Will Be Harder To Sell Homes Priced At 190k Or Less In The Twin Cities *

Why?  Because the inventory of homes in this price range has increased by 46% from the previous year.  In addition, the months supply of 2011 inventory for 190k or less has increased 73% from 3.9 in 2010 to 6.77.  The months supply calculates how many buyers there are compared to sellers in the market… a calculation of 6.77 determines a market flooded with sellers; thus making it harder to sell a home.  Beyond the numbers… the popular tax credit for first time home buyers expired in the latter part of 2010 and is one reason why the market will have fewer buyers in 2011.  In addition, bank owned homes continue to saturate this price range.  If you have a home in this price range listed in 2011; get your home to stand out by creating a clear and aggressive marketing strategy and be sure to price it right. Finally, choosing the right realtor is key to selling your home in a tough market.

#2 – Your Million Dollar Minnesota Home Will Sell in 2011!*  

There is no certainty in the housing market, but the inventory for homes priced at million dollars and above has decreased 15% over the past year; making the competition more reasonable than last year.  Another positive trend… The month supply data for million dollar homes has decreased more than 26% from a year ago.  The month supply data is calculated to determine the state of the market; a decreasing number means the increase of buyers and/or decrease in sellers.  A smaller inventory of homes and a larger pool of buyers is a recipe for success in 2011.

*Data used for this article was published by the St. Paul Area Association of Realtors (SPAAR).  Search: Housing Supply Outlook

Follow my blog, Minnesota Real Estate by Matthew Underwood, for more information on the housing market.  Other valuable websites: www.twincityrealty.com; www.spaar.com; www.realtor.org.