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2007 Real Estate Market in Review, Part 1

by Jennifer Kirby on February 21, 2008
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Today the Residential Real Estate Activity Report for 2007 was released by the Minnesota Association of Realtors. It tells us what we all knew was happening. Listings stayed high, while closed sales took a nose dive. To put it in numbers, over 105,000 listings were for sale, but only 40,055 closed. That’s roughly a sale rate of 38%.

In the last few months, I have had people ask me about the market. I have always told them that while the market is down, we are back to 2002 sales levels, which in itself wasn’t too shabby of a year. Low and behold I was right on the money! We all new the roller coaster ride had to end sometime. Now we can look back the last five years and follow the trends. Trends typically follow a sine curve, so it will be interesting to see if 2008 will be the year we hit bottom.

With record sales the last five years, we can also see what areas of the Twin Cities sold the highest volume of homes. NO big surprise but the Lake Minnetonka area tops the list. Homes around the lake have sky rocketed, with older homes being torn down and being replaced with mansions. Other areas have seen the same trend, especially in Edina. There have been a couple controversial tear-downs the last two years.

The next installment will look at appreciation levels and housing affordability.

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