Twin Cities Foreclosure Statistics Reveal Surprising Trends

One of the challenges in the current market for the Twin Cities Realtor’s associations has been spotting trends in terms of trends with lender-involved properties, vs. those being sold by a traditional seller. Until recently, it was impossible to discern what percentage of properties on the market involved lender-owned properties or short sales. Consequently, it was also virtually impossible to determine how traditional sellers were fairing.

In an effort to address and decipher these issues, the Minneapolis Area Association of Realtors released a comprehensive report yesterday detailing the full impact of the mortgage crisis in the Twin Cities market.

Highlights of the report include:

• “Over the past year, the inventory of lender-mediated properties for sale has almost doubled, while traditional inventory has declined by 16 percent
• Of all current active properties for sale, 21.7 percent are foreclosures or short sales.
• Traditional homes continue to hold their value better than foreclosures and short sales. The Q2 median sales price of foreclosures and short sales has fallen by 11.7 percent in the last two years while traditional homes has declined by only 3.4 percent.
• The prevalence of lender-mediated homes varies greatly from area to area. A full index of MLS areas and cities is included in this report. “

While the report does not address small multi-family housing (duplexes, triplexes and fourplexes), it nonetheless provides useful information to investors. To see the full report, click here.