Twin Cities Foreclosures & Short Sales Ocotober 2009

Foreclosures and Short Sales in the Twin Cities October 2009

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Contents New Listings Pending Sales Closed Sales Median Sales Price Percent of Original List Price Received Days on Market Until Sale Inventory of Homes for Sale Months Supply of Inventory Explanation of Methodology

2 3 4 5 6 7 8 9 10

“Lender-Owned” refers to foreclosure properties in which the financial institution has repossessed the home from the owner due to nonpayment of mortgage obligations. “Short Sales” refer to unique arrangements where the financial institution and in-default homeowner work together in an attempt to sell the home before it is foreclosed upon. “Traditional” refers to a property listed by a typical seller who is not in either of the prior two categories. The numbers provided in this report are best estimates based upon data from the Regional Multiple Listing Service and may not match other data sources perfectly. See Page 10 for an explanation of methodology.

© 2009 Minneapolis Area Association of REALTORS®, Inc. | Sponsored by Royal Credit Union

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Foreclosures and Short Sales in the Twin Cities October 2009

New Listings 10-2007

10-2008

10-2009

4,442

4,555

6,621

1,917 1,079

873 - 32.9%

+ 2.5%

Traditional

+ 119.6%

- 43.7%

Lender-Owned

679

843

840

+ 24.2%

- 0.4%

Short Sales Traditional Lender-Owned Short Sales

Historical New Listings 12,000 10,000 8,000 6,000 4,000 2,000 0

1-2006

1-2007

© 2009 Minneapolis Area Association of REALTORS®, Inc. | Sponsored by Royal Credit Union

1-2008

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1-2009

2

Foreclosures and Short Sales in the Twin Cities October 2009

Pending Sales 10-2007

10-2008

10-2009 2,714

2,474 1,585

1,208

1,160

403 - 35.9%

106

+ 71.2%

Traditional

+ 199.8%

- 4.0%

Lender-Owned

537

217 + 104.7%

+ 147.5%

Short Sales Traditional Lender-Owned Short Sales

Historical Pending Sales 6,000 5,000 4,000 3,000 2,000 1,000 0

1-2006

1-2007

© 2009 Minneapolis Area Association of REALTORS®, Inc. | Sponsored by Royal Credit Union

1-2008

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1-2009

3

Foreclosures and Short Sales in the Twin Cities October 2009

Closed Sales 10-2007

10-2008

10-2009 2,862

2,566 1,962

1,194

1,174 332 - 23.5%

96

+ 45.9%

Traditional

+ 253.6%

+ 1.7%

Lender-Owned

421

226 + 135.4%

+ 86.3%

Short Sales Traditional Lender-Owned Short Sales

Historical Closed Sales 6,000 5,000 4,000 3,000 2,000 1,000 0

1-2006

1-2007

© 2009 Minneapolis Area Association of REALTORS®, Inc. | Sponsored by Royal Credit Union

1-2008

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1-2009

4

Foreclosures and Short Sales in the Twin Cities October 2009

Median Sales Price 10-2007 $226,000

10-2008 $222,900

10-2009 $200,000

$193,500

$165,000

$154,500

- 1.4%

- 13.2%

Traditional

$129,500

$118,450

- 16.2%

- 8.5%

Lender-Owned

- 17.5%

$149,000

- 9.7%

Short Sales Traditional Lender-Owned Short Sales

Historical Median Sales Price $250,000 $225,000 $200,000 $175,000 $150,000 $125,000 $100,000

1-2006

1-2007

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1-2008

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1-2009

5

Foreclosures and Short Sales in the Twin Cities October 2009

Percent of Original List Price Received 10-2007

10-2008

10-2009 97.8%

100% 95%

94.0%

92.6%

94.1% 87.9%

90%

90.2%

88.7%

88.5% 83.2%

85% 80%

- 1.5%

+ 2.6%

+ 1.6%

Traditional

+ 8.4%

Lender-Owned

- 6.1%

+ 6.3%

Short Sales Traditional Lender-Owned Short Sales

Historical Percent of Original List Price Received 100%

95%

90%

85%

80%

1-2006

1-2007

© 2009 Minneapolis Area Association of REALTORS®, Inc. | Sponsored by Royal Credit Union

1-2008

www.rcu.org

1-2009

6

Foreclosures and Short Sales in the Twin Cities October 2009

Days on Market Until Sale 10-2007

117

10-2008 132

+ 13.5%

10-2009

185 147

190

183

+ 2.9%

- 3.7%

146

126

112

- 4.4%

- 1.1%

Traditional

- 23.1%

Lender-Owned

Short Sales Traditional Lender-Owned Short Sales

Historical Days on Market 225 200 175 150 125 100

1-2007

1-2008

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1-2009

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Foreclosures and Short Sales in the Twin Cities October 2009

Inventory of Homes for Sale 10-2007

10-2008

10-2009

28,430 22,088 17,350

4,927

2,491 - 22.3%

- 21.5%

Traditional

1,806

+ 97.8%

- 63.3%

Lender-Owned

2,772

4,533

4,293

+ 63.5%

- 5.3%

Short Sales Traditional Lender-Owned Short Sales

Historical Inventory 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0

1-2006

1-2007

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1-2008

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1-2009

8

Foreclosures and Short Sales in the Twin Cities October 2009

Months Supply of Inventory 10-2007

10-2008

10-2009 37.5 25.1

9.5

10.0

+ 5.2%

8.3

13.2

9.2

5.8

- 17.0%

Traditional

1.4

- 37.2%

- 76.5%

Lender-Owned

- 33.0%

- 47.5%

Short Sales Traditional Lender-Owned Short Sales

Historical Months Supply of Inventory 50 40 30 20 10 0

1-2006

1-2007

© 2009 Minneapolis Area Association of REALTORS®, Inc. | Sponsored by Royal Credit Union

1-2008

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1-2009

9

Foreclosures and Short Sales in the Twin Cities October 2009

Postscript: Explanation of Methodology This report relies in part upon the analysis of subjective remarks that REALTORS® employ when listing properties in the Twin Cities Regional Multiple Listing Service, and in part upon data fields in this same system called “In Foreclosure,” “Bank-Owned” and “Short Sale.” These fields allow users to mark properties that fit within these legal definitions.

A property is a “Lender-Owned Foreclosure” when any of the following rules are met: • Lender-Owned = “Yes” • One of the following terms are found in Agent Remarks, Public Remarks or Financial Remarks: • bank owned • bank-owned • bank-owned • foreclosure • forclosure

• reo • hud acquire • hud-acquire • hud-acquired • corporate owned

• corporate-owned • corp owned • corp. owned • corp-owned • corp owner

A property is a “Short Sale” when any of the following rules are met: • Short Sale = “Yes” • One of the following terms are found in Agent Remarks, Public Remarks or Financial Remarks: • short sale • shortsale • short-sale • in foreclosure • in forclosure

• preforeclosure • preforclosure • bank approv • lender approve • subject to bank

• subject to lender • redemption • subject to corp • subj to corp • 3rd-party approval

• third-party approval • 3rd party approve • subject to third • subject to 3rd

Note: properties containing these specific phrases in the same remark fields are NOT counted in either category: • not a foreclosure • not a forclosure • no foreclosure • no forclosure • not foreclosure • not forclosure

• not a short sale • not a shortsale • not a short-sale • not short sale • not shortsale • not short-sale

• no short sale • no shortsale • no short-sale • not a bank • not bank • no bank

• tired of short sale • tired of shortsale • tired of short-sale • tired of foreclosure • tired of forclosure

The methodology was developed by Aaron Dickinson, REALTOR® with Edina Realty (www.twincitiesrealestateblog.com) and Jeff Allen, MAAR Research Manager (www.mplsrealtor.com). © 2009 Minneapolis Area Association of REALTORS®, Inc. | Sponsored by Royal Credit Union

www.rcu.org

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