Twin Cities Traditional, Bank Owned and Short Sales

June 7, 2011

In the Twin Cities we do an excellent job of reporting housing numbers and tracking supply, demand and trends.  Sometimes though the numbers say too much or say too little.  I’ve taken a couple pieces of data to focus on today:

23,851

Approximately the number of homes for sale on the MN MLS

2,234

Approximate number of still listed as for sale but have an accepted offer subject to a contingency, the seller is still showing the property

35%

Percentage of homes for sale listed as short sales that have accepted offers

14%

Percentage of homes for sale listed as bank owned that have accepted offers

5%

Percentage of homes for sale listed as traditional sales that have accepted offers

  • Our effective inventory of homes for sale is lower than the numbers reported
  • 1 in 3 short sales listed for sale already have an offer – Short sales average days on market is much longer than a traditional sale due to the time it takes for a bank to approve the sale of a property at less the amount owed.
  • Since “active w/offer” is not displayed on property search sites for the consumers, consumers are sometimes frustrated to find out that the home they had an interest in already has an accepted offer.  Because there are many details that go behind that information, buyers are encouraged to seek additional information from their agent before choosing to include or exclude houses with accepted contingent offers