Last quarter (quarter #2) shows in MN that Foreclosures/Short Sales make up 21.7% of the market place. What this means is 1 out of every 5 homes are either in Foreclosure or a Short Sale. This is a 92.6% INCREASE in Foreclosures and Short Sales in MN alone. Town-homes seem to be the largest impacted by the up-shift in Foreclosures and Short Sales with a 136.5% increase from last year alone!
To break down the film even more:
-55% of homes priced $120,000 or less are either Foreclosure or Short Sale
-39.4% of homes priced $120,001-$150,000 are either Foreclosure or Short Sale
-28.3% of homes priced $150,001-$190,000 are either Foreclosure or Short Sale
-18.7% of homes priced $190,001-$250,000 are either Foreclosure or Short Sale
-11.7% of homes priced $250,001-$350,000 are either Foreclosure or Short Sale
-8.9% of homes priced $350,001-$500,000 are either Foreclosure or Short Sale
There is no doubt that the “Credit Crisis” has had a tremendous effect on the real estate market, even so much that the government wants to get involved. Home prices have consistently fallen with no end in sight. What do we do? Wait for the market to correct itself or have the government help. The bail out bill is supposed to be voted on again this Thursday.
The “Main Street” community is anxious to see how this plays out and what effect this will have on them.
