Foreclosures and Short Sales in the Twin Cities Contents New Listings 2 Pending Sales 3 Closed Sales 4 Distressed New Listings Rate 5 Distressed Closed Sales Rate 6 Median Sales Price 7 Percent of Original List Price Received 8 Days on Market Until Sale 9 Inventory of Homes for Sale 10 Months Supply of Inventory 11 Explanation of Methodology 12 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 12 for an explanation of methodology. All data comes from the Regional Multiple Listing Service, Inc. Powered by 10K Research and Marketing. Sponsored by Royal Credit Union www.rcu.org
New Listings 3,851 2,909 2,906 1,526 1,660 1,353 1,229 1,041 853-24.5% - 0.1% + 8.8% - 18.5% - 15.3% - 18.1% Historical New Listings 12,000 10,000 8,000 6,000 4,000 2,000 0 1-2007 1-2008 1-2009 All data comes from the Regional Multiple Listing Service, Inc. Powered by 10K Research and Marketing. Sponsored by Royal Credit Union www.rcu.org Click for Cover Page 2
Pending Sales 1,090 1,004 1,393 931 1,163 1,262 379 339 493-7.9% + 38.7% + 24.9% + 8.5% - 10.6% + 45.4% Historical Pending Sales 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 1-2007 1-2008 1-2009 All data comes from the Regional Multiple Listing Service, Inc. Powered by 10K Research and Marketing. Sponsored by Royal Credit Union www.rcu.org Click for Cover Page 3
Closed Sales 883 839 1,080 818 972 944 347 334 390-5.0% + 28.7% + 18.8% - 2.9% - 3.7% + 16.8% Historical Closed Sales 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 1-2007 1-2008 1-2009 All data comes from the Regional Multiple Listing Service, Inc. Powered by 10K Research and Marketing. Sponsored by Royal Credit Union www.rcu.org Click for Cover Page 4
Distressed New Listings Rate (share of all new listings by segment) 58.3% 51.9% 56.8% 23.1% 29.6% 26.5% 18.6% 18.6% 16.7% - 11.1% + 9.6% + 28.1% - 10.6% - 0.3% - 10.1% Historical New Listings Market Share 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1-2007 1-2008 1-2009 All data comes from the Regional Multiple Listing Service, Inc. Powered by 10K Research and Marketing. Sponsored by Royal Credit Union www.rcu.org Click for Cover Page 5
Distressed Closed Sales Rate (share of all closed sales by segment) 43.1% 39.1% 44.7% 39.9% 45.3% 39.1% 16.9% 15.6% 16.2% - 9.3% + 14.4% + 13.5% - 13.7% - 8.1% + 3.8% Historical Closed Sales Market Share 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1-2007 1-2008 1-2009 All data comes from the Regional Multiple Listing Service, Inc. Powered by 10K Research and Marketing. Sponsored by Royal Credit Union www.rcu.org Click for Cover Page 6
Median Sales Price $209,450 $207,500 $192,250 $121,611 $110,000 $103,599 $149,900 $140,000 $120,000-0.9% - 7.3% - 9.5% - 5.8% - 6.6% - 14.3% Historical Median Sales Price $250,000 $225,000 $200,000 $175,000 $150,000 $125,000 $100,000 $75,000 1-2007 1-2008 1-2009 All data comes from the Regional Multiple Listing Service, Inc. Powered by 10K Research and Marketing. Sponsored by Royal Credit Union www.rcu.org Click for Cover Page 7
Percent of Original List Price Received 92.8% 90.3% 95.6% 92.2% 92.7% 87.9% 88.1% 84.2% 84.7% - 2.6% + 2.1% - 8.0% + 5.5% - 4.4% + 0.7% Historical Percent of Original List Price Received 100% 95% 90% 85% 80% 1-2007 1-2008 1-2009 All data comes from the Regional Multiple Listing Service, Inc. Powered by 10K Research and Marketing. Sponsored by Royal Credit Union www.rcu.org Click for Cover Page 8
Days on Market Until Sale 144 159 141 107 132 115 193 211 210 + 10.6% - 11.3% + 23.5% - 12.9% + 9.2% - 0.5% Historical Days on Market 250 225 200 175 150 125 100 75 1-2007 1-2008 1-2009 All data comes from the Regional Multiple Listing Service, Inc. Powered by 10K Research and Marketing. Sponsored by Royal Credit Union www.rcu.org Click for Cover Page 9
Inventory of Homes for Sale 13,078 12,131 9,585 3,309 4,942 2,810 5,744 5,808 4,067-7.2% - 21.0% + 49.4% - 43.1% + 1.1% - 30.0% Historical Inventory 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 1-2007 1-2008 1-2009 All data comes from the Regional Multiple Listing Service, Inc. Powered by 10K Research and Marketing. Sponsored by Royal Credit Union www.rcu.org Click for Cover Page 10
Months Supply of Inventory 13.4 13.9 6.6 7.4 5.3 2.3 4.4 2.1 9.2 + 11.1% - 27.5% + 92.1% - 51.9% + 3.9% - 34.0% Historical Months Supply of Inventory 50 40 30 20 10 0 1-2007 1-2008 1-2009 All data comes from the Regional Multiple Listing Service, Inc. Powered by 10K Research and Marketing. Sponsored by Royal Credit Union www.rcu.org Click for Cover Page 11
Explanation of Methodology These property definitions rely in part upon the analysis of subjective remarks that REALTORS employ when listing properties in NorthstarMLS, and in part upon data fields in NorthstarMLS 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 reo corporate-owned bank-owned hud acquire corp owned bank-owned hud-acquire corp. owned foreclosure hud-acquired corp-owned forclosure corporate 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 preforeclosure subject to lender third-party approval shortsale preforclosure redemption 3rd party approve short-sale bank approv subject to corp subject to third in foreclosure lender approve subj to corp subject to 3rd in forclosure subject to bank 3rd-party approval Properties containing these specific phrases in the same remark fields are NOT counted in either category: not a foreclosure not a short sale no short sale tired of short sale not a forclosure not a shortsale no shortsale tired of shortsale no foreclosure not a short-sale no short-sale tired of short-sale no forclosure not short sale not a bank tired of foreclosure not foreclosure not shortsale not bank tired of forclosure not forclosure not short-sale no bank Methodology was developed by Aaron Dickinson, REALTOR with Edina Realty (www.twincitiesrealestateblog.com) and Jeff Allen, MAAR Research Director (www.mplsrealtor.com). All data comes from the Regional Multiple Listing Service, Inc. Powered by 10K Research and Marketing. Sponsored by Royal Credit Union www.rcu.org Click for Cover Page 12