According to the Star Tribune, http://www.startribune.com/local/30287669.html
Quote:STEVE BRANDT, Star Tribune October 3, 2008
The foreclosure boom appears to have peaked in first-hit and worst-hit Minneapolis -- even while it continues unabated in the rest of Hennepin County.
St. Paul also reports new sheriff's sales dropping in recent months.
New foreclosures in Minneapolis dropped 10 percent from a year ago during August. That's the second month of the last four in which foreclosures have been down from a year earlier.
The reason for the drop, experts say, could be simply that the supply of houses headed toward foreclosure is drying up. But they also point out that the problems stemming from the foreclosures are not going away any time soon.
For the first eight months of 2008, sheriff's foreclosure sales for Minneapolis are up 15 percent from 2007. But for the most recent four-month period, they're up only 3 percent, compared with an increase of 72 percent in the rest of the county. St. Paul's foreclosures are up 11 percent for the year to date.
In Minneapolis, more than 7,500 properties have been auctioned by the Hennepin County Sheriff's Office since the beginning of 2006. In some cases, owners used the statutory six-month redemption period after the sale to refinance or sell the properties to stave off losing them. But most houses went to the hands of banks and sat empty, sometimes creating neighborhood eyesores or losing copper piping and other features to theft.
Foreclosure has been a big factor of home price decrease. If foreclosure homes are not counted, the drop of home price ranges from 3-5%. However, with the foreclosure, the drop is around 15%.
Phillips Neighborhood in Minneapolis
The Phillips area of Minneapolis has about 20,000 people and is just south of downtown. Comparing August of 2008 to August of 2007, there have been 40.9% less listings with 13 new listings on MN MLS this August. Only six properties closed, a drop of 33.3%. Of the closed sales, sellers received an average of 98.7% of their asking price. The average sales price this August was up 13.1%, at $164,400. Average days on the market were 201 days, compared to 132 days in 2007. Comparing the year to date sales, this year to the same period of last year, the numbers looks in favor of buyers. The average sales price is down almost 30%.
Southwest Minneapolis Neighborhood
Homes in Southwest Minneapolis have been in great demand, in the slow market. Comparing the month of August between 2008 and 2007, there have been 23.8% less listings on the Minnesota multiple listings. 65 properties closed, a drop of 16.7% compared to last August's 78 closed sales. Of the closed sales, sellers received an average of 95.4% of their asking price. The average sales price this August was down 16%, coming in at $301,338. Average days on the market were 109 days, compared to 94 days in 2007. For the year to date sales figures, 2008 didn't see a big difference in term of sales price and sales volume. If you are looking to sell your home in the Southwest region, this can be a good time.