As you know, we've been providing analysis on the effect of lender-mediated foreclosures and short sales on the Twin Cities housing market every quarter. The Q4-2008 report was just released and illustrates that there's some reason for cautious optimism. Click here to view.
Foreclosures and short sales are showing early signs of slowing. During the fourth quarter of 2008, there were 4.3 percent fewer new lender-mediated listings than in the third quarter. That's the first quarter-to-quarter decrease since 2003. A cross-reference with the Hennepin County Sheriff's Sales confirms the same trend. Combined with healthy buyer demand (sales of lender-mediated properties are way up over last year), this tapering off of new supply led the overall inventory of lender-mediated homes for sale to decline about 600 units over the course of the fourth quarter.
By no means is the hard part totally over. What the economy does in 2009 is the real wildcard, but the sooner this cycle runs its course, the sooner the housing market can return to some normalcy.
This quarter's report also features some very exciting new interactive data bells-n'-whistles. We're so stoked on the enhancements that we're gonna give you another extra post on that subject. Stay tuned.
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