The good news for Eagan home owners looking to sell their property? Buyers purchased more local homes in the first 11 months of 2011, compared to the same period in 2010.
The bad news for home owners looking to sell? The average sales price for those homes dropped 7.5 percent, from $208,141 in the first 11 months of 2010 to $192,522 in the same period in 2011.
It's a trend that's playing out on a regional level, according to the Minneapolis Area Association of Realtors, which releases regular real estate reports for communities in the area. The reports include the number of closed sales, average sale price of homes and other information.
Across the Minneapolis-St. Paul metro area, the average sales price for homes through Nov. 2011 declined by 8 percent when compared to the first 11 months of 2010. Not only is the average sales price of homes declining on a regional level, the percent of the original list price sellers are receiving also dropped from 92.6 percent to 90.6 percent through Nov. 2011, according to the Twin Cities regional report.
A total of 713 homes were sold in Eagan during the first 11 months of the year, compared to 590 closed sales during the same period in 2010.
The rise in the number of closed sales has led to a decline in the total inventory of available homes in the area–which would ordinarily lead to a price increase as demand caught up to supply. But the sale of foreclosures and other distressed properties across the region has continued to drag sales prices down, according to Minneapolis Area Association of Realtors officials.
"Despite the dramatic drop in inventory, prices are still bound by distressed activity, budget-conscious consumers and a general sense of economic uncertainty," Brad Fisher, the association's president, wrote in a press release. The first and fourth quarters of the year tend to see the most distressed sales and listing activity, the press release noted.
"Prices don't reflect the improved supply-demand balance yet," said Cari Linn, the president-elect of the Minneapolis Area Association of Realtors. "Although there are some reassuring patterns taking hold, it would be overly optimistic to say that all of the market's problems will be washed away by spring."
To review the Minneapolis Area Association of Realtor's reports, click on the PDF files attached to this article.