Realtors in the Public Insight Network say selling houses under $200,000 is a snap.
Laura Fulayter, a Realtor from Minneapolis, said she sees multiple offers on homes in the first-time buyersâ€™ range. Jim Lugar from Minnetonka said bids on these homes can resemble a frenzy. "Itâ€™s like a little mini-buyers market," he said.
The $8,000 homebuyers credit and the pent-up demand from renters play a role. Then there are the tumbling mortgage rates, (check out the dip below 5 percent on Freddie Macâ€™s 30-year fixed rate mortgages).
So we see home inventory falling (according to Minneapolis Area Association of Realtors) and we see the number of offers drawing even with new listings (according to Teresa Boardman, a St. Paul Realtor who writes about the market).
But those in the house-selling business say the industry hasn't truly turned the corner, and thatâ€™s because the "mini-buyers market" has yet to spread. Foreclosed homes and short sales drive this low-end market.
The Minneapolis Area Association of Realtors said sales above $190,000 are down 19.2 percent from a year ago.
Normally people sell lower-priced homes to move up to more expensive dwellings. But, of course, that's not going to happen on a foreclosed property.Â The fine economics blog Calculated Risk has a term for this phenomenon: "one and done."
Realtor Laura Fulayter said she's not seeing people who just want to sell a home because they want to buy another property.
The question for this housing market - and this economy is: How long is this a "one and done" market?
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