Golden Valley Housing Market Slumps in 2011

Four years after the nation’s economy sunk into a recession, the housing market is still struggling. A report compiling last year’s housing statistics from the Minneapolis Area Association of Realtors shows a few bright spots, but home prices dropped and foreclosures continued to flood the market.

In Golden Valley, the report shows median sale prices dropped from $262,200 in 2010 to $167,500 in 2011, a decrease of about $95,000. Twin Cities metro-wide, the median sale price is $150,000.

“A lot of people have stayed in their homes because they are worth so much less than they once were,” said . “There are people that have waited four or five years to move and at this point and I really think that some of them are ready to put their house on the market and see what happens.”

If Roeglin’s prediction is correct, it could add more middle-priced inventory to the market, an area he believes is lacking.

“Right now we see activity in low-priced homes and high-priced homes,” he said. “There really aren’t enough options in the middle of that spectrum.”

Inventory dropped by 30 percent last year, according to the report, and is now at the lowest level it has been in eight years.

“Less inventory is a good sign,” said Greg Sax, Minneapolis Area Association of Realtors communications manager. “Typically we would see a rebound in price as inventory drops, but foreclosures are still plaguing the market.” Across the Twin Cites, about half of all home sales in 2011 were foreclosures.

So where is the bright spot? The drop in inventory is a positive sign Roeglin said, and he also is noticing more competitive bidding on homes.

“There is a buzz right now in the realtor world about an uptick in the amount of offers we’re seeing for a home that’s on the market,” he said. "That's a good sign."

Plus, Roeglin thinks Golden Valley has a bit of a competitive edge. “People that are looking to move want to be closer to the city,” he said. “People aren’t willing to move further north anymore and deal with a long commute, so Golden Valley certainly offers some convenience for potential buyers.” 

While Sax and Roeglin said the year-end numbers aren’t great, they both are cautiously optimistic about 2012.