I take issue with you on two points 1)The importance of rising sales volume, and 2)For not pointing out that averaging sale data, reflects the large volume of bank mediated sales, and don’t accurately predict values of individual homes.

Point 1) Rising sales volume is one of the most important metrics in our current market. We have a supply side issue (among others). As the number of homes offered for sale declines, supply and demand come back into balance. Your statement that home sales is a “meaningless” and “futile” metric reveals a fundamental misunderstanding of the market.

Point 2) Value statistics take all sales into account, and the increased volume of bank mediated sales artificially lowers these stats. Bank sales occur at all price points, but the majority are below the median price range. Investment buyers are very active in this market, and are behind a lot of the rise in sales volume. A relocation, or move up buyer may not be able to consider bank sales due to time and condition requirements. Bank sales come with additional risk, long timelines, typically poor condition, and are most common in lower price ranges. Unless you own an “average home” (which doesn’t exist) then the average stats are only useful in a general sense, they don’t predict specific home values in any way at all.

You have some specific neighborhood number here which is great. I wonder if you’re aware that areas like Eden Prairie, Edina and SW Mpls are still seeing average sales price rise, in some cases by double digits?

Thanks for a good article keep it up.

Ben Kolkman REALTOR | LAKES Sotheby’s International Realty
4388 France Ave. So., Mpls, MN 55410
mobile: 612.599.4161
http://www.AquaTerraRealEstate.com
Ben.Kolkman@SothebysRealty.com