Minneapolis Homes for Sale Took Biggest Drop in US for April

Unfortunately, this is not a static that sellers like to hear, but according to Trulia, 40% of the Minneapolis real estate listings had to take a price cut during the month of April.  This was despite much anticipation of a strong market going into the end of the federal tax rebate program.  With 2 out of every 5 homes for sale taking a price reduction, this put Minneapolis at number 1 of the list for home price reductions amongst the top 50 US markets.  Milwaukee was #2 with 37% of the listed homes taking price reductions.

According to the MN MLS, the average reduction in Minneapolis was 8% of the original sales price.  Across the US, 22% of the home listings experienced at least one price drop in April, which is up from just 10% in March.

It appears the federal home buyer tax credit had more of an affect on the sellers than buyers.  Many were getting concerned that if they did not sell in April, they may hold their properties much longer, since the credit was running out and buyers would be less motivated.  I look forward to the day when this government intervention is behind us and the market is more stable.

Tagged: home listings, houses, minneapolis real estate, mn mls