The Average Twin Cities Home is Overpriced

by : Aaron Dickinson



Some may argue that's a bold statement, but there are some

readily available stats from the Minneapolis Area Association of Realtors
to
back that claim up.
Based upon sales this year through July, the average home received
95.5% of its original sales price at closing.? On a June 2007 median?priced home
of $232,500 that ends up being $10,462.
? That's quite a bit of
difference!
If you take the Twin Cities' Average Sales Price of $276,313?instead
of the Median Sales Price, you end up with the average home being overpriced by
$12,434!

Now I can give you many examples of homes that are priced right that sell for
at or near original list price, so I'd be disappointed if any of you went with
this straight to a seller and said: "see, you're $10,000 overpriced!"? Use this
information as a guide though and realize that as a buyer you do have good
negotiating position in this market.
Raw Data:
Median?Sales Price Year to Date?through?June 2006: $236,850
Median?Sales Price Year to Date?through?June 2007: $232,500
Change -1.8%
Average?Sales Price Year to Date?through?July 2006: $276,461
Average Sales Price Year to Date?through?July 2007: $276,313
Change -.1%
Percent of Original List Price Received at Sale Year to Date?July 2006: 97.5%
Percent of Original List Price Received at Sale Year to Date?July 2007: 95.5%
Change -2%