In reading the report from the Alexandria, MN City Assessor, it is clearly evident that the volume of sales has retreated from it’s record highs.  What is most interesting about all of the data is that the median sale price is up from 2002 about 35%.  Another interesting comparison to that is the U.S. Census Bureau’s Report released on new homes built in 2008 showed that the average sales price of new single-family homes sold was $292,600.  In 1998, the average sales price was $181,900.  This is a price increase of over 60%.

I expect that the Alexandria, MN City Assessor is correct in saying that we are probably at historical levels for sales.  The highs from 2002 to 2005 were excessive, it was a crazy time.  The inventory levels climbed 50 – 60% in 2005 here and stayed.  The market today, I think is fine.  At my office, we have had 39 closings this year with over $7,000,000 in real estate.  The problem I see with the market is still too much inventory.  Sellers are still wanting too much for their property to what the market will bear…it would be best to wait to list till the market recovers.  This is a very hard thought to transmit, it appears that they can always get their property listed at any price.  This tends to glutton the marketplace, and slow the sales activity as buyers become confused and frustrated.  Imagine our market if we reduced the available properties for sale to 50% of the current inventory?

(If you want the housing report from the Alexandria, MN City Assessor, email me and I will send it to you.)