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q uickfaas 2009 HousING MARKETA ALYSIS <br />for the 73- county Twin Cities metropolitan area <br />Twin Cities Housing Affordability Index <br />202 <br />Moog saw another new record for housing affordability. Mortgage <br />rates continued to scrape historic lows, housing prices remained <br />soft, and more sales took place in the affordable price segments <br />due to the first -time home buyer tax credit and increased lender - <br />mediated sales. <br />This is the positive side to failing prices. While they undeniably <br />hurt homeowners and have a negative impact on the economy, soft <br />home prices have improved the accessibility and long -term stability <br />of the housing market. <br />Average Square Footage of Closed Sales <br />1,929 1.910 <br />For the second year in a row, the average square footage of closed <br />sales actually declined slightly. This is likely due to an increase in the <br />number of sales taking place in the more affordable price ranges, <br />which are typically a smaller square footage than traditional homes. <br />Additionally, new construction is down, and newer homes tend to <br />have more square footage. <br />2004 2005 2006 2007 2008 2009 <br />TIP 5 Areas <br />805 - Western Wisconsin <br />381 - Lake Minnetonka <br />365 -Maple Grove /Osseo <br />385 - Edina <br />341 - Wright County (Ext Buffalo <br />$4853 <br />$3596 <br />$2734 <br />$2722 <br />$271 8 <br />Bottom 5 Areas <br />605 - Sunfish Lake $08 <br />628 - Southern Dakota County $34 <br />618 - Eastern Dakota County $37 <br />307 -MPLS- Phillips $109 <br />370 - Sibley County $112 <br />Finally leveling off after three years of decline, total dollar volume <br />was boosted by the increased number of transactions. The large <br />jump in sales offset the continued decline in prices to keep volume <br />relatively steady. In a related trend, 2oog was the year that MAAR's <br />membership numbers leveled off as well. <br />2004 2005 2006 2007 2008 2009 <br />Top 5 Areas Bottom 5 Areas <br />302 - MPLS - Central $225 305-MPLS - North $36 <br />300 - MPLS - Calhoun -Isles $786 307 - MPLS -Camden $51 <br />741 - SP- Downtown Sip /Capital Hg $178 742 - SP- Central $52 <br />385 - Edina $171 370 - Sibley County $61 <br />381 - Lake Minnetonka $167 363 - Brooklyn Center $62 <br />The Price Per Square Foot (PPSF) of area home sales declined <br />again in 2oog and at a slightly higher rate than the overall <br />decline in median price. Since PPSF accounts for home size in its <br />calculation of value, one could view the larger decline as a more <br />realistic indicator of the changing market than our annual median <br />sales price comparisons. <br />4 Minneapolis Area Association of REACrORV <br />Total Dollar Volume (in millions) <br />ii o.4. 615,601 <br />2004 2005 2006 2007 2008 2009 <br />Top 5 Areas Bottom 5 Areas <br />605 - Sunfish Lake 7,950 741 - SP- Downtown Stp /Captal Hg 1,103 <br />381 - Lake Minnetonka 2,868 303 - MPLS - Longfellow 1,284 <br />368 - Hennepin - Northwest 2,850 742 -SP- Central 1,312 <br />398- Victona 2,634 302 - MPLS - Centel 1,335 <br />396 - Chanhassen 2,623 301 - MPLS - Camden 1,345 <br />2004 2005 2006 2007 2008 2009 <br />Price Per Square Foot of Closed Sales <br />4. a. $149 $149 el— <br />