04-18-2007 Board of Appeal and Equalization Packet

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December 2006 Orono December 2006 December 2005 Percent Change New Listings 7 10 . -30.0 Closed Sales 10 8 25.0 Average Sales Price $1,691,150 $638,518 164.9 Active Listings at Month End 88 Not Available Not Available Days on Market 167 Not Available Not Available Twin Cities Region December 2006 December 2005 Percent Change New Listings 4,361 4,199 3.9 Closed Sales 2,950 3,638 -18.9 Average Sales Price $285,930 $279,703 2.2 Active Listings at Month End 22,834 19,098 19.6 Days on Market 134 Not Available Not Available Following five consecutive years of record or near-record home sales, 2006 was the year that Orono and the entire Twin Cities housing market took an expected and necessary breather. The pause will ensure long-term stability and accessibility. Buyer activity finally calmed and Orono ended the year with 115 total closed sales, behind the 2005 figure of Orono by 27.2 percent. Closed sales in the entire Twin Cities region were down 16.3 percent at 47,906 compared to 57,283 in 2005. The decline in sales gave the market a needed breather. Home price appreciation since 1998 has been extraordinarily high and the region was due for a correction. The Twin Cities average sales price in 2006 was $278,462, up 2.2 percent from 2005. In Orono, the 2006 average sales price was $1,037,083, an increase from 2005 by 12.6 percent. The changes in the market during 2006 are often painted in a negative light, but are helping to lay a solid and necessary foundation for the future. A price pause is exactly what our market needs right now ensure continued improvements in housing affordability.An accessible market is a healthy market. Looking at December, home sales in Orono were ahead of last year by 25.0 percent with 10 sales as compared to 8 in 2005. December closed sales were down 17.1 percent in the same period for the entire Twin Cities market.