The housing recovery continues in the Twin Cities despite the lingering winter. As I gaze out my window at the fresh snow it’s occurs to me that we have been completely cheated out of spring this year. It is April 10th, we had a snow storm last night and we are expecting more snow tomorrow. Furthermore, we have yet to have any notable nice weather!
Meanwhile, the housing market has marched forward. Home prices continued to appreciate for the 13th consecutive month and closed sales are at roughly the same number they were a year ago. The dramatic decrease of homes on the market continues to prohibit more sales, but that dynamic is changing as well. The “mix” of homes being listed is changing. While we are at a 10-year low in active listings (12,615), a larger percentage of sellers are traditions vs. distressed (short sale & foreclosure). This shift points to the overall improving health of the Twin Cities real estate market as well as our local economy. Traditional listings comprised 75 percent of new listings in March, which is the highest level since May 2008!
I believe this shift from a listing market dominated by distressed properties to one comprised mostly of traditional listing is very noteworthy. This is welcome news for most buyers and sellers. For buyers, mortgage rates remain low and prices are still well below peak levels. While there is a shortage of listings, the composition of those listings is much more attractive and attainable to the typical buyer. For sellers, the decreased competition from distressed properties means fewer homes selling for a discount. This should equate to sellers receiving more money at closing and will give home owners increasing confidence in selling their homes.
I hope you enjoyed this month’s Inside the Number. Stay tuned, the housing market in the Twin Cities is evolving by the day and we are on top of it!