The housing market is moving at a blistering pace in the Twin Cities. The statistics continue on the same trajectory as last month. Here’s a look at how 2015 compares to 2014 year-to-date (remember the market was fantastic last spring):
• New listings – 26,672 (15.3% increase over 2014)
• Pending sales – 18,262 (21. 6% increase over 2014)
• Median sales price – $209,900 (11.1% increase over 2014)
• Number of homes for sale – 15,115 (1.9 % decrease from 2014)
• Months’ supply of homes for sale – 3.4 months (5.6% decrease from 2014)
As you can see, while people are listing more homes for sale the supply has decreased due to higher demand from buyers. This is not a new development, in certain areas and sale prices it is very challenging for buyers. Fortunately all signs point to an increase in new listings.
Since none of the above is new, I’d like to spend a moment to explain segmentation of the housing market in the Twin Cities. Typically I cite general statistics derived from all price ranges and property types in the 13-county metro area (as seen above). However, not all price ranges and property types are equal. For example, over the last 12 months, inventory levels fell 1.1 percent in the $100,000 to $249,999 range but rose 22.2 percent in the $250,000 to $499,000 range. The number of active listings for homes priced above $500,000 rose 21.4 percent. Clearly, the market is tightest at the lower price ranges.
Among the different property types, inventory levels fell 4.6 percent for condos but only 0.9 percent for townhomes. Meanwhile, housing inventory rose 10 percent for single-family properties. Inventory for previously owned homes compared to new construction also differed greatly; the number of previously owned homes on the market rose 6.2 percent over the past 12 months while the figure increased 19.3 percent for new construction homes.
The time honored real estate mantra “location, location, location” trumps everything. Because there are so many niches within the greater Twin Cities area it is impossible for me to drill down to every neighborhood in this post. This is why working with a skilled and educated Realtor is so important. Whether you are a buyer or seller, the tools Realtors have today enable us to analyze and explain the data that is relevant to your individual need.
A diverse and growing regional economy has served the Twin Cities housing market well throughout the years. According to the Bureau of Labor Statistics, the Twin Cities has the fifth lowest unemployment rates of any major metropolitan area in the nation at 4 percent. Forbes ranked Minnesota as one of the top 10 best states for business, seventh in economic climate and second in quality of life. With mortgage interest rates remaining low and favorable economic news we anticipate an active summer in the residential real estate market.
Thanks for reading, stay tuned!