• New listings – Up 11.2%
• Pending sales – Up 20.7%
• Median sale price – Up 9.7%
• Price per square foot – Up 4.5%
• Inventory of homes for sale – Down 6.8%
A few factors contributing to the strong residential real estate market are consistent rental rate increases, solid job growth, wage growth and low mortgage interest rates. Some additional good news on the mortgage rate front is that the Federal Reserve will wait until at least September before increasing short term interest rates. All the items listed above are sustainable and contribute to consumer confidence, which is the most influential aspect of most markets.
I have been hearing and seeing the term “seller’s market” way too much lately. It is technically a seller’s market if the Months Supply of Homes for Sale is below 5 and currently the Twin Cities has a 3.6 months supply. However, if you ask many home sellers and most agents on the street they will not agree that it is a seller’s market. The statistics above are general, some areas are seller’s markets while other are not. The housing recovery has not been even for all home owners and market conditions vary depending upon price range, property type and location. This is one reason why it is wise to work with a realtor when considering a move.
Lastly, median home prices are on the precipice of equaling those of the previous peak in 2006. It has been a long tough slog for the industry the past 10 years. I expect the median price to surpass 2006 in the coming months.
I hope you found this interesting. Stay tuned!