As we roll into February 2015, I’m having flashbacks to early 2014. Similar to last year, it appears that the buyers have embraced the spring market, while sellers and the weather gods disagree. It’s cold as heck outside and we don’t have enough listing to keep up with buyer demand. We anticipate a large influx of listing in the coming months, as we experienced last year. Sellers are increasingly confident in their ability to sell their homes at a fair price. Meanwhile, buyers are motivated by historically low interest rates and home prices are on the rise. The ridiculously low mortgage interest rates have also begun to creep up and this trend is expected to continue.
Here are a few stats to consider:
• New listings were up +5.9% over January 2014
• Inventory of homes for sale was 11,926, a 6.3 decrease from January 2014
• Months Supply of Homes for Sale was flat at 2.9 months
• Pending sales were up 7.8% over January 2014
• Median sale price was $195,000, up 8.5% over January 2014
• Pending sales for traditional listings rose 21.9%
• Pending sales for foreclosures and shorts sales decreased 25%
The Twin Cities residential real estate market is healthy and does not favor buyers or sellers, it is a relatively balanced. As referenced above, the aspect that is out of whack is the amount of homes for sale. Fortunately the remedy for this is obvious (more listings) and eminent.
I am optimistic and excited for the coming months, we should have a robust and balanced spring market. Stay tuned!