TWIN CITIES AREA
Due to the limited number of homes for sale in the marketplace, buyers continue to pounce on new listings, and some homes are selling in a matter of days with multiple offers becoming a common occurrence. Recent gains in home prices mean sellers are finding themselves in better equity positions than they thought, and buyers are still getting a great value – as prices remain well below their peak.
Overall, May was an active month in housing. Buyer demand surged and seller activity increased, resulting in 5,872 pending sales, an 18.5 percent increase over May 2012 and the highest number since June 2005.
Sellers offered 26.2 percent more new listings than a year ago, but it was still not enough to make up for a significant listing drought. Current inventory is 22.3 percent below this same time last year.
The median sales price was up 15.1 percent to $194,450 – the highest median sales price since August 2008. Increases are attributed to low inventory creating a competitive buying climate, as well as to a shift in the mix of sales types, with traditional homes making up the bulk of transactions. In fact, sales of foreclosures and short sales accounted for just 18.6 percent of transactions compared to 61.5 percent just two years ago.
Buyers considering entering the market should take note that although mortgage rates remain historically low, they have been edging upwards the past several weeks, making loans slightly more expensive. For more information about mortgage rates, check out our mortgage page.