Enthusiastic homebuyers are on the hunt in the 13-county Twin Cities metro area, according to new data from the Minneapolis Area Association of REALTORS®. Yet, despite strong buyer demand, sellers are still largely waiting in the wings to list their homes, which leaves buyers competing over what little inventory of homes for sale is available.
Market indicators demonstrate how this dynamic is playing out: Homes are fetching closer to their asking price and are selling 17.5 percent faster than last year, putting sellers in control.
The sweet spot
While every locality is unique, the metro-wide sweet spot for homes in the highest demand falls between $200,000 and $300,000.
- Sales of homes below $200,000 declined 13.8 percent from March 2015
- Sales of homes between $200,000 and $300,000 have increased 10.5 percent
- Sales of homes above $300,000 have increased 3.4 percent
(Year-over year data courtesy Minneapolis Area Association of REALTORS®)
- New listings were up a scant .5 percent
- Pending sales (the number of sales contracts signed) were up 12.6 percent
- Median sales price was up 5.7 percent to $222,000
- The average time a home was on the market was 85 days, down 17.5 percent
Options for sellers who need to find a new home
One reason that sellers are holding off on listing their homes is the concern that their home will sell quickly and then they will be competing with a large pool of buyers to make their next purchase.
There are options available to sellers that will allow them to sell their home and take time to find a new one.
- A unique tactic that has become more popular lately is the reverse contingency, in which the seller writes a clause into the purchase agreement that makes their home sale contingent on finding another home to buy.
- Transitional housing can be a great option for many scenarios. Some creative ideas include extended-stay inns, short-term rentals, AirBnB or VRBO rentals and family members who have spare room. Learn more about transitional housing here.
If you’re still worried about facing stiff buying competition once you sell your home, a professional REALTOR® will be able to talk you through all your options to help you find a solution for your family and take advantage of the sellers’ market.
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The Monthly Skinny
"The Monthly Skinny" is provided by the Minneapolis Area Association of Realtors
*Edina Realty Appointment Center statistics.
Based on information from the Minneapolis Area Association of REALTORS®, Inc. Data collected from the REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC., for properties in the 13-county region exclusively.