Homebuyers have continued to be more active than last year, even as fall’s chill begins to settle in, according to new data from the Minneapolis Area Association of REALTORS®.
- Pending sales in October were up 3.3 percent over last October.
- Buyers are still competing in popular markets and therefore may end up in multiple offer scenarios.
- As we near the holidays, buyers who remain in the market tend to be serious about making a purchase.
Sellers are still not entering the market at a pace to satisfy buyer demand. Part of the reason for this is some sellers who purchased at the height of the market may still be underwater on their mortgages (owing more than the home is worth), or they may not have quite enough equity to cover a down payment and moving expenses for a new home.
A look at negative equity in Minnesota and Wisconsin*
- 5.9 percent of mortgages in Minnesota remain underwater, which is down from 12.6 percent in the same quarter in 2013.
- Wisconsin currently has about 8.7 percent of mortgages owing more than the property is worth, down from 12.2 percent in 2013.
- The national average of underwater mortgages is 8.7 percent.
*View CoreLogic's report for the second quarter of 2015.
*View CoreLogic's report for the second quarter of 2013.
Continued price increases should help homeowners continue to build equity.
- The median sales price was up nearly 5 percent over last October to $218,000.
- Foreclosure and short sales transactions now make up less than 10 percent of all sales.
- Sales activity in the $150,000 and below bracket is declining while all other price brackets are seeing more activity.
- Year-to-date sales activity for listings $1 million or more has reached all-time highs.
- Home prices in some local areas have reached record highs, including St. Louis Park, Edina and southwest Minneapolis.
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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.