Homes sales up 30 percent
The spring home buying and selling season is in full swing. March saw a 30 percent year-over-year jump in the number of pending home sales, according to the Minneapolis Area Association of REALTORS®. It was the highest number of pending sales in the month of March since 2005.
While sellers added 21.4 percent more new listings to the market than last March, the listings barely moved the needle on the total inventory of homes for sale, which was just .7 percent percent higher than March 2014, due to energetic buyer activity.
The median sales price climbed 10.5 percent over last year, to $210,000. High demand for a limited supply of homes for sale and continued diminishing foreclosures and short sales have largely contributed to these increases.
As we move further away from the days of the housing crisis and Great Recession, a new segment of buyers is emerging: the “boomerang buyer,” or someone reentering the market after a foreclosure or short sale. The metro area’s high affordability, low unemployment and favorable mortgage rates are great conditions for boomerang buyers who hope to once again purchase a home they can call their own.
These same prime conditions also make Minnesota and western Wisconsin a haven for first-time homebuyers. According to the National Association of REALTORS®, Millennials make up the largest share of homebuyers. That’s great news for owners who are growing out of their starter homes and are ready to move up.
With home prices increasing, many homeowners are finding that they have enough equity to sell their homes and make a move. If you’re contemplating a move, don’t rely on property tax estimates or website “value” estimates, both of which can be outdated and inaccurate. A local expert can provide a free home value estimate that takes into consideration things that algorithms and tax assessments miss.
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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.