High buyer demand, continued low mortgage rates and high affordability made 2015 the best year for home sales since 2005, according to new data just released by the Minneapolis Area Association of REALTORS®.
- Last year, pending sales were up 16 percent in 2015 over 2014
- The median sales price for 2015 was $220,000, up 7 percent from the median price of $205,600 in 2014.
- Distressed sales (foreclosures and short sales) made up just 10.6 percent of all sales, a drop of 26.7 percent from 2014
- Mortgage rates remain historically low, and are expected to rise slowly and incrementally
What’s the story, inventory?
In 2015, listing inventory couldn’t keep up with buyer demand. Even as new listings rose, inventory levels continued to fall, as buyers snapped up homes faster than they could be listed.
- Low inventory and high demand helps fuel competition amongst buyers, multiple offers and higher sales prices for sellers
One measure used to gauge the state of the real estate market is the months’ supply of homes for sale. This metric shows the number of months it would take to sell all homes currently on the market at the current rate of sales if no new homes were listed. (This infographic can help illustrate the balancing act.)
- The Twin Cities metro ended December with 2.1 months’ supply of homes for sale – an unprecedented low that indicates a market favoring sellers
- A balanced market is considered 5 to 6 months’ supply. Higher numbers mean the market is tilted towards buyers; lower numbers indicate a sellers’ market
Of course, not every locality is the same – there are pockets with extremely low inventory and other areas that are much more balanced. If you’ve been thinking of selling, a professional REALTOR can help you determine what is happening in your area and can help you price your home appropriately for the market conditions.
- The Minneapolis-St. Paul metro continues to boast the lowest unemployment rate of all large metro areas: 2.7 percent
- Wages are starting to grow
- Lower energy costs are making it easier for families to save, so they can put money toward a down payment rather than in their gas tanks
Be sure to check out our #BuyerInsights and #SellerInsights on social media, as well as our News and Insights page that has tons of insights you can use.
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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.