Buyers are getting some inventory pain relief
If you’ve been looking for a home to buy, you’ve got more choices than in the recent past as inventory levels of homes for sale reach two-year highs. Inventory levels were up 9 percent in July over the same time last year, according to the Minneapolis Area Association of REALTORS®, and traditional homes for sale account for 88 percent of that inventory.
The Twin Cities enjoys the second most affordable housing market in the nation, thanks in part to continued low mortgage interest rates. However, tight credit standards and stagnant wages remain hurdles for some buyers, especially the Millennial generation (ages 18 – 33).
In July, pended sales were down 3.4 percent year-over-year. However, when the sales are broken down by traditional and distressed transactions, traditional sales were up 7.4 percent. Foreclosures and short sales (distressed transactions) fell 35.8 percent and 53.1 percent, respectively.
Sellers are still enjoying price increases, albeit not as rapidly increasing as they had been the last couple of years. The overall median sales price was up 3.4 percent to $215,000, and the median sales price of traditional homes was flat at $225,000.
Modest and sustainable growth of traditional home sales and inventory, private-sector job growth and rising rents are making the market more attractive, stable and healthy for buyers and sellers alike.
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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.