The first half of 2016 has seen a return to more normal market conditions for many market indicators in the Twin Cities metro, according to new data released by the Minneapolis Area Association of REALTORS®.
Most notably, the median sales price has reached a new all-time high of $242,000.
Also in June:
- Buyers signed just .2 percent more purchase agreements than last June, as they were constrained by low inventory.
- The dollar value of all closed transactions in June was the highest monthly volume since June 2004.
- On average, homes sold in 55 days, almost 17 percent faster than last year
- Homes priced under $300,000 sold in an average of 44 days — nearly 27 percent faster than last year.
- Traditional sales (not foreclosures or short sales) made up 95 percent of transactions, the highest level in 10 years.
Buyers are still feeling the inventory squeeze as sellers continued to show some hesitance to list their homes.
- Seller activity stayed nearly flat, with .5 percent more listings than last June.
- The inventory of homes for sale was down 18 percent from last year.
Some owners may be holding off because they don’t want to face the low inventory market once their house sells. REALTORS® and their clients have been coming up with solutions to inventory constraints with temporary housing solutions and “reverse contingencies.”
Mortgage rates fell to near record lows in June
- Mortgage rates fell to near-record lows after the United Kingdom voted to leave the European Union in the “Brexit” vote last month.
- Rates remain low for now, but opinions are mixed on whether they will stay low throughout the year.
Luxury market update
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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.