Pending transactions are pointing to an active spring market
2015 is off to a vigorous start in the Twin Cities metro, with both seller and buyer activity perking up in January. Sellers listed 4,497 properties last month, up nearly 6 percent over last January and buyers entered into almost 8 percent more contracts than last January, according to data from the Minneapolis Area Association of REALTORS®.
The median sales price continued its upward tack, coming in at $195,000 – 8.5 percent higher than last January. This month marked 35 consecutive months of year-over-year sales price increases and also saw the strongest gain in prices since February 2014.
Foreclosures and short sales continue to fall and traditional listings are still on the rise.
Despite more new listings coming on the market, the total number of homes for sale fell 6.3 percent year-over-year. If no new listings came on the market, the current supply of homes would sell in just 2.9 months if the sales rate stayed the same. That puts the pendulum slightly in the sellers’ favor, but buyers also have very good conditions for home shopping.
Interest rates are again below the 4 percent mark and affordability is still favorable for buyers in the Twin Cities. The metro also continues to boast the lowest unemployment rate of any major metro – just 3.3 percent.
Outside of market conditions, even the weather has made a difference. This milder winter, with fewer “polar vortices” and little snow, has made it more convenient and enjoyable to shop for homes, even during the dead of winter.
Experts expect to see continued enthusiasm in the market from sellers and buyers throughout the spring market buying and selling season, as well as throughout the year. Stay tuned to our News and Advice section for top news, buying and selling tips and insightful infographics.
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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.