Posted in: Market insights

August 2017 Market Insights

Edina Realty Market Insights August 2017

It’s incredible how fast the summer flies by, especially if you’re hunting for a new home before school starts. After hitting a record high in June, closed home sales fell 2.6 percent year-over-year in July, due mostly to a shortage of homes available to purchase, according to new data from the Minneapolis Area Association of REALTORS®.

Buyers continue to face multiple offer scenarios and sellers continue to reap fast sales and rising prices.

Key insights
(All comparisons are year-over year)
  • Median sales price: +5.9% — $254,000
  • Average days on market: -18.5% — 44 days
  • New listings: -3.9%
  • Number of homes for sale: -18.3%
  • Pending sales (signed purchase agreements): -1.2%

Economic check up

Distressed listings fall to new lows

The foreclosure rate in the seven-county Twin Cities metro dropped to an all-time low this summer. From January to June, there were fewer than 2,000 foreclosures, an 86 percent decline from the peak in 2010.

  • Foreclosure listings are in high demand
  • Inventory of foreclosure listings was down 53.5 percent from last July
  • When removing distressed listings from the count, pending sales went up .7 percent over last year

Luxury listings: A horse of a different color

With exceptional properties come exceptional market circumstances. Homes priced at $500,000 and above see unique conditions compared with the rest of the market. Let’s explore some differences to expect when selling an upper-bracket home:

Months’ supply of homes:

  • $500,000 and up: 7 months, favors buyers
  • Under $500,000: 2.1 months, strongly favors sellers

Average days on market:

  • $500,000 and up: 107 days
  • Under $500,000: 38 days

New listings:

  • $500,000 and up: +12.1 percent over last year
  • Under $500,000: -5.9 percent from last year

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Status Definitions

For sale: Properties which are available for showings and purchase

Active contingent: Properties which are available for showing but are under contract with another buyer

Pending: Properties which are under contract with a buyer and are no longer available for showings

Sold: Properties on which the sale has closed.

Coming soon: Properties which will be on the market soon and are not available for showings.

Contingent and Pending statuses may not be available for all listings