After months of a tight market with high buyer demand and too few homes to meet that demand, the Twin Cities metro area real estate market may be showing signs of adding inventory — a welcome prospect for frustrated homebuyers.
Key insights for July 2018*
- New listings: +4%
- Median sales price: +7% — $268,000
- Pending sales (signed purchase agreements): +0.4%
- Average days on market: -17% — 38 days
- Inventory of homes for sale: -13%
New listings are up
More homeowners decided to take advantage of favorable conditions last month. New listings were up 4 percent over July 2017. It’s just the second year-over-year increase for new listings since last November.
Those sellers who did list their homes for sale saw continued rising prices, with a median sales price of $268,000 and fast sales, with the average days on market just 38 days.
Conversely, buyer activity was almost dead even with last July, which could be indicating some motion toward a more balanced market.
Condo sales continue to grow
While single family home sales have been falling year-over-year (mostly due to the inventory crunch), condo sales are on the rise.
- Single family homes: -1.8%
- Townhouses: +5%
- Condos: +13.4%
Economic check up
- Minneapolis-St. Paul area unemployment rate: 2.8% (The best in the nation)
- Average rates for 30-year conforming mortgage: 4.625%
- A study suggests it’s easier to get a mortgage in 2018.
- Long term price trends show home sales prices have returned to where they would be if home prices had appreciated 4 percent each year since 1990. Average annual appreciation rates of 3-4 percent are considered moderate and healthy.
The long and the short of it
The Twin Cities metro is a large and diverse real estate market. What’s true for one city may not be the case in another and even neighborhoods can vary from street to street.
Online estimates only show you part of the picture. To get a true idea of what your home could sell for, you need a home value estimate from a professional Realtor. Reach out to be connected with a market expert in your area.
Looking for more information about selling? Download the Ultimate Guide to Selling Your Home for tips and ideas from local professionals.
*Data courtesy NorthstarMLS for the 13-County Twin Cities metro area for July 2018