Last year, the Minneapolis/St. Paul metro area real estate market experienced rising sales and prices. Buyer demand remains strong and homes are selling quickly—often with multiple offers on the table—but despite these strong metrics, the number of pending and closed home sales fell from Jan. 2017 because the lack of inventory is stymieing homebuyers.
Key insights for January 2018*
- New listings: -8%
- Median sales price: +10% — $243,750
- Pending sales (signed purchase agreements): -4%
- Average days on market: -14% — 69 days
- Number of homes for sale: -26%
New construction sales are up
The lack of existing housing options is leading some buyers to look to new construction. Pending sales of new construction homes rose nearly 14 percent over last January, even as sales of existing housing dropped.
The Parade of Homes starts Saturday, Feb. 24. If you are considering new construction, an expert Realtor can help you along your home-building journey from start to finish.
Economic check up
- Minneapolis-St. Paul area unemployment rate: 2.9%
- Average rates for 30-year conforming mortgage: 4.6%
- A strong local economy, job growth and rising wages are encouraging for homeownership, as long as jobs and wages keep up with rising home prices and interest rates.
The long and the short of it
Many homes in the Twin Cities are selling fast and with strong offers—especially starter homes. If you’re ready to find out what you could get for your home, reach out to be connected with a market expert in your area. You can also download the Ultimate Guide to Selling Your Home for insider secrets and tips.
*All data courtesy NorthstarMLS for the 13-County Twin Cities metro area for January 2018.