As we review 2017 and look ahead to 2018, housing market experts in the Twin Cities metro are expecting to hear continuing verses of the same song: Low inventory of homes for sale, high buyer demand, rising home sale prices, multiple offers and fast sales.
Key insights from 2017*
- Median sales price reached an all-time high
- Closed sales reached a 12-year high
- Inventory levels reached a 15-year low
- Average days on market fell to an 11-year low
Key insights from December 2017*
- New listings: -5%
- Median sales price: +10% — $269,000
- Pending sales (signed purchase agreements): -2%
- Average days on market: -15% — 61
- Number of homes for sale: -27%
Buyers, sellers and REALTORS® are all preparing to launch into spring market with the usual increase in listing and buying activity and buyer demand is expected to outpace owners listing their homes for sale. Buyers should be prepared to be met with competition and multiple offers. (WATCH: Tips for buyers on how to compete in multiple offers.)
Homeowners continue to be reluctant to put their homes on the market, despite the attractions of rising prices and fast sales. Some potential sellers may be concerned about finding their new house quickly enough after their current home sells. There are many ways to overcome this hurdle, including reverse contingencies and transitional housing options. A professional Realtor will be able to make recommendations tailored to your needs.
Economic check up
- Minneapolis-St. Paul area unemployment rate: 2.4% — currently ranked lowest and best in the nation
- Average 30-year mortgage rates have risen to 4.34%
- A strong local economy, job growth and rising wages are encouraging for homeownership
- Rent prices continue to rise as only 2.5% of apartments are vacant
*All data courtesy NorthstarMLS for the 13-County Twin Cities metro area for December 2017.