Posted in: Market insights

Market Insights December 2016

December 2016 Real Estate Market

Bucking typical seasonal housing market trends, last month was busier than any other November since 2004, according to data from the Minneapolis Area Association of REALTORS®.

While it seems like the far distant past after our recent winter reality check, October and November were unusually mild, which encouraged buyers to continue their house hunting longer than normal.

Buyer competition can still be found in popular areas and price points around the metro. Sellers who are thinking about waiting until spring might want to think again; homebuyers shopping in winter and around the holidays are more serious and are currently facing a major shortage of listings:

  • Inventory of homes for sale was down 23 percent
  • The number of new listings coming on the market was down 1 percent
  • Pending sales in November were up 9 percent over last year
  • Starter homes priced $190,000 – $250,000 had the most sales activity

Sellers who take advantage of the low-inventory conditions could see fast sales and good prices, even in the cold months.

  • The average time on market fell to 61 days, compared to 73 days last November
  • The November median sales price clocked in at $232,000 – up nearly 6 percent

All this doesn’t mean that sellers can shoot for the moon with their home prices. Buyers are more knowledgeable about market conditions and just as discerning about value as ever.

To explain: In November, sellers received an average of 96.7 percent of their original price, and 98.7 percent of the most recent list price, indicating that homes priced too high for the market sell for nearly asking price once they drop within range of what buyers are willing to pay.

Luxury market update

Homes priced above $500,000 have a dynamic that sets them apart from the rest of the market. Sellers in this price range can expect a longer time on market and less buyer competition.

  • The average days on market was 127 days, up .8 percent from last year
  • The number of new listings was up 9 percent year-over-year
  • The months’ supply of homes for sale was 6.5, which suggests a more balanced market

Economic check up

Join over {{'43232' | number}} subscribers

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