As we brace for snow and cold, the housing market has not followed us into hibernation mode, according to new data from the Minneapolis Area Association of REALTORS®.
In October, the Twin Cities metro area saw the highest number of pending home sales for any October in more than 10 years. Unfortunately for buyers, however, new listings were down nearly 10 percent year-over-year, exacerbating low inventory woes.
Market overview
Fewer homes for sale means multiple offers are still common in low-inventory areas and homes are selling quickly.
- The average number of days a home is on the market fell to 60 days, 14.3 percent lower than last year
- Prices continue to rise—the median sales price in October was $230,000, an increase of 6.5 percent over October 2015
Starter home fever
- Starter homes are in high demand; the strongest sales activity in the last 12 months was for homes priced from $190,000 to $250,000
- Single family homes make up the greatest number of sales, but condos and townhomes have seen the strongest year-over-year sales increases
- Conversely, luxury homes priced higher than $500,000 see a very different market.
- The average days on market for homes in this price bracket is 121 days, about double the time of the market overall
- The months’ supply of homes for sale above $500,000 is 7.5 — a solid buyers’ market, compared to a sellers’ market in lower price brackets
Economic check-up
- The Minneapolis-St. Paul metropolitan area unemployment rate is 3.3 percent, among the best in the nation
- Mortgage rates have ticked up, but remain near three-year lows, currently around 3.8 percent for a 30-year conforming loan
- Incomes in the U.S. are finally starting to rise, which should continue to bring new buyers to the market
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