Inventory is very tight, but more sellers are expected to emerge this month.
The kickoff to the spring housing market in the Twin Cities was unseasonably strong — especially for sellers.
With buyers outpacing sellers in some parts of the metro area, that meant stiff competition and little room for buyers to negotiate. The median price of all closings during the month was $207,395, a 3.7 percent increase compared with last year and the highest in eight years.
“Many would-be buyers are waiting on sellers,” said Judy Shields, president of the Minneapolis Area Association of Realtors. “Early indicators such as mortgage applications suggest demand is only likely to strengthen. The uncertainty comes on the supply side, but there’s a good chance we’ll see more inventory this year.”
For buyers, mortgage rates are still below 4 percent — the lowest in a generation and half of the historic average. By nearly every indication, the Twin Cities market appears poised to be the most robust it has been in more than a decade. Closings, a reflection of what was bought two to three months earlier, were up slightly. With listings in short supply in some areas, sellers are offering few discounts. On average, sellers in February received 95.3 percent of their original list price, a slight increase compared with last year. And houses sold much faster than they did last year. The average market time in the metro fell 9.4 percent to 96 days. At the current sale pace, all of the listings on the market at the end of the month would sell within 10 weeks. In a balanced market, it would take five to six months to sell out.
While inventory remains unusually tight, listings are expected to rise in the coming months as prices rise and homeowners gain confidence that they’ll be able to both find a buyer and find a house to buy.
Author:Darik Steinbach Phone: 952-239-4290 Dated: March 15th 2016 Views: 199 About Darik: I have been selling residential real estate in Minneapolis full time for 10+ years.
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