While median sale price climbed for the third month in a row, its 7.1% increase over last year is overshadowed by the 27% increase in new listings. How much of this increase is due to sellers scrambling to take advantage of buyers planning to buy before the tax credit expires April 30 remains to be seen. After being on hold for a few years, I am noticing more movement from 'traditional' sellers getting into the market again.
For the first time since June 2004 we have seen three consecutive months of year-over-year growth in median sale price. Part of this is because there are fewer homes available in the lower price ranges than last year, moving buyers up to a higher price point. It is encouraging to see this year's median price 'line' creeping above last year rather than dropping significantly below the previous year as it has done the last two years.
The number of closed sales jumped in March, as is typical, but to a level even higher than 2007. I suspect the next three months will all show significant growth from the effect of the end of the tax credit. The real test will be what happens after the tax credit incentive goes away and we move into a more 'normal' market…whatever that means at this point!
New listings took a huge jump, increasing by 27% over last year… 
…resulting in a dramatic increase in the total number of homes available for sale.
Changes by price range continue their upward migration, this month with every price range under $500K showing increased sales compared to last year. The percent change in the bottom two price ranges is down significantly compared to last month, further illustrating how sales are shifting to slightly higher price ranges.
This months supply of inventory is up in all price ranges except over $1M… to be expected with the sharp increase in new listings. The market is considered balanced between buyer and seller at a 5-6 month supply. That means it is still a buyer's market in all but the lowest price ranges.
Although the supply of houses is still lower than townhomes and condos, for the first time in many months there are now more houses available for sale than there were a year ago. The condo supply continues to float above the supply of houses and townhomes, at least part likely due to tighter financing guidelines.
The data above is based on statistics for the combined 13-county Twin Cities metropolitan area released by the Minneapolis Area Association of Realtors. Click here for links to local reports for 125 metro area communities.
Sharlene Hensrud, RE/MAX Results - Email – Minneapolis – St. Paul Real Estate Market Information
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