The 2016 real estate market continues to eclipse previous years… median sale price reached an all-time record high at $242,000 as market time is reaching an all-time low at 55 days on market. Average sale price was 98.7% of list price!
It should come as no surprise that these record-breaking prices and quick sales are fueled by eager buyers and an inventory shortage.
Closed sales were nearly the same for June 2016 and 2015, but the total number of homes for sale was 18.2% below last year. Pending sales slowed, likely because new listings didn't keep up with demand.
A good indicator of our healthy market is the diminishing share of foreclosure and short sale properties. The chart below dramatically shows how far we have come since 2009 and 2011, when sales of foreclosed properties were higher than traditional sales. In June 2016 traditional sales commanded 95% of the market.
With the third lowest unemployment rate of any major US metro and rents continuing to rise, first-time home buyers are on the prowl… and multiple offers are becoming the norm for homes under $250,000. The frenzy is fueled even more by down-sizing Baby Boomers who are often competing for the same smaller homes as first-time home buyers. Competition often isn't as great for the bigger homes they are leaving.
The figures and charts above are for the combined 13-county Twin Cities metropolitan area released by the Minneapolis Area Association of Realtors.
Never forget that all real estate is local and what is happening in your neighborhood may be very different from the overall metro area.