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!

2016-06-historical median sale price

2016-06-historical DOM

It should come as no surprise that these record-breaking prices and quick sales are fueled by eager buyers and an inventory shortage.

2016-06-closed sales-total homes

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.

2016-06-new listings-pending

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.

2016-06-historical market share foreclosures

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.

Local real estate market reports on 350+ metro area communities

Sharlene Hensrud, RE/MAX Results – EmailMinneapolis – St. Paul Real Estate Market

HomesMSP Team- SharleneJohnAngela Minneapolis-St. Paul Realtors

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About Sharlene Hensrud

I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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