Annual 2016 closed residential real estate sales for the combined Minneapolis-St. Paul metropolitan area were 6.2% ahead of 2015, with steady gains the last two years.
After an encouraging small rise in new listings the last two years, the number of new listings in 2016 dropped 1.1% behind the previous year.
With an increase in sales and a decrease in new listings, inventory dropped to a new low in 2016, ending the year 26.3% below last year. That is only about 30% the number of homes available for sale in 2007!
All of this has been fueling strong prices. Average sale price showed annual growth of 4.4% in 2016.
The percentage of distressed sales continued to fall in 2016, ending the year with foreclosures and short sales making up only 7.1% of total sales… that means 92.9% were traditional sales.
As you would expect, median sale price was highest for traditional sales.
Months supply of inventory also ended the year at an all-time low of 1.6 months. When you break it out by type it becomes apparent why people downsizing from a house to a townhouse are having trouble… there is only a 1.1 month supply of townhomes available! That means it would take only about a month to sell all townhomes currently on the market if no new listings were added. Condos were hit hardest in the crash, but are now holding their own between houses and townhouses.
Previously owned homes overall have an extremely low supply… only 1.4 months, while new construction homes ended the year with a 5.4 month supply.
This indicates another great year for sellers… buyers need your homes!
The figures above are based on statistics 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.