Twin Cities real estate market data is in for June 2017 and it shows the steady rise of homes available for sale into mid summer that is typical in any market. Inventory levels are the highest they have been since last October. What isn’t typical is how the supply has been dropping every year since 2014 when it recovered a bit… down down 16.5% from last year and nearly 30% from 2014. Current levels are significantly below supply going back to 2004.
This shortage is also reflected in the months supply of inventory and days on market until sale. We continue to be in a strong seller’s market at 2.5 months supply, but it has been slowing climbing each month all year, up from 1.8 months in January. Days on market continues to fall to record lows, now only 47 days for the average.
It should be no surprise to buyers that average percent of list price received is again at 99.5% and median sale price continues to rise. In June 2017 median sale price was $259,900, up 7% from June 2016.
New listings and pending sales continue to follow similar jagged patterns, illustrating the competition over new listings. But the fact that pending sales dipped down more than new listings can also indicate how today’s buyers are picky… they will wait for the right house, not just buy any property that comes on the market.
If you are selling a home in the higher price ranges you may be wondering where all the buyers are. That is because it tips to a buyer’s market in prices over $500,000. The market is considered balanced when there is a 5-6 month supply of home for sale. Homes under $250,000, where many first-time home buyers are looking, are in short supply.
When it comes to property type, townhouses are in shortest supply, followed by condos and single family houses.
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.
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