Median sale price is finally higher than it was last year at this time, with the 6.4% gain over last year the highest increase since the tax credit in April 2010.
Pending sales are up even more, with a 20.4% increase over last March…
…and the supply of homes for sale dropped by 27.5%, down even more than sales are up. The current number of homes for sale is the lowest for any month since January 2004.
Months supply of inventory continues to drop, down to 4.6 months after dropping every month for the last year. This is the lowest the months supply of inventory has been since 2006, and officially defines a seller's market.
But what is perhaps the most significant sign the market is improving is the increase in traditional sales. Traditional sales surged by 33.2% compared to last year at this time while foreclosures dropped by 13.2%. Short sales increased by 5%.
Buyers seem to be getting the message that the market is turning and are deciding that it is time to buy now before interest rates and prices go up.
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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Sharlene Hensrud, RE/MAX Results – Email – Minneapolis – St. Paul Real Estate Market
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