One of the most encouraging signs that the market is continuing to improve is the continued increase in the percentage of traditional sales… that is, sales that are not bank owned foreclosures or short sales. In February 2012 only 42.7% of closed sales were traditional sales. In July 65.9% of closed sales were traditional… that is an increase of more than 23%!
Although median price only inched up, at $179,500 it is at a level above the last three years for the first time this year.
Closed sales dropped, but is again following a more normal seasonal trend… neither the inflated sales during the height of the homebuyer tax credit in 2009 nor the dramatic drop after the end of the tax credit in 2010.
Pending sales are showing a slight trend down as is typical in the summer months. How nice to see a gently arched traditional curve rather than erratic spikes of recent years.
Inventory is still in dramatic short supply, making sellers happy with average sale prices at 95.0% of list price and 106 days on the market.
Steady sales and continued low inventory supply results in a months supply of inventory that continues to drop and inspires buyers to make an offer now rather than wait when they find a home they like… in the hopes they will avoid multiple offers.
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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