February market stats are in and as is typical in the first two months of the year, activity was pretty stagnant compared to last month. Median sale price was $160,000 for both months, but up significantly compared to last year for the 12th straight month.
What this doesn't show, however, is how much the list price of new listings has bounced up these last two months. With only a 2.9 month supply of homes available for sale, it is a strong seller's market and sellers are responding with higher list prices. We haven't seen the median price for new listings this high in February since 2008… and median list prices hung low below that mark after the crash in the fall of 2008. You can see pretty clearly the 'before' and 'after' crash prices. Note how much weaker the December drop was this year, followed by a strong jump up in January and February. Hopefully we will see more upward movement this year… we are off to a good start.
Both prices and inventory levels are being impacted by the decline in foreclosure and short sale listings. As the percent of traditional sales increase, prices also rise. But we still need more traditional listings to build inventory to offset the decline in distressed listings. This is the best year for traditional sellers in a long time.
Pending sales continue to increase, which is the predictor of closed sales yet to come…
… as other market stats maintain a relative holding pattern. What will be telling is what happens in the next few months… and much of that is dependent on more listings. There is pent up buyer demand, but they can't buy if there aren't properties for sale!
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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