2013 Annual Twin Cities housing market… improvement continues, still breaking records

Annual housing market data for 2013 shows the Twin Cities market is continuing to not only improve, but also break inventory records. If you have been thinking of selling, your time is now.

The number of 2013 closed sales was  53,087… up 8.8% from last year and and up for the third year in a row.

2013-historic closed sales

Average sale price was $236,219… still behind the high of $279,151 in 2006 but 14.4% ahead of last year.

2013-historic average sale price

Part of the reason for the rising prices the last two years is the falling percent of distressed sales, which has dropped significantly the last two years… from 50% in 2011 to 26.4% in 2013.

2013-historic percent distressed

New listings rose 9.4%, to 72,128 in 2013.

2013-historic new listings

But with rising sales that wasn't enough to stop the inventory of homes for sale from dropping to a new low… down 10.5% to only 11,646 properties.

2013-historic inventory

The months supply of inventory was at a record low in 2012… and 2013 was even lower, down 18.8% to only a 2.6 month supply at the end of 2013.

2013-historic months supply
The unusual supply patterns are even more noticeable in the chart below from the Minnepaolis Area Association of Realtors. Inventory traditionally rises in the spring and falls in the winter months. That characteristic hump was mostly absent in 2009 and totally missing in 2012… at least 2013 showed a small rise, even though it dropped to a new low.

2013- MAAR historical months supply

Our Twin Cities real estate market is improving, but the lack of inventory is holding back a more robust recovery. As confidence rises, hopefully more sellers will decide it is time to put their homes on the market in 2014.

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 – EmailMinneapolis – St. Paul Real Estate Market

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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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