There have been only four winters recorded since 1870 with more subzero days than this year's 46 days below zero. That's more than a month, and the real estate market reflects the effects of this coldest winter in 35 years.
The months supply of homes for sale has been frozen at an incredibly low 2.8 months since December. The supply was low last year… this year is even lower, and both are lower than 2004-2005!
When I was showing a home to buyers yesterday, they joked before we went in that they may need to write a check on the spot if they wanted to buy it! That isn't as much of a joke as it may sound… I have had more than one listing get an offer within hours of hitting the market this year.
Sales were down from last year, but it is encouraging that pending sales are stronger than closed sales.
Nationally, foreclosure starts are down 44% compared to last year, at the lowest level since 2005. That is also reflected in our market, with traditional sales continuing to show an increased share of the market… which also impacts median price.
These factors are resulting in moderating investor activity… creating a real estate climate better for both buyers and sellers. Buyers aren't as likely to find homes snatched up by cash investors before they even get to see them… and sellers are seeing stronger prices. The market is continuing to normalize.
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