According to April 2014 data recently released by the Minneapolis Area Association of Realtors, new listings continue to be on the rise, finally ahead of the last three years.
What is even more significant, however, is the rising share of traditional sales (not foreclosures or short sales). You may have heard talk about how the market is becoming more 'normal'. I don't think anything illustrates it more clearly than the chart below from the Minneapolis Area Association of Realtors. The spread between traditional and foreclosures/short sales is finally getting back to what it was before the 'crash' in 2008.
It is encouraging to see the share of traditional sales getting higher each year.
Along with this comes an increase in median sale price, which at $197,000 in April 2014 is the highest it has been since 2008. The circles on the chart below indicate April median price 'after the fall'. As you can see, price is really a tale of two worlds… at different levels 'before' and 'after' the fall in 2008.
Unfortunately, the increase in new listings isn't enough to increase the supply significantly but the total number of homes for sale finally squeaked ahead of last year, even if only by 16 homes!
The months supply of inventory at 3.4 months is the same as last year and it is still a seller's market. The market is considered balanced when there is between a 5 and 6 month supply of inventory.
This year's market seems to be dominated by homeowners who are selling one home and buying another… moving up, downsizing, or simply making a change of some sort. These transitions continue to be challenged by the low supply of inventory.
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