The 2014 Twin Cities housing market was mixed. As the Minneapolis Area Association of Realtors called it… two steps forward and one step back.
Closed sales took a step back in 2014… down 6.9% from the year before.
New listings crept up by 2.3%…
… but not enough to increase total inventory. The total number of homes for sale at the end of the year dropped yet again, down 7.2% from the end of 2013. Buyers are pickier when choosing a home they plan to live in for 10 years or more so not all new listings sell… some fall off the market for lack of interest.
Prices continued to increase in 2014, not quite back to the Bubble years, but getting closer and helping those potential sellers who have been stuck under water on their mortgages. Average 2014 sale price increased by 6.9%, to $252,614. Median sale price increased 7.2%, to $205,739.
Perhaps the most notable change was the continued decrease in distressed properties… down 41.8% since the end of 2013 to only a 16.5% share of closed sales.
Months supply of inventory increased a bit, to 2.9 months indicating a still strong seller's market. A supply of 5-6 months is considered balanced between buyers and sellers.
However, new construction sales slowed in 2014. Months supply of previously owned homes is the same as last year, at 2.6 months.
Average cumulative days on the market dropped to 78 days in 2014, and the average seller received 95.7% of list price.
The low supply of homes available for sale continues to be the biggest hurdle to overcome. 2014 saw some good inventory growth, but buyers depleted the supply… a sign of a healthy market and a good sign for sellers planning to enter the market in 2015.
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.
Click below for more detailed information from the Minneapolis Area Association of Realtors.