In spite of the seasonal drop in sales price, December 2014 median sales price was 5.2% ahead of the previous year, at $200,000, with homes selling at an average 94.1% of list price. It is evident we are still in recovery mode. I love the how the chart below shows clear annual steps up starting in 2012.
Although the supply of homes for sale finally grew higher than previous years last summer, December supply was down a bit again… indicating a strong sellers market with buyers eager to snatch up new listings.
Looking at the historical supply of inventory below from the Minneapolis Area Association of Realtors you can see the nice summer hump last year, now fallen to a new 10-year low. If the number of sellers I am currently working with is any indication, 2015 should show a much needed increase in homes listed for sale.
Some reasons the inventory is lower this year is that pending sales were actually up 6% compared to last December…
…and October-December 2014 new listings were down.
Perhaps the biggest sign that 2014 was another recovery year is the continuing increase in traditional sales and decrease in foreclosures and short sales. I love how the chart below from the Minneapolis Area Association of Realtors clearly shows the growing spread between traditional and distressed sales… after the 'Bust' years where lender-owned market share was uncomfortably close to traditional sales. I remember the treat of working with 'real people, not banks' when working with traditional sellers during those years.
2015 is predicted to be another recovery year, but with price increases expected to be at more modest levels… actually a good thing, we don't want to create another bubble!
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.