Spring is here and talking to almost any buyer will let you know that homes are selling almost as soon as they hit the market. This is the time of year when new listings usually flow into the market, as is happening now. New listings in the Twin Cities are up 10.7% compared to last year.
Closed sales are also up, 20.8% over last year.
But the biggest story is pending sales, which are up 26.0% over last year… love that line heading straight up!
You can see even more dramatically how significant is the number of pending sales in the historical chart below from the Minneapolis Area Association of Realtors. Pending sales haven't been this high since 2005!
All of this activity has naturally caused a reduction in the months supply of inventory, which is down 5.6% compared to last year, now at 3.4 months metro-wide… which in turn has caused an increase of 10.0% in median sale price, at $215,600 for April 2015.
Fewer investors are buying rental properties as prices rise… which in turn puts upward pressure on rental rates… which in turn makes more people think about home ownership instead of renting.
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
The team at HomesMSP - Sharlene, John, Angela – Minneapolis-St. Paul Realtors