At $224,900, August 2015 median sales price was up 2.7% over last year. Looking at the chart below from the Minneapolis Area Association of Realtors you can clearly see how prices have been steadily gaining traction the last several years. There are seasonal peaks and valleys, but each year has been stepping up since bottoming out the winter of 2011-2012.
Prices are helped by a waning percentage of foreclosures and short sales, but also by the laws of supply and demand. Days on market until sale continue to be at record lows… at 64 days in August, down 5.9% compared to last year.
Closed sales peaked in June, but have remained strong all year…
…buoyed by steady pending sales, up 12.2% over last year in August.
New listings tapered off, will be interesting to see if they rebound again a bit this fall.
Strong sales and falling new listings means the total supply of homes for sale is 13.6% behind last year and months supply of inventory is down even more, a 23.9% drop to 3.5 months. This means that if sales continued at the current level and no new properties were added for sale it would take 3.5 months to deplete the supply. A balanced market is considered between 5 and 6 months supply. We continue to be in a seller's market.
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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