December 2015 Market Update… supply of homes for sale bottoms out!

2015 was a booming year for real estate, with housing demand reaching a 10-year high. Unfortunately, new listings aren't keeping up with demand and supply took a nose dive in December. Perhaps part of the reason is the diminishing number of foreclosures, which often take up the slack of fewer traditional seller home listings during the winter market… perhaps part of the reason is buyers eager to buy, snatching up new listings almost as soon as they hit the market.

The chart below from the Minneapolis Area Association of Realtors going back to 2004 dramatically illustrates how low our inventory really is… it is going off the bottom of the chart!

2015-12-historical inventory

All data comes from NorthstarMLS. Powered by ShowingTime 10K.

Sellers, if you are ready to sell this is a great time!  I met with a seller last night getting ready to list her home in New Hope. There was only a 1.1 month supply of homes available in New Hope… almost unheard of!  (A balanced market is considered to be between 5 and 6 months of inventory.)

The charts below show how December closed sales took a jump up…

2015-12-closed sales

…while the number of new listings fell…

2015-12-new listings

…resulting in a drop in the total number of homes for sale.

2015-12-total homes

With Twin Cities buyers inspired by rising rents, low interest rates, and the lowest unemployment rate of any major US metropolitan area, 2016 could be another great year for the real estate market. But only if there are enough homes available for sale to keep up with buyer demand.

Median sales price in December 2015 was up 9.9% over December 2014… to $219,900. Annual price increase was 7.0%, with a $220,00 median sale price for the whole year. Twin Cities home prices are now within 5.0% of their peak before the recession… no longer the time to be waiting for better prices before selling.

 

2015-12-median price

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 here for local reports on 350+ metro area communities

Sharlene Hensrud, RE/MAX Results – EmailMinneapolis – St. Paul Real Estate Market

HomesMSP Team- SharleneJohnAngela Minneapolis-St. Paul Realtors

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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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