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!
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…
…while the number of new listings fell…
…resulting in a drop in the total number of homes for sale.
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.
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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