Even as the year-over-year monthly median price slowed to 3.6% in September it was still 5.8% YTD over last year… still above the nationwide 'normal' rate of 3.6% annual increase from 1987 to 1999. You can see how it has been steadily rising for the last 5 years. But it still isn't as high as it would have been had prices continued to rise at a rate of 3.6% per year and the bubble hadn't occurred.
New listings were up 5.6% while pending sales dropped for the first time this year… but only by 0.3% so I really consider that holding pretty steady.
Closed sales were up 5.7%, close to new listings… and inventory down 16.1%.
The short supply of homes for sale in relation to buyer demand continues to make it a seller's market. Months supply of inventory is down 20% from last year, at 2.8 months… pretty flat for the whole year. Median sale price is showing its seasonal arc, 5.7% above September 2015.
Low interest rates are likely a contributing factor both to buyers and to potential sellers who decide to stay where they are and refinance instead of making a move. Sellers who plan to move to another home within the area continue to be fearful of not finding another home to buy.
The figures and charts above are 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.
Local real estate market reports on 350+ metro area communities
Sharlene Hensrud, RE/MAX Results – Email – Minneapolis – St. Paul Real Estate Market
HomesMSP Team- Sharlene, John, Angela – Minneapolis-St. Paul Realtors
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