Kiplinger.com took a look at U.S. cities with populations of over a half million to find out where the home prices increased the most in 2012. Of the top 5 cities, Minneapolis came in at number 4! The other cities in the top five were Phoenix, AZ, Provo, UT, Cape Coral Fort Myers, FL and Akron, OH.
One-year change in home prices: +16.8%
Median home price: $188,000
Change in price since peak: -33.7%
Unemployment rate: 5.3%
Foreclosure rate: 1 in every 682 households (0.15%)
The Minnesota Nice ethic didn’t protect the Twin Cities from the excesses of the boom years. But the metro area’s real estate market is coming back strongly now. In October 2012, sales grew by 15.1% from the year before, and the inventory of homes for sale fell by 29.7%. The months’ supply was 3.7, slightly favoring sellers. The average time for a home to sell was 104 days, down from last year but still lengthy. Sellers received an average of 94% of their original list price.
Inventory stands at a nearly ten-year low. Distressed sales in this market are the lowest of all the cities on the best list, just 15% of all sales. As homeowners see prices continue to rise, they’ll overcome their hesitancy and begin to list their homes for sale, increasing inventory and moderating the pace of price hikes.
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