The Minneapolis Area Association has released the Twin Cities market statistics for the week ending February 23.  The spring market is upon us and the buyers are coming out of the woodwork at a fast pace but the homes for sale are not coming onto the market causing a very serious shortage of homes for buyers to choose from. Right now it has changed from a buyers to a sellers market.  With such a low inventory of homes for sale, homes priced correctly are selling fast and often end up in multiple offer situations.

In the Twin Cities region, for the week ending February 23:
• New Listings decreased 6.1% to 1,176
• Pending Sales increased 3.1% to 927
• Inventory decreased 30.9% to 12,341

For the month of January:
• Median Sales Price increased 14.3% to $160,000
• Days on Market decreased 24.1% to 107
• Percent of Original List Price Received increased 2.5% to 93.5%
• Months Supply of Inventory decreased 40.0% to 3.0

The 55+ home buyers group is becoming larger and more influential in real estate every day.  Just because they are from a certain generation we cannot assume that they are not keeping up with the times and with technology!  How is this group of the population searching for its new homes?  According to the 2012 Profile of Home Buyers and Sellers, they are searching online.

• 75% of aged 55+ buyers are searching for their homes online
• 39% of aged 55+ buyers start their home search online
• 30% of aged 55+ buyers actually first found their new home online
• This group is interested in finding information on neighborhoods
• This group also is likely to drive by the homes they find online
• The 55+ group is likely to use a Realtor for their transaction

So, it is not just the young crowd that is searching online which is a good reminder that if you want to sell your home, make sure you are marketing it online.

Who will be buying homes in 2013?  You are selling your home and hear that there are so many buyers out there on the market but not enough homes, you may be wondering who are these people that are out there buying homes.  According to the Business Insider, there will be 5 different types of buyers:

1. First time home buyers – they have been waiting for prices to get to the low point and since prices are starting to rise they will be buying now
2. Move up buyers – these buyers have been waiting to get more money for their existing home so they can purchase a larger or better home. With prices increasing they want to sell their current home and still get a deal on a bigger and/or better home.
3. Move down buyers – their home is most likely paid off and they want a good deal on something smaller, yet the most money for their current home, so with prices rising they will enter the market.
4. Rebound buyers – these are the buyers that lost their homes to foreclosure at the start of the housing crisis and have been renting. For many, they have now repaired their credit enough to get back in and actually buy a home again.
5. Investors – yes, investors will still be out there trying to find the deals to either flip or rent. Deals will be harder to find but they will be out there and investors realize they can get a great return on their money

Take a look at the home buyer statistics for Minnesota vs. the Nation provided by the Minnesota Association of Realtors.  Who are the buyers, what types of homes are they buying and where are they searching?

Characteristics of Minnesota Home Buyers

• 41% of recent home buyers were first-time buyers in Minnesota, compared to a national level of 39%, which is a slight rise from 2011.
• The typical buyer in Minnesota was 37 years old, while nationally the typical buyer was 42 years old, a modest decrease from 45 in 2011.
• The 2011 median household income of buyers was $80,600 in Minnesota and $78,600 nationally.  The median income was $57,000 among first-time buyers and $96,800 among repeat buyers, compared to $61,800 among first-time buyers and $93,100 among repeat buyers nationally.
• Nationally, 65% of recent home buyers were married couples—the highest share since 2001.  In Minnesota, the figure was 58%.  16% of recent home buyers were single females nationally—the lowest share since 2001; 19% were single females in Minnesota.
• For 30% of recent home buyers nationally, the primary reason for the recent home purchase was a desire to own a home.  In Minnesota, this was the primary reason for 27% of recent home buyers. (more…)