According to the 2012 market statistics from the Minneapolis Area Association of Realtors, in the metro area, there were 48,622 sales in 2012, a 17 percent increase over the previous year with the median price of those sales rising 11.9 percent to more than $168,000.
Sales increased in almost all areas of the metro, though prices weren’t up evenly. Most sale and price gains were in Minneapolis, St. Paul and several inner-ring suburbs where supplies are limited and options for new construction are few. In Minneapolis, sales were strongest in the University neighborhood, up nearly 40 percent, and in St. Paul sales were strongest in the Summit Hill neighborhood, up 64 percent.
The real estate market is improving but it still faces challenges such as how long mortgage rates will remain low, the unemployment rate, the number of distressed properties on the market and appraisals that are coming in too low for the current market prices. Despite these challenges, Realtors expect closings to increase 4 to 8 percent in 2013 and that prices will rise 8 to 12 percent.
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.
To read the whole article, click here.
The Standard & Poor’s/Case-Shiller August Report was released today showing positive gains from July to August 2012. The 10 city composite index showed an annual price gain of 1.3% over the last year while the 20 city composites showed a 2% increase. 18 of the 20 cities studied showed price increases indicating a turnaround in real estate.
All the signs are still positive with housing inventory continuing to decline, low interest rates and new housing starts way up.
Click the photo to see how Minneapolis fared in the list of 20 cities studied.
Minneapolis is number two on MSN’s list of the most liveable bargain markets in the US. You can get a nice home in a nice neighborhood for a reasonable price, the city has major sports teams, theater, arts, parks, mass transit, people are healthy and much more. The only major drawback they list is the cold winter. Take a look at the link to see the full report.