Even though the weather has been cold and snowy, the home buyers are out in full force in the Twin Cities this year! According to the S&P/Case-Shiller study, Minneapolis-St. Paul was one of just 8 US cities with double digit price increases, up 12.1% in January 2013 from January 2012.
According to the Shenehon Center for Real Estate at the University of St. Thomas the median sale price in the Twin Cities in February was $205,500 which is a 14.2% increase over February 2012 and this number is just for traditional sales, not distressed properties. The last few months have shown that sales of traditional homes account for 50% or more of all sales which is a very positive sign.
The biggest market challenge is still the low inventory of homes for sale which is driving up prices. Hopefully with the sales prices on traditional homes increasing more home owners will have better equity positions and will be able to put their homes up for sale.
Builders are also reaping the benefits of low home inventory with more people looking to build. There were 360 building permits issued for single-family homes in the 13-county metro area in January, which is an 80 percent increase over the 200 permits issued in January 2012.
It is that time of year again for the start of the 2013 Spring Parade of Homes! Everyone loves to get out and look at the new homes, see what new things are available in new construction, see the different builders and just pick up ideas.
Are you thinking of building this year? If you are, let me be your guide to the 2013 Spring Parade of Homes. There are hundreds of builders in Minnesota and Wisconsin and I can help you choose the builder that will best fit your needs. Also, remember those friendly people in the models? Well, sure they are friendly, but they work for and look out for the best interests of the builder they represent, NOT you! Let me represent you, it costs you nothing and I will look out for your needs and your interests.
I am licensed in Minnesota and Wisconsin, so give me a call and let’s take the 2013 Spring Parade of Homes tour together! For more information on the dates and times for the parade, click here.
According to statistics from the Builders Association of the Twin Cities and the Minneapolis Area Association of Realtors, Lakeville is building the most of the south metro cities! In January 2013, Lakeville had 31 building permits up from just 6 in January 2012. Lakeville was also in the top 5 Twin Cities communities for the number of permitted units, coming in 3rd with 33 (this included multi-family units).
See the table below for several other cities in the south metro.
According to the Builders Association of the Twin Cities in 2012 builders and developers got permits to build 9,035 units in the 13-county metro, a 99.5 percent increase over 2011. That included permits to build 4,058 single-family homes and 4,977 multifamily units.
Ryan Jones of the Twin Cities office of Metro Study said that land scouts are back on the hunt, especially in the first- and second-ring suburbs where the housing crisis helped make building sites in prime locations more affordable than they were at the peak of the market. As those lots have been gobbled up, developers are now working their way back out to the outer edges of the metro in search of developable land with the expectation that development — and higher prices — will work its way back out again. Right now there is a shortage of buildable lots on the market.
Because of the increase in demand for new construction, the builders are starting to take away some of their sales incentives and in some areas have also increased their home prices.