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.
The S&P/Case-Shiller index of property values in 20 cities dropped 1.9% in April from the same month in 2011, the smallest decline since November 201-, after decreasing 2.6% in the year ended March, the group said Tuesday in New York. The median forecast of 28 economists in a Bloomberg News survey projected a 2.5% drop. (more…)
According to the Minnesota Association of Realtors Minnesota home prices are increasing! As I have previously mentioned the supply of homes is down and the buyers are out in full force creating a multiple offer situation on many properties. These factors appear to be leading to a price increase in Minnesota. Home sales in March 2012 were up 7.5% from March 2011 and median price on closed sales was up 7.1%! Sales have been rising the past few months but this is the first significant price increase. We are not out of the woods yet as we are in the spring market which normally has the highest sales and prices have dropped much more than 7% since the housing crisis began but it is a positive sign!
Twin Cities home sales were up 12% in January, a 25% increase over January 2011, making it the best January since 2005! The number of new listings was also down reducing housing inventory even further causing many to think that it won’t be long until prices will have to start rising. On the downside, prices were also down. For more on the numbers breakdown, click here.