Twin Cities Real Estate Blog

Twin Cities Housing Market Heats UP!

The Homes of Minnesota Team is happy to report that the Twin Cities real estate market is still trending UP! But don’t just take our word for it; let’s look at the facts that point toward good things ahead.

 

Twin Cities Median Sale Price October 2012

 

Like stocks and bonds, the price for local housing is directly correlated to its supply and demand. For the past six years we have watched as the supply of housing, meaning the number of houses for sale, increased week over week and month over month. The ballooning supply of homes, coupled with increased unemployment and lower consumer confidence, created a lower than normal demand for homes. This is why we experienced consistent drops in median and average sale prices. This trend continued for over five years as the median price for homes plummeted from its peak of $231,435 to a low of around $150,000. 

 

Twin Cities Days on Market October 2012

 

Gradually, things changed. In early 2011, the supply of homes began to fall, reaching a milestone low in January 2012 when the available inventory of homes was 22,246. This was a milestone for our market because the last time there were so few homes available was in July 2005, which was also the time when the housing market was hitting its peak as the supply of homes available for sale was less than the demand by buyers seeking to purchase homes. Since the market reached the new “historic” low in January 2012, the inventory level of available homes has continued to drop each month throughout this year. As a result, homes are selling faster and home sellers are able to sell their homes...