Twin Cities Real Estate Market February 2016
The Twin Cities real estate market is off to a frantic start. The spring buyer activity is already up and rising. On the other hand, according to the latest report from the Minneapolis Area Association of REALTORS®,seller activity and homes on the market have fallen to the lowest numbers in more than a decade.
- The number of homes for sale fell 22% to 10,065 – the lowest number on record in 13 years. New listings also fell 7.2% from last year.
- Inventory in the Twin Cities is the lowest it’s been in over a decade
- The median sales price for January was $215,000, up 10% from the median price of $195,000 last January.
- Home sales under $150,000 fell 18% from last year, while activity in all other price ranges increased. If you have been thinking about selling your home, it might make sense to contact a real estate agent.
Interest Rates Have Remained Low
After the Federal Reserve raised its key interest rate in Dec. 2015, most expected mortgage interest rates to begin a slow, upward crawl, but rates fell in January to an average of 3.86%. This means buyers still have more buying power and can be qualified to buy a higher priced home.
Record Prices in Some Areas
- Some cities and neighborhoods including Edina, St. Louis Park, Hopkins, Uptown and Southwest Minneapolis all saw record home sale prices in 2015.
- Homes in these popular areas can sell quickly and competition for buyers can be fierce. There are often multiple offers on the first day of listing!
- Listing your home when inventory is low and buyer demand is high can help you sell your home faster and for a higher price.
- The Minneapolis-St. Paul metro continues to boast one of the best unemployment rates among large metro areas: 3.1%.
- Wages are starting to grow.
- Continued low energy costs and a mild winter are making it easier for families to save, so they can put money toward a down payment rather than in their gas tanks or heating their homes.
Consult an Agent
If you have been thinking about listing your home, it might make sense to contact a real estate agent to look at your options. An experienced Twin Cities real estate agent can help you to determine what your home might sell for in this market and come up with a plan to help you and your family reach your real estate goals.