The Minneapolis housing market continues to improve for home buyers and home sellers alike as Minnesota mortgage rates remain near historic lows. However, a recent foreclosure report may weaken the Minneapolis housing market as the year wears on.
Could it be that homeowners are beginning to gain enough equity in their homes to actually be able to put them on the market and break even or possibly make a profit from the sell? Well, according to the weekly report the median sale price in the metro reached $174,813 in September of 2012 and is up 4.5 percent on a 12 month median when compared to the previous year’s numbers.
Although the median sales price doesn’t give us true numbers when it comes to home values, any increase does suggest home values are on their way up, and why wouldn’t they be? Pending home sales continue to soar which has been bringing down the inventory of homes for sale, down 27.5 percent on a 3 month average from a year ago, and putting the current month’s supply of inventory at 4.1 for September 2012.
With competition as fierce as it is home sellers are seeing an uptick in offers on their homes and their homes are selling much faster. In September 2012, a home set on the market for an average of 101 days until an offer was accepted, down 28.5 percent from one year ago. Additionally, 94.8 percent of homes are receiving the original list price, up 4 percent from one year ago.
Even with the Minneapolis housing market posting great numbers throughout the year, you may want to keep your eyes on the Minneapolis foreclosures market as the metro area saw a 2 percent increase in foreclosure in the 3rd quarter of 2012 when compared to the previous quarter.
This quarter over quarter increase in Minneapolis foreclosures is not something to panic over at this point in time as we have seen a substantial decline of 27 percent in foreclosure from just one year ago.