The Minneapolis housing market has shed 27.7 percent of its inventory from one year ago bringing the local month's supply of inventory down to just 3.7 months. A 60 percent decline of foreclosures from its peak and a 70 percent decline of traditional home sellers since its peak have triggered an increase in home values over the 2012 season.
Low Minnesota mortgage rates have also contributed to the very affordable Minneapolis housing market and has brought home buyers out in droves as pending home sales in the region is up 25.3 percent from just one year ago.
Minneapolis Home Values
According to the latest Weekly Market Activity Report released by MAAR on November 12th, 2012, the median sales price for a home in the Twin Cities is up 14.8 percent on a year over year basis to $174,995 for October 2012.
This increase in home values is a trend that has been sweeping much of the nation this year as the Obama administration has reported that 1.3 million homes are out from underwater in its latest Housing Scorecard.
Pending home sales in the Minneapolis area also conintue to climb, up 25.3 percent from one year ago, which will continue t diminish the Minneapolis housing market and push home values even higher.
Minnesota FHA Mortgage Rates
For first time home buyers, or those taking advantage of Minnesota FHA mortgage rates, owning a home in the Minneapolis area has not been this affordable in a long time, but it's not likely to last long.
According to my Minnesota FHA Mortgage Rates, the interst rate currently sits at 3.375 percent, 4.197 percent APR after adding in closing costs and the monthly mortgage insurance premium.
At 3.375 percent on the purchase of a median priced home of $174,995, a first time home buyer can expect to pay roughly $747 in principle and interest a month with just $6,125 for a down payment.
With home values on the rise in the Minneapolis housing market, and with experts expecting a rise in mortgage rates, it appears the current housing affordability won't last too much longer.