Minneapolis Housing Market Continues to Shrink as Home Values Increase

By
Mortgage and Lending with Guardian Financial

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.

Posted by

Google+

Jeremy Redlinger - NMLS #627335
Midwest Mortgage Capital
10900 73rd Ave N #150, Maple Grove, MN 55369
(763) 957-0858
MN Mortgage Broker

MN Mortgage

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Market Trends
Location:
Minnesota Hennepin County
Tags:
minneapolis housing market
minnesota mortgage rates

Spam prevention
Show All Comments
Rainmaker
1,309,136
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota Real Estate Expert

I would say that 2+ months of that inventory is probably "junk listings" meaning really beat up homes that really dont work for most buyers, or overpriced homes that will never sell.  Meaning the options are really limited for buyers.

Nov 13, 2012 01:37 AM #1
Rainer
66,031
Jeremy Redlinger
Guardian Financial - Maple Grove, MN
NMLS #627335

Chuck... if your statement is true then a potential home buyer should be pre-approved and ready to make an offer on a home almost immediately after viewing in order to ensure that their offer will be looked at.

Nov 13, 2012 02:38 AM #2
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
66,031

Jeremy Redlinger

NMLS #627335
Ask me a question
*
*
*
*

Additional Information