The Twin Cities Real Estate market had a huge turnaround in 2013. Many local markets transitioned from a buyers' market to sellers' market. Closed sales are up. Days on market until sale are down. Median sales price is up dramatically.
Many factors have created greater buyer demand with interest rates are still very low, affordable prices and higher consumer confidence. Even though buyers will have to pay more with increasing prices, it does create greater consumer confidence and helps sellers who were underwater in the past be in a position to sell without bringing money to the table. It makes sense that we will probably see an increase in sellers that are not underwater and have been patiently awaiting this turnaround, which should mean higher inventory of homes for sale.
Twin Cities Home Buyers- Favorable interest rates that started rising last year, higher consumer confidence, rising rents, rising home prices have all created a stronger sense of urgency with buyers. We also started seeing more of the boomerang buyers, those sellers who had to short sale or foreclose on their home a few years ago and can now qualify for a mortgage again. All this created an increase of 8.8% in homes sales in the Twin Cities Real Estate market finishing at 53,087 sales for the year. That's the highest number of Twin Cities home sales since 2005.
Twin Cities Home Listings - The inventory of Twin Cities homes for sale dropped 10.5% below 2012 to 11,646. This is likely to change in 2014 as more Twin Cities home sellers hear the good news about rising home prices and they come out from an underwater position. There were a total of 72,128 homes listed for sale during 2013, 9.4% more than 2012. Those Twin Cities home sellers must have heard the good news of the robust demand, rising prices and speedy market times. Many of them got top dollar, even more than their list price and often full price offers.
Twin Cities Distressed Homes - The number of short sales and foreclosures dropped from 50% of the Twin Cities real estate market to just 26.4% in the last two years. This is a good thing because those sales were dragging down the market with average sales prices of $130,000 to $140,000 compared to the average sales priced for traditional sales of $220,000.
Twin Cities Home Prices - Median sales price of twin cities homes was up 14.4% closing out the year at $192,000, which is now a five year high. Prices are now just 16.5% below their 2006 peak but 28% above the lowest median price in 2011. We will be watching for move-up buyers, fewer foreclosures and short sales and new construction to have an impact on prices in 2014. Prices will continue to grow at less aggressive pace than 2013.
This is your monthly Twin Cities Real Estate Market Report from Rochelle Allison with the Rochelle Allison Real Estate Team Keller Williams Realty. If you have any questions, feel free to give us a call at 651.259.4683
When you decide to put your home on the market, don't just choose a real estate agent. Choose a force to be reckoned with. Choose The Rochelle Allison Real Estate Team and "Experience the Excellence."
Twin Cities Real Estate Market Report for YOUR Neighborhood - Get your report delivered directly to you by requesting one now. (click the link above or call 651.259.4683.)
Sometimes a pictures says a thousand words. Below are graphs that show the Twin Cities real estate market statistics, demonstrating the trends over the last few years.
Twin Cities Average Sales Price
Twin Cities Real Estate Market Inventory
Twin Cities Average Days On Market
*Statistics provided by the St Paul Area Association of Realtors
Comments (0)Subscribe to CommentsComment