June Housing Market in the Twin Cities Setting New Record Highs
June Housing - Different Month, Same Story
The Minneapolis-St. Paul Housing Market story for June continues with a theme that we know well. Even though available homes for sale fell 16.5% compared to June 2016, closed sales rose 2.2%, reaching a record high of 7,430 units sold. Home prices also continue their upward trend with the median sales price also reaching a new high of $259,000, 7% over same time last year.
The only factor keeping this market from breaking out is the low inventory levels. Short supply has kept some wanna-be buyers sitting on the sidelines and those actively engaged in the hunt and search for a home are being seriously challenged by the amount of competition for properties. Multiple offers for desirable properties are the norm with days on market at 47 down 16.1%. Percentage of list price received is 99.5 over 98.7 last June, an increase of 0.8%.
Twin Cities Metro Housing Quick Stats
- Exceptional demand and restrained inventory levels continue to dominate the market
- The shortage of available homes puts more upward pressure on home values
- Condos, with a 6.2% increase for a median sales price of $155,000 saw the largest price gains
- Quickest selling price range $190,001 to $250,000 at 45 days on the market
- Slowest selling price range $1,000,001 and above at 192 days on market until sale
- Largest increase in values in the $1,000,001 and above segment with sales increasing to 25.9%
On the national housing scene, there has been a general slowdown in sales and many industry analysts worry that a serious housing shortage is just up the road. However, homebuilder confidence in the market is on the rise. New construction in the Twin Cities is the status with the strongest sales and housing starts are expected to rise in the coming month. For June the inventory of new homes is up 8.6% over same time last year.
Twin Cities Metro Inventory Snapshot
- New listings down -0.5 %
- Inventory of homes for sale down -16.5%
- The month's supply of inventory down -16.7%
- The month's supply of inventory currently at 2.5
- New construction inventory up 8.6%
- New construction inventory at 5.5 months down 9.8%
As we move toward the end of summer, those of you who are being shy about getting into the market, be aware that strong job growth, consumer confidence, and low-interest rates are going to push more and more aspiring home owners to start actively pursuing their dream of ownership. It seems certain that the Fed will be raising interest rates at least one more time this year and with demand as strong as it is home prices will not be coming down.
Sellers who are on the fence should be aware that owners of homes that present well and are priced according to market are receiving multiple offers in record time. On the flip side, these sellers are facing a less competitive move up market and doing really well. If you are still sitting on the fence, this would definitely be a good time to make your move, especially as we head into fall which is the second best time of the year to sell your home.
The data used in this report was for the entire Twin Cities Metro. Stats for the individual cities within the region may tell a different story. If you are interested in looking deeper the reports are available to the public from the Minneapolis Association of Realtors website.