The 2016 Twin Cities Real Estate Market – Hot or Not?
How does the Minneapolis-St. Paul Real Estate market look for 2016
In case you haven’t heard, 2015 was a great year for real estate, and with home sales reaching a 10 year high, many industry leaders say the housing market has fully recovered. Now that we are several weeks into the New Year with the spring housing market hovering around the corner waiting to pounce on the Twin Cities, let’s take a look at January’s statistics and make some projections for what is ahead.
January Was Cold But the Twin Cities Housing Market Wasn't
The January real estate market in Minneapolis-St. Paul was strong with enthusiastic buyer activity, brisk sales, and rising home values setting the trend. Pending sales rose 3.5 percent, the median sale price rose 10.3 percent to $215,000, and the median list price climbed 6.1 percent to $259,900, a record high. However on the seller side we saw a less inspiring performance with the number of new listings declining 7.2 percent from last year which brought inventory levels down 22 percent and the lowest they have been since 2003.
Home Buyers in Minneapolis-St. Paul Aren't Messing Around
Buyers were serious and proved it by making offers close to asking prices. This translated into the percent of original list price at 95. With sellers giving this activity a “high five” cumulative days on the market fell to 85, down 15.8 percent, considered a lively pace for the month of January. Given the energy in the market and the decline in new listings, current inventory levels are at 2.1 months’ supply. Five or six months are considered a balanced market, making our current situation in the Twin Cities one that continues to favor the seller.
What Does 2016 Look Like for Twin Cities Real Estate?
So how will rising values, higher listing prices, higher interest rates and a low inventory play out in the real estate market...