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April Showers and the Twin Cities Housing Market

The Twin Cities Spring Housing Market April Review 

Market snapshot: Spring in Minneapolis-St. Paul and the theme of the housing market story is home buyers as plentiful as mushrooms after a spring shower and “home for sale” signs as rare as dinosaur fossils. Okay, I admit I am exaggerating slightly about the for sale signs but for many buyers, especially in the lower price ranges, it sure feels that way.

Listing Activity

New Listings in the Twin Cities were down 8.3 percent compared to April of last year causing inventory levels to fall 19.8 percent with 10,916 homes available in all categories. Values continue to gain momentum with medium sale prices steadily inching upward with days on the market going in the other direction.  The month's supply of homes was down 21.4 percent at 2.2 months and needless to say, sellers were quite happy. The short supply of inventory has caused closed and pending sales to be down from last April’s numbers.

Even though most decent properties that are priced to market are selling above list, quickly and with multiple offers, so far buyer demand remains incredibly strong. Even though many first timers have lost out on several properties they hang in there. In the Minneapolis-St. Paul metro, this demand is reflective of a strong labor market, interest rates still at historical lows, rising wages, and rising rents making home ownership very appealing. As we forge ahead into the summer months, don’t expect this situation to change unless something unforeseen occurs to change the market dynamics.

Let’s dive a little deeper into the numbers for Twin Cities housing April 2017 in comparison to the same time last year. 

Quick Twin Cities Housing Market Stats

  • With demand surging and inventory shrinking, home prices continue to rise
  • ...

New Construction vs Existing Home

New Construction vs Existing Home

When you bought your charming starter home, it was perfect.  As a newly married couple living in the Twin Cities, the 950 square feet with two bedrooms and one bath felt spacious after living in a one bedroom apartment. Now, two children later and you feel like your once spacious home more closely resembles a hobbit hutch and you know it’s time to move up to something larger. Like many young potential buyers in your position, you are facing the conundrum of should you buy another used home or opt for a shiny new one? Should I buy a new construction home or buy an existing home? According to a Zillow survey, 41% of buyers responded to having a preference for a newly constructed home, but as in every incidence when you are at a crossroad, there are pros and cons on both sides of the equation. When you purchase a home, there is never a one size fits all option and depending on lifestyle and priorities one choice, new vs. existing, may be clearly preferable to the other.

Pros of New Home Construction 

  • Buy or build a new home and you get to make all the choices, every single one! You choose the lot, the style of home, floor plan, colors, cabinets, and flooring. You can decide where you want to splurge and where you feel you can take the standard feature.  
  • New home construction incorporates the latest trends and styles that many home buyers want like open floor plans, island kitchens, master suites and home office space. 
  • Many home builders in MN use much safer materials than ever before. It is common for builders to use flame...