Twin Cities February Housing Market - A Look at the Numbers
Twin Cities Home Sellers Doing the Happy Dance
Market snapshot: This is a very difficult market for buyers, especially in the lower price tiers as the theme of low inventory coupled with high demand endures. As inventory levels continue to shrink, it is becoming really tough to buy a home, especially for first-time buyers and downsizing boomers. Nevertheless, they persist.
So far, buyers, even faced with the shortage of available homes, rising prices and increased mortgage interest rates have not been deterred. Heading into spring, which is the strongest real estate season of the year, begs the question of how much inventory will we see in the market and will the increased cost of buying a home temper buyer demand. As long as job numbers and economic factors remain strong, buyer confidence should remain high and continue to fuel the demand for housing.
For the week ending March 11th and 18th, we see a decline in inventory and a decline in pending sales. This may be a signal that buyers are dropping out of the market but based on those 2 weeks statistics it is too early to say. We are seeing a decline in the gap of new listings compared to last year as the month progresses so it may just be indicative of a more traditional onset of the spring market whereas last year it was acting like spring even though we were still slogging through the snow.
Let’s take a deeper dive in the month of February 2017 real estate market stats in comparison to the same time last year. *
- Buyer activity outpacing last year
- Seller activity declines
- Multiple offers on desirable properties have become the norm
- Sellers are receiving full price and above offers in record time
- Sales are up despite lower inventory levels
- $350,001 to $500,000 category of housing shows strongest sales up 19.6%
- Fastest selling price range $190,001 to $250,000 at 49 days on market until sale
- Slowest selling price range $1,000,001 and above at 183 days on market until sale
Market-wide Inventory and Sales Statistics
- new listings down 7.5%
- inventory of homes for sale down -25.3%
- the month's supply of inventory down -28%
- median sale price up 7.6% to $223,000
- percent of original list price received up 1.4%
- pending sales up 0.5%
- days on the market until sale was 82, down -14.6%
*Market data source Minneapolis Area Association of Realtors.