Twin Cities Housing Market November 2016 - Here's the Story
Twin Cities Housing Market Statistics November 2016
Here we are almost at year’s end and wrapping up on the Twin Cities Housing Market that tells one consistent story. It’s about fewer and fewer homes for sale spending a shorter time on the market and selling for higher prices. A market that favors the seller has been the dominant theme throughout this year. A deeper dive into the numbers for November give us a clear picture of the market trend.
Prices of homes continue on an upward trajectory with a 5.8% increase in the median sales price over last year. Closed sales topped out at a 25.2% increase and inventory dropped a whopping 22.8%. Due to volatility in financial markets responding to the results of the presidential election, the long awaited increase in interest rates happened before the expected Fed increase of last week, which boosted the mortgage interest rate in the Twin Cities to 4.25% with the expectation that rates will continue their upward climb in 2017.
While employment numbers and job creation have remained strong since August 2015, the long-term indicators of what effect the new administration will have on the housing market remain someone cloudy. With a raise in rates, we might very likely see a decrease in first time home buyers that will be able to purchase a home, which may result in a more balanced market in the coming year.
Quick Twin Cities Housing Stats for November
- High demand is moving sales and prices higher despite declines in inventory
- A strong labor market, high rents, and low-interest rates continue to fuel increases in the home buying market though today’s rising interest rates may change the trend in the coming new year
- Sales total higher compared to same time last year in spite of lower inventories
- With inventory of homes for sale down -22.8%, the median sale price was up 5.8 % based solely on high demand
- Volatility in financial markets resulting from the presidential election caused interest rates to rise even before the Fed announcement of increase this month
- Largest price gains were in the single-family segment with a 5.9 % increase to $250,000
- Quickest selling price range $190,001 to $250,000 with 50 days on market until sale
- Slowest selling price range $1,000,001 and above at 186 days on market until sale
September Inventory and Sales Statistics for the Twin Cities
- new listings down 1.1%
- inventory of homes for sale down -22.8%
- months supply of inventory down 27.6%
- median sale price up 5.8 % to $232,000
- percent of original list price received up 0.9%
- pending sales up 9%
- days on the market until sale was 6, down -16.4%