Twin Cities March Housing Market Review
New Month - Same Story for Twin Cities Housing
Market snapshot: What’s up? Sales, home values, ask price, the percentage of list price received, new listings and closed sales. What’s down? Pending sales, days on market, available homes for sale, and month’s supply of inventory. I’m starting to feel like the proverbial broken record but I’m just telling the story not creating it. With the inventory of available housing at a record 14 year low, this market continues to be an extremely challenging one for buyers, especially in the lower price ranges.
Spring is the strongest season for real estate and based on the figures we have in for March it is going to be a great one for sellers as buyers continue to face a landscape of low inventory of homes for sale with transactions completed in less time for a greater percentage of asking price received. Buyers will find it necessary to move quickly with their best offer if they want a chance at closing a deal. So far buyers have proven they are willing to do just that and although interest rates bobbed up along with prices, they have persisted.
As we barrel ahead through the spring don’t expect the situation to change much provided that the economy keeps on chugging along like the little engine that could. As long as consumers continue to have confidence in the economy and job growth continues to hold steady or improve minor increases in interest rates shouldn’t be more than a blip on the screen of demand for homes.
Twin Cities New Construction
One factor that has a strong effect on supply is newly constructed homes available for sale. The good news on this front is that Twin Cities builders are picking up the pace on new homes. March construction permits in the metro were up 30% over last year while units are up 50%. Both single family units were up 27% while multifamily units were up 88%. If you are looking for an opportunity to buy a new home, Lakeville pulled 53 permits. Plymouth 39, Woodbury 24, Blaine 20 and Apple Valley pulled 19 permits.
Although the news on new homes is encouraging, where the demand is highest in the lower entry level segment, builders are still struggling. BATC Executive Director David Seigel said, “While there is an increasing demand for housing inventory, our builders are facing serious roadblocks trying to construct more entry-level homes. We are working with the MN REALTORS this year at the Capitol to support a package of common-sense legislative proposals that aim to protect the dream of homeownership for all by creating opportunities for first-time homebuyers and addressing the cost-drivers that are negatively impacting housing affordability.”
Let’s take a deeper dive into the month of March 2017 real estate market stats for existing homes in comparison to the same time last year. *
Quick Twin Cities Market Stats
- Desirable, market priced properties are often receiving multiple offers at or above list price
- Despite lower inventory levels, sales still outpaced last year
- Largest price gains in single-family segment where the median sales price increased to $254,99 up 6.3%
- Fastest selling price range $190,001 to $250,000 at 48 days on market until sale
- Slowest selling price range $1,000,001 and above at 185 days on market until sale
- Price range with the largest gains was the $500,000 to $1,000,000 segment with sales increasing to 17.6%
Inventory Stats at a Glance
- new listings up 1.3 %
- inventory of homes for sale down -19.9%
- the month's supply of inventory down -23.1%
- the month's supply of inventory currently at 2
- new construction permits up 30%
- new construction units up 50%
*Market data source Minneapolis Area Association of Realtors.
** Market data source Builders Association of the Twin Cities