The Twin Cities Housing April 2018 Snapshot

I'm not going to lie to you; housing inventory is at a new all-time low. However, we have a reason for optimism as new listing numbers are improving. Let's also keep in mind that the early part of April felt more like January this year, with significant snowfall and low temperatures, which may have held some potential sellers in winter hibernation mode. Still, sellers and builders see a continued strong economy and are encouraged by a market poised to bestow significant financial gains.

For buyers, this market is still certainly challenging. Home values continue to rise while days on the market are fewer. The median sale price for April was $266,000, up 8.6 percent and days on the market fell 10.2 percent compared to April of last year, which drives home that buyers do not have the luxury of dawdling when it comes to offers. Additionally, buyers now have rising interest rates to contend with as well.

Twin Cities Economy and Housing Market is Strong

The factors of steady employment, rising wages, increased consumer spending indicate continued confidence in the economy and a healthy housing market. If this remains true, buying a home will be an attractive investment. Although buyers may have to make adjustments, they should not find rising mortgage rates enough to deter them from purchasing a home.

May looks encouraging, with new listings down only 0.1 percent from the same time last year. From all appearances, it seems like we will enjoy another great year for real estate and the Twin Cities Housing market.

Twin Cities Market data for April 2018

Here are some comparisons of  April 2018 real estate market stats the to the same time last year.*

• new listings down -7.2%
• pending sales down -6.6%
• closed sales down -5.2%
• days on the market until the deal was 53, down -10.2%
• inventory of homes for sale down -25.1%
• month's supply of inventory down -25%      
• median sale price up 8.6% to $266,000
• percent of original list price received up 0.8%
• the price range with the most significant gain in  sales was $1,000,001+, up 16.9%
• the property type with the most considerable price gain was townhomes up 8.6%
• new construction outperformed previously owned properties in pending sales, up 11.9%
• the quickest selling price range was $190,001 to $250,000 at 38 days

 Rolling 12 months from May 2017 through April 2018

• pending sales down -8.2%
• closed sales down -5.7%
• overall median sales price up 9.8%
• new listings down -10.6

Please remember that these statistics are for the Twin Cities region. Since real estate is hyper-local, the numbers for any particular community may be different. 

The market indicates it is a great time to sell and buy real estate. Even with the challenges you may face as a buyer, the value of housing continues to increase, and the market remains healthy for the foreseeable future. Interest rates are rising but still historically a good deal.

What's holding you back? If you consider purchasing or selling a home, please give me a call if you have any questions.  

*Market data source Minneapolis Area Association of Realtors. 

Here are a couple of other recent posts you might find helpful.

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