Today’s Real Estate Market Conditions in Minneapolis St. Paul
Whether you’re buying or selling a home or other property in the Minneapolis St. Paul Metro area, current housing market conditions are an important aspect of every real estate transaction. Almost everyone is familiar with the serious problems suffered in the housing market over the past decade. Still, despite those problems, real estate was of course bought and sold throughout this time period. At our top REMAX Realty team, our agents and Realtors have increased sales year after year, since 2006. During that same time, many very good brokers, Realtors, and real estate agents were forced out of the industry because of this downtown. However by working 110% for the best interest of each of our clients, and staying on top of housing market changes and trends, our REMAX team is humbled to continue as the #1 Real Estate Team in Minnesota for any real estate brokerage every year from 2006 through today. In 2013, our team closed over 1,275 homes.
In 2012, signs began appearing that indicated that the housing market was beginning to improve. Trends across the board began to show that improvement. Now here in 2014, although real estate market conditions continue to change from month to month, the trends are all moving in the right direction toward a continuing recovery. This is good news for buyers and sellers alike, and there’s good cause for optimism. Some of the current trends, and how they affect the market in the Minneapolis St. Paul metro area, include:
- New Listings Are Trending Downward – The number of new Minnesota MLS listings on the Twin Cities market was distorted during the recent downturn by a large increase in the number of foreclosures and REO properties that entered the market. The current trend reflects a decrease in the number of those distressed properties. This means that sellers listing a home face lower competition from other new listings.
- Pending Sales Are Trending Upward – Over the first six months of 2012 and throughout 2013, pending sales of homes listed by Northstar MLS steadily increased over sales in the equivalent period a year ago. That increase in pending sales shows that more buyers are actively seeking and making offers on homes than before. This is a positive trend for home sellers, who have more buyers actively making offers.
- Home Inventories Are Declining – From 2013 to 2014, the housing market has seen the available inventory of existing home listings at Northstar MLS MN drop steadily and the listed properties are selling faster. A large inventory of unsold existing homes has the effect of lowering median prices and creating greater competition for sellers. A good portion of the reduction in inventories of the Minnesota multiple home listings is due to real estate investors buying up foreclosed and REO properties. Lower inventory numbers are good for sellers, since there is less competition. Further, as the number of foreclosed and REO properties leaves the inventory, low-priced homes begin to disappear from the market. If this trend continues, median prices for homes will continue to rise. For buyers, this means that now is an excellent time to consider buying, before prices rise. Currently, there about 11,000 listings for sale on Minnesota Northstar MLS in the Twin Cities 13 county metro area.
- Days on Market Until Sale Is Dropping – Throughout 2013, the average number of days an MLS listed home remained on the market dropped each month. Indicating a higher demand for homes, this trend is another indication of an active market with more buyers than previously. For sellers, fewer average days on the market until a home is sold is an encouraging sign. Homes in the Minnesota multiple real estate listings are sold at the pace not seen in the past few years.
- Median Sales Price Is Trending Up – Median sales prices for existing homes began to rise early in 2012 through today. If this trend continues, it’s good news for sellers, and a signal to prospective buyers that prices may be going up, making this period a good time to purchase homes before prices increase too much.
- Percent of Original List Price Received – Rising slowly since the end of 2011, this trend indicates, again, that sellers are receiving offers closer to their asking prices. Good news for sellers, and a signal to buyers that low-ball offers are less interesting to sellers.
- Months Supply of Real Estate Inventory – In 2011, the average number of month’s supply of MN MLS listings on the market was 8.3 months. In the first half of 2012 through today, that number of months dropped to just 4.5 months. This rapid decline in the inventory of homes for sale is an excellent indicator that a recovery is beginning.
What the Trends Mean for Minneapolis St. Paul Buyers and Sellers
The trends listed above are based on the market conditions between 2012 and 2014. If they continue along the same lines, as expected, they indicate a slow, but steady recovery in the real estate market in the Twin Cities Metro Area. How this may affect real estate buyers, sellers and investors will depend on the continuation of the trends. If the current trends continue, here are some of the effects:
- Home Buyers – Prices remain lower than before the real estate market decline. However, the trend is for Northstar MLS listings’ median prices to increase in the Minneapolis St. Paul area. With mortgage interest rates still at historic lows, this may be an ideal time to look for a home to buy. Conditions may change at any time, but the trends appear to indicate rising prices. At our REMAX Realty team, our professional buyer’s agents can help you understand and take advantage of purchase opportunities that may soon be gone. Our team is here to provide service for buyers regarding Minnesota multiple property listings.
- Home Sellers – Current trends mean that a long, difficult period may be beginning to fade. With inventories down and prices on the rise, buyers are eager to take advantage of current conditions and are actively looking for homes to buy. Move-in ready homes are once again receiving competing offers. Our REMAX listing agents are carefully following market conditions in local areas, and can help you evaluate your home and suggest asking prices that will assure a quick sale at a price that is matched to market conditions. We of course, as agent members as well, list homes onto the Minnesota MLS which our licensed MN real estate agents have full access to.
- Real Estate Investors – With the number of REO and foreclosed properties trending downward, acting now to acquire properties while prices remain low may be advisable. Many attractive bargains are still available, and probably will be for some time, but conditions are changing. “The Investment Property Guys” at our REMAX team are always ready to assist you.
Helping Home Buyers, Sellers & Investors in Minneapolis & St. Paul, MN
The 75+ agents and Realtors who make up our REMAX team have an eye on Minneapolis St. Paul metro area housing market conditions and actively monitor changes in those conditions. Whether you’re buying or selling a home or any real property, their expertise is always available to you. Whether you need our help selling your home or assisting you with purchasing properties listed by Northstar MLS of MN, our constant priority is to help you take advantage of the latest market conditions to realize you real estate goals. Contact us soon to discuss your plans for buying or selling real estate. Take advantage of the knowledge and insights that have made us Minnesota’s #1 Real Estate team since 2006. We are always here for you.