While buyers are running full speed ahead into the spring real estate market, sellers did not keep pace with new listings, according to new information released by the Minneapolis Area Association of REALTORS®.
Key insights:
- Sellers listed 5,418 homes—7.5 percent fewer than last Feb.
- The inventory of existing homes for sale fell another 25 percent from last year.
- Pending sales were essentially flat compared with last year.
- The median sales price increased 7.6 percent to $223,000.
- The overall average days on market was 82—14 days faster than last year’s 96-day average.
- Homes priced $500,000 and above are experiencing around a 30 percent increase in sales activity over last year.
What’s keeping homeowners from selling?
Even while existing inventory and new listings continue to decrease, the fact that pending sales are still on par with last year is a testament to the high levels of motivation among buyers.
With buyer demand soaring, homes selling quickly and often in multiple offers, what is holding sellers back? One sticking point for potential sellers is worry about facing a tough buying market once their home has sold.
A professional Realtor can offer creative solutions such as reverse contingencies, short-term transitional housing and more.
Considering new construction
Whether you’re a buyer who can’t find the right home with the limited inventory available, or you’re a homeowner who is thinking of selling but is nervous about finding a new home, new construction can be a good solution.
- Single family building was up in 2016—permits were up 12 percent year-over-year.
- The Parade of Homes, which runs until April 2, features new construction homes in a wide variety of styles, price ranges and neighborhoods.
- Building new may not take as long as you think, especially if you opt to use production or semi-custom builders.
Start your search for a new construction home and find insights about the building process.
Economic check up
- The Minneapolis-St. Paul area unemployment rate is 3.6 percent, among the top 10 best for metropolitan areas in the nation.
- The Federal Reserve raised benchmark rates for the second time in three months with more likely to come this year, so expect mortgage rates to follow, though not with drastic jumps.
