Both the state and the Twin Cities metro saw about a 20% increase in home listings in April, which has been followed by a modest increase in buyer activity, according to reports from the state and local Realtors associations.
The rise in listings has boosted the inventory levels throughout the state to just over 12,400 homes, or about 2.2 months of supply, the report put out by Minnesota Realtors said. In the Twin Cities metro, according to the joint report by the Minneapolis Area Realtors and St. Paul Area Association of Realtors, inventory is just above 7,700 units or 2 months of inventory.
One thing that the increased inventory means: The spring market is upon us. One thing it doesn’t mean: The price of buying is falling.
The median sale price for the Twin Cities metro was up 4.1% from last year’s $369,900 to $385,250. This time last year, the statewide median price for a home was $335,000, though now it’s up 4.5% to $350,000.
Minnesota Realtor President Geri Theis said in an interview Wednesday that she thinks that there are a couple of reasons for prices continuing to rise despite supply being up. For one, Theis said, there was a small dip in interest rates, and inventory continues to remain somewhat depleted, so buyers are having to bid high to see offers through.
“There’s just not enough inventory for the amount of buyers in there,” she said. “Until we see the amount of inventory into that four-to-six-month range, we’ll probably see some steady increases of that amount.”
Theis said that it’s hard to read the market but that, based on national numbers, she thinks prices won’t increase “quite as fast” but that the price depends on several variables.
For some parts of Greater Minnesota, Theis said, the inventory levels are closer to, if not in, the four-to-six-month range of a balanced market. The West Central Region, according to the Minnesota Realtors report, is at 3.7 months; the Upper Minnesota Valley Region is at 3.4 months and the Northwest Region is at 4.1 months.
As for the Twin Cities metro, according to the report, the region will need around 20,000 active listings to be in a balanced market.
“This is a market where both sides really can be successful with their needs but may not get all of their wants,” MAR President Jamar Hardy said. “It’s OK to be excited about more inventory, but people should know that we still have an undersupplied market, which means sellers have the advantage.”
Single-family home prices in the Twin Cities metro were around $425,000, while condos and townhomes were around $217,000 and $312,000, respectively.
Out of the pending sales throughout the region, condo sales jumped $25.5% from last year. Single family rose 9.3% and townhomes moved up 1.2%.
RELATED:
Warm weathers helps housing inventory in Twin Cities
New home listings up 34.5% since last year in Twin Cities metro
Copyright © 2024 BridgeTower Media. All Rights Reserved.
Most Popular
Comments / 0