Home Destination: residential real estate

Minneapolis Home Prices: Steady And Stable Increases In Home Values Boost Minneapolis real estate in 2012

Homeowners are encouraged that Twin Cities home prices are above the national average and by the Minneapolis housing market improvements. The strong Minneapolis housing market is spuring move-up buyers to sell their home, seeking to gain another home that better meets thier changing needs. They are called "move up" home buyers. With remarkable gains in home prices, http://www.homedestination.com.

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Minneapolis home prices are proving stable and on the mend. Encouraging housing market signs are welcomed by everyone. Nationally, both and existing home sales enjoyed improvements. The purchase price of the average home is on the up-tick.Percent of original list price received for Minneapolis home prices in 2012

Read the Minneapolis Area Association of Realtors report on April 22, 2013 at www.mplsrealtor.com.

Minneapolis housing market activity hasn't dipped below normal seasonal adjustments – there are still Inventory year-over-year gains being posted for listings and prices – the brisk uptick of the summer months has started to wane. For the month of September 2013, the Median Sales Price increased 11.7% to $195,000, Days on Market decreased 29.7% to 71, while the Percent of Original List Price Received increased nicely to 1.8% to 96.5%. With a need for , Months Supply of Inventory decreased 16.3% to 3.6.

Minneapolis home prices in Q3 2012

Last calculated on March 13, 2013, Zillow reported .40% with in a month over month increase, a 1.00% quarter to quarter increase, and a 8.20% year to year increase". Isolating out the median home sales price, combining Minneapolis and St Paul metros for single-family homes and condos, then the median price is $191,600. If targeting Twin Cities single-family homes only, the median home sales price adjusts to $206,900 - with an adjusted 21 percent year over year uptick.

Minneapolis home prices in Q3 2012

The recovery in home prices has been solid and broad-based. At the end of the 2012 third quarter, prices were rising in approximately 62 percent of all U.S. metro areas, compared to 12.5 percent in the same period a year ago. Average U.S. home prices increased 3.6 percent from the third quarter of 2011 to the comparable period of 2012. An increase in home prices is renewing hopes of an improving economy.

Home Prices Increased Every Month Through Out 2012

If you slice Minneapolis home prices into a one month segment from December to January, according to the Federal Housing Finance Agency’s monthly House Price Index (HPI), house prices rose 0.6 percent nationally on a seasonally adjusted basis. The initial report stated a 0.6 percent increase in December and was later revised downward to a 0.5 percent uptick. For the full yearly cycle ending in January, U.S. home prices rose 6.5 percent. The U.S. home price index lands 14.4 percent lower than its April 2007 high and isn't much different from the September 2004 index level. With a full year of positive incline, national home prices have continued to climb upward every consecutive month beginning January 2012.

Minneapolis Home Prices Above National Average

The recovery in home prices has been solid and broad-based. At the end of the 2012 third quarter, prices were rising in approximately 62 percent of all U.S. metro areas, compared to 12.5 percent in the same period a year ago. Average U.S. home prices increased 3.6 percent from the third quarter of 2011 to the comparable period of 2012. An increase in home prices is renewing hopes of an improving economy.

Minneapolis Home Prices Above National Average

In the wider Minneapolis / St Paul residential real estate area, the Median Sales Price increased 14.8% to $174,995 in October 2012, up from $110,000 two years ago, according to the Realtors Eye On Housing reports. While it is good news, just how good that news is isn't entirely clear. "Recovery's in the eye of the beholder," said Shawn Kantor, UC Merced professor of economics.

"The last couple years, (home prices) have sort of flat-lined, and lately it's sort of trickling upward because of the limited supply. However, increases in home prices likely will trigger home construction. For a really long time, you're probably going to have prices capped at construction costs," he said. "Whenever you have prices pop up above construction costs, you're going to have new building that will pull prices back down."

Minneapolis Home Prices And Home Sales Rise

S&P Dow Jones Home Price Indices, the leading measure of U.S. home prices, Novebmer 27, 2012 report says home prices continued to rise in the third quarter of 2012. The national composite was up 3.6% in the third quarter of 2012 versus the third quarter of 2011, and was up 2.2% versus the second quarter of 2012.

Margaret Kelly of RE/MAX Results states that in March of 2012 we are seeing - for the first time in 18 months - a rise in both and home prices, saying we should anticipate home prices to level out by the third quarter and start climbing by the year 2013. On April 10, 2012, The Realtor's Magazine reported that hard-hit housing markets in Florida, Michigan, and Arizona have an increase in the average home price.

Minneapolis Real Estate in 2012 Has A Strong Showing

Minnesota remains above average when comparing the price of homes in other states. The city of Miami is one encouraging example of one housing market effectively pushing home and values higher in other areas of the state. A lack of discount priced foreclosures is pressuring home prices to climb in the Phoenix. However, hard-hit housing markets in Florida, Michigan, and Arizona are . In particular, Miami is pushing home and condominium values higher in other Florida cities.

Minneapolis and St Paul Real Estate Market Activity is Up

RE/MAX Results report on Minneapolis and St Paul residential communities real estate market activity for August show a brisk pace and solid uptake across multiple sectors. The dollar amount a home costs is showing a slight and steady up-tick.

Minneapolis real estate in 2012 Home sales in early August were up 20 percent from the same period a year ago; the inventory of homes for sale was down 30 percent.

days a home is on the market The number of days a home was on the market took an average of only 107 days to sale, much improved over the 141 days to sale in 2011.

average home sales price August's average home sales price was $222,922, up from $292, 003 in August of 2011.

few homes on the market mean homebuilders new to build New Listings for August are at 5,972 down form 6,083 in August 2011.

pending home sales Pending home sales for August are at 4,877 up form 4,071 in August 2011.

median  home sales prices Median sales prices for August are at 179,000 up form 155,000 in August 2011.

A number of factors will help bolster the housing market, including a decline in the number of foreclosures and continued job growth. In addition, homebuyers will have better access to mortgages as they get their finances in order and improve their credit scores. ~ Chief economist for PNC Financial Services, Stuart Hoffman

"The annual increase in home prices is the highest in nearly seven years and sales of existing and new homes are both up over 10% from one year ago. But with so many households still struggling to make ends meet, we have important work ahead." ~ U.S. Department of Housing and Urban Development Deputy Assistant Secretary for Economic Affairs Kurt Usowski

How Minneapolis and St Paul Home Prices Compare Nationally

Minneapolis and St Paul communities are considered by the National Association of Realtors (NAR) as top in their list of healthiest real estate cities across our nation. Minneapolis real estate in 2012 shows better than average improvement in national rankings.

According to Builder Magazine and the National Association of Realtors (NAR), Minneapolis/St Paul home prices will increase 8% in 2012 and building permits to spike up to 10,118. Rising home prices are generally considered to be the final phase of recovery. Most promising, the median sale price of all homes that closed in January was down to $125,660 -just 0.5 percent from a year earlier. Except for two months when prices rose while a was available, January's decline in prices was significantly less than expected, being the smallest since the housing downturn started. As of February 10, new Minneapolis real estate listings tracked by Altos Research have ticked upwards for five consecutive weeks, suggesting the spring home buyer season will bring the strongest prices the nation has seen since the tax credit briefly stimulated demand two years ago.

RE/MAX Results April Home Prices Report

home prices 2012Home prices rose 8.1 percent to $154,000 in the seven-county Twin Cities region.
home prices 2012The price increases being seen across Minnesota are boosting confidence among real estate analysts that a meaningful recovery is on the way for the housing sector.
home prices 2012In the Minneapolis St Paul area, optimism has resulted in higher levels of cases of sellers receiving multiple offers and houses selling on average in shorter amounts of time than the slow pace of the past few years.

Home Prices In the Twin Cities region, for the week ending November 3, 2012:

new listings affect home prices New Listings decreased 1.0% to 1,125
pending sales affect home prices Pending Sales increased 25.3% to 930
inventory levels affect home prices Inventory decreased 27.7% to 15,434

Current Home Prices Are A Less Important Consideration Than Interest Rates

If you have ever bought or sold a home before when interest rates were low, you know by experience what a significant difference that means in the long term. By using our mortgage calculator, you can see the difference in the amount of mortgage you can afford, which determines the price of the home you will consider, will adjust as the interest rate rises or falls. A certain asking price may sound expensive to you, but at a lower interest rate you may learn that you can afford it. You may own several homes during your lifetime; factors that will limit or increase the value of the home you will be selling will likewise affect the price of its replacement. Since those factors largely wash each other out, interest rates remain the most important factor.

Home Prices Outstripped Predictions

Month supply of homes on the marketStable home prices - ticking up - in January and through mid-Feburary, as reported by The Star Tribune on Feb 22, 2012. This is when home prices are commonly expected to seasonally drop. Instead they have outstripped predictions and are a bullish start to 2012. For a change, the Twin Cities anticipates a strong spring real estate market. Fewer choices and falling prices are creating a sense of urgency for some buyers, causing home sales across the country to increase 4.3 percent last month, according to the National Association of Realtors. Generating the the highest number of sales since May 2010, that is good news!

One notable trend, US News reports Peter Morici, professor of economics at the University of Maryland, saying home prices near city centers that hub shopping and activities, are on the rise. Suburb larger homes were priced and bought earlier on the premised of cheap energy—far from jobs (requiring long commutes) and are expensive to heat. Today, home buyers are willing to pay more to avoid the cost of fuel.

Minnesota Farm Real Estate Sales And Prices

The annual spring report from The University of Minnesota’s Department of Applied Economics released, “” in April 2012. It finds that, "there has been a notable reduction in the number of transactions and in the acres sold in the past few years." Conclusions are that inventory isn’t down and the sales aren’t up, but prices are rising? Prices for farmland are based on the income the land can produce with crops and livestock and not based on supply and demand.

university of Minnesota Report On Farm Prices

Over the years, most Minnesota farm real estate transactions have for 160 acres or fewer, with the bulk at 40, 80, and 120 acres. This pattern reflects both the Survey origins of Midwestern farmland boundaries and the fact that practically nobody buys whole farms. Download the full report from the University of Minnesota on for a wealth of graphics and statistics. pdf Copyright (c) (2012) by Steven J. Taff. All rights reserved. Readers may make copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies.

Home Destination responds to phone messages as quickly as possible. If you are ready to buy your dream home destination, you may fill out a more to assist our response. We will help you determine the price range that fits your home purchase affordability range and help you find that are just right for you. We invite you to check back often; we will be adding current information to the page as 2012 progresses and follow this positive upswing in Minneapolis home prices.


Let us know what your experience is. Have you bought or sold a home already in 2013?

Download the S&P / Case-Shiller Home Price Indices pdf

Download the FHFA Home Price Index Report Showing February Increases pdf

Download the Minneapolis Area Association of Realtor's report on Minneapolis home prices for April 2013. pdf

Download Zillow's Minneapolis / St Paul Home Prices Data reportings home-xcel-icon

Jenna Thuening home prices and market review Minneapolis Residential Realtor keeps readers current on Minneapolis home prices and Minneapolis real estate in 2012 - present

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