Low House Inventory Creates Higher Demand For Homes For Sale: It is a great time to sell your Twin Cities home.
On a national level "housing inventory for all metro areas tracked, peaked at 1,560,162 in October 2007. The lowest housing inventory level seen was 648,938 in January 2013. As of March 11 2013 there were about 669,861 single family and condo homes listed for sale in the 54 metro areas we track. Since this time last year, the inventory of homes for sale has decreased by 22.7% and the median price has increased by 5.0%," states the Department of Numbers website.
Record Lows Of Housing Inventory
For 13 years, the inventory of available housing units for occupancy hits its lowest. This was affirmed by the National Association of Realtors as published in a Forbes article by Morgan Brennan. According to the reports of NAR, 1.74 million homes are currently on the market, but considering the shorter sale time it takes to sell a home, we have fallen under a comfortable four months supply level. As of March 11 2013 aproximate 9,591 single family homes and condo units were listed as homes sale in Minneapolis Minnesota. The median asking price of Minneapolis houses listed was $219,900. Within the same given time period last year, the inventory of homes for sale has decreased by 38.5% and the median home price has increased by 12.5%. That tallies a month to month increase of 1.9%., and a slight increase from the privious week of 9,415 listings.
Higher Level Of Awareness Of Housing Security Creates Higher Demand
During those times, it is expected that the demand will be higher because the housing supply will be depleted or at a level that will be too close to depleted. Many homeowners have had financial adjustments or have simple become more aware of protecting their financial future and the well-being of their family well into retirement.. As a result, home sales are pushed up to higher levels than the previous years. The supply of homes for sale across the nation is down 16.6% from late February 2011.The greatest inventory reductions among top-tier properties (20.5% lower), followed by middle-tier homes (17.2% lower) and then bottom-tier homes (9.1% lower).
Minneapolis Home Values / List Price History by MOVOTO
Minneapolis's home resale inventories increased slightly in October 2013 so far, with a 4 percent increase over the previous month of September. Distressed homes including foreclosures and short sales decreased as a percentage of the total Minneapolis housing market in October.
Home Buyer Traffic Is Rising Steadily
Lawrence Yun confirmed that buyer traffic is in a steady rise. It is 40% above than it was a year ago causing a higher demand in supply in existing single-family homes. Sales of single family homes registered a 0.4% increase in January form a month earlier to a seasonally adjusted yearly rate of 4.92 million. Existing homes include those of single-family homes, condos, coops and townhomes. Based on the types of residences that are being of high demand these days, we can get a glimpse that majority of the homebuyers still belong to the average earners. However, luxury home buyers should never be casted out in the statistics as this particular buyer's segment is also shaking up to be a large contributor in previous home sales.
Sale Of Foreclosed Homes Is Dropping House Inventory
In the monbth of January 14 percent of all home sales were from foreclosures while 9% represented the short sales. Foreclosures were removed from the market by selling at an average 20% discounted price as short sales were on 12% discounted price. Based on the presented facts, it is very clear that the real estate industry is into a great rebound. Higher prices and greater housing demands are telltale signs that it is getting stronger as months pass by. Let us just hope that it is a continued feat for developers, agents, and brokers to enjoy while helping many Americans fulfill their dreams of owning a house!
First-Time Home Buyers Prioritize Housing
Even with the higher property taxes being paid by the workforce, and homeonwers taking home a samller pay check, a high 30% of homebuyers were from the first-time home buyers segment. This is a strong indication that most individuals from the work force highly prioritize shelter as opposite to what is being projected by some groups. The MAAR believes that stronger confidence and less economic uncertainty in the Twin Cities is encouraging more real estate seller activity, as is expected to increase the supply of homes for sale. "There is evidence this is improving, as traditional seller activity has been on the rise lately," says MAAR.
"We are receiving inquiries for Minneapolis area listings like we haven't seen in years. Home buyers seem better prepared to buy this spring, more are beginning the process of buying a home with a quality loan already in hand." ~ Home Destination
"As home prices rise and resale inventory shrinks, new homes are more and more attractive to buyers with the added benefit of higher efficiency, durability and livability." Belz said." ~ Builders Association of the Twin Cities 2013 President and Developer with Senior Housing Partners, Pamela Belz.
Home Prices Increase And Drive Sales Of Townhomes
In the same NAR report, median national price of homes was pegged at $173,600 in January of this year. It was 12.3% higher a year ago marking its 11th consecutive month of year-over-year price gains. If the TTwin Cites continues to experience the same sales pace, developers and Minneapolis home builders ill be compelled to develop empty spaces into zones that are not only fit for residential purposes. Today, many of the residences are incorporated into mixed-use developments where residential neighborhoods bring diversity to lifestyle centers and commercial zones. This is also one of the contributing reasons why there is a steady rise in the sales of Minneapolis townhomes and condos.
Home Prices Increase And Drive Sales Of Townhomes
Even though the number of available homes is down from last year, it indicates market adjustment. Inventory tightness in the Twin Cities has contributed to increases in home values. As home values rise, the negative equity held by homeowners decreases, releasing trapped potential sellers in underwater mortgages to a position of positive equity that allows them to finally sell their homes. Families feel free to move up or to downsize, as they wish, when they can recover more than the mortgage owed.
Key Findings In The Dept Of Numbers Report Include:
Traditionally, the housing market sees a clear seasonal pattern for house inventory, with the low point for inventory in late December or early January, and its high point coming in late spring to summer.
In both 2011 and 2012, housing inventory only increased about 5% at its mid-summer peak and then declined for the remainder of the year.
Inventory is increasing at a sluggish rate so far in quarter one of 2013. Housing Tracker reports inventory is down -23.2% compared to the same week in 2012 - still falling fast year-over-year.
So far in 2013, inventory is only up 3.4%.
Contact Jenna Thuening, owner of Home Destination if you are needing help to avoid a foreclosure and are in the process of sorting through what it means to be in the Minnesota foreclosure timeline.
Download the Minneapolis Housing Inventory for March Report
Home Destination, a Minneapolis Certified Distressed Property Expert and professional Realtor with RE/MAX Results, helps homeowners determine if a short sale or foreclosure is better and to understand their local housing market. We are passionate about helping Twin City homeowners stay in their homes. Call 612-396-7832 and ask Jenna Thuening for help.
Jenna Thuening, a Minneapolis residential Realtor helps sellers get their homes listed to meet higher buyer demand.
Eden Prairie MN 55334
Jenna's home page: homedestination.com
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