Twin Cities home sellers find blossoming home prices good news. Eager sellers can bring more new homes listed for sale to the Twin Cities housing market, creating a better balance between housings supply and demand. In an amazing rebound, we find that Twin Cities home prices are at a 7 year high.
"A lot has changed in the past few years, and comprehensive plans adopted before the downturn may need to be revised to ensure that a city is well positioned to take advantage of the emerging recovery." ~ Marisa Helms in "Recovery" article in June's Minnesota Cities
Twin Cities Sellers Gain Personalized Guidance
Regardless of whether buying or selling a home, Home Destination personally ensures every client's unique real estate goals are met in the best way possible. Twin Cities real estate buyers can find a home adapted to their budget that also caters to their lifestyles and personalized "home buyer's wish list". Our website has the buyer and seller resources needed to learn everything there is to know about purchasing and selling real estate in the Twin Cities area.
Housing Recovery Should Continue With Home Prices Rising
Homes are selling faster than they have at any point in the last seven years, according the the MAAR.
Twin Cities Home Sellers Market
"It’s a seller’s market now, and part of that is driven by historically low supply," said Herb Tousley of the Shenehon Center for Real Estate at the University of St. Thomas. With inventory skimpy offers to prospective home buyers, bidding wars have commonly erupted among Twin City buyers, sometimes resulting in sales that actually exceed the seller's asking price. The St. Thomas Residential Real Estate Price Report shows that the median sale price of a traditional home in the Twin Cities in May was $220,000, a 7.3 percent increase over 2012.
UST Says No Reason To Fear Another Housing Bubble
The median traditional housing price of $220,000 has dropped only 8.3% from the peak level of $239,900 in July 2006; it is up 22.2% from the bottom of the market recording of $180,000 from February 2012.
Rising home prices will bring more homes for sale into the market creating a better balance between supply and demand.
Recent increases in price still find that the median sale price of homes has remained reasonably balanced when compared to median household income since the end of 2008. Our 22% upward swing in the median home price gained in the last 15 months results in offering Twin Cities sellers sufficient equity necessary to list their properties for sale in the marketplace.
Combination Of Increases Creates Positive Housing Outlook
Rising home prices, fewer days on market and higher numbers in Twin Cities traditional home seller activity are creating a positive outlook about real estate, according to MAAR, putting home sellers in the driver's seat. The following Twin Cities housing stats shed light on its current state of residential real estate:
Buying A Home Costs
Twin Cities metro area tally for the week ending June 8:
Pending Sales increased 12.0% to 1,329
Inventory decreased 21.7% to 14,569
New listings increased 23.2% to 1,951
Pending sales increased 12.0% to 1,329
Median home sales price up 14.9 % to $194.200
Percent of original list price received is up 2.5%
"Prior to 2012, things weren’t good in the Twin Cities. Recent price gains have definitely been superior." ~ David Blitzer, chairman of S&P’s Housing Index Committee
Advantages Of Higher Home Prices
Steady home price gains are helping to drive the Twin cities real estate housing recovery in several ways:
A key turning point for the Twin Cities is the vast decline in the number of distressed sales. During 2011, the Twin Cities area was flooded with foreclosures, which put pressure on prices because repossessed homes usually sell for a fraction of a traditional property.
Now that the economy is recovering, homeowners are more willing to test the market and are increasingly getting the asking price for their Twin Cities homes. That, combined with an overall shortage of homes, is driving up values in many neighborhoods.
Meanwhile, the Case-Shiller index stood at 133.46 in April, which means that Twin Cities home prices are now 33.46 percent higher than they were when a base value of 100 was established in January 2000.
New-home Sales Up Nation Wide
In yet another sign of a strengthening economy, the U.S. Commerce Department said Tuesday that new home sales during May rose 2.1 percent to a seasonally adjusted annual rate of 476,000, the highest level since July 2008.
Analysts say the latest reports show just how important housing is to a broader economic comeback.
In fact, stronger sales have led to a significant boost in home Twin Cities home builder activity, with the number of building permits boasting of double digits, paling last year's gain.
Seeking to temper the excitement of home price gains with caution that home prices could be rising too quickly, those wary of another housing bubble are mitigated by recent increases in mortgage rates. Housing giant Zillow pointed out earlier this week that average 30-year fixed mortgage rates sprang upward 50 basis points to 4.38 percent. Last week the rate averaged 3.88 percent, making for the highest rates since July 2011, but still comfortably below historic averages.
Home Sellers Query If Home Prices Have Plateaued
Director Erin Lantz at Zillow Mortgage Marketplace Believes that mortgage rates spiked as a result of Federal Reserve Chairman Ben Bernanke’s comments about the Fed’s commitment to scale back its stimulus program later by the end of 2013. As housing analysts predicted, rates have shown moderate volatility as housing recalibrates and fresh numbers dictate whether home sellers can expect we have plateaued near 4.5 percent interest rates or whether we have seen an impulse reaction that we will see even out.
"Home buyers have survived rising mortgage rates in the past," Blitzer said, "often by shifting from fixed-rate to adjustable-rate loans. The tougher issue for the housing market is banks’ willingness to lend."
Housing Inventory Affects Twin Cities Home Prices
A recent survey by the Fed suggested that some banks are easing credit standards. Tousley and other experts say price gains in the Twin Cities and beyond will moderate as the inventory increases. "Traditionally, the Twin Cities housing market sees more new Minneapolis homes for sale in the Spring. With strong home buyer demand the 13,000 new listings fell shy of versus up to 20,000 traditional 20,000," Thuening summarized.
National Association Of Home Builders Report
Recent news from the National Association of Home Builders states that sales of newly built, single-family homes rose for a third consecutive month in May, posting a 2.1 percent gain to a seasonally adjusted annual rate of 476,000 units, according to data released by HUD and the U.S. Census Bureau today. This is the fastest sales pace recorded since July of 2008.
Home Destination offers you tips on things to do before you sell your home. We help homeowners think of more options and determine if it is better to sell their home and move-up or to build that dream house. Call us at 612-396-7832.
Download MAAR's Asking Prices and Inventory for Homes in Minneapolis Minnesota Report
Download the National Association of Home Builder's report on Home Sales Rise In May 2013
Download the UST Twin Cities Real Estate Housing Index for May 2013
Download the MMAR Weekly Report on how the Twin Cities is a Home Sellers Market with Increasing Home Prices
Jenna Thuening, a residential Realtor encourages home sellers with good news about home prices.
Eden Prairie MN 55344
Jenna's home page: homedestination.com
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