Changes in the Twin Cities median sale price continue to swoop upward, as is dramatically illustrated in the chart below showing the change in median sales price from the prior year from January 2008 to October 2012 compiled by the Minneapolis Area Association of Realtors.
Looking at actual year-over-year monthly median sale price shows 2012 dramatically higher than last year, and also hovering over 2009 and 2010. It will be interesting to see what the next few months show as that is when prices typically fall during the holiday and winter months.
On the national front, the S&P home price index shows that the Twin Cities ranks third in the nation in home price gains, only behind Phoenix and Detroit. CoreLogic reports that the US as a whole is showing the biggest price increases since 2006.
Locally, price increases are being driven in part by a lower percentage of distressed properties for sale, in part by move-up buyers getting back into the market, and also by the extreme shortage in the supply of homes for sale. We haven't seen inventory levels this low since before 2004.
Pending sales jumped up again last month, which should show the year ending with stronger sales than is typical at this time of year.
Months supply of inventory is at only 3.7 months, indicating a strong seller's market. Supply levels this low have not been seen since the buyer frenzy nearly 10 years ago.
But we don't have the same buyer frenzy we had during the the seller's market before the crash. Today's buyers are more discerning and expect properties to show well and be in good condition. They are also cautious on price, although multiple bids have become more common again on demand properties.
If you have been thinking about selling, this could be a good time to get off the fence... buyers are looking for homes to buy!
The figures above are based on statistics for the combined 13-county Twin Cities metropolitan area released by the Minneapolis Area Association of Realtors. NOTE: The change in median sales price in the first graphic uses a 6-month weighted average, meaning that each of the 6 months used in a dot are propeportioned according to their share of sales during that period.
Never forget that all real estate is local and what is happening in your neighborhood may be very different from the overall metro area.
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Sharlene Hensrud, RE/MAX Results - Email - Minneapolis - St. Paul Real Estate Market