All signs point to Twin Cities home sales continuing to strengthen
Twin Cities homes sales maintained their strong pace through September, hitting a 10-year high, according to news releases this week from area Realtor associations.
There were 5,114 closed sales last month, a 12 percent increase from last year and the highest level for September since 2005, the Minneapolis Area Association of Realtors said in a news release. Pending sales rose 12.3 percent to 4,635.
Fewer sellers listed their properties, with new listings decreasing 6.9 percent to 6,355. Inventory levels fell 16 percent to 15,928.
With more buyers than sellers, the median price rose 8.3 percent over last year to $222,000.
This supply-demand imbalance means prices have risen for 43 consecutive months, the association said.
Year-to-date prices have risen 6.8 percent on average
Also noted was a continued “product mix shift” back to traditional sales and away from distressed sales such as foreclosures. This also has brought up the median price.
We expect mortgage interest rates to stay below their long-term average for years to come, and around the low 4’s for the immediate future. The trick will be sustaining price gains that motivate enough sellers to list their properties without pricing out today’s buyers — particularly first time home buyers.
The momentum in both closed sales and pending sales certainly bodes well for 4th quarter and for a strong finish to 2015.
- Anoka County – Up 11.4%
- Carver County – Up 4.2%
- Chisago County – Up 8.8%
- Dakota County – Up 4.1%
- Hennepin County – Up 7.5%
- Ramsey County – Up 6.7%
- Scott County – Up 3.4%
- Washington County – Up 3.1%
- Wright County – Up 14.8%
- 13 County Metro area – up 8.3%