The holiday season is upon us and while traditional thought suggests that homebuying and selling is put on hold during this time of year, those within the industry know different. Let’s take a look at how the 13-county Twin Cities market shaped up last month.
Key insights from last month*
- New listings: -7%
- Median sales price: +7% — $245,000
- Pending sales (signed purchase agreements): +4%
- Average days on market: -11% — 56
- Number of homes for sale: -24%
Inventory remains a challenge
Real estate news has sounded like a broken record over the last year or two: Low inventory continues to challenge many areas and buyers are competing over very few listings. And even with the holidays around the corner, dedicated buyers are still writing offers in strong numbers. November saw an increase in year-over-year pending sales despite a drop in new listings and available inventory.
Where home prices increased the most
The median sales price for homes in the Twin Cities metro reached $245,000—a record for a November. Experts believe next year will be similar to 2017, with tight inventory, especially in the starter home segments, and rising sales prices.
Wondering where home prices are rising the fastest? Here are the top five area cities that saw the strongest gains in price per square foot from Nov. 2016 to Nov. 2017:
- Hopkins: +37%
- River Falls, Wisc.: +30%
- Stillwater: +25%
- Fridley: +23%
- Isanti: +21%
Economic check up
- Minneapolis-St. Paul area unemployment rate: 2.3% — currently ranked first in the nation
- Average 30-year mortgage rates continue just below 4%.
- A well-run state with a strong local economy and job growth is encouraging for homeownership
- Rent prices continue to rise as only 2.5% of apartments are vacant
*All data courtesy NorthstarMLS for the 13-County Twin Cities metro area for November 2017.
