The same factors that catalyzed widespread market recovery in 2012 and 2013 are likely to continue in 2014, though perhaps at a more moderate pace. That’s not a bad thing, since the market is returning to a stable, healthy state. Potential trends to watch for in 2014 include increased seller activity, more new construction and fewer foreclosures on the market. Inventory is another metric to watch this year.
New Listings in the Twin Cities region decreased 11.5 percent to 4,247. Pending Sales were down 16.0 percent to 2,815. Inventory levels shrank 10.6 percent to 11,690 units.
Prices marched higher. The Median Sales Price increased 12.4 percent to $179,900. Days on Market was down 12.3 percent to 93 days. Absorption rates improved as Months Supply of Inventory was down 15.6 percent to 2.7 months.
The median sales price for the metro increased 12.4 percent to $179,900, marking a 23rd straight month of year-over-year median price gains. Last January, foreclosures and short sales comprised 42.2 percent of all closed sales. In January 2014, these segments made up 29.4 percent of all sales. Traditional homes are selling at a median price of $212,500; foreclosures for $130,500; short sales for $138,900.
Given how far the market has come, it’s a good time for folks to reassess their situation. Many who were hesitant to sell in recent years may find themselves in a completely different position. Getting a fresh comparative market analysis might be a good idea. Interest rates remain attractive and should remain below their long-term average, but they are expected to creep higher in 2014. Politicians are gearing up for midterm elections, so pay close attention to campaign messaging as relates to real estate or mortgage financing. Job growth is still fundamental and is likely to dominate this election cycle.
For more information about buying or selling a home at this time, contact the real estate professionals at Hometown Realty in Hutchinson, MN. 320-587-6115.
Click here to view the full January 2014 Twin Cities Real Estate report.