2014 Annual Wrap-Up: Recovery Continues, Market Normalizing.
Minneapolis, Minnesota (January 14, 2015) – Strong demand and higher prices were some of the positive developments seen in 2014. Market recovery continued to take hold. Sellers were motivated by rising prices and quick market times, and so they listed more properties for sale. Closed sales activity ended the year at the second highest level since 2005. Even though the active supply of homes for sale fell to a 12-year low, home buyers had more choices during the critical spring and summer selling season. Homes sold in less time, which was great news for sellers. Absorption rates were flat and still slightly favored sellers but 2015 should see more balance. Foreclosure activity fell for a third straight year, while new construction and condo activity continued to soar in and around downtown.
2014 Twin Cities Real Estate Stats by the Numbers
- Sellers listed 73,768 properties on the market, a 2.3 percent increase from 2013 and the highest level since 2010
- Buyers closed on 49,541 homes, down 6.9 percent from 2013 yet the second highest figure since 2005
- Inventory levels for December fell 7.2 percent from 2013 to 11,822 units, the lowest level in 12 years but May 2014 inventory was 13.4 percent higher than May 2013.
- Months Supply of Inventory was flat at 2.9 months, tied for a 12-year low
- The Median Sales Price rose 7.2 percent to $205,739, marking a seven-year high
- This measure of home prices is 11.8 percent below its 2006 peak and 37.2 percent above its 2011 valley
- Cumulative Days on Market was down 6.0 percent to 78 days, on average—an eight-year record pace
- Lender-mediated properties made up a significantly smaller share of overall activity across multiple metrics
- 12.2 percent of all New Listings were lender-mediated (either foreclosures or short sales), down from 21.6 percent in 2013 and 34.7 percent in 2012
- 16.4 percent of all Inventory was lender-mediated, down from 26.1 percent in 2013 and 38.7 percent in 2012
- 16.5 percent of all Closed Sales were lender-mediated, down from 26.3 percent in 2013 and 39.7 percent in 2012
“We are still quite pleased with this recovery. The increase in seller activity helped to alleviate some shortages while persistently low interest rates and more job opportunities helped drive buyer activity to the second strongest level since 2005,” said Mike Hoffman, President of the Minneapolis Area Association of REALTORS®.
“When it comes to inventory and housing availability, the market is returning to more solid footing,” said Tom Weiner, President of the St. Paul Area Association of REALTORS®. “The number of new listings and closed sales of lender-mediated properties is less than half of what it was in 2012. This positions the for-sale inventory to enjoy higher values in 2015.”
Improvements in the local economy will boost the Twin Cities real estate market in 2015. The outlook is positive: job and GDP growth are both accelerating, interest rates remain attractive and the lowest unemployment rate of any major metro area suggest 2015 should be another good year.
All information is according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from NorthstarMLS. MAAR is the leading regional advocate and provider of information services and research on the real estate industry for brokers, real estate professionals and the public. MAAR serves the Twin Cities’ 13-county metro area and western Wisconsin. 10K Research and Marketing, LLC is a wholly owned subsidiary of MAAR.
For more information about buying or selling your home in and around Hutchinson, MN contact the real estate professionals at Hometown Realty – 320.587.6115.
Click here to see more results from the Year Ending 2014 Twin Cities real estate market.