Twin Cities Market Update: May, 2016
The hot Twin Cities market has continued right into the Summer. Beautiful weather and a lack of inventory has made for an extremely busy start to the summer and there are no signs of that changing any time soon. Of course, there are no guarantees in life; especially when it comes to the real estate market! …So go with what you know! Right now, I know that inventory levels dropped off again by 20.6%, from 16,846 to 13,372 homes for sale. That equates to a 2.7 “Month’s Supply” of homes! What does that mean in this Twin Cities market? If no more listings came on the market, starting today, then it would take only 2.7 months for all the current listings to sell. I know most people probably don’t find that statistic all that interesting but it really says A Lot about why Buyers are having such a hard time finding their dream home right now. In a “balanced Twin Cities market”, inventory levels would be closer to 25,000+ homes for sale; or a 6.5-7 month’s supply of inventory! All that said, serious buyers have to get their “ducks in a row” before they start home shopping in such a hot Twin Cities market or they will struggle with other competing buyers and multiple offers.
For more tips and tricks on how to win your next dream home, check out my latest blog “5 Proven Multiple Offer Strategies for Twin Cities Home Buyers”!
Some boring but necessary statistics….
The May “Skinny”
- *Twin Cities Market: Median, single-family home prices were up 5.7%, from last May, to $236,826.
- *Twin Cities Market: The Average price for a Townhouse-Condo in the Twin Cities rose 3.1%, from last month, to $192,041. (Previously owned)
- *Twin Cities Market: Month’s supply of inventory, for all types of residences, slipped again by 20.6% over last year at this time and is down to 2.7 months!
- *Twin Cities Market: New Listings in the Twin Cities region increased by a very slim 1.1% percent to 8,680. Pending Sales were up 9.9 percent% to 6,809.
- *Twin Cities Market: Sellers continue to be encouraged as Percent of List Received rose steadily, 1.1%, up to 98.6%!
(Cool bonus video!)
Sell! Sell! Sell!
A very strong seller’s Twin Cities market has continued to be fueled by a shortage of homes for sale on the market and low interest rates for home buyers. If ever there was a time to SELL, now is that time! We are definitely in the thick of a very exciting time for home buyers and sellers, as homes sell quickly, some with multiple offers in just a few days, at or above full asking price; depending on individual micro-market and home conditions.
For more great information about selling your home above asking price in this Twin Cities market, along with some other great tips and tricks for buying or selling a home, check out one of my other blog posts: “5 Secrets To Selling Your Home Above The Asking Price.”
Personally, I think one of the main reasons people are not selling their home in this Twin Cities market is because they realize there’s just not much to choose from out there. It’s kind of a double-edged sword for sellers. On one hand, you’ll probably be able to sell your home in just a matter of days. While, on the other hand, it may take several weeks to find your next home. In this kind of Twin Cities market, we have seen the re-emergence of what is known as a “reverse contingency”. That is when the selling party actually makes the sale of their home contingent on finding their new home FIRST. This kind of strategy is really more common in a strong seller’s market, when buyers really may not have much of a choice but to accept the contingency if they want their next dream home. Reverse contingencies are not uncommon right now in the Twin Cities. Make sure to consult your LOCAL lender and a professional Realtor® for more strategies on how to successfully navigate this strategy.
*This information is brought to us by 10k Research.
About the Author: The above article “Twin Cities Market Update: May, 2016″ was written and provided by Justin Culley. Justin has helped many people buy and sell throughout the entire Twin Cities real estate area for years. If you are in the market to BUY or SELL a home, he can be reached via email at info@JustinCulley.com or by phone at 612-581-6842.
Are you thinking of selling your home? I’m very good at marketing homes to sell quickly, and for more money. If you’re a first-time home buyer then you’ll be in good hands. I’ve helped countless first-time home buyers through the entire process of buying that first home! I have a real passion for helping folks buy and sell homes here in the great state of MN and I would love to connect with you!
I help people buy and sell real estate in the following Twin Cities area cities & neighborhoods: Eagan, Hugo, Highland, Inver Grove Heights, Lake Elmo, Mac-Groveland, Mahtomedi, Oakdale, White Bear Lake and Woodury to name a few. Other specialty areas include: Kenny, Lyndale, Tangletown, Lynhurst, Armatage, Kingfield and Carag neighborhood.