A Recovering Market
An analysis of Twin Cities real estate data for February shows that the housing market is continuing to recover along with the economy; home prices, new-home construction, and the percentage of traditional sales (not foreclosures) are all on the upswing.
Meanwhile, a historically low number of homes on the market is continuing to put upward pressure on sale prices.
In the Twin Cities, the median sale price of a traditional home (not a foreclosure or short sale) was $205,500 in February. That’s up 2.75 percent over the January median price of $199,000 and up 14.2 percent over the February 2012 median price of $180,000.
Arrows on the Twin Cities real estate chart pointed upward for the fifth consecutive month, according to the Residential Real Estate Price Report Index, a monthly analysis of the 13-county Twin Cities area prepared by the Shenehon Center for Real Estate at the University of St. Thomas’ Opus College of Business.
“Twin Cities’ housing data for June continued to show encouraging signs for the fifth month in a row,” observed Herb Tousley, director of real estate programs at the university.
Will the trend will continue? “In 2011 the market was in a similar condition after a spring and early summer run-up, only to be derailed by a lack of confidence created by the federal debt-level-ceiling controversy, the U.S. government credit downgrade, and the emergence of financial problems in Europe,” Tousley said.
Read the full story in the Newsroom for some of the encouraging signs found in June’s market data.
April’s active market for single-family homes priced under $14o,000 is one of several positive signs for the Twin Cities’ real estate market.
While it’s not a term often used to describe the housing market, a University of St. Thomas real estate professor observed that “the market for single-family homes priced under $140,000 has become quite active. They are flying off the shelves right now,” said Herb Tousley, director of real estate programs at the university.
The finding was one of several signs of a healthier housing market that were outlined in the UST Residential Real Estate Index, a monthly analysis of the 13-county Twin Cities area prepared by the Shenehon Center for Real Estate at St. Thomas’ Opus College of Business.
Tousley said that new listings for the lower-priced homes are coming onto the market at a rate of about 1,100 per month and they are being sold at a rate of about 900 t0 1,000 per month.
“The number of homes on the market in this price range has steadily been declining since the beginning of the year,” he said. “Although many of these homes are foreclosures and short sales, there are several types of buyers, including first-time homeowners and investors, who are purchasing these properties at a fast clip.”