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Today, we'll discuss the current state of the Twin Cities real estate market. It is important to have historical context when talking about current real estate trends so that you can understand exactly what is happening in the market.
For instance, we consider it to be a balanced market when we have somewhere between 21,000 and 23,000 listings on the market. Right now, we have 17,000 listings. We all remember the market crash. At the peak of the market, we had 35,000 listings. As you can see, we are significantly down from the peak, and we're below the balanced market rate. Right now, with our low inventory, sellers do have the upper hand.
Now, let's look at pricing. January 2012 was the bottom of the market with a median sales price of $140,000. At the peak in 2006, the median sales price was $240,000. Right now, we're at $224,000, which is up 5% from last year. We're definitely trending upward from 2012.
In 2016, we anticipate that the market will be somewhat similar to the way it has been for the past couple of years. Inventory will continue to remain somewhat low, and prices will continue to rise by about 3% or 5% year-over-year.
If you have any questions, give us a call or send us an email. We would be happy to help you!