Heavy buyer activity and a dwindling inventory led to a strengthening of Twin Cities home prices in November. According the Minneapolis Area Association of Realtors, the November median sales price for homes in the Twin Cities was $170,000 - a slight increase from October. This mark is 2.9% behind last November, the lowest year-over-year price decline in over two years.
The median sales price of traditional homes (excluding foreclosures and short sales) in November was $190,000, down 15.6 percent from a year ago. Since a heavy share of buyers in November were likely first-timers who typically buy in the more affordable price ranges, prices in the traditional segment have been weighted downward. Foreclosures posted a November figure of $127,500, up 2.0 percent from a year ago, while short sales prices were at $143,500, down 15.6 percent from a year ago.
There were 2,987 signed purchase agreements in November, up 10.2% from a year ago. It represents the 17th consecutive month of year-over-year increases in pending sales. Closed sales posted a huge 67% jump from a year ago.
The Months Supply of Inventory has dropped to 5.7 months, the lowest mark since April 2006. Traditional homes have 7.6 months of supply, foreclosures have 1.4 months and short sales have 12.8 months.
Wow. 12.8 months? Just shows how rough the economy is right now, with jobs and real estate in turmoil. Those numbers could go up, while prices and sales god down, as home buyer activity will likely decrease over the next few cold winter months.