Despite nearly three straight years of rising prices, the Twin Cities housing affordability index has remained relatively stable. ~ Minneapolis Area Association of Realtors
Minneapolis, Twin Cities Minnesota (PRWEB) November 10, 2014
Homes for sale in Twin Cities remain affordable for most households, according to recent comments by the Minneapolis Area Association of Realtors and Real Estate Matters from the University of St. Thomas, as supported by Northstar MLS data. With the Twin Cities having one of the nation's highest unemployment rates, more prospective Minneapolis metro homebuyers have the income to support a moderately priced home purchase.
"Home buyers are keen to find affordable homes in all price ranges, but especially moderately-priced homes in the Twin Cities for sale," says Jenna Thuening, owner of Home Destination. "The metro offers multiple residential neighborhoods that are ideal for Twin Cities residential investors seeking real estate at the moderate home price point. Both median and average home prices have evened out: prices are great for purchasing a home with the intent to sell later and see gains."
Worries of another housing bubble cool as the pace of home price increases slows. "Most economists agree that although high inflation, say that of 5 percent or more, is harmful and becomes increasingly so as it rises and fluctuates, annual price rises under 2 percent or 3 percent are innocuous, particularly when they are stable and generally anticipate", according to a Nov 9th article in Twin Cities Business. Potential Minneapolis real estate buyers who hope to purchase a home while prices are low can be assured the current pace of home price appreciation isn't cause for indecision, as Blitzer highlights the fact that the national index posted its eighth consecutive yearly increase.
Moderately priced homes in the Twin Cities are in high demand, especially in hot spots. Moderately priced homes for sale in Eden Prairie and Minnetonka that are in move-in ready condition sell well. Twin Cities moderately priced real estate listings in additional neighborhoods, that have proven slow, steady, and stable home price appreciation rates, offer high demand homes in ideal price ranges for most homebuyers.
The Northstar MLS current housing market data shows the pace of home appreciate levels are moderating; median home sales price increased in the last 12 months, but at a slower clip. Here is are several median price points by hot spot location for the month of October 2014:
- Calhoun (CARAG) Homes for sale: $259,000 an increase of 2.2%
- Eden Prairie Homes: $297,000 for an increase of +8.0%
- Lake Minnetonka Homes for Sale: $384,500, an increase of +6.8%
- All Home Price Ranges: $205,000 which is up +8.0%
- Loring Park Homes: $224,750, up +9.7%
- Maple Grove Homes: $247,000, up +7.4%
- Minneapolis Homes for Sale: $204,000, an increase of +10.3%
- Minneapolis Southwest Homes for Sale: $314,900, an increase of +2.4%
- Plymouth Homes: $308,000, up +1.2%
- St Louis Park Homes: $228,000, an increase of +4.2%
- Across the Twin Cities region: $205,000, which is up +8.0%
With the Twin Cities having one of the nation's highest unemployment rated, more prospective Minneapolis metro homebuyers are able to show the income to support a moderately priced home purchase.
Herb Tousley studies the local real estate market from his office at the University of St. Thomas, and expects this fall and winter to experience the traditional seasonal decrease in volume of home sales. He projects that the combination of strong housing demand coupled with low interest rates will prompt stronger growth year-to-year, particularly at the $250,000 to $350,000 home price point. Move-in ready, moderately priced homes located in Twin Cities hot spots are likely to sell fast. For a traditional single-family home sale, the median home price in the Twin Cities increased to $222,600 in October, which is up 6.5% over the some month in 2013.
According to Northstar MLS housing data for Twin Cities Single-Family Homes across all seller types for October 2014:
- $128,999 or less: $100,000 which is up +5.3%
- $129,000 to $188,999: $159,600, which is up +1.0%
- $189,000 to $288,999: $229,400 which is down -0.2%
- $289,000 or More: $389,000 which is up +1.0%
"The remaining quarter of 2014 is still a great time to dive into the Twin Cities real estate market and find prime real estate investments; demand is highest among buyers seeking moderately priced homes," adds Thuening.
About Home Destination - Twin Cities Real Estate:
Home Destination offers a loyal and committed real estate professional service that personally handles all of the details of selling or purchasing homes in the Twin Cities, Minnesota metro. Highly regarded by peers as a Minneapolis metro expert for over 15 years, gain a skilled representative as guide to make the best possible housing decisions. Helping all home buyer types, from individuals seeking to buy their first home to individuals moving-up to a luxury home, Jenna Thuening has the real estate experience and acumen buyers and sellers benefit from.