"Lower supply levels, strong demand and higher prices are among the encouraging developments in 2013 that brought about ongoing market recovery." ~ Minneapolis Area Association of Realtors
Minneapolis, Minnesota (PRWEB) January 16, 2014
Minneapolis real estate market improvements heading into 2014 are favorable for on-going increases in the housing market recovery, according to reports from the Minneapolis Area Association of Realtors (MAAR) at the Twin Cities Realtors annual Housing Market Update January 13. Co-sponsored by Shenehon Center for Real Estate at the University of St. Thomas Opus College of Business and Integra Realty Resources, it set the stage for positive expectations for a another great year in 2014 and a celebration that Minneapolis fared better than averages.
"While predictions are strong for the Minneapolis housing recovery to maintain upward momentum in 2014, it is hard to imagine that it could outstrip the activity levels of 2013", says Jenna Thuening, owner of Home Destination. "It seem probable that home price increases and fewer Minnesota home foreclosure listings will create declines in investor interests. With mortgage rates on the incline, first-time home buyers may find themselves needing a higher home down-payment before they can afford to buy a home."
Twin Cities real estate professionals held their third annual Minneapolis Housing Market Update at the University of St. Thomas for the third annual Real Estate Outlook event. The event was comprised of leading local real estate experts, each sharing opinions on today's state of the Minneapolis real estate market and their expectations of what's to come in 2014. The keynote speaker was State Economist Laura Kalambokidis, who announced that "Minnesota has generally fared better than the nation in recovering from the economic downturn".
A January 14 Star Tribune article titled Twin Cities Housing Hits 5-year High; median price jumps 14.4% stated: "Throughout the Twin Cities, sales were up in nearly every corner of the metro last year, but there were broad variations in the strength of those gains. Buyers were particularly aggressive in and around Minneapolis where several cities and neighborhoods saw demand accelerate and prices return to pre-boom levels".
Office market panelists concluded the day's event by summarizing another Twin Cities real estate trend that is expected to majorly impact the office market in 2014. Businesses are choosing to dedicate less space per employee with the average space used per employee is expected to decline from over 220 sf to 150 sf by 2015. "Among ten large renewals over the last 18 months, almost all took less space than they had before. Thus despite employment growth, the outlook for office absorption is flat," says the UST.
Home Destination notes several housing market highs and lows in the UST and MAAR year end housing market reports, each signaling positive strides in the Minneapolis housing market recovery.
1) Minneapolis metro real estate listings included 72,128 properties on the MLS, a 9.4% increase from the previous year and the first uptick in seven years.
2) Home Closing reached 53,087 homes, up 8.8% over 2012 - the highest number since 2005.
3) Months Supply of Housing Inventory fell 18.8%to 2.6 months, dipping to a 11-year low.
4) The Median Home Sales Price of closed sales jumped 14.4% to $192,000, achieving a five-year record high.
5) Days on Market to closing dropped 29.1% to 83 days, hitting an eight-year record pace.
"While predictions are strong for the Minneapolis housing recovery to maintain upward momentum in 2014, it is hard to imagine that it could outstrip the activity levels of 2013. It seem probable that home price increases and fewer Minnesota home foreclosure listings will create declines in investor interests", comments Thuening. "With mortgage rates on the incline, first-time home buyers may find themselves needing a higher home down-payment before they can afford to buy a home."
In 2013 Home Destination kept residents informed about current Minneapolis real estate market conditions, helping prospective buyers understand market changes indicating that it is the right time to buy. Prospective Minneapolis - St. Paul home buyers ready to purchase a home can reach Jenna Thuening at 612-396-7832..