The Twin Cities housing market is moving back to a traditional buyer and a traditional seller, which are those who really prepare for a purchase for months. ~ Emily Green, president of the Minneapolis Area Association of Realtors
Minneapolis, Twin Cities Minnesota (PRWEB) December 30, 2014
A look back on the Twin Cities real estate market in 2014 and a look ahead at predictions for the Minneapolis 13 County housing market in 2015 show a lot of positives. Mirroring or stronger than nationally levels, 2014 was the best year in the Twin Cities housing recovery since the recession of 2008-2009, according to Realtor Magazine's December 23rd post. The Twin Cities regional housing market continues to make strides in recovery, even as some measures appear to show unfavorable movement.
"It looks like the well-prepared Twin Cities home buyer and home seller will find themselves ready for market adjustments and better positioned to be the active real estate players in 2015," predicts Jenna Thuening, owner of Home Destination. "The real estate sector across the nation saw substantial gains as prospective home buyers were able to prove better earnings. This was especially true for within Twin Cities real estate holding the position as the best larger metro for strong employment opportunities."
Real estate's history has held up the reliability factor that higher pending home purchase activity of traditional homes indicates market health regardless if the overall pending home sales indicator declines. MAAR says "that changing mix of sales activity has helped catalyze the nearly three straight years of (home) price gains. According to predictions, 2015 is looking like it will be another solid year for further advances in the Twin Cities real estate recovery, and home prices are expected to keep rising.
Key Happenings in Twin Cities Real Estate in 2014 and Predictions for 2015 According to Northstar MLS: current housing data showing year over year comparisons in November:
- Low interest rates surpassed predictions for 2014 and are expected to continue for months before trending upward by the end of 2015.
- 2014 strong housing affordability for first-time home buyers is expected to continue, especially in the 1st half of 2015 while rates are still low.
- Declines in overall 2014 home sales mask gains in the number of traditional home sales; the stronger traditional market is predicted to continue in 2015.
- Home searches in 2014 are down but of a better quality suggesting a more balanced market coming in 2015.
- Gains in 2014 home values are expected to continue to improve, only at a slower pace in 2015.
- Job and wage growth will continue 2014’s progressive trend and empower more homebuyers with sufficient income to make a home purchase. In October, the Census Bureau of Labor Statistics report ranked the Twin Cities top for the lowest rate of unemployment.
- Much of 2014 real estate market activity was generated by the high demand for condo homes.
- 2014 saw Minneapolis home builders catering to suit the demand for luxury homes by well-financed buyers; predictions are that builders will shift more focus in 2015 on constructing homes better suited for first-time Millennial age buyers.
- Housing inventory in the Twin Cities climbed during summer and fall months tipping the market more in a favor of home buyers. Generally, if there is a 6 Months supply or better, it is regarded as a “Buyers Market”, if between a 5-6 Months supply it is “Balanced”, and Under 5 Months is called a “Sellers Market”.
- As 2014 closes, the inventory improvements have meant that homes typically remain on the market longer till sold.
- Twin Cities home builders are closing out the 2014 year with a dip in activity, but predictions are that more Millennials are ready to buy a home and will boost sales in 2015. Additionally, builders anticipate that many households are ready to build on or purchase a larger home. As a result, the number of home additions and/or tearing down of existing homes and rebuilding for a larger home is predicted to be higher in 2015.
For the Twin Cities region, the dollar volume of closed home sales year to year at the end of November 2014 was $12,523,492,832 or down 0.5% from the same time frame in the previous year. Residential real estate investors in the Twin Cities searching for possible high profit margins if available home bargains could be found were challenged in 2014, while Cushman and Wake said that the most in-demand commercial real estate product types include class A core office buildings in downtown Minneapolis and select suburban locations.
"When comparing Twin Cities housing data to November a year ago, it looks like the real estate market is slowing down," Thuening concurs. However, last November was different because the type of homes sold indicated that buyers were scrambling to nab bargain homes. We are a lot closer to a healthier market at the close of 2014."
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. 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. Jenna Thuening has the real estate experience and acumen buyers and sellers benefit from. Learn more in the Summary of Twin Cities Real Estate 2014 report.