The Twin Cities housing market is clearly continuing the process of recovery. Sales prices are up but on fewer overall sales. Fewer distressed sales are certainly a welcome sign for homeowners and Realtors alike. ~ Michael Hunstad, St. Paul Association of
Minneapolis, Twin Cities Minnesota (PRWEB) January 27, 2015
The Twin Cities Housing Market Recovery Report by Home Destination is complied from Northstar MLS data and the recent CoreLogic Q3 2014 Home Equity Report. As housing experts, summarized progress in housing's recovery over the last year, the Twin Cities stands out as remarkably healthy.
“As more real estate listing come on the Twin Cities market, home buyers will have more options in 2015 and sellers will find higher levels of competition,” says Jenna Thuening, owner of Home Destination. “We expect to see a more balanced housing market; both buyers in search of a competitive advantage and sellers who in turn become buyers themselves can reinvest in another home.”
WAYS THE TWIN CITIES HOUSING MARKET IS BOUNCING BACK AND SHOWING A STRONG MARKET RECOVERY
1. Higher Demand for Luxury Homes - The luxury home industry experienced exceptional home sales and price improvements in 2014. While most metros struggle with home affordability cruxes, Twin Cities wage growth in 2014 was stronger than the national average. Home affordability is a big draw for both families and younger Millennials who are considering a move and relocation to live in the Twin Cities. Residents in the Minneapolis 13 county metropolitan area are typically feel more confident of spending when they feel assured of future growth in the metro's economy.
2. Home Price Appreciation Pace Moderates - Over the duration of 2015, CoreLogic predicts that home values will swing upwards by approximately 4.6 percent. Nationwide, home prices stubbornly persist at 12.9 percent under their April 2006 peak.
3. New Real Estate Listing On the Housing Market Boost Supply - New Twin Cities Real Estate Listings by Property Type according to current Northstar MLS housing data:
- Single-family Homes: 57,751 up +2.6%
- Town House - Condo Homes: 15,232 up +1.5%
- Condo Units - 4,530 down -2.4%
- Town Houses: 10,702 up +3.2%
- All Property Types: 73,768 up +2.3%
4. More Home Owners in the Twin Cities Can Refinance - Announcement on lower insurance premiums for government-backed mortgages from The White House of a reduction by the Federal Housing Administration should empower new home buyers. It also suggests that home owners who refinance with FHA would pay $900 less a year than they would otherwise, in a bid to help more Americans own a home.
5. More Millennials Are Nearing the Ability to Buy a Twin Cities Home - Jim O'Sullivan, chief U.S. economist at High Frequency Economics, commented on the possibility that the rebound in consumers' inflation outlook may influence Federal Reserve officials when contemplating when and how to raise short-term interest rates. According to a Twin Cities Business article titled Consumer Sentiment Index Rises to 8-year High posted December 12, 2014, signals that they are moving toward a rate hike is expected to push forward prospective Minneapolis homebuyers before that cuts into how much house they can buy.
6. 33 Consecutive Months of YOY Median Home Price Gains - In the Twin Cities region as a whole, the median sales price of homes climbed 5.1 percent to $205,000, recording a 33 consecutive months of year-over-year median price gains. However, this figure was down from an October median of $209,000. Home price increases are anticipated to continue.
7. Condominium Sales in the Twin Cities Push Prices Up - Minneapolis Area Association of Realtors (MAAR) cited increased condo activity for the rise in prices. The median price of new-construction condominium sales in the Twin Cities rose 65. "The condo boom downtown is certainly helping to bring prices up," said association President Emily Green. "The changing lifestyle demands of our community are leaving a mark on our urban core." The average price and price per square foot of Twin City condos for sale has increased significantly.
8. High Rental Costs in the Twin Cities - As the cost of buying a Twin Cities home has push upwards, more would-be homebuyers are dangling and paying higher rental costs in the meantime. With the existence of previous homeowners who lost their homes to foreclosure still forced to rent and many Millennials renting till they can afford to buy, the rental market will remain strong.
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 Eden Prairie, Minnesota. Helping all home buyer types, from individuals seeking to buy their first home to individuals purchasing investment properties, Jenna Thuening has the real estate experience and acumen buyers and sellers benefit from. Read the full report on the progress in recovery in the Twin Cities real estate.