We often talk about how hot the Twin Cities real estate market is, but what does that actually mean? Take a look at the article below, courtesy of the Twin Cities Pioneer Press. New data indicates that Twin Cities’ home sales and prices hit record prices this past June!
Twin Cities homes sales, prices hit record highs in June
Twin Cities home sales and median home prices both set record highs in June, area real estate associations said Tuesday.
Compared with June 2016, closed sales in the metro rose 2.2 percent to reach a new monthly high of 7,430 units. The median sales price, meanwhile, increased 7 percent to a record high of $259,000.
But pending sales only showed a 0.2 percent gain and new listings fell 0.5 percent. And the number of homes for sale fell 16.5 percent to 12,464 active listings in the metro. Declining foreclosure and short sale activity can contribute to marketwide declines, the Minneapolis Area Association of Realtors said in a news release. For example, within the traditional — non-lender mediated — segment, new listings rose 1.6 percent and pending sales rose 2.4 percent.
Home prices have now risen for the last 64 consecutive months and home sales have been averaging 99.5 percent of original list price, the associations said.
And as has been the case for month after month — and now year after year — low inventory is the primary culprit for any sales malaise rather than lack of offers.
“The market is definitely challenging some buyers. Not because of the higher home prices, but because of the shortage of existing inventory and multiple offer situations,” said Tina Angell, president of the St. Paul Area Association of Realtors.
Article was written and originally posted by Pioneer Press. You can find the original version here.
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