Minnesota’s housing market is getting stronger and showing continued signs of recovery. The newest housing report from the Association of REALTORS® shows strong gains in closed sales in February and the first gain in statewide median prices since June of 2010.
Housing Market Showing Strong Signs of Recovery
Statewide closed sales were up nearly 15% in February 2012 compared to the same time last year. The median sales price was up 0.8% to nearly $124,900 last month. Nine of the state’s 14 regions saw increases or no change in median sales prices.
“Prices remain the big area for improvement in housing right now. Removing more properties – especially those distressed properties – will continue to help prices,” said June Wiener, President of the Minnesota Association of REALTORS®. “We are seeing a positive trend of more closed and pending sales. Increased sales will help us decrease the inventory available statewide.”
Median Sales Price: February 2012 compared to February 2011
- Statewide: + 0.8%
- 7 County Metro Region: -3.4%
- Arrowhead Region: +15.3%
- Central Region: -4.2%
- East Central Region: +1.0%
- Headwaters Region: +107.5%
- North Central Region: +1.6%
- Northwest Region: no change
- South Central Region: -13.9%
- Southeast Region: no change
- Southwest Central Region: +3.3%
- Southwest Region: +18.9%
- Upper MN Valley Region: -6.0%
- West Central Region: +7.7%
While prices remain one of the last areas to recover in this current housing market, homeowners are also starting to receive more of their original asking price from buyers. In February 2012, sellers statewide received 89.5% of their asking price; that’s up from 87.1% at the same time last year.
New listings are up 3.1% from this time last year. Since the start of 2012, new listings are down 0.8% and closed sales are up 11.5%.
“The newest housing numbers reflect what REALTORS® are seeing every day,” said Wiener. “The market will continue to improve as we see homes recover some of the value lost in the past few years. We must also remember that this is a long recovery – and losses can’t be reversed in just a few months or couple of years.”
The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 19,000 members who are active in all aspects of the real estate industry.