January numbers tell the story of low inventory
Minnesota’s housing market kicked off 2013 with another strong month for closed sales statewide, according to the newest housing report from the Minnesota Association of REALTORS®. Closed sales were up 9.1% statewide in January 2013 compared to January 2012. Inventory continues to be an issue in most areas of the state.
The median sales price for the entire state was up 13.6% from the same time last year to $142,000. In 2012 the median price was $125,000. The median price is the midpoint, indicating there were as many transactions above as there were below the stated price. Home values have been a cause of concern for many homeowners who were underwater with their mortgages.
“The increase in closed sales and the higher median sales shows the strengthening of the market. Homeowners are more willing to list their homes when the listing prices are higher,” said Chris Galler, CEO of the Minnesota Association of REALTORS®. “We’re encouraged that our members will see a busy spring market this year.”
The report also showed that listings are being purchased more quickly. Homeowners statewide are finding that they are able to sell their homes on average in about 97 days. This is a -16.4% decrease from the same time last year.
Days on Market Until Sale: January 2012 to January 2013
7 County Metro Region -16.9%
Arrowhead Region -30.6%
Central Region -8.2%
East Central Region -24.3%
Headwaters Region -28.6%
North Central Region -4.3%
Northwest Region -24.7%
South Central Region +13.0%
Southeast Region -14.4%
Southwest Central Region -1.0%
Southwest Region -30.4%
Upper MN Valley Region -46.5%
West Central Region -14.0%
“As inventory continues to decrease, prices will continue to go up,” said Jim Cormier, President of the Minnesota Association of REALTORS®. “We are seeing more multiple offers on homes for sale in Minnesota and many buyers are starting to put their offers in very quickly to avoid losing out on a property they want to buy.”
Homeowners are also receiving 91.8% of their original list price, which is also a +2.8% increase over the same time last year.
The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.