Minneapolis, Minnesota (November 12, 2013) – The
Minneapolis-St. Paul metropolitan housing market continued along the
path toward recovery in October. While some measures suggest a slowing
in the pace of recovery, this deceleration is primarily the result
of a healing distressed segment. Sellers felt more confident as new
listings rose 15.1 percent to 6,102, marking the seventh consecutive
year-over-year increase in monthly seller activity. Buyers closed on
4,495 homes, a modest 1.9 percent increase over last October. Consumers
have 15,556 properties from which to choose – or just 3.7 percent fewer
than last October, but 19.2 percent more than in January 2013.
The market-wide median sales price was unchanged from September 2013
at $195,000, but was up 11.4 percent compared to October 2012. In
October 2011, foreclosures and short sales together comprised 46.2
percent of all closed sales. In October 2013, these two segments
made up only 21.5 percent of all sales. For new listings, the same
October figure dropped from 42.4 percent in 2011 to 19.5 percent of all
new listings in 2013.
“The slight decrease in pending sales activity is entirely
attributable to declines in the number of contracts signed on
foreclosure and short sale properties,” said Andy Fazendin, President of
the Minneapolis Area Association of REALTORS® (MAAR).
Traditional pending sales activity was up 19.7 percent while
foreclosure and short sale contracts were down about 33.7 and 50.8
percent, respectively. Closed sales increased 1.9 percent overall, but
traditional closed sales rose 23.6 percent. Foreclosure sales and
short sales were down 32.9 and 50.0 percent, respectively. New listings
rose 15.1 percent overall, but traditional seller activity increased
39.0 percent higher as foreclosure and short sale new listings fell 24.4 and 50.1 percent, respectively.
On average, homes are spending 75 days on the market – the quickest
October pace in seven years. Sellers are receiving an average of 95.8
percent of their original list price – the highest October ratio since
2006. The Twin Cities metro now has 3.5 months’ supply of inventory, which suggests sellers are regaining their leverage.
“We are within the final phases of market recovery,” said Emily
Green, MAAR President-Elect. “Supply levels are stabilizing and
regenerating, which means buyers have more choices and balance is being
All information is according to the Minneapolis Area Association of
REALTORS® (MAAR) based on data from NorthstarMLS. MAAR is the leading
regional advocate and provider of information services and research on
the real estate industry for brokers, real estate professionals and the
public. MAAR serves the Twin Cities 13-county metro area and western
Wisconsin. 10K Research and Marketing, LLC is a wholly owned subsidiary