Twin Cities Home Sales are Up, Inventory is Down
2016 was a solid year for Twin Cities home sales. The median sales price increased 5.8 percent to $232,000, the average days on market was down 16.4 percent to 61 days, and November 2016 closed sales were up 25.2 percent over November 2015.
For 2017, it is expected to remain a sellers’ market, with low inventory levels that dropped 22.8 percent to 10,706 active properties, (nearing a 14-year record low). Home values are expected to rise due to the short supply.
For Carver County, the median sales price increased 2.2 percent to $267,800, the average days on market was down 40 percent to 54 days, and November 2016 closed sales were up 39 percent over November 2015.
While buyers enjoyed historically low mortgage rates throughout 2015 and 2016, rates began inching up slightly in mid-November — a trend that may continue in 2017.
Nationally, the housing outlook remains bright, in spite of a potential rise in mortgage rates. Steady job and income growth contribute to the expectation that 2017 will be another solid year for the housing market.
Source: Local Market Update – November 2016, The Minneapolis Area Association of Realtors.