National and Twin Cities Metro Markets Begin to Cool
Real estate market reports released this week show a national slowdown amid strong prices and low inventory. Nationally, the median sales price of 54 metro areas was $225,000, down 5% from August 2017, but up 2.3% higher than September 2016. This is significantly different from the median sales price in Victoria MN of $474,500, up 47.1% over September 2016.
Twin Cities Metro Housing Market Going from Red Hot to Slightly Cool
Here in the Twin Cities, what has been a red hot housing market is “starting to cool off just a bit.”*
While sales may be very slightly slowing down, housing prices are up – the median sales price rose 7.3% from one year ago to $246,900. Home prices in our area have consistently risen over the last 5.5 years. Also, at an average of 50 days on the market, homes went under contract 12.3 percent faster than in September 2016.
Victoria MN Home Prices and Listings are Up
The story is different for the housing market in Victoria MN however. The September 2017 local market update for Victoria showed:
- 5% increase in new listings over September 2016
- 1% increase in the median sales price over September 2016
- The median sales price in September 2016 was $322,500.
- The median sales price this September was at $474,500.
- The average home sales price is now $556,416, up 51.4% over a year ago.
- Year to date closed sales for Victoria MN have increased by 21.3%.
“I was surprised to see both the national numbers and the Twin Cities report,” said JW Real Estate Broker John Wichmann. Things are not slowing down for us at all. Here at JW Real Estate Group, we’ve had our best two years ever, and every indication is that things will continue at a strong pace, especially in my hometown of Victoria.”
When asked why Victoria MN is thriving, Wichmann replied, “Victoria is growing because we can. We have undeveloped green space. Our eastern neighbors are mostly developed and owners of the land that is not developed are holding out for an unrealistic number.”
When it’s fully developed, Victoria will be the largest city in Carver County. Wichmann is currently a planning commissioner for the city and is also sitting on the 2040 comprehensive planning steering committee. He sees a lot of good things in store for the community and is a part of making it happen.
“In spite of a reduced availability of homes for sale,” said Wichmann, “our local market remains healthy.”
*Erin Milburn, Slight Cool-Down Possible, Particularly under $250,000, Minneapolis Area Association of Realtors Blog, October 16,2017