There are some interesting things going on right now in the Minneapolis-St Paul housing market. Homeowners in the Twin Cities area are seeing homes sit on the market for a bit longer right now, but they’re still getting good money for their homes.
Lots of Inventory
The fewer months of inventory a market has, the hotter that market is. Looking at this chart you might think that someone slammed the breaks on the Twin Cities housing market. But there’s still another week and change left in the month for these numbers to correct closer to the average.
Still, anything between about 3–6 months of inventory is a pretty hot market so it’s definitely not time to panic.
Average Days on Market
Despite there being more inventory in the Minneapolis-St. Paul area this month, the average days on market has only ticked up slightly. This suggests there are still plenty of buyers looking for houses in the area. Of course, if you can wait a couple of months to list the overall length of the sale process might be faster.
Total Number of Sales
Given what we’ve already seen with inventory and days on market stats, this chart isn’t a huge surprise. The total number of sales in the Twin Cities area is down. Again, there’s still some time left in the month for these numbers to increase.
It’s possible that the holidays and the exceptionally cold weather has played a role in the number of home sales. This data point suggests that it might be worth waiting to list to see how things trend in the rest of January and into February.
Average Sale Price
All the data we’ve seen thus far suggests that a ‘wait and see’ approach makes sense for sellers over the next month or two in the Twin Cities. And although there are fewer total home sales, it is reassuring to see that the values of those homes are holding pretty well.
We can see here that the high last year was about $290,000 in June. The next highest is actually December, where average sale price was approximately $285,000. Up to this point in January 2018, the average sale price for the area is about $272,000. This is definitely an improvement over last February and March, which were the only months that had a lower average in the past year.
All this means that, in some ways, the Minneapolis-St. Paul market is in the midst of a seasonal lull. There is more inventory and homes are staying on the market longer. However, the sale prices of the homes that are selling are staying within the expected range for the area.
If you’re thinking about listing your home in the Twin Cities area and want to discuss your options and what makes the most sense for you, contact us for a free consultation.