There are four very clear trends in the Real Estate Market: Pending Sales are reaching upward, Home Sales are increasing, the Median Sales Price has upward motion and the overall Supply of Homes is down. Well, this is true for the twin cities market; Central Minnesota (including St. Cloud, Sartell, Sauk Rapids, St. Joseph and Waite Park) shows positive trends excluding the median price increase. Here are the specifics on our market and on the market the St. Cloud are tends to trend.
November Pending Sales: There were more pending sales in November of 2012 since 2005 and every November since.
November Homes for Sale: There were 29.4% fewer homes on the market than last November. Currently, we are experiencing the lowest inventory since January of 2003. This low point in inventory marks a ten year low (this is more like an eight year low in Central Mn). A major contributing factor to this are banks. Banks are listing fewer and fewer homes. This is giving the private owner an opportunity to sneak on to the market and potentially capture a fair market price.
November Median Sales Price: This is where Central Minnesota differs from the twin cities market. The Minneapolis and surrounding area is up 16.9%. This is wild! It is also the highest increase since 2008. It represents the ninth month of increasing median sales prices in the metro. Unfortunately, the St. Cloud area remains in the negative; we did not experience an increase in median sales price in 2012. However, we did have positive or increases in our median sale price during our spring months of the year.
There are three drivers of price gains:
3-FEWER BANK OWNED SALES
November Months Supply of Inventory: This is where the rubber hits the road. The twin cities market (our driving force in Central Minnesota) is 40.6% down in months of supply to an impressive 3.4 months of inventory. So, if no homes came on the market for the next 3 1/2 months, there would be no homes available for buyers. This is 40% lower than last year and this sets the tone for a HOUSING RECOVERY. And, it opens the door to a SELLER’S MARKET.
With the economy expanding, the 2013 spring housing forecast is positive for home sellers and very exciting for the home buyer. We should see higher quality homes represented by private owners and builders AND not see as many bargain basement homes that need months of repairs and costly improvements.