Consecutive Months of Price Gains
Cities homes sold for a higher median price than during the year prior for the
12th consecutive month. This is a significant milestone demonstrating a real
and sustainable recovery. Several patterns continued from 2012: pending
purchase activity was up, new and existing supply levels were down, prices were
higher and distressed market activity eased.
There were 2,736 closed home sales during
February 2013, 4.7 percent fewer than February 2012. There were 3,689 pending
sales, a 2.0 percent increase over last year. The median sales price rose 15.5
percent to $160,000. Inventory levels declined 31.6 percent to 12,202 active
listings, the lowest number for any month going back to January 2003. The
number of homes for sale is at a 10-year low.
â€œWeâ€™re watching seller activity almost more
than buyer activity,â€ said Andy Fazendin, President of the Minneapolis Area
Association of REALTORSÂ®. â€œBank listing activity is down while traditional
seller activity is up. Thatâ€™s an encouraging shift.â€
Looking at activity by sale type, traditional
closed sales were up 21.5 percent; foreclosure sales were down 23.5 percent;
short sales were down 28.5 percent. Since traditional homes sell for about 75.0
percent more than foreclosures, the median sales price rose, as it has for 12
straight months compared to year-ago levels. The 10K Housing Value Index â€“
which controls for data variability â€“ showed a tamer 10.2 percent increase to
$179,010. Stronger confidence and less economic uncertainty will encourage more
seller activity, thereby increasing the supply of homes for sale. There is
evidence this is improving, as traditional seller activity has been on the rise
A healing distressed segment has also
facilitated recovery. At 72.3 percent, traditional homes represented more than
70.0 percent of all new listings for the first time since June 2008.
Traditional homes also made up 55.4 percent of all closed sales. The
traditional median sales price was up 14.2 percent to $205,500; the foreclosure
median sales price was up 12.3 percent to $116,522; the short sale median sales
price was up 10.1 percent to $127,750.
Monthsâ€™ supply of inventory fell 40.8 percent
to 2.9 months. Figures below 4.0 months suggest weâ€™re in a fledgling sellerâ€™s
market. Homes sold in 113 days, on average, or 21.5 percent quicker than
February 2012. Sellers received 93.7 percent of their list price, on average,
up from 90.6 percent last year. Conventional financing comprised 46.7 percent
of all closed sales; FHA financing was used on 20.9 percent of sales; cash
buyers made up 25.1 percent of sales.
â€œJudging by the number of inquiries agents
are receiving, buyers seem prepared and motivated this spring,â€ said Emily
Green, MAAR President-Elect. â€œWe anticipate an uptick in new listings and we
hope it is enough to meet the strength of buyer demand.â€
Till Next Time!
Walter AltenbachÂ |Â Real
Estate ProfessionalÂ |Â Edina Realty
C 612-239-4194Â Â |Â Walter@WalterSellsHomes.comÂ |Â
WalterSellsHomes.comÂ |Â Facebook