The Twin Cities housing recovery continued in October with the median-sales price in the 13-county region shooting up 14.8% over year-ago levels as sales grew 15.1%, the Minneapolis Area Association of Realtors (MAAR) said Monday.
A smaller supply of inventory is making the impact of hesitant sellers in Minneapolis-St. Paul not as significant in the overall market. This trend is allowing prices in the Twin Cities to rise, according to MAAR's October report.
The median Twin Cities home sales price in October hit $175,000, while the number of home closings reached 4,262 for the 31-day period.
Seller confidence improved overall with 5,301 homes put on the market, up 7.5% from year ago levels.
The Twin Cities area has been benefitting from solid employment numbers and tighter inventory levels for some time now.
"The median sales price has now risen for eight consecutive months," said Cari Linn, president of the Minneapolis Area Association of Realtors. "That's being driven by three primary factors: less supply, more demand and a healing distressed segment. Overall, new listings were up 7.5%, but traditional new listings were up 25.4% while both foreclosure and short sale new listings were down 7.5% and 31.6%, respectively."
Even foreclosure prices rose 15.2% from last year with the average price hitting $123,500 in October.
The month's supply of inventory declined to 3.7-months, suggesting limited supply in the market and the potential for prices to keep going up.