23 Aug 2014
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Housing Recovery Rolls Along in Twin Cities

Hopkins is one of many communities riding an uptick in sales that’s in its eighth straight month.

Housing Recovery Rolls Along in Twin Cities

For the eighth straight month, the Twin Cities' median home sales price rose as the metro area saw increased sales demand and the distressed market accounting for a smaller part of overall home sales, according to data the Minneapolis Area Association of Realtors (MAAR) released Monday.

In Hopkins, prices skyrocketed. The median home sales price in October was $130,000, up 35.6 percent from the same period a year ago, according to MAAR's data.

The bottom line: More homes sold in less time at higher prices and for closer to asking price than last year, MAAR officials said.

The Twin Cities' overall median sales price rose 14.8 percent to $175,000 in October compared with the same month in 2011, MAAR reported. Meanwhile, the trade group said the traditional median price rose 9.6 percent to $212,500; the foreclosure price climbed 15.2 percent to $123,500; and the short sale price was up 4.2 percent to $131,871, only the second year-over-year gain since June 2008.

“Sellers have been hesitant, but with tightening inventory comes improved prices.” said MAAR president Cari Linn said in a statement.

During October, 4,483 homes in the metro area went under contract, 34 percent higher than October 2011,according to MAAR. There were 4,262 completed home sales in October, a 15.1 percent gain from a year ago.

In Hopkins, the number of closings jumped 70 percent—from 10 in September 2011 to 17 in

The number of homes for sale fell 29.7 percent to 15,002 active listings—the lowest number since before January 2003.

Meanwhile, the number of homes for sale has dropped for 21 consecutive months and is just above 15,000, the lowest level for any month since January 2003, MAAR said

Another indicator of the housing market's health: The inventory or supply of homes available for sale. The October inventory dropped 41.4 percent to 3.7 months. That figure indicates the market is on the brink of favoring sellers. Generally, any figure below four month’s supply is the hallmark of a sellers' market, MAAR said.

Hopkins is right at the metro average. The number of homes for sale declined 40.7 percent to 64, while the months supply of inventory dropped 53.8 percent to 3.7 months. A year ago, the city had eight months of inventory.

Meanwhile, sellers saw homes go more quickly in October compared with the same month a year ago. Homes sold in an average of 104 days, 24.8 percent less time than last October. Sellers, on average, received 94.4 percent of their list price, 3.5 percent more than last year.

In the metro, traditional sales accounted for 64.4 percent of all home sales, foreclosures 25.1 percent and short sales 10.5 percent.

In Hopkins, the picture was a little less rosy. Sellers received 87.6 percent of the original list price in October 2012 compared to 93.4 percent a year earlier. The number of closed sales dropped 23.5 percent.

However, Hopkins is still doing better than last year. Year-to-date sales, median prices and percent of asking price are all up while the number of days on the market is down.

“The market is starting to lean away from lender-owned and short sale properties and more toward traditional sellers again,” Andy Fazendin, MAAR president-elect, said in a statement. “We’re optimistic for 2013.”

 

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