According to the above chart provided by the Minneapolis Area Board of REALTORS, the bottom of the Minneapolis real estate market is passed! This comes as sweet music to the ears of even the most discouraged MPLS home seller, and is a wake-up call to all of those prospective MN home buyers who think that they can wait around forever just because interest rates are below 4%. The combination of a strengthening economy, high affordability, and today’s low mortgage rates are the fuel that is thawing out the Minneapolis real estate market. Also, don’t assume that these rates will last forever. There aren’t many financial experts out there who think they will.
A New Way to Measure Minneapolis Home Sales Activity
Median sales price of homes in Minneapolis are up from last year, but, of course, the median sales price can be skewed by changing mixes of homes that be on the market, whether foreclosures, new construction, or condos. For example, more foreclosures on the market would tend to drive the median home sales price down because they tend to sell at lower prices. To solve this problem, the Minneapolis Area Association of REALTORS(R) has developed a new home price index through its 10K Research and Marketing Division, and will now belong to its arsenal of indicators used to measure the temperature of the Minneapolis real estate market.
*Posted May 12th, 2012. Data provided by the Minneapolis Area Association of REALTORS