Just about the time the media has all of us believing that the sky was falling and that Minneapolis home sales would start to resemble the market in Detroit (with homes selling for $500 apiece,) the media changes its tune. Too bad that they did not do that earlier because I personally had home buyers stop their searches after listening to the local news channels. Doom-and-gloom reports added a self-fulfilling prophecy to the home price downturn. Now the local real estate news articles would have you believe that the Minneapolis home sales figures are now going through the roof.
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We all know that the media thrives on extremes, and you would never ever read some news articles that says Minneapolis real estate sales are “just so-so” or perhaps that they are “slow and steady.” Those kinds of news reports do not sell very well. So, is there any merit in what the local media is saying about current MPLS home sales trends? It appears that there is some truth to it.
The Truth About Minneapolis MN Home Sales
Fortunately, the Minneapolis Area Association has released a recent report for market activity for the week of April 21st, 2012. Here is the link to that report in pdf format:
According to this MAAR report, there is merit to what the local media is saying about market conditions. Hopefully they will control their excitement enough to maintain perspective.
Here are some trends that were highlighted in the market report:
In the Twin Cities region, for the week ending April 21:
• New MLS istings increased 13.9% to 1,677
• Pending Minneapolis home sales increased 41.2% to 1,281
• Inventory of Minneapolis property decreased 28.4% to 17,447
For the month of March:
• Median home sales prices increased 7.1% to $149,900
• Days on Market for sold Minneapolis homes decreased 9.7% to 144
• The percentage of Minneapolis home sales increased 3.8% to 92.1%
• Months supply of home inventory decreased 37.6% to 4.7
It looks like thing are trending upward, and the fact that mortgage interest rates can only go up, we will see more prospective first-time and move-up buyers take action.