In 2015, inventory was low and inventory levels continue to fall this year, which fuels buyer’s competition hence more multiple offers and higher sales prices. Unfortunately, it is not projected to change any time soon. Maybe the rise in sale prices might make sellers more eager to list their homes.

According to Minneapolis Area Association REALTORS® (MAAR), the median sales prices is slightly down from the December numbers. As mentioned above, because of high demand and rising prices, mortgage rates continue to stay low for now, but expected to increase slowly by the end of the year. Here are some quick stats from MAAR:

• Pending sales were up 3.5% to 3,033 signed contracts
• New listings decreased 7.2% to 4,167 homes
• The median sales price rose 6.1% to $259, 900
• Distressed sales (foreclosures and short sales) made up just 10.6 percent of all sales, a drop of 26.7 percent from 2014
• Days on the market declined 15.8% to 85 days.

More jobs are being available and wages are rising. According to Bureau of Labor Statistics, Minneapolis-St.Paul metro has the second lowest unemployment rate at 3.1% compared to national 4.9%. Possibly due to the warmer weather, this year’s spring market started earlier and stronger than usual. Let’s hope it stays strong!

Flickr Creative Commons: Sean MacEntee (CC BY 2.0)
All photos used under this license.