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 a Monday report from the Minneapolis Area Association of Realtors (MAAR).
In Shakopee home sales differed from the Twin Cities' trends. The median home sales price in Shakopee in October was $160,550, up just 0.1 percent from the same period a year ago, according to MAAR's data.
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 year-to-date median price was up 9.6 percent over a year ago, 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.
The number of homes for sale fell 29.7 percent to 15,002 active listings—the lowest number since before January 2003. In Shakopee there were 144 active listings, down 39 percent from a year ago.
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' supply of homes currently on the market. That figure indicates the market has just reached the tipping point toward favoring sellers. Generally, any figure below four months supply is typically the hallmark of a sellers' market, MAAR said.
There is only a 2.8-month supply of homes on the market in Shakopee, making for even more of a sellers' market.
Sellers saw homes generally selling 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.
“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.”