Across the Twin Cities region, the market recovery continues: In November, according to information released on Dec. 12 by the Minneapolis Area Association of Realtors (MAAR), buyer activity outperformed year-ago levels, inventory dropped and, for a ninth consecutive month, home prices rose compared to 2011.
The November housing market report for Shakopee tells a slightly different story. In Shakopee, the median sales price fell to $159,950, a decrease of 3.9 percent compared to November 2011. The average sales price was down 6.3 percent to $199,334. The number of new listings was down to 41 compared to 46 new listings in November 2011—a decrease of 10.9 percent. Shakopee did see an increase of 4.5 percent in the number of closed sales.
Overall, in the Twin Cities region, the median sales price was up 16.9 percent to $173,000, partly a result of decreasing supply vs. continued demand: The number of homes for sale fell 29.4 percent to 13,860 active listings—the lowest such number since January 2003. The number of homes for sale in Shakopee also decreased, falling 44.1 percent.
With prices on the way up, Cari Linn, MAAR’s president, expressed hope that more sellers will step into the market: “Price gains combined with more competition among buyers for less supply should be appealing to homeowners looking to make a move in the near future.”
The dropping number of “distressed sales” (foreclosures and short sales) is playing a big part in the rising market. Overall, new listings were up 0.2 percent. However, traditional new listings were up 27.8 percent while foreclosure and short sale new listings fell 21.1 percent and 45.7 percent, respectively. Thus, a pullback in bank-mediated listings has diluted a significant increase in traditional seller activity.
Similarly, closed sales were up 20 percent overall, but traditional sales were up 50.4 percent while foreclosures and short sales were down 14.9 and 2.7 percent, respectively. Homes sold in the traditional manner made up 64.2 percent of sales, foreclosures 24.6 percent and short sales 11.2 percent.
Months’ supply of inventory fell 40.6 percent to 3.4 months. Figures below 4.0 months of supply are typically hallmarks of sellers’ markets. Homes tended to sell in 104 days, on average, 25.9 percent quicker than last year. Sellers received 94.3 percent of their list price, on average, up from 90.9 percent during the same month last year.