Real Estate on the Rise in the Twin Cities
Four bedrooms, refinished kitchen, newly painted and re-surfaced hardwood floors throughout, I could be describing any house on any block in the Twin Cities up for sale.
According to the Minneapolis Area Association of Realtors, in November home buyers saw median sales prices for homes in the 13 county metro area rise to $173,000, that's up 16.9% from November 2011. Peak prices came in June of 2006 before the bubble popped at $238,000.
John Everett of Edina Realty says, short sales and foreclosure are down. So traditional sales are driving the market.
"Traditional sales being over 50% which really is a strong indication of a rebounding market and a strengthening market," Everett said.
Everett says, In November new listings in the Twin Cities region increased 0.2%, pending sales were up 12.6%, inventory levels shrank 29.4%. He says, realtors are seeing multiple bids on properties.
"More buyers competing for fewer quality homes ultimately has a positive effect on the value of homes," Everett said.
Everett says, another trend is the number of days a house stays on the market. He says, it is down 25.9 percent to 103 days, as opposed to 148 days in 2011.
So how long is this up swing going to last? Everett says, if interest rates stay as low as they have been, things could look up well into 2013.