Our Twin Cities housing market trends continue to be all about appreciating prices and shrinking inventory. Median sales prices continue inching ever closer to the record levels hit in 2006 ($133 median price per square foot in February, versus the record $139 MPPSQFT from October 2005 to September 2006). Months supply continues to crater, with a record low of 1.9 based on the rolling 6 month average.
Anemic supplies of starter housing stock (new listings priced under 250k are down 16.2% YOY over the past 6 months) coupled with low supplies relative to demand at more generous price points (new listings are down 4.7% overall) have triggered bidding wars all over the Twin Cities metro region, with many agents and buyers reporting bidding wars within 24 hours of listing. In fact, the majority of houses sold in the Twin Cities are getting 100% of their asking price. This has been the trend since May of 2017, and was last experienced in this market place in January of 2006. With closed sales continuing to outpace new listings, you can expect to see prices creep up even further, while active listing supplies continue to shrink, and bidding wars will continue.
TL:DR: Twin Cities housing market trends continue to point to a historically strong seller’s market for the foreseeable future.