Twin Cities Market Update
According to the U.S. Census, homeownership is at 63.4 percent for the second quarter of 2015, down 1.3 percent from the second quarter of 2014. This is the lowest rate of homeownership since 1967. To put that in greater context, homeownership peaked at 69.2 percent in 2004, and the 50-year average is 65.3 percent. Although the data may be indicating otherwise on a macro level, mortgage applications have kept REALTORS® busy through summer.
New Listings in the Twin Cities region decreased 0.4 percent to 7,963. Pending Sales were up 12.1 percent to 5,716. Inventory levels fell 11.0 percent to 16,940 units. Prices continued to gain traction. The Median Sales Price increased 4.7 percent to $225,000. Days on Market was down 7.4 percent to 63 days. Sellers were encouraged as Months Supply of Inventory was down 19.6 percent to 3.7 months.
Ever since the Great Recession ended in about June 2009, the market has strengthened to once again become a cornerstone of the national economy. Better lending standards, lower oil prices and higher wages are a few of the catalysts for positive change. Many trends continue to reveal a stable housing market. Federal Reserve Chair, Janet Yellen, has predicted a fine-tuning of monetary policy by the end of the year. It is widely believed that interest rates will go up before the year is over, an indicator that the housing market is ready for such a move.
Source - Minneapolis Association of Realtors