With the spring market here we wanted to provide an update on how the Real Estate Market performed in 2016 and what to expect in 2017.
In 2016 we saw the housing market really take a turn for the better, Home prices reached a record high and home sales reached an 11 year high!
2016 Market Summary*:
The median sales price reached an all-time high; while closed sales reached an 11-year high.
Closed sales nearly broke their all-time record, but fell 0.3 percent short of their all-time 2004 high.
Seller activity declined 1.1 percent. Near-record sales activity combined with flat-to-weaker seller activity created a supply shortage.
Active housing supply levels fell to a 14-year low. This shortage has created a competitive environment where multiple offers have become more common- Sellers are receiving strong offers in record time
2016 by the Numbers:
- Median Sales Price rose 5.5 percent to $232,000, which is an all-time record high
- Days on Market declined 15.8 percent to 64 days, on average (median of 33)—a 10-year record low
- Sellers listed 76,531 properties on the market, a 1.1 percent decrease from 2015
- Buyers closed on 59,988 homes, a 6.2 percent increase from 2015 and the highest figure since 2005
- Months Supply of Inventory was down 30.4 percent to 1.6 months, also a 14-year low
Changes in sales activity varied dramatically by market segment
Single-family sales rose 5.1 percent;
Condo sales rose 9.5 percent
Townhome sales rose 9.9 percent
Traditional sales rose 10.0 percent
Foreclosure sales fell 25.0 percent
Short sales fell 31.1 percent
Previously-owned sales rose 5.7 percent
New construction sales rose 14.9 percent
So far in 2017 we are seeing the same trends as 2016 and are looking forward to a potentially record-breaking year for both home sales and prices.
2017 Market Summary*:
There has been low inventory throughout the first few months so homes are selling in a shorter period for close to or above list price
Average days on the market for 2017 have fallen 7.1 percent to last year, in 2016 the average days on the market was 85 and for 2017 the average is 79.
The most active price range is $190,000 to $250,000 a
We are looking forward to a busy year!
If you have any questions on this report or if you would like to check on the value of your home please contact us!
*All information provided is according to the Minnesota Association of Realtors Annual Wrap up