While last year was certainly a great year for the Minneapolis real estate market, 2016 has also gotten off to a fairly strong start with both sales and home prices on the rise despite a lack in seller activity.
According to recent stats released by the Minneapolis Area Association of Realtors®, pending sales jumped 3.5% to 3,033 signed contracts over the first part of the new year, while the median sales price for homes in the area increased by over 10% from January 2015 to $215,000.
With a spike in sales, however, inventory around the Minneapolis area is significantly low right now, with the latest figures showing just 10,065 active properties on the market—the lowest total on record since the beginning of 2003. The record sales pace we’re seeing right now, along with an already low inventory, should be a strong motivating factor for home owners thinking about moving to list their home, which is going to be needed for Minneapolis to have another strong year in the housing market.
In terms of what people are buying in Minneapolis, single-family homes are still dominating sales right now, while townhouses in Minneapolis actually had the strongest year-over-year increase in sales volume.