The Twin Cities real estate market is off to a frantic start. The spring buyer activity is already up and rising. On the other hand, according to the latest report from the Minneapolis Area Association of REALTORS®,seller activity and homes on the market have fallen to the lowest numbers in more than a decade.

• The number of homes for sale fell 22% to 10,065 – the lowest number on record in 13 years. New listings also fell 7.2% from last year.
• Inventory in the Twin Cities is the lowest it’s been in over a decade
• The median sales price for January was $215,000, up 10% from the median price of $195,000 last January.
• Home sales under $150,000 fell 18% from last year, while activity in all other price ranges increased. If you have been thinking about selling your home, it might make sense to contact a real estate agent.

Interest Rates Have Remained Low

After the Federal Reserve raised its key interest rate in Dec. 2015, most expected mortgage interest rates to begin a slow, upward crawl, but rates fell in January to an average of 3.86%. This means buyers still have more buying power and can be qualified to buy a higher priced home.

Record Prices in Some Areas

• Some cities and neighborhoods including Edina, St. Louis Park, Hopkins, Uptown and Southwest Minneapolis all saw record home sale prices in 2015.
• Homes in these popular areas can sell quickly and competition for buyers can be fierce. There are often multiple offers on the first day of listing!
• Listing your home when inventory is low and buyer demand is high can help you sell your home faster and for a higher price.

Economic check-up

• The Minneapolis-St. Paul metro continues to boast one of the best unemployment rates among large metro areas: 3.1%.
• Wages are starting to grow.
• Continued low energy costs and a mild winter are making it easier for families to save, so they can put money toward a down payment rather than in their gas tanks or heating their homes.