The Twin Cities housing market is looking up lately. The month of May was a strong one with homes sales rising by 21 percent, and the number of building permits were up by half. The number of homes on the market are dwindling and there are plenty of buyers causing home prices in the area to start to rise. Home prices in May reached a high we last saw in October of 2010. The median sale price of a home was up 11 percent for the month of May.
New home construction was also up for the month of May. There were 389 building permits issued to Twin City area builders for the month. This is an increase of 50 percent over this time last year. Rock bottom interest rates are continuing to lure in buyers who are finding that there is a shortage of homes on the market compared to this time last year. For the month of May the number of houses on the market dropped 31 percent from May of 2011.
Bank owned properties and short sales made up 39 percent of all closed sales last month. This number is down from the nearly 50 percent we were seeing over the past couple years. Distressed properties typically sell for less than traditional properties which can drive down the median price of homes in the area. With distressed property sales down we will continue to see home prices rise.
If you are looking to buy or sell a home contact me. Our group specializes in Eden Prairie Real Estate, Chanhassen Real Estate, Chaska Real Estate, Lake Minnetonka Real Estate, Edina Real Estate and West Bloomington Real Estate.
Brace Helgeson Coldwell Banker Burnet
Licensed in Minnesota/Lic # 92065
Tags: Brace Helgeson, Buying a Home, Foreclosures in Minnesota, home values in Eden Prairie, Homes for Sale, Homes for sale in Chanhassen, Housing Market, Minneapolis Housing Market, Twin Cities Housing Market