The housing market in the Twin Cities area is continuing to show improvement. It reached a new milestone in May with pending home sales rising to a level we have not seen in eight years. The increase is evidence that the market is starting to sway in favor of home sellers. Homes are selling for a higher price and are selling more quickly than they were a year ago. Rising home prices in the Twin Cities has more sellers jumping in the market as evident by the fact that listings increased by 26% last month.
The number of home sales in May increased by 13% to 5,363, and pending home sales rose by 19% to 5,872 according to data released by the Minneapolis Area Association of Realtors. Home prices also increased in May with a large increase of 15% to $194,450, the highest level seen in five years.
With increasing home prices more and more home owners are seeing their homes no longer underwater putting them now in a position to sell their home. 18.4% of residential properties with a mortgage were underwater, down from the first quarter of last year according to data recently released from CoreLogic.
“We are still far below peak home price levels, but tight supplies in many areas coupled with continued demand for single-family homes should help us close the gap,” said Anand Nallathambi, CoreLogic’s president and CEO.
If you are looking to buy or sell a home this summer 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