Residential Construction in the Twin Cities Region is On the Rise
According to recent reports from the Builders Association of the Twin Cities (BATC), construction of new residential properties in the region has risen steeply, providing a welcome boost to second quarter figures. In fact, construction permits for residential properties are at their highest rate in nine years. Thus far, 2016 has been a competitive year in the Twin Cities housing market, with incredibly high demand and a shortage in available supply. That’s why the BATC’s report on the recent surge in residential building is welcome news for many eager home buyers and seller alike.
According to an article from Twin Cities Business, "The number of single-family homes being built rose three percent over the course of the year, while multifamily homes have significantly increased in production—once being 24 percent of all residential construction activity in February to 52 percent in April.” In other words, new build residential properties are on the rise, which means a housing market that’s been strapped for inventory will be coming into a slew of new and available properties. Plus, increased availability of residential property encourages potential sellers, by increasing their confidence in securing their next home. All around, a rise in residential building sends a positive ripple throughout the Minneapolis area housing market.
President of the Builders Association of the Twin Cities, Meg Jaeger, voiced her own appreciation of and prediction for the increase in residential building, saying, "This is the upward trend that we were hoping to see this year. With the Twin Cities existing housing inventory at a record low, we believe this upward trend in new construction will continue.”
With the remainder of June ahead, it seems as if 2016’s second quarter is already proving to be an encouraging one for the Twin Cities housing market, especially with the spring/summer buying and selling season nearing full swing. In fact, seller activity notched significantly upwards back in March, boasting a 12.6% increase in new purchase agreements, compared to the same time last year.
To boot, with the Minneapolis area’s high demand for housing, home buyers have been acting quickly, with the average home closing in 85 days—a full eighteen days sooner than in the year previous. President of the Minneapolis Area Association of Realtors, Judy Shields, echoed encouragement for the region’s recent seasonal boost, saying, "Between new loan applications and anecdotal evidence, we knew this spring would be another big one for buyers.”
All in all, the Twin Cities housing market shows no signs of losing steam. With mortgage interest rates at near historic lows and builder activity rising to meet ample demand, now is the time to stake your claim in the Minneapolis region’s skyrocketing housing market.
At Helgeson Platzke Real Estate Group, we offer the finest in Eden Prairie Real Estate. For decades, we have earned our community’s trust as the #1 sales team in the Eden Prairie area. With hands-on experience selling over 4,500 homes, our staff has both the knowledge and resources necessary to deliver your dream of homeownership. If you are interested in buying or selling your Eden Prairie area home this summer, now is the time to enlist a real estate professional who can help you make the most of this season’s extraordinary market.