Decrease in Foreclosures Boosts Twin Cities Housing Market
In 2014 home sales in the Twin Cities metro region dropped when compared to the previous year, however the economy was rebounding and we saw fewer foreclosures last year. With the foreclosure crisis in the Twin Cities slowly nearing end home prices soared last year.
Home sales dropped by close to 7 percent in 2014 when compared to 2013. However, home sales in 2014 marked the second-highest numbers we have seen since 2005, as reported by the Minneapolis and St. Paul Area Association of Realtors.
Home sales may have dropped in 2014 as we saw fewer foreclosures, but the median price of homes increased by 7.2 percent, with a median price of $205,739. This is the highest median price we have seen for homes in the Twin Cities in nearly seven years.
Many experts agree that last year was the healthiest housing market we have seen since the housing crash that hit in 2008. That can be attributed to the number of the foreclosures dropping to near what we consider normal levels, homes sold more quickly, and buyers were provided with more housing availability to choose from.Delinquency rates on mortgages in the Twin Cities metro area dropped to slightly under 3 percent, per the recent Core Logic report. The drop in foreclosures has done wonders to strengthen the housing market in the Twin Cities. Last year there were only 16.5 percent of sales that attributed to foreclosures or short sales, quite a drop from the 26.3 percent we saw in 2012, and an even larger drop from the 39.7 percent in 2011. With fewer foreclosures investors have left the metro area and have been replaced by move-up buyers.
"The market is returning to more solid footing,” said Tom Weiner, president of the St. Paul Area Association of Realtors.
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