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Housing Recovery blog posts

What 2016’s Market Predicts in 2017

Ryan Platzke
Photo by www.bigstock.com
Now that we’re decidedly in the midst of the winter season, we can enjoy the benefits of hindsight as we examine how the housing market fared in 2016 and what its trends can tell us about the year ahead.

Perhaps the biggest real estate headline in 2016 was the swift ascent of median home prices, topping out at an all-time high and leaving sellers both happy and well-positioned for their next property. What’s more, closed sales reached an 11-year high in Minnesota, just shy of breaking their all-time record, this according to the Minneapolis Area Association of Realtors. In other encouraging news, foreclosure activity further declined while homes spent far fewer days on the market—a strong indicator of buyer enthusiasm and confidence. Surrounding Minneapolis areas, like Eden Prairie, also enjoyed a boost as the Twin Cities region continued its multi-year increase in population and housing development.

Strong Demand and Solid Pricing Sums up the Winter 2016 Housing Market

Ryan Platzke

Photo by www.bigstock.comAccording to the Minneapolis Area Association of Realtors, there is considerably strong demand going forward as we make our way through the wintry season. To boot, home prices are fairing strongly, and inventory—though still trying to catch up to unprecedented levels of demand—is slowly but surely keeping pace.

Research from the Minneapolis Area Association of Realtors shows that demand is up by 1.6% compared to this time last year. While that might not seem like a marked percentage increase, it actually amounts to a thousands of additional properties purchased by homebuyers in the Minneapolis area. What’s more, closed sales increased too, just shy of a percentage point at .8%, amounting to a 4,791 additional closed home sales.

For home sellers eyeing the market—and potentially their next property—rest assured that you’re likely to get a solid price for your home, with reports indicating that the median sales price for autumn this year rose by 6.5% annually. Likewise, homes on the market are selling quickly, and attractive listings are likely to garner multiple bids. According to the Minneapolis Area Association of Realtors blog, "The average percent of original list price received at sale was 96.9 percent, 0.8 higher than last year. But the median percent of current list price received is 99.6 percent, the highest level since 2005.”

Judy Shields, the President of the Minneapolis Area Association of Realtors, commented on the surge, saying, "Demand is still soaring.” This is encouraging news due to the season, where activity tends to taper off this time of year. Instead, winter 2016 is looking to be a scorcher when it comes to Minneapolis area housing market demand. In addition, the Minneapolis area labor market is going strong, and growth is on the move in all sectors, which means that prosperity in the workforce will likely translate to continued prosperity in the Twin Cities area housing market. In fact, the unemployment rate in the Minneapolis area is significantly lower than the 4.9% national average, coming in locally at 3.3%.

Though mortgage interest rates have shifted a bit, they are still far lower than the year-by-year average, which means that the time is ripe for homebuyers looking to lock in unprecedentedly attractive 30-year fixed-rate mortgage interest rates right now. This winter is surely shaping up to be a positive one in the Minneapolis area, whether you’re interested in buying or selling your home.

At Helgeson Platzke Real Estate Group, we are proud to be a member of Eden Prairie’s esteemed small business community. Since 1995, we’ve offered the very best in Twin Cities real estate, earning our community’s trust as the #1 Sales Team in the Eden Prairie area. With over 4,500 homes sold, our staff has both the knowledge and experience necessary to ensure that your home ownership goals are delivered. So, if you’re considering buying or selling your Eden Prairie area home this summer, now is the time to enlist the help of a real estate professional who can help you make the most of this season’s extraordinary market.

Your Year-End Real Estate Roundup

Brace Helgeson

Photo by www.bigstock.comThis year has been an eventful one in the world of real estate. From news of increased inventory with new home construction on the move, to unprecedented demands for existing homes, 2016 has shaped up to be a largely positive one for the U.S. housing market.

Let's begin with increased demand. As recently as October, the National Association of Realtors at Realtor.org reported that existing-home sales continued their upward trend this autumn, even toppling June's high sales peak. This is particularly remarkable news considering that spring and summer are largely held as the top home-buying and selling months of the year. However, in October, all major regions around the country reported significant increases in annual sales. Total existing-home sales—or, the sales of homes built and on the market—grew 2% in October. At a seasonally adjusted 5.9%, October's existing-home sales outpaced summer rates and were the highest since February 2007.

Chief Economist at the National Association of Realtors, Lawrence Yun, commented on the unexpected gains, saying, "October's strong sales gain was widespread throughout the country and can be attributed to the release of the unrealized pent-up demand that held back many would-be buyers over the summer because of tight supply." What's more, Yun went on to say that wages are pushing upward and construction is also increasing, which means that a market in high demand will soon enjoy the relief of added inventory. Plus, workers are primed to enjoy a bump in pay, making the transition to homeownership a more financially feasible one.

In other news, high-tech trends are emerging in the housing market, as realtors, builders, and owners recognize the need and mounting desire for smart home accessories, according to another report by the National Association of Realtors. Realtors are seeking certifications in smart home technologies—such as Nest—to better serve homebuyers seeking up-to-date accoutrements in their future dream home. According to the report, over half of potential homebuyers are interested in these emerging technologies, some that address household thermostat systems, others that provide cutting edge security features linked to smartphones. As new-build properties hit the market, technology of this nature is sure to be on the minds of builders and planners equipping new construction properties.

Finally, 2016 was marked by exceptionally low mortgage interest rates of historic proportions. With the presidential election in the rearview mirror, some of those numbers are on the move, which means that now more than ever is the time to lock in a low mortgage interest rate. Regardless, 2016 was a strong year for mortgage interest rates, and certainly was an important component in the market's often unprecedented surges.

At Helgeson Platzke Real Estate Group, we are proud to be a member of Eden Prairie's esteemed small business community. Since 1995, we've offered the very best in Twin Cities real estate, earning our community's trust as the #1 Sales Team in the Eden Prairie area. With over 4,500 homes sold, our staff has both the knowledge and experience necessary to ensure that your home ownership goals are delivered. So, if you're considering buying or selling your Eden Prairie area home this summer, now is the time to enlist the help of a real estate professional who can help you make the most of this season's extraordinary market.

A Fast-Moving Twin Cities Market Hits a 9 Year High

Brace Helgeson
Not since 2007 have homes for sale in the Twin Cities area managed to sell so quickly, according to a recent report from the Minneapolis Area Association of Realtors. Likewise, the Minneapolis area’s competitive market and high demand for inventory has pushed original list price sales to a stunning 98.4% of all total homes, another figure not seen in years.

Current president of the Minneapolis Area Association of Realtors, Judy Shields, commented on the speedy home sales boost, saying, "Our days on the market indicator tells us that most homes are selling pretty quickly.” In fact, the total amount of days that for-sale homes in the Twin Cities area stayed on the market fell 15.9% in August, compared to this time last year. This means that that a significant percentage of homes were snapped up within just 53 days of their original posting.

Just as exceptional demand has kept the Twin Cities housing market moving at a record pace, it has also inspired homebuyers to pay the full original list price on for-sale homes. Considering the Minneapolis area’s competitive market, most home buyers are willing to pay full list price to secure their next dream home. Not since July 2005 have buyers been so willing to pay close to full original list price—a figure that demonstrates just how hot the Minneapolis area’s summer real estate market has been.

As of late, the Twin Cities market has been lively but inspiring to home buyers and home sellers alike. While home sellers in the Twin Cities region rest assured that their property will be snatched off the market at a solid price and in short order, home buyers are confident that their new investment will offer a positive yield in the years to come, as the Minneapolis and St. Paul areas enjoy rapid and unprecedented growth.

Furthermore, home buyers—as well as sellers who are moving on to their next property after closing—are enjoying historically low mortgage interest rates at the moment. Spurred on by Brexit and the Fed’s tentativeness in raising rates, mortgages are at such low levels that even existing homeowners are flocking to refinance, according to CNBC.

All in all, this summer has proved to be a memorable one for the Twin Cities real estate market. Throughout the season, the Minneapolis area has posted some record-breaking figures, all of which speak to a flourishing market—whose exceptional momentum may extend through autumn.

At Helgeson Platzke Real Estate Group, we are proud to be a member of Eden Prairie’s esteemed small business community. Since 1995, we’ve offered the very best in Twin Cities real estate, earning our community’s trust as the #1 Sales Team in the Eden Prairie area. With over 4,500 homes sold, our staff has both the knowledge and experience necessary to ensure that your home ownership goals are delivered. So, if you’re considering buying or selling your Eden Prairie area home this summer, now is the time to enlist the help of a real estate professional who can help you make the most of this season’s extraordinary market.

2015 Home Sales and Listings shows Significant Improvement for Eden Prairie (through July)

Our Team

In the City of Eden Prairie the July 2015 housing trends illustrates some interesting results statistically for home owners and potential buyers. It seems the market is still a seller’s market with a limited amount of inventory from the 10 year norm but the market is equaling out benefiting the potential home buyer. After viewing these statistics it would seem it's the right time to buy a home in Eden Prairie. Read more details now...

Housing Market in the Twin Cities in March the Best in a Decade

Brace Helgeson

The Twin Cities housing market was hot last month. In fact, it was the strongest March we have seen in a decade. Buyers were given more options when it came to available homes on the market, and mortgage interest rates continued to remain low.