Twin Cities Housing Market Hits 10-Year High
The Twin Cities metropolitan housing market reached a peak in June not reached since 2005.
According to the Minneapolis Area Association of Realtors (MAAR), signed purchase agreements were up 19.2 percent compared to 2014, and closed sales rose 22 percent during the same timeframe. A nearly 5 percent jump in new listings also occurred in June, the highest number for any month since April 2010.
Median housing sales also saw a bump of 4.7 percent to $229,000 since the year previous. MAAR said today is “a historically attractive time to purchase real property” as the average length of time a listing stays on the market is down to 66 days.
“I think the reason for the pace of the marketplace now is a result of two factors,” said Mike Hoffman, president of MAAR. “Interest rates continue to be remarkably low and consumer confidence has picked up measurably—probably the highest it’s been in a number of years.”
The Federal Reserve estimates that interest rates could rise slightly toward the year’s end as the economy continues on its upward stride. Mortgage rates have moved above and below the 4 percent mark, while long-term averages more than 7 percent.
“We’ve got a market that is far more responsive,” said Hoffman, describing the Twin Cities market as “a Steady Eddie,” or fairly unwavering. “Some of the west coast [housing markets] have really gone crazy, so there is an ability with our metropolitan area to be solid and reliable.”